Q.5 Solution Bill Denomination (X) Number of Bills (f) X*f X2*f $1 520 520 520 $5 260 1‚300 6500 $10 120 1‚200 12000 $20 70 1‚400 28000 $50 29 1‚450 72500 $100 1 100 10000 Total 1000 5‚970 129520 a. b. c. The probability that a bar containing $50 or $100 bill is purchased is 30 / 1000 = 0.03 Hence customer have to buy 100 bars of soap‚ so that he or she has purchased three bars containing a $50 or $100 bill. d. Given n=1000‚ E(X) = 5.97‚ SD(x) = 9.68912
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Target Costing: A Historical Perspective Patrick Feil‚ Keun-Hyo Yook‚ Il-Woon Kim INTRODUCTION Target costing originated in Japan in the 1960s‚ though it remained a secret for years. Since the 1980s‚ however‚ when target costing was widely recognized as a major factor for the superior competitive position of Japanese companies‚ extensive efforts have been made to convey target costing to Western companies. Many large companies in North America and Europe have tried to adopt target costing to enhance
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ACTIVITY BASED COSTING CASE STUDIES (7-64 & 7-65) Submitted to: Dr. Felix D. Cena‚ CPA‚ MBA Management Account I Professor Submitted by: Neil Derrek M. Dullesco Dan Carlo D. Poblacion COMA4B CASE 7-64 1. Identify the flaws associated with the current method of assigning shipping and warehousing costs to Sharp’s products. Shipping and warehousing costs are currently assigned using tons of paper produced‚ a unit-based measure. Many of these costs
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Marginal Costing is ascertainment of the marginal cost which varies directly with the volume of production by differentiating between fixed costs and variable costs andfinally ascertaining its effect on profit. The basic assumptions made by marginal costing are following: - Total variable cost is directly proportion to the level of activity. However‚ variable cost per unit remains constant at all the levels of activities. - Per unit selling price remains constant at all levels of activities. -
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INTRODUCTION Life cycle costing is one of the various techniques in strategic management. It is a procurement as well as production costing technique that considers all life cycle costs. Besides‚ it is also a tool to determine the most cost-effective option among different competing alternatives to do a project‚ when each is equally appropriate to be implemented on technical grounds.This report will discuss life cycle costing in the view of production costing technique. In manufacturing‚ the
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Chapter 4-1 Activity-Based Costing Managerial Accounting Fifth Edition Weygandt Kimmel Kieso Chapter 4-2 study objectives Chapter 4-3 1. Recognize the difference between traditional costing and activity-based costing. 2. Identify the steps in the development of an activity-based costing system. 3. Know how companies identify the activity cost pools used in activity-based costing. 4. Know how companies identify and use cost drivers in activitybased costing. 5. Understand the benefits
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Journal of Money‚ Investment and Banking ISSN 1450-288X Issue 6 (2008) © EuroJournals Publishing‚ Inc. 2008 http://www.eurojournals.com/finance.htm Costing the Banking Services: A Management Accounting Approach Jordi Carenys Professor at the Management Control Department. EADA Business School EADA‚ c/o Aragó 204‚ 08011 Barcelona‚ Spain E-mail: jcarenys@eada.edu Tel: 934 520 844; Fax: 933 237 317 Web: www.eada.edu Xavier Sales Professor at the Management Control Department. EADA Business School
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ADVANTAGES OF KAIZEN COSTING There are certain basic principles which are followed in various Japanese companies which are listed below: - 1) Focus on customers: The Kaizen philosophy has only one prime objective of customers’ satisfaction. Kaizen permits no middle ground its either you provide best products and customer satisfaction or not. All the activities should aim at providing customer with whatever he wants and should help the firm long term objective of customers’ satisfaction at
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CVP and Break-Even Analysis Paper and Presentation Accounting is an important function for businesses to run successfully. It provides a numbers based understanding to owners and management staff for assistance in areas that could lead to added financial gain. This paper will discuss strategies of the management staff for a company named Super Bakery Inc. and why it was necessary to install an accounting system known as ABC (activity based costing) for its business. This paper will also conclude
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ABC Costing Activity-based costing (ABC) is a special costing model that identifies activities in an organization and assigns the cost of each activity with resources to all products and services according to the actual consumption by each. This model assigns more indirect costs (overhead) into direct costs compared to conventional costing models. Aims of model With ABC‚ an organization can soundly estimate the cost elements of entire products and services. That may prepare decisions on
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