Dr K.V.Rao** MARGINAL COSTING Introduction: MARGINAL COST: Marginal Cost is the additional cost of producing an additional unit of product. In simple, marginal cost is the extra cost of an extra unit of production. It is the total of all variable costs. It composed of all direct costs and variable costs. The CIMA, London, defines marginal cost “as the amount at any given volume of output by which aggregate costs are changed,
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Furtwangen – Furtwangen University © Copyright : Prof. Dr. Michael Lederer Page 1 Contents overview management accounting A. Introduction and basic concepts A.1 Cost terms A.2. Costing systems and cost allocation A.3 Cost-volume-profit analysis A.4 Operations accounting 5 11 26 63 78 B. The budgeting process B.1 Budgeting B.2 Variance analysis © Copyright : Prof. Dr. Michael Lederer 87 88 114 C. Relevant cost and decision making 136 D. Marketing and pricing decisions 157
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product costing; costvolume-profit analysis; and budgeting. Course Objectives After completion of the course, you should be able to: Understand the roles of financial accounting (external) and managerial accounting (internal) Analyze financial reports, specifically the balance sheet, statement of profit and loss and statement of cash flow. Identify and apply key financial ratios to financial statement analysis. Identify and apply basic elements of cost concepts, product costing and
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Week 1 Question 1 Welcome to our Week 1 Discussions! To get us started, let's consider the following questions. 1) Would a traditional income statement differ depending on whether the business is a service organization, merchandiser, or manufacturer? 2) Could we use managerial accounting tools to assess the profitability of an organization other than a manufacturing business, or are the topics that we are learning only related to manufacturing? 3) If we could use these concepts in service
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| | |decision maker | | | | | | |Thought Process: | | | | |understanding what is required | | |
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Product Costing Module in ERP for L&T Kansbahal Works, Kansbhal, Orissa : A Case Study 1 Seema G. Bhol, 2Arun Mishra & 3Srikanta Patnaik Sambalpur University, Burla, Orissa, India, 2Head (IT Services), L&T, Kansbhal, Orissa, India, 3 Department of Computer Science ITER , SOA University , Bhubaneswar, Orissa, India E-mail : guptaseema@hotmail.com, arun-kbl@kbl.ltindia.com, patnaik_srikanta@yahoo.co.in 1 Abstract - One need to be very accurate in what the products and services are costing. Inaccurate
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File 1 of 35 Problem 7 – Job Order Costing Jessica Company started operations on January 2, 20x6. The company manufactures custom products and uses a job order system. Overhead is allocated to jobs based on direct labour costs. The budgeted manufacturing overhead for 20x6 was $396,900 and the direct labour costs were budgeted at $567,000. At the end of 20x6, there were two jobs in work in process: Direct material cost Direct labour cost Job A605 $20,000 12,000 Job A608 $36,000 38,000 Actual
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KAIZEN COSTING THE PERFORMANCE OF THE ORGANIZATIONS TABLE OF CONTENTS Page Table Of Contents 1 1.1 Introduction 2 1.2 The Concept Of Kaizen Costing 2 1.3 Kaizen And Management 4 1.4 Kaizen -The Three Pillars 5 1.4.1 Housekeeping 5 1.4.2 Waste (Muda ) Elimination 7 1.4.3 Standardization 10 1.6 Kaizen And Total Quality Management (Tqm) 13 1.7 Kaizen And Suggestion Systems 14 1.8 Goals Of Kaizen Vs. Quality, Cost And Delivery 15 1.9 Common
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PRODUCT COSTING A noted earlier, all product costs are charged to inventory. To facilitate this process, manufacturers break inventory into three categories: RM inventory, WIP inventory, and FG inventory. There are two categories of direct cost (DL & DM) and then there is overhead, which is a catch-all term for everything except DL and DM. Raw materials are charged to RM inventory when purchased and transferred to WIP inventory when it is used. DL is charged directly to WIP. Indirect product costs
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Final Exam II: Chapters 13-26 Name Financial and Managerial Accounting Instructor Section # Date Part I II III IV V Total Points 60 18 19 14 14 125 Score PART I — MULTIPLE CHOICE (60 points) Instructions: Designate the best answer for each of the following questions. ____ 1. Which of the following is a responsibility center that incurs expenses, generates revenues, and is responsible for generating a return on assets? a. Cost center b. Revenue center c. Profit center
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