how accountants measure opportunity Managers in the business world seldom have the luxury of being able to assess true opportunity cost because estimating opportunity costs would require the decision maker to evaluate all possible decisions and determining relevant values for each one. For example, the decision to replace old equipment with new equipment might contain the following possibilities: rebuilding or improve existing equipment; purchase new equipment; lease new equipment; or do nothing
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software platforms the remote access and control over internet of the key systems and data bases is impossible. Moreover individual accounting and human resource software systems is applicable for different offices. The IT department was thought as a cost center with an assigned budget, run by technology engineers with less management involvement. The technology priorities had a political component in which the internal stakeholders with the highest ranking were first in line. IT decisions are made
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Costing: Problems on Operating Costing Prof. R Raja Gopala Sastry [4] Methods and Techniques of Costing: Problems on Operating Costing Prof. R Raja Gopala Sastry Cost per ton 120 200 80 [5] Methods and Techniques of Costing: Problems on Operating Costing Prof. R Raja Gopala Sastry Cost per ton of raw material 360 840 50 [6] Methods and Techniques of Costing: Problems on Operating Costing Prof. R Raja Gopala Sastry records of oil mills for
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The initial assumption was that the market structure for the low-calorie frozen, microwavable food company operated in a perfectly competitive environment. Perfect competition is totally different from imperfect competition. Under perfect competition, there are many buyers and sellers, and prices reflect supply and demand. Also, consumers have many substitutes if the good or service they wish to buy becomes too expensive or its quality begins to fall short. New firms can easily enter the market
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Cost Classification Cost information provides a platform for managers to “manage resources efficiently and effectively to create customer value and shareholder wealth” (Langfield-Smith et al., 2015, p.40). According to Drury (2012), cost and management accounting information system should generate to meet the following requirements: 1. Allocate costs between cost of goods sold and inventories for stock valuation, internal and external profit measurement. 2. Provide information for planning, control
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conformance quality failure. 5. Costs of quality (COQ) reports usually do not consider opportunity costs. Answer: True Difficulty: 2 Objective: 1 6. A control chart identifies potential causes of failures or defects. Answer: False Difficulty: 2 Objective: 2 This is a definition of a Pareto diagram. 7. A cause-and-effect diagram is used to help identify potential causes of defects. Answer: True Difficulty: 2 Objective: 2 8. Allocated cost amounts are an important determinant
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* Relevant Facts 1. There are essentially three major categories of hog inventory—live hogs ready for sale, developing animals, and processed pork products. 2. Not all live hogs in other locations that cannot be easily transported and processed at the Company’s main processing plants. As a result, these live hogs must be sold to third parties at spot market prices. 3. There are several factors, including increased supply of pork due to the capture of the Big Bad Wolf, have lead to the declining
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advantage by reducing cost and driving innovation. This means CIOs are under pressure to build infrastructure that can move and adapt at the same rapid pace as the rest of the business. They need to support geographical expansion, mergers, and product or service innovation while at the same time reducing costs. In other words, CIOs are being asked to do more for the business with fewer resources. Every year, the same cycle repeats: reduce total cost, move the cost structure from fixed to
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reason is that interest rates may changes, which could change the present value of cash flows. c. The point C represents the use of historical cost accounting because historical costs may be low in relevance. The point B represents the use of current-value accounting because the relevant of current value accounting generally exceeds that of historical cost. d. Measuring the cash, both cash flow and net income could be done in order to improve the relevance of
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TOPICS COVERED IN THIS CHAPTER : 13.1.0 Definition Of Inventory : 13.2.0 Various Costs Related To Inventory Management : 13.3.0 Inventory Management - Constrains & Problems : 13.4.0 Economic Order Quantity : 13.5.0 Measuring Efficiency Of Inventory Management : 13.6.0 Inventory Control : DETAILS OF TOPICS COVERED IN THIS CHAPTER ARE AS FOLLOWS : 13.1.0 Definition Of Inventory : The Dictionary meaning of Inventory is 'a list of goods'. In a wider sense, inventory can be defined as an
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