COST ACCOUNTING II MARGINAL COSTING AND DECISION MAKING Prepared by Teddy Ossei Kwakye Lesson Objectives Distinguish between relevant and irrelevant revenues and costs Analyze relevant costs and indicate how they differ under alternative decision scenarios Apply differential analysis to decision scenarios, including discontinuation decisions; to accept a special order; to make or buy and to sell or further process a product Allocate limited resources for purposes of maximizing short-run
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MANAGEMENT ACCOUNTING AND COST CALCULATION IN DAIRY INDUSTRY USING STANDARD COST METHOD Bogdănoiu, Cristiana-Luminiţa Assistant, Ph.D. Student Spiru Haret University, Faculty of Financial Accounting Management Craiova and University of Craiova, Faculty of Economics and Business Administration, Craiova e-mail: cristiana.bogdanoiu@yahoo.com Abstract This paper aims to discuss issues related to the improvement of management accounting in the dairy industry by implementing standard cost method. The methods
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a) You have been invited to write a report evaluating each option. Outline how Planning, Decision making and Control could help with these decisions. Your discussion should identify fixed and variable costs and any other factors that you feel are relevant including any non-financial costs and benefits. In order to take a decision which route to embrace, the manager should sustain his opinion using a scheme that entails planning which means identifying the objectives, locating suitable premises
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Jet Green Airways Solution and Explanations We now describe Jet Green’s cost structure as follows (at least that part of Jet Green’s costs that relate to flights between Minneapolis and Atlanta). I. Costs that vary strictly with the number of passengers: Food, beverages and ticket processing $26 Fuel $20 Baggage handling $10 Total $56 per passenger II. Costs that vary strictly with the number of one-way flights Landing and takeoff fees $ 5,000 Flight
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Material Cost Classifications Consult Ch. 6 & 7 of Health Care Finance and other sources to complete the form. This worksheet requires you to match the definitions and examples of types of cost, and the types of centers where costs occur. Part 1: For each term in Column A, select the correct definition from Column B on the right. Write the corresponding letter of the definition next to the term. Column A F 1. Indirect costs A 2. Direct costs D 3. Fixed costs I E H
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preparing business strategies: To survive in today's highly competitive business environment, any organization must achieve, at least temporarily, a competitive advantage. A low cost/price strategy: focuses on providing goods, services at a lower cost than the competition. This strategy requires as well a tight cost-control system, benefiting from economies of scale in production and experience curve effects. Differentiation strategies: The firm ability to offer products and services that are
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It’s the buzz “People will pay for anything” Less than 2% of the population live on farms “It worked last year” There is a demand Incomes and populations have increased Pros and Cons PROS Income Educational People-oriented Fun CONS Cost Marketing People business Liability . . . Regulations Long hours Labor Management Different Agritainment Steps to Consider: Goals and philosophies (profit vs. non-profit) Market research . . . Market development People skills Site selection
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Inbound marketing leads, according to Hubspot, cost 62% less than leads from outbound marketing. But don’t expect that cost advantage to last. One of two things is happening: Inbound isn’t really more cost effective. Maybe Hubspot’s sample is biased or methodology is bad, but for whatever reason, the 62% isn’t true. Inbound really is more cost effective today and early adopters are reaping the benefit. If reports of inbound marketing’s cost effectiveness are wrong, then inbound today may be far
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when a qualified employee leaves a company, the productivity, efficiency, and profits of that company will be affected. Calculations by retention/turnover experts that it costs a company 150% of an employee’s base salary to replace him or her. For example, it will cost $90,000 to replace a $60,000 a year employee when costs for recruiting, interviewing, training, and lost productivity are taken into consideration (“How Managing Employee Turnover Impacts the Bottom Line,” 2005).
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related) Explicit costs: payment made to outside suppliers of inputs e.g. salaries/wages, raw material, overhead costs implicit costs: do not involve direct payment of money, sacrifice of some alternative e.g. salary forgone/interest forgone (factors are already owned by firm) accounting cost: explicit cost economic costs → opportunity cost to society (explicit + implicit costs) traditional objective = profit maximization profit = revenues – cost. Non traditional objectives
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