Chapter 2 An Introduction to Cost Terms and Purposes
|
|
- Ami Woods
- 6 years ago
- Views:
Transcription
1 Chapter 2 An Introduction to Cost Terms and Purposes Copyright 2003 Pearson Education Canada Inc. Slide 2-15
2 Costs and Cost Objects Cost a resource sacrificed or foregone to achieve a specific objective Cost Object any product, machine, service or process for which cost information is accumulated cost objects can vary in size from an entire company, to a division or program within the company, or down to a single product or service Copyright 2003 Pearson Education Canada Inc. Page 32 Slide 2-16
3 Direct and Indirect Costs Direct Cost a cost which is related to a particular cost objective and can be traced to it in an economically feasible way Indirect Cost a cost which is related a particular cost objective but cannot be traced to it in an economically feasible way indirect costs are allocated to cost objectives Direct Cost Indirect Cost Trace Allocate Cost Object Copyright 2003 Pearson Education Canada Inc. Page 33 Slide 2-17
4 Cost Drivers and Cost Management Cost driver (cost generator or cost determinant) a factor which causes the amount of cost incurred to change production costs are driven by the number of products produced, labour costs, number of setups required, and the number of change orders Cost Reduction Programs focus on two things: 1. Doing only value-added activities 2. Efficiently manage the use of cost drivers in those value-added activities Copyright 2003 Pearson Education Canada Inc. Page 34 Slide 2-18
5 Variable and Fixed Costs Variable Cost a cost which is constant per unit but changes in total in proportion to changes in the cost driver materials (parts), fuel costs for a trucking company $ Volume Fixed Cost a cost which does not change in total as volume changes but changes on a per-unit basis as the cost driver increases and decreases amortization, insurance $ Volume Copyright 2003 Pearson Education Canada Inc. Page 35 Slide 2-19
6 Relevant Range and Cost Behaviour the range of the cost driver in which the a specific relationship between cost and driver is valid $ Relevant Range $ Relevant Range Volume Volume Variable Cost Fixed Cost Copyright 2003 Pearson Education Canada Inc. Page 37 Slide 2-20
7 Total Costs and Unit Costs Unit Cost (or Average Cost) Total cost / some number of units Average cost = Total manufacturing costs / Number of units produced = $980,000 / 10,000 = $98 per unit Unit or average costs must be interpreted with caution As volume increases, the unit or average cost falls as the fixed costs are spread over a larger number of units Copyright 2003 Pearson Education Canada Inc. Pages Slide 2-21
8 Types of Inventory Retailer Merchandising inventory Manufacturer Direct material inventory (stock awaiting use in the manufacturing process) Work-in process inventory (partially completed goods on the shop floor) Finished goods inventory (goods completed but not yet sold) Copyright 2003 Pearson Education Canada Inc. Page 39 Slide 2-22
9 Period and Product Costs Period Costs are expensed on the income statement as they are incurred also called operating costs (excluding cost of goods sold) examples: selling, general and administrative costs Product Costs are inventoried on the balance sheet and expensed only when the product or service is sold also called inventoriable costs Examples: materials and labour (manufacturing) Copyright 2003 Pearson Education Canada Inc. Pages Slide 2-23
10 Costs in a Retail / Wholesale Company Balance Sheet Income Statement Revenue Merchandise Purchases Merchandise Inventory Cost of Goods Sold Inventoriable (Product) Costs Period Costs Gross Margin Marketing and Administrative Costs Operating Income Copyright 2003 Pearson Education Canada Inc. Page 41 Slide 2-24
11 Costs in a Manufacturing Company Balance Sheet Direct Material Purchases Materials Inventory Income Statement Revenue Direct Labour Indirect Manufacturing Costs Work in Process Inventory Finished Goods Inventory Cost of Goods Sold Gross Margin Inventoriable Period Costs Marketing and Administrative Costs (Product) Costs Operating Income Copyright 2003 Pearson Education Canada Inc. Page 44 Slide 2-25
12 The Many Meanings of Product Costs Important theme of this book is different costs for different purposes Three examples of product cost 1. Product pricing and product emphasis include all costs incurred 2. Contracting with government agencies May exclude marketing costs and include only a portion of R&D costs 3. Financial Statements Under GAAP, only manufacturing costs are included in inventory Copyright 2003 Pearson Education Canada Inc. Page 47 Slide 2-26
13 Alternative Classifications of Costs 1. Business function a. R&D b. Design c. Production d. Marketing e. Distribution f. Customer service 2. Assignment to a cost object a. Direct costs b. Indirect costs 3. Behaviour pattern a. Variable costs b. Fixed costs 4. Aggregate or average a. Total costs b. Unit costs 5. Assets or expenses a. Inventoriable costs b. Period costs Copyright 2003 Pearson Education Canada Inc. Pages Slide 2-27
An Introduction to Cost terms and Purposes. Session 2
An Introduction to Cost terms and Purposes Session 2 Learning Objectives Define and illustrate a cost object Distinguish between direct costs and indirect costs Explain variable costs and fixed costs Interpret
More information2.1 Identify and distinguish between two manufacturing cost classification systems: direct and indirect, prime and conversion.
Chapter 2 An Introduction to Cost Terms and Purposes 2.1 Identify and distinguish between two manufacturing cost classification systems: direct and indirect, prime and conversion. 1) "Cost" is defined
More information1. F; I 2. V ; D 3. V ; D 4. F; I 5. F; I 6. F; I 7. V ; D 8. F; I 9. F; I 10. V ; D 11. F; I 12. F; I 13. F; I 14. F; I
SOLUTIONS TO EERCISES EERCISE 2-1 (15 minutes) 1. F; I 2. V ; D 3. V ; D 4. F; I 5. F; I 6. F; I 7. V ; D 8. F; I 9. F; I 10. V ; D 11. F; I 12. F; I 13. F; I 14. F; I EERCISE 2-2 (15 minutes) 1. Product
More informationMANAGEMENT 9 ACCOUNTING
9-1 9-2 Chapter MANAGEMENT 9 ACCOUNTING A BUSINESS PARTNER To explain the three principles guiding the design of management accounting systems. LO1 Management Accounting: Basic Framework 9-3 Management
More informationAn Introduction to Cost Terms and Purposes
CHAPTER 2 An Introduction to Cost Terms and Purposes Learning Objectives After studying this chapter, a student should be able to: 1. Identify and distinguish the logic underlying three cost classification
More informationMANAGERIAL ACCOUNTING. 2 nd topic COST CLASSIFICATION
MANAGERIAL ACCOUNTING 2 nd topic COST CLASSIFICATION Structureofthelecture2 2.1 Definition of cost and related terms 2.2 Types of cost classification 2.3 Identification of cost classification 2.4 Reporting
More informationCost Accounting, 15e (Horngren/Datar/Rajan) Chapter 2 An Introduction to Cost Terms and Purposes. Objective 2.1
Cost Accounting, 15e (Horngren/Datar/Rajan) Chapter 2 An Introduction to Cost Terms and Purposes Objective 2.1 1) An actual cost is. A) is the cost incurred B) is a predicted or forecasted cost C) is anything
More informationCost Accounting: A Managerial Emphasis, 16e, Global Edition (Horngren) Chapter 2 An Introduction to Cost Terms and Purposes
Cost Accounting: A Managerial Emphasis, 16e, Global Edition (Horngren) Chapter 2 An Introduction to Cost Terms and Purposes 2.1 Objective 2.1 1) Which of the following would be considered an actual cost
More informationCOST C O S T COST. Cost is not a simple concept. It is important to distinguish between four different types - fixed,, variable, average and marginal.
Ir. Haery Sihombing/IP Pensyarah Fakulti Kejuruteraan Pembuatan Universiti Teknologi Malaysia Melaka Chapter 3 DIRECT COST Chapter 4 INDIRECT COSTS C O S T COST Cost is not a simple concept. It is important
More informationCost Behavior. Material Cost: Direct material: 1. seen in the final product 2. economic/visible to trace Indirect Material:
1 Chapter 2 Introduction to Cost Terms and Purposes Cost A cost is the value of economic resources (e.g., money) sacrificed or used up to achieve a particular objective (e.g., produce a product or perform
More information2.1 Identify and distinguish between two manufacturing cost classification systems: direct and indirect, prime and conversion.
Cost Accounting, Cdn. Ed., 7e (Horngren) Chapter 2 An Introduction to Cost Terms and Purposes 2.1 Identify and distinguish between two manufacturing cost classification systems: direct and indirect, prime
More informationBasic Cost Management Concepts. M. En C. Eduardo Bustos as
Basic Cost Management Concepts M. En C. Eduardo Bustos Farías as 1 Objectives 1. Explain what is meant by the word "cost." 2. Distinguish among product costs, period costs,, and expenses. 3. Describe the
More informationAccounting for Manufacturing
Accounting for Manufacturing 1 Accounting for Manufacturing and Inventory Impairments TABLE OF CONTENTS Accounting for manufacturing 2 Production activities 2 Production cost flows 3 Accounting for production
More informationSri Lanka Accounting Standard LKAS 2. Inventories
Sri Lanka Accounting Standard LKAS 2 Inventories CONTENTS paragraphs SRI LANKA ACCOUNTING STANDARD LKAS 2 INVENTORIES OBJECTIVE 1 SCOPE 2 5 DEFINITIONS 6 8 MEASUREMENT OF INVENTORIES 9 33 Cost of inventories
More informationCMS Notes Lecture 1 Management vs. financial accounting Management accounting internal Financial accounting external
CMS Notes Lecture 1 Management vs. financial accounting Management accounting measures and reports financial and non- financial information that assist managers in fulfilling the goals of the organisation.
More informationSri Lanka Accounting Standard-LKAS 2. Inventories
Sri Lanka Accounting Standard-LKAS 2 Inventories CONTENTS paragraphs SRI LANKA ACCOUNTING STANDARD-LKAS 2 INVENTORIES OBJECTIVE 1 SCOPE 2 5 DEFINITIONS 6 8 MEASUREMENT OF INVENTORIES 9 33 Cost of inventories
More informationAccounting for Merchandising Operations
5-1 Chapter 5 Accounting for Merchandising Operations Learning Objectives After studying this chapter, you should be able to: 1. Identify the differences between service and merchandising companies. 2.
More informationBUSINESS FINANCE SERIES EVENT PARTICIPANT INSTRUCTIONS
CAREER CLUSTER Finance CAREER PATHWAY Corporate Finance Pathway INSTRUCTIONAL AREA Financial Analysis BUSINESS FINANCE SERIES EVENT PARTICIPANT INSTRUCTIONS The event will be presented to you through your
More informationAccounting for Merchandising Operations
5-1 Chapter 5 Accounting for Merchandising Operations Learning Objectives After studying this chapter, you should be able to: 1. Identify the differences between service and merchandising companies. 2.
More informationWelcome to: FNSACC507A Provide Management Accounting Information
Welcome to: FNSACC507A Provide Management Accounting Information Week 1 Chapter 1 COST CONCEPTS FNSACC507A Provide Management Accounting Information By the end of this lesson, you will be able to 1. Explain
More informationCOST SHEET. Samir K Mahajan
COST SHEET Samir K Mahajan COMPONENTS OF TOTAL COST Prime cost: It is the aggregate of direct material cost, direct labour cost and direct expenses. Prime cost or Direct cost = Direct materials + Direct
More informationChapter 2--Product Costing: Manufacturing Processes, Cost Terminology, and Cost Flows
Chapter 2--Product Costing: Manufacturing Processes, Cost Terminology, and Cost Flows Student: 1. Which of the following types of organizations is most likely to have a raw materials inventory account?
More informationActivity-Based Costing Systems
4 Activity-Based Costing Systems 4-2 Learning Objective 1 4-3 Traditional Costing Systems Traditional cost systems were created when manufacturing processes were labor intensive. A single company-wide
More informationInventories. Raw material 61,000 81,000 Work in process 80,000 30,000 Finished goods 90, ,000
Beginning Inventories Ending Raw material 61,000 81,000 Work in process 80,000 30,000 Finished goods 90,000 110,000 Direct material used 318,000 Direct Labour 230,000 Manufecturing Overhead-60% of Direct
More information1. The cost of an item is the sacrifice of resources made to acquire it. 2. An expense is a cost charged against revenue in an accounting period.
Chapter 02 Cost Concepts and Behavior True / False Questions 1. The cost of an item is the sacrifice of resources made to acquire it. True False 2. An expense is a cost charged against revenue in an accounting
More informationSolutions Manual for Cost Accounting A Managerial Emphasis 14th edition by Horngren Datar and Rajan
Solutions Manual for Cost Accounting A Managerial Emphasis 14th edition by Horngren Datar and Rajan Link download Solutions Manual for Cost Accounting A Managerial Emphasis 14th edition by Horngren Datar
More informationrate is used to apply overhead costs to products. Our purpose in this section is to provide a detailed example of cost flows in an ABC system.
Appendix 6A Cost Flows in an -Based Costing System 6A-1 Cost Flows in an -Based Costing System In Chapter 4, we discussed the flow of costs in a job-order costing system. The flow of costs through raw
More informationManagerial Accounting: Making Decisions and Motivating Performance (Datar/Rajan) Chapter 2 An Introduction to Cost Terms and Purposes
Managerial Accounting: Making Decisions and Motivating Performance (Datar/Rajan) Chapter 2 An Introduction to Cost Terms and Purposes Learning Objective 2-1 1) The cost incurred is: A) actual costs. B)
More informationFinancial Accounting. John J. Wild. Sixth Edition. Copyright 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
Financial Accounting John J. Wild Sixth Edition McGraw-Hill/Irwin Copyright 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 04 Reporting and Analyzing Merchandising Operations Conceptual
More informationMultiple Choice Questions
Multiple Choice Questions 1. A cost not relevant to deciding whether to purchase a new machine is: a) The cost of the new machine b) Lower maintenance costs for the new machine c) The cost of the old machine
More informationCOST COST OBJECT. Cost centre. Profit centre. Investment centre
COST The amount of money or property paid for a good or service. Cost is an expense for both personal and business assets. If a cost is for a business expense, it may be tax deductible. A cost may be paid
More informationThe candidate must answer all questions and their parts. Be presise.
Faculty of Social Sciences School of Business Managerial Accounting Examination December 2014 English Date: Monday 15 December, 2014 Time: 4 hours / kl. 9-13 Total number of pages including the cover page:
More informationChapter 3--Product Costing: Manufacturing Processes, Cost Terminology, and Cost Flows
Chapter 3--Product Costing: Manufacturing Processes, Cost Terminology, and Cost Flows Student: 1. Which of the following types of organizations is most likely to have a raw materials inventory account?
More information2 Cost Concepts and Behavior
2 Cost Concepts and Behavior Solutions to Review Questions 2-1. Cost is a more general term that refers to a sacrifice of resources and may be either an opportunity cost or an outlay cost. An expense is
More information2. Standard costs imply a) Predetermined cost for a period b) Incurred cost c) Conversion cost d) Incremental cost
QUESTION BANK PAPER: COST ACCOUNTING COURSE: B.Com (Semester IV) MCQs 1. The basic objective of cost accounting is a) Recording of cost b) Reporting of cost c) Cost control d) EarningProfit 2. Standard
More informationFinancial Accounting. John J. Wild. Sixth Edition. Copyright 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
Financial Accounting John J. Wild Sixth Edition McGraw-Hill/Irwin Copyright 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 05 Reporting and Analyzing Inventories Conceptual Chapter
More informationIncremental Analysis. LO 1: Analysis
Incremental Analysis LO 1: Analysis Terms Incremental analysis Relevant cost Opportunity cost Sunk cost Analysis: Incremental analysis uses financial data that changes among alternatives to help decision
More informationCost concepts, Cost Classification and Estimation
Cost concepts, Cost Classification and Estimation BY G H A N E N DR A F A G O Cost Concepts Cost refers the amount of expenses spent to generate product or services. Cost refers expenditure that may be
More informationCOST OF GOODS MANUFACTURES B.COM. PART II
COST OF GOODS MANUFACTURES B.COM. PART II Q#1 Following are the balances appear on the Trial Balance of SAMREEN & Co. for the year ended April 30, 1980. Inventory of Goods in Process April, 01 Rs.109,000
More informationOnline Course Manual By Craig Pence. Module 12
Online Course Manual By Craig Pence Copyright Notice. Each module of the course manual may be viewed online, saved to disk, or printed (each is composed of 10 to 15 printed pages of text) by students enrolled
More informationChapter Outline. Study Objective 1 - Describe the Steps in Determining Inventory Quantities
Chapter 6 Financial Notes and BE Chapter Outline Study Objective 1 - Describe the Steps in Determining Inventory Quantities In a merchandising company, inventory consists of many different items. These
More informationINVENTORIES AND COST OF SALES
Chapter 06 INVENTORIES AND COST OF SALES PowerPoint Authors: Susan Coomer Galbreath, Ph.D., CPA Charles W. Caldwell, D.B.A., CMA Jon A. Booker, Ph.D., CPA, CIA Cynthia J. Rooney, Ph.D., CPA McGraw-Hill/Irwin
More informationInventories. 2. Explain the accounting for inventories and apply the inventory cost flow methods.
6-1 Chapter 6 Inventories Learning Objectives After studying this chapter, you should be able to: 1. Describe the steps in determining inventory quantities. 2. Explain the accounting for inventories and
More informationMBP1133 Managerial Accounting Prepared by Dr Khairul Anuar
1 MBP1133 Managerial Accounting Prepared by Dr Khairul Anuar L8 Activity-Based Costing: A Tool to Aid Decision Making www.notes638.wordpress.com 2 Activity Based Costing (ABC) ABC is designed to provide
More informationTUTORIAL -ABC. Ir. Haery Sihombing/IP Pensyarah Pelawat Fakulti Kejuruteraan Pembuatan Universiti Teknologi Malaysia Melaka
TUTORIAL -ABC Ir. Haery Sihombing/IP Pensyarah Pelawat Fakulti Kejuruteraan Pembuatan Universiti Teknologi Malaysia Melaka TOTAL COST for a COST OBJECT EXAMPLE: 1 Direct Cost (Labor Material) Overhead
More informationInventory Cost Accounting Tips and Tricks. Nick Bergamo, Senior Manager Linda Pei, Senior Manager
1 Inventory Cost Accounting Tips and Tricks Nick Bergamo, Senior Manager Linda Pei, Senior Manager 2 Disclaimer The material appearing in this presentation is for informational purposes only and is not
More informationIndian Accounting Standard (Ind AS) 2 Inventories
Indian Accounting Standard (Ind AS) 2 Inventories Indian Accounting Standard (Ind AS) 2, Inventories, prescribes the accounting treatment for inventories, such as, determination of cost and its subsequent
More informationPart 1 Study Unit 5. Cost Accumulations Systems Jim Clemons, CMA Ronald Schmidt, CMA, CFM
Part 1 Study Unit 5 Cost Accumulations Systems Jim Clemons, CMA Ronald Schmidt, CMA, CFM 1 Overview Cost accounting systems record manufacturing activities using a perpetual inventory system, which continuously
More information6. Refer to the Michael's Manufacturing, Inc. information above. Raw materials used for July is:
Review II NUMBER 1. Which of the following is a characteristic of managerial accounting? a. It is used primarily by external users. b. It often lacks flexibility. c. It is often future-oriented. d. The
More informationACCOUNTING FOR MERCHANDISING ACTIVITIES
Chapter 6 ACCOUNTING FOR MERCHANDISING ACTIVITIES Presented by: Endra M. Sagoro Economic Faculty YSU endra_ms@uny.ac.id Operating Cycle of a Merchandising Company Cash Accounts Receivable 2. Sale of merchandise
More informationCost Concepts and Behavior
2 Chapter Two Cost Concepts and Behavior LEARNING OBJECTIVES After reading this chapter, you should be able to: L.O.1 L.O.2 L.O.3 L.O.4 L.O.5 L.O.6 L.O.7 Explain the basic concept of cost. Explain how
More informationLevel 3 Accounting, 2005
For Supervisor s 3 9 0 5 0 2 Level 3 Accounting, 2005 90502 Process financial information for a manufacturing job cost subsystem Credits: Three 2.00 pm Tuesday 22 November 2005 Check that the National
More informationPaper T4. Accounting for Costs. Thursday 10 December Certified Accounting Technician Examination Intermediate Level
Certified Accounting Technician Examination Intermediate Level Accounting for Costs Thursday 10 December 2009 Time allowed: 2 hours This paper is divided into two sections: Section A ALL 20 questions are
More informationCHAPTER 7 Accounting 1B. Activity-Based Costing(ABC): A tool to Aid Decision Making
CHAPTER 7 Accounting 1B Activity-Based Costing(ABC): A tool to Aid Decision Making Global Business Situation Using technology and productivity More emphasis on cost measurement and control Increasingly
More informationCHAPTER-7 COST ACCOUNTING SYSTEM AND PRICING POLICY OF ETHIOPIAN PRINTING COMPANIES
CHAPTER-7 COST ACCOUNTING SYSTEM AND PRICING POLICY OF ETHIOPIAN PRINTING COMPANIES 7.1 Costing system 7.2 Manufacturing cost 7.3 Cost center 7.4 Cost accumulation procedures 7.5 Pricing policy and system
More informationIntermediate Accounting IFRS Edition Kieso, Weygandt, and Warfield 9-2
9-1 C H A P T E R 9 INVENTORIES: ADDITIONAL VALUATION ISSUES Intermediate Accounting IFRS Edition Kieso, Weygandt, and Warfield 9-2 Learning Objectives 1. Describe and apply the lower-of-cost-or-net realizable
More informationOracle In-Memory Cost Management Cloud. Release What s New
Oracle In-Memory Cost Management Cloud Release 17.3 What s New TABLE OF CONTENTS REVISION HISTORY... 3 OVERVIEW... 4 UPDATE TASKS... 5 RELEASE FEATURE SUMMARY... 6 ORACLE IN-MEMORY COST MANAGEMENT CLOUD
More informationActivity Based Costing: A Decision Making Tool. with Dr. Joseph Ugras December 2017
Activity Based Costing: A Decision Making Tool with Dr. Joseph Ugras December 2017 1 7-2 Learning Objectives Know the Need for Cost and Profitability Understand how traditional and activity-based costing
More information70% of total manufacturing costs for the period
Midterm Review Class #1.1- COGM; Income Statement, Cost Behaviour On January 30, 2013, the manufacturing facility of Trucks R Us was severely damaged by a fire. As a result, the company s direct materials,
More informationAccounting Professional Certificate Program with Externship
Clemson University - Center for Corporate Learning 1 North Main Street, 7th Floor, Greenville, SC 29601 http://www.clemson.edu/online/ Contact: Juanita Durham 864.656.3984 jdrhm@clemson.edu Education &
More informationSECTION I. Sh ,000 10,200 16,680 14,000 2,600 4,200 13,300 2,520 1,600 10,500 12, ,000
QUESTION ONE SECTION I Wangu Manufacturing Company Ltd. is located at the industrial area in Nairobi. The company uses four different machine groups, A, B, C and D in its manufacturing process. The overhead
More informationMANAGERIAL ACCOUNTING Hilton Chapter 4 Adobe Connect Process Costing
1 MANAGERIAL ACCOUNTING Hilton Chapter 4 Adobe Connect Process Costing Overview Chapter 4 introduces another classic cost accounting system, Process Costing. Then, combined with knowledge of Job-Order
More informationAccounting for Overheads - Marginal Costing
Accounting for Overheads - Marginal Costing Marginal cost is the variable cost of one unit of product or service. Marginal costing is an alternative method of costing to absorption costing. In marginal
More informationOverheads/Job and Batch Costing. RST Ltd. has two production departments Machining and Finishing. There are three service
CA R. K. Mehta Overheads/Job and Batch Costing CA Past Years Exam Question Question : 1 Nov, 2006 RST Ltd. has two production departments Machining and Finishing. There are three service departments Human
More informationOracle In-Memory Cost Management Cloud. Release New Feature Summary
Oracle In-Memory Cost Management Cloud Release 17.3 New Feature Summary TABLE OF CONTENTS REVISION HISTORY... 3 OVERVIEW... 4 ORACLE IN-MEMORY COST MANAGEMENT CLOUD SERVICE... 4 Cost Planning... 4 Define
More information1. Cost accounting involves the measuring, recording, and reporting of: A. product costs. B. future costs. C. manufacturing processes.
1. Cost accounting involves the measuring, recording, and reporting of: A. product costs. B. future costs. C. manufacturing processes. D. managerial accounting decisions. 2. In accumulating raw materials
More informationThe Cost of Congestion: Breaking Down Societal Benefits and Consumer Costs
FREIGHT POLICY TRANSPORTATION INSTITUTE The Cost of Congestion: Breaking Down Societal Benefits and Consumer Costs Justin Taylor, Ken Casavant, Jeremy Sage and Barbara Ivanov Congestion on the urban road
More information1). Fixed cost per unit decreases when:
1). Fixed cost per unit decreases when: a. Production volume increases. b. Production volume decreases. c. Variable cost per unit decreases. d. Variable cost per unit increases. 2). Prime cost + Factory
More informationPricing Decisions & Profitability Analysis
Pricing Decisions & Profitability Analysis Economic theory The optimum selling price is the price at which marginal revenue equals marginal cost. 1 Problems with applying economic theory 1. Difficult and
More informationCHAPTER 9 SOLUTIONS TO PROBLEMS: SET B PROBLEM 9-1B. Expected unit sales... Unit selling price... Total sales...
CHAPTER 9 SOLUTIONS TO PROBLEMS: SET B PROBLEM 9-1B MERCER FARM SUPPLY COMPANY Sales Budget For the Six Months Ending June 30, 2017 Expected unit sales... Unit selling price... Total sales... Quarter 1
More informationIntroduction to Managerial Accounting 7th Edition Brewer Garrison Noreen Test Bank. Download:
Introduction to Managerial Accounting 7th Edition Brewer Garrison Noreen Test Bank. Download: https://testbankarea.com/download/introduction-managerial-accounting- 7th-edition-brewer-garrison-noreen-test-bank/
More informationIntroduction to Managerial Accounting 7th Edition Brewer Garrison Noreen Test Bank. Download:
Introduction to Managerial Accounting 7th Edition Brewer Garrison Noreen Test Bank. Download: https://testbankarea.com/download/introduction-managerial-accounting- 7th-edition-brewer-garrison-noreen-test-bank/
More informationAccounting Information Systems, 12e (Romney/Steinbart) Chapter 14 The Production Cycle
Accounting Information Systems, 12e (Romney/Steinbart) Chapter 14 The Production Cycle 1) The AIS compiles and feeds information among the business cycles. What is the relationship between the revenue
More informationCHAPTER 5 ACTIVITY-BASED COSTING AND MANAGEMENT
CHAPTER 5 ACTIVITY-BASED COSTING AND MANAGEMENT SHORT-ANSWER QUESTIONS 5-1 Cost smoothing (or traditional costing, broad averaging, peanut-butter costing ) describes a costing approach that uses one average
More informationHorngren's Financial & Managerial Accounting, 4e (Nobles) Chapter 16 Introduction to Managerial Accounting. Learning Objective 16-1
Horngren's Financial & Managerial Accounting, 4e (Nobles) Chapter 16 Introduction to Managerial Accounting Learning Objective 16-1 1) Managerial accounting focuses on providing information for internal
More informationVariable Costing: A Tool for Management. M. En C. Eduardo Bustos Farías
Variable Costing: A Tool for Management M. En C. Eduardo Bustos Farías 1 Absorption Costing A system of accounting for costs in which both fixed and variable production costs are considered product costs.
More informationChapter 2. Job Order Costing and Analysis QUESTIONS
Chapter 2 Job Order Costing and Analysis QUESTIONS 1. Factory overhead is not identified with specific units (jobs) or batches (job lots). Therefore, to assign costs, estimates of the relation between
More informationTHE COST OF PRODUCTION UNDER DIRECT COSTING AND ABSORPTION COSTING A COMPARATIVE APPROACH
THE COST OF PRODUCTION UNDER DIRECT COSTING AND ABSORPTION COSTING A COMPARATIVE APPROACH Bunea-Bontaş Cristina Aurora Lecturer Ph.D. Constantin Brâncoveanu University of Piteşti The Faculty of Management
More informationMona Loa Malaysian Manufacturing cost per bag... $6.00 $5.00 Add markup at 30% Selling price per bag... $7.80 $6.50
Case 8-24 1. a. The predetermined overhead rate would be computed as follows: Expected manufacturing overhead cost $3,000,000 = Estimated direct labour-hours 50,000 DLHs =$60 per DLH b. The unit product
More informationCOST ACCOUNTING b.com part II Regular & Private (SUPPLEMENTARY) Solved Paper. Compiled & Solved by: Sameer Hussain
COST ACCOUNTING b.com part II 2014 Regular & Private (SUPPLEMENTARY) Solved Paper Compiled & Solved by: Sameer Hussain Instructions: (1) Attempt any FIVE questions. (2) All questions carry equal marks.
More informationSOLUTIONS TO END-OF-CHAPTER QUESTIONS CHAPTER 11
SOLUTIONS TO END-OF-CHAPTER QUESTIONS CHAPTER 11 DEVELOP YOUR UNDERSTANDING Question 11.1 Absorption cost for one food processor Materials: 22,500 2,000 food processors 11.25 Direct labour: 16,500 2,000
More informationEbusiness: A Canadian Perspective for a Networked World, 4e Chapter 2 Internet Business Models and Strategies
1) Which of the following would be appropriate when defining a business model? A) the manner in which a business organizes itself so as to achieve its objectives B) traditional business models have usually
More informationPart 1 Study Unit 4. Cost Management Concepts Patricia Burnett, CMA Ronald Schmidt, CMA, CFM
Part 1 Study Unit 4 Cost Management Concepts Patricia Burnett, CMA Ronald Schmidt, CMA, CFM 1 Remember most common reasons for missing questions! 1. Misreading the requirement (stem) Read the question
More informationC H A P T E R. Inventories. Corporate Financial Accounting 13e. human/istock/360/getty Images. Warren Reeve Duchac
C H A P T E R 6 Inventories Corporate Financial Accounting 13e Warren Reeve Duchac human/istock/360/getty Images Safeguarding Inventory (slide 1 of 2) Controls for safeguarding inventory begin as soon
More informationGLOSSARY OF TERMS ENTREPRENEURSHIP AND BUSINESS INNOVATION
Accounts Payable - short term debts incurred as the result of day-to-day operations. Accounts Receivable - monies due to your enterprise as the result of day-to-day operations. Accrual Based Accounting
More informationThe Iowa Pork Industry 2008: Patterns and Economic Importance by Daniel Otto and John Lawrence 1
The Iowa Pork Industry 2008: Patterns and Economic Importance by Daniel Otto and John Lawrence 1 Introduction The Iowa pork industry represents a significant value-added activity in the agricultural economy
More information3/10/2016. Sales Metrics Are your measurements driving the right behavior? Joel Galassini
Sales Metrics Are your measurements driving the right behavior? Joel Galassini 1 The Goal of Business Key assumption for this presentation: The number one goal for our operations is to maximize profit.
More informationBusiness Plan. (Not required if you have already prepared a formal business plan using another format)
(Not required if you have already prepared a formal business plan using another format) IF SPACE PROVIDED IS INSUFFICIENT PLEASE ATTACH A SEPARATE SHEET. 1. Business Profile Company Name Company Telephone
More informationACCOUNTING FOR PERPETUAL AND PERIODIC INVENTORY METHODS
ACCOUNTING FOR PERPETUAL AND PERIODIC INVENTORY METHODS Key Terms and Concepts to Know Merchandise Inventory: Merchandise Inventory (Inventory or MI) refers to the goods the company has purchased and intends
More informationTypes of Systems from a Functional Perspective
Types of Systems from a Functional Perspective Information systems can be classified by the specific organizational function they serve, as well as by organizational level. We now describe typical information
More informationCEBU CPAR CENTER. M a n d a u e C I t y
Page 1 of 9 CEBU CPAR CENTER M a n d a u e C I t y AUDITING PROBLEMS AUDIT OF INVENTORIES PROBLEM NO. 1 The Pasay Company is a wholesale distributor of automobile replacement parts. Initial amounts taken
More informationB.Com II Year (Hons.) Cost Accounting Model Paper I
Max. Marks: 100 B.Com II Year (Hons.) Cost Accounting Model Paper I Durations: 3 Hrs. Attempt all the questions. All Questions are compulsory, each question carry 20 marks. Unit I 1. A Ltd. Is the manufacturer
More informationPREVIEW OF CHAPTER 9-2
9-1 PREVIEW OF CHAPTER 9 9-2 Intermediate Accounting IFRS 2nd Edition Kieso, Weygandt, and Warfield 9 Inventories: Additional Valuation Issues LEARNING OBJECTIVES After studying this chapter, you should
More informationChapter 4. Systems Design: Process Costing. Types of Costing Systems Used to Determine Product Costs. Job-order Costing.
4-1 Chapter 4 Systems Design: Process Costing Types of Costing Systems Used to Determine Product Costs Process Costing Job-order Costing F Many units of a single, homogeneous product flow evenly through
More informationFundamentals of Product and Service Costing:
Fundamentals of Product and Service Costing: Demonstration Problems 1 Demonstration Problem 1 In the first quarter of operation, the Blending Department of ChemUSA produced 50,000 barrels of Compound X
More informationPART ONE OF A TWO PART PAPER QUESTION BOOKLET
PART ONE OF A TWO PART PAPER QUESTION BOOKLET 22 November 2010 FNSACCT613A/B Prepare and Analyse Management Accounting Information Aids to be supplied by college: None. Instructions to students: Time allowed
More informationFEEDBACK TUTORIAL LETTER
FEEDBACK TUTORIAL LETTER 1 st SEMESTER 2017 ASSIGNMENT 2 COST AND MANAGEMENT ACCOUNTING 3A CMA311S 1 ASSIGNMENT 02 SOLUTIONS QUESTION 1 a) Order Cost 56,250 = 50 orders 1,125 = 50 x $10 = $500 (25 Marks)
More informationSM-Ch02-5e.pdf Lanen_5e_IM_Ch_02.pdf Chapter 02 - Solutions.pdf Lanen_02_Instructor_Final.pdf Chapter 02.pdf
SM-Ch02-5e.pdf Lanen_5e_IM_Ch_02.pdf Chapter 02 - Solutions.pdf Lanen_02_Instructor_Final.pdf Chapter 02.pdf 2 Cost Concepts and Behavior Solutions to Review Questions 2-1. Cost is a more general term
More informationAccounting Professional Certificate Program with Externship
C.15.23 (Created 07-17-2017) AUBURN OHICE OF P ROFESSIONAL AND CONTINUING EDUCATION Office of Professional & Continuing Education 301 OD Smith Hall Auburn, AL 36849 http://www.auburn.edu/mycaa Contact:
More information[Insert Business Name] Executive Summary [Insert tagline]
[Insert Logo] [Insert Business Name] Executive Summary [Insert tagline] Company Background Business Description: [Provide your business name, ownership structure, business type found in Sections 1.1-1.3,
More information