ACTIVITY-BASED COSTING McGraw-Hill/Irwin Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved. ACTIVITY BASED COSTING Traditional costing system 1. Direct and indirect costs are allocated to process centres or major departments ABC System 1. The direct and indirect costs are allocated to activities like Purchases, Material handling, Producing the goods, machine set ups, Supervising production workers, Inspecting finished goods, Dispatching good to customers 2.Cost
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Page 174 CHAPTER Q1 Q2 Q3 Q4 Q5 Q6 Job Costing In Brief Custom products and services, which are produced singly or in small batches, need to be valued for financial statements, tax reporting, and management monitoring. Job costing is an accounting method used to assign product costs to custom products or services. In job costing, direct costs are traced and overhead costs are allocated to individual jobs. Sometimes defects occur in custom products. Defective units can sometimes be reworked.
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Chapter 5 Activity-Based Costing and Customer Profitability Analysis Cases |5-1 |Blue Ridge Manufacturing (Activity-Based Costing for Marketing Channels) | |5-2 |Columbo Soft-Serve Frozen Yogurt: Using Activity Based Costing To Assess Channel/Customer Profitability | |5-3 |Wilson Electronics (A) | |5-4 |Wilson
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Benefits and Compliance of Lean Accounting As a way to reduce costs, manufacturing businesses today are looking for a leaner approach to production and are focusing on the overall process of producing an item to eventually sell to a consumer. This process is called the value stream, which is defined in Cost Accounting: A Managerial Emphasis as “the value-added activities needed to design, manufacture, and deliver a given product or product line to customers” (Horngren, Datar, & Rajan, 2014, p. 635)
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Mark one letter for each question response. Note that in some cases there are options like ʺD) Both A and C are correct.ʺ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Cost objects include: A) customers C) products B) departments D) All of these answers are correct. 2) Cost tracing is: A) the process of tracking both direct and indirect costs associated with a cost object B) a function of cost allocation C) the assignment of direct costs to the chosen cost object
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converted into a salable product. Answer: False Difficulty: 2 Objective: 1 Reworked goods are unacceptable units of production that can be repaired into a salable product. 3. The value of scrap material can have either a high or low sales value relative to the product with which it is associated. Answer: False Difficulty: 2 Scrap material by definition has a low sales value. Objective: 1 4. Normal spoilage adds to the cost of the job to which it is attributed in a job order costing system. Answer: True Difficulty:
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accounting. Understand the evolution of management accounting. Explain about the IFAC model. Understand how managers can use accounting information to implement strategies. Explain about Relevant Lost & Relevant Regained. 3 Accounting System (accumulates financial and managerial accounting data) Managerial Accounting Information for decision making, and control of an organization’s operations. Internal Users Financial Accounting Published financial statements and other
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Sector 4 The Present Scenario 5 Indian Automotive Industry Supply Chain 6 Characteristics of the Auto Supply Chain 8 Tiered Structure 8 Linkage of Suppliers and OEMs 9 Supplier Power – An Industry Level Analysis 10 Clustered Development 11 Financial Position of the Suppliers 12 Supply Chain Challenges in the Auto Industry 13 SM Auto Stamping Pvt. Ltd – An Introduction 13 Products Manufactured 14 Quality Systems 14 Manufacturing Process 15 Challenges and Opportunities 15 Scheduling
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Copyright : Prof. Dr. Michael Lederer Hochschule 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
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Decision making means process of selecting a logical choice from the available options. In industry, the person who is in charges to making a decision, should weight the positives and negatives of each option, and consider all the alternatives of each option, and consider all the alternatives. “Managerial accounting is concerned with providing information to managers-that is, to those who are inside an organization and who direct a control its operations. Managerial accounting can be constructed
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