Preview

Product Costing

Good Essays
Open Document
Open Document
3038 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Product Costing
[pic]
| | | | |[|
| | | | |p|
| | | | |i|
| | | | |c|
| | | | |]|
| | | | | | | |

Accounting for Managers G

Individual Assignment
Due Date: November 9, 2012

Topic:
Product costing

Ningbo lecturer: Ms. Huang HuiQin – E: huanghuiqin@nbu.edu.cn – P: 86-574-87600960
Student: Lê Uyên Phương (Phoebe) – E: leuyenphuongvn@yahoo.com – P: 86-15 757 829 310
Student ID: 1211125031

NBU Intake 12, 2012
Required: Examine the literature to identify the different perspectives on how a product’s cost may be formulated. Assess the strengths and weaknesses of the various approaches to product costing that have been proposed, and assess which might be useful in ensuring that management accounting fulfils a more strategic role in manufacturing organizations.

|Mark |Comments: |
| | |
| |
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Acc202 Wk 1 Assgnment 1
    • 566 Words
    • 3 Pages

    Acc202 Wk 1 Assgnment 1

    The product cost in a merchandising company, such as a retail toy store, is relatively easy to determine. It includes vendor’s price charged on the invoice, freight cost, and other necessary costs to make the inventory available for sale. Measuring product cost for a manufacturing entity, though, requires a more complex system. First of all, the manufacturing firm has to classify its costs between product costs and period costs. The firm has to accumulate product costs such as direct materials, direct labor, and manufacturing overhead. Once the product costs have been accumulated, the firm has to classify the cost of a product that has been sold as expense, and the cost of an unsold product as inventory, an asset.…

    • 566 Words
    • 3 Pages
    Satisfactory Essays
    Read More
  • Satisfactory Essays

    Syllabus1Acct372ja
    • 1791 Words
    • 10 Pages

    Syllabus1Acct372ja

    To familiarize students with the concepts and uses of accounting data for managerial planning, control and decision-making. This course emphasizes the collection and analysis of cost data for the purpose of achieving firm objectives. It focuses on the development of product cost information that will be useful for profit maximization in managerial decisions in the realm of price setting, determination of product mix, and in cost minimization actions.…

    • 1791 Words
    • 10 Pages
    Satisfactory Essays
    Read More
  • Powerful Essays

    course outline BUSI294
    • 1433 Words
    • 9 Pages

    course outline BUSI294

    This course provides an introduction to the basic principles and techniques of managerial accounting, where the major intent is to provide information to internal decision-makers to maximize an organization’s operating efficiency and profitability. The course includes an introduction to alternative costing and reporting systems for service and manufacturing organizations, budgeting, variance analyses, performance evaluation, total quality management, and transfer pricing, plus analytical techniques including cost-volume-profit analysis and relevant costing and benefits.…

    • 1433 Words
    • 9 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    ACTIVITY-BASED COSTING MODEL
    • 2327 Words
    • 9 Pages

    ACTIVITY-BASED COSTING MODEL

    Some costs are difficult to assign through this method of cost accounting. Indirect costs, such as management and office staff salaries are sometimes difficult to assign to a particular product produced. For this reason, this method has found its niche in the manufacturing sector.…

    • 2327 Words
    • 9 Pages
    Powerful Essays
    Read More
  • Good Essays

    Chocloate case study
    • 6328 Words
    • 41 Pages

    Chocloate case study

    Fisher, J. G., and K. Krumwiede. 2012. Product costing systems: Finding the right approach. Journal of…

    • 6328 Words
    • 41 Pages
    Good Essays
    Read More
  • Powerful Essays

    The Use of Standard Costing as a Control Tool a New Era
    • 3559 Words
    • 13 Pages

    The Use of Standard Costing as a Control Tool a New Era

    Lucas, M. (1997), "Standard Costing and its role in today Manufacturing Environment", _Management Accounting_, Vol. 75, 4, 32p…

    • 3559 Words
    • 13 Pages
    Powerful Essays
    Read More
  • Good Essays

    Costs
    • 640 Words
    • 3 Pages

    Costs

    Aerotech’s controller, Chuck Dickens decided to change from a traditional volume-based system to an activity-based costing (ABC) system after reading about the two-stage procedure to assign overhead cots to products. Chuck questioned if the current cost-management system was providing the management with accurate data about product costs. In a traditional, volume-based product-costing system, only a single predetermine overhead rate is used. All manufacturing-overhead costs are combined into one cost pool, a grouping of individual indirect cost items, and they are applied to products on the basis of a single variable that costs over a given time span (cost driver) that is closely related to production volume. The most frequently used cost drivers in traditional product-costing systems are direct-labor hours, direct-labor dollars, machine hours, and units of production.…

    • 640 Words
    • 3 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    Exercise 19-17 Case Study
    • 440 Words
    • 2 Pages

    Exercise 19-17 Case Study

    When using the variable costing system, the manufacturing and non-manufacturing fixed costs are calculated as a period cost, which is not included in the cost of the product (Wiley, 2000-2014). The main benefit of the absorption method is that management is able to provide accurate information about the costs of the product and the main benefit for the variable method is that an output (net income) is provided that is more respresentative of the actual cash flow of the business. The variable method may work better for businesses that tend to have a shortage of cash flow (Wiley, 2000-2014). The variable costing method offers management a comprehensible picture of the results that the fixed costs have on the entire profitablilty of the…

    • 440 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Better Essays

    Tasty Foods Corporation Worksheet
    • 1599 Words
    • 7 Pages

    Tasty Foods Corporation Worksheet

    which are presented in Cases 12I and 13I. In addition, the case focuses on quantifying the…

    • 1599 Words
    • 7 Pages
    Better Essays
    Read More
  • Powerful Essays

    pricing products
    • 4434 Words
    • 17 Pages

    pricing products

    Pricing productsIntroduction Products and services have a price just as they have a value. Many non-profit and all profit-making organizations must also set prices. Pricing is controversial and goes by many names: Price is all around us. You pay rent for your apartment, tuition for your education. The airline, railway, taxi and bus companies charge you a/are; the local utilities call their price a rate; and the local bank charges you interest for the money you borrow ; the guest lecturer charges an honorarium to tell you about a government official who took a bribe to help a shady character steal dues collected by a trade association. Clubs or societies to which you belong may make a special assessment to pay unusual expenses. Your regular lawyer may ask for a retainer to cover her services. The 'price ' of an executive is a salary, the price of a salesperson may be a commission and the price of a worker is a wage. Finally, although economists would disagree, many of us feel that income taxes are the price we pay for the privilege of making money. In the narrowest sense, price is the amount of money charged for a product or service. More broadly, price is the sum of all the values that consumers exchange for the benefits of having or using the product or service. How are prices set? Historically, prices were usually set by buyers and sellers bargaining with each other. Sellers would ask for a higher price than they expected to get and buyers would offer less than they expected to pay. Through bargaining, they would arrive at an acceptable price. Individual buyers paid different prices for the sane products, depending on their needs and bargaining skills.…

    • 4434 Words
    • 17 Pages
    Powerful Essays
    Read More
  • Good Essays

    cost accounting
    • 4544 Words
    • 19 Pages

    cost accounting

    The range of costs included within a product costing system varies from one organisation to another. A comprehensive picture of product costs requires the inclusion of upstream and downstream costs. In practice many businesses confine their product costing systems to manufacturing costs. This is particularly true of small to medium-sized manufacturing businesses since more comprehensive costing systems cost more to implement and maintain. The costing systems that only include manufacturing costs produce the inventory valuations for external financial reporting required by…

    • 4544 Words
    • 19 Pages
    Good Essays
    Read More
  • Powerful Essays

    cost Accounting 1 Syllabus
    • 1151 Words
    • 10 Pages

    cost Accounting 1 Syllabus

    This course introduces students to the basic concepts, analyses, uses and procedures of management accounting. This course would enable students to understand and view the element of cost as part of activities planned and implemented by a company. It covers cost categories, cost behavior, cost-volume-profit analysis, master and flexible budgets, direct costs and manufacturing overhead variances and inventory cost systems.…

    • 1151 Words
    • 10 Pages
    Powerful Essays
    Read More
  • Satisfactory Essays

    Broadening Your Perspective 17-2
    • 393 Words
    • 2 Pages

    Broadening Your Perspective 17-2

    This exercise is to help further explain Activity Based Costing and how it can help the Manufacturing Company keep its cost at the correct level. “An Activity Based Costing system recognizes relationships between cost, activities, and products, and through this relationship assigns indirect cost to products less arbitrarily than traditional methods...” (Investopedia, 2014)…

    • 393 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Satisfactory Essays

    Critique of “Redesigning Cost Systems: Is Standard Costing Obsolete?” by Carole and Leo
    • 499 Words
    • 2 Pages

    Critique of “Redesigning Cost Systems: Is Standard Costing Obsolete?” by Carole and Leo

    The study presented four analyzes to discuss the criticisms of Standard Costing System and suggested redesigns for traditional SCSs. Authors mentioned the advantages and disadvantages of SCS, and then separately illustrated updates for variances from the aspects of raw materials, inventories, production levels and quality, and sales analysis. After that, this article illustrated several updates for improving SCSs in the form of redesigned variances, suggestions for dynamic standards, and refocused responsibility and reporting systems. In the final portion of the case, the author explained the relationship between the Standard Cost Systems and Activity Based Costing.…

    • 499 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Satisfactory Essays

    Vishnu Sahashranam
    • 1046 Words
    • 5 Pages

    Vishnu Sahashranam

    || | || | || || | || | || || | || | || | ||…

    • 1046 Words
    • 5 Pages
    Satisfactory Essays
    Read More

Related Topics