ADM 3346A COST ACCOUNTING Solution Fall 2010 Midterm Examination STUDENT NAME: _________________________________________________ STUDENT NUMBER: ________________________________________________ 90 minutes INSTRUCTIONS 1. 2. 3. 4. Books and notes are not permitted‚ except language dictionaries. Non programmable calculators are permitted. Put all answers in the question booklet Questions concerning possible errors in the exam only will be answered. Questions Max Points
Premium Costs Management accounting Variable cost
but customers are price conscious as well. For the coming year‚ CBI’s budget includes estimated manufacturing overhead cost of $3‚000‚000. CBI assigns manufacturing overhead to products based on direct labor-hours. The expected direct labor cost totals $600‚000‚ which represents 50‚000 hours of direct labor time. Based on the sales budget and expected raw materials costs‚ the company will purchase and use $6‚000‚000 of raw materials (mostly coffee beans) during the year. The expected costs for direct
Premium Cost accounting Cost Costs
because the pricing was based on traditional allocation of overheads. The result of which were that the actual costs incurred for fulfilling the orders of customers were not ascertained. There were two effects of this method. First‚ the overall prices of all the products increased. Second‚ those products that were more costly to produce were priced lower than their actual cost price. 2. Provide a brief analysis of the attached (page 2 of this document) activity-based costing system. Do you agree
Premium Costs Price Accounts receivable
Decision at Applied Office Product Company ’s Background In 1992‚ Allied Office Products was a corporation with annual sales of $900 million. It deals with manufacturing of following forms : * Business Forms * Specialty paper product such as writing paper‚ envelopes‚ note cards‚ and greeting cards In 1988‚ as form manufacturing business matures‚ Allied Office Product had expanded into business form inventory management system and put a step ahead to attain a competitive advantage by embarking
Premium Inventory Cost Supply chain management
control issues in a changing organization. Kincaid Manufacturing‚ by Jon Yarusso and Ram Ramanan‚ discusses supply chain management. Osram.NA‚ by John Shank‚ Lawrence Carr‚ and William Lawler‚ discusses economic value to customer and related life cycle costing issues. Pleasant Run Children’s Home‚ by Brooke E. Smith‚ Mark A. McFatridge‚ and Susan B. Hughes‚ discusses dealing with the
Premium Cost Cost driver Management accounting
Discussion Board Activity Question Activity Based Costing in the Information Age Activity based costing systems provide a much more accurate picture of product costs than do traditional product costing systems. This exercise focuses on an article presented on the Web site of the ACA Group‚ an alliance of highly trained and experienced consultants and instructors. The ACA Group provides in-house training‚ management consulting‚ and systems installation. You may recognize the names of some of the
Premium Cost accounting Cost Activity-based costing
Title of the Report: Case Analysis of ‘The Cooperative Bank’ The Purpose: The purpose of the report is to submit the analysis of The Cooperative Bank based on the Activity Based Costing methodology To whom it is submitted (Name of the instructor): Prof. Sandhya Bhatia‚ Professor‚ Managerial Accounting‚ Indian Institute of Management‚ Udaipur Name of the Author: Abhishek Sengupta Anubhav Nigam Ravindran Damodaran Saurabh Srivastava Date of Submission: 24 February 2013
Premium Cost Costs Variable cost
started using activity based costing to allocate operating expenses to products and customers. The overall process is important to the ultimate success of the bank‚ so it needs to be logical and transparent. The bank’s project team came up with 3 questions for the activity-based costing: “How should it define resource pools? What activities should it define? Should it analyze costs by product or by customer?” These questions seem very logical in helping implement the activity based costing. By writing
Premium Cost Activity-based costing Profit
_______________ Tutor______________________ Name- Mohammed Bhuiyan ID-000668860 “ABC is still relevant for companies in all geographical locations – critically discuss” The theory of activity based costing (ABC) was developed in 1970’s to understand the product and customer cost and profitability based on the production or performing process in the manufacturing center of United State (Glad & Becker‚ 1996). Later‚ it got the reorganization after getting introduced by Kaplan and Copper in
Premium Management accounting Activity-based costing Cost accounting
Executive Summary An organisation’s management makes decisions based on the cost and profitability of its products or services. The article ‘Implementing Time-driven Activity-based Costing (TDABC) at a Medium-sized Electronics Company’ suggests that the TDABC model derived from the traditional ABC model is useful for effectively analysing an organisation’s costs and profitability. The TDABC model would be an effective decision making tool for Hotel Babylon. Article Content This article examines
Premium Activity-based costing Enterprise resource planning Cost