COST ACCOUNTING M.ASAD ABBAS PAF KIET TABLE OF CONTENTS Executive Summary ......................................................................................................3 Introduction .....................................................................................................................4 Costing Strategy of Vesta Apparel.............................................................................5 Full Cost of the Primary
Premium Costs Management accounting Variable cost
different quality material from standard; Buying materials from a non‑usual source due to urgency; Utilising different labour from standard; Price changes due to economic conditions; scarcity of supplies; Choosing to incur additional discretionary fixed costs; More (or less) overtime hours used than budgeted. 2. Efficiency/usage/quantity variances: Standard is out of date‚ set without due care; Inefficient use of material/labour‚ deliberate or otherwise; Poor supervision/equipment/maintenance.Changes in
Premium Costs Variable cost
STANDARD COSTS Setting a budget is never easy as it involves predicting the future and therefore uncertainty. The process is not about getting the budget absolutely right; it is about not getting it too wrong. This budget process may be applied to most revenue budgets that deal with income and costs‚ but there is also a requirement to produce a capital budget that covers the purchase‚ sale and replacement of fixed assets. There is normally an investment limit dictated by funding availability and
Premium Cost accounting Cost Budget
Running Heading: COST ALLOCATION AND VARIANCES Cost Allocation and Variances- Chapter 12 & 13 Text Book Questions Stacey S. Swafford University of Phoenix ACC 561 Dr. Janice Mereba April 23‚ 2010 Chapter 12 Excel Application Exercise 12-59: Allocating Costs Using Direct and Step-Down Methods p. 584 Goal: Create an Excel spreadsheet to allocate costs using the direct method and the step-down method. Use the results to answer questions about your findings. Scenario: Antonio
Premium Variable cost Costs Marginal cost
WHAT ARE COSTS AND PROFITS? HUNGRY HELEN’S COOKIE FACTORY • Helen‚ the owner of the cookie factory‚ buys flour‚ sugar‚ flavorings‚ and other cookie ingredients. • She also buys the mixers and the ovens and hires workers to run the equipment. • She then sells the resulting cookies to consumers. 2 TOTAL REVENUE‚ TOTAL COST‚ AND PROFIT • The amount that Helen receives for the sale of its output (cookies) is its total revenue. • The amount that the firm pays to buy inputs (flour‚ sugar‚ workers
Premium Profit Microeconomics Economics
Quiz 2 1) Cost-volume-profit analysis is used primarily by management: A) as a planning tool B) for control purposes C) to prepare external financial statements D) to attain accurate financial results Answer: A Diff: 1 Terms: cost-volume-profit (CVP) Objective: 1 AACSB: Communication 2) One of the first steps to take when using CVP analysis to help make decisions is: A) finding out where the total costs line intersects with the total revenues line on a graph. B) identifying which costs are variable
Premium Management accounting Costs Variable cost
Relevant Costs Defined Relevant costs possess two characteristics: (1) They are future costs and (2) They differ across alternatives. All pending decisions relate to the future; accordingly‚ only future costs can be relevant to decisions. However‚ to be relevant‚ a cost must not only be a future cost but must also differ from one alternative to another. If a future cost is the same for more than one alternative‚ then it has no effect on the decision. Such a cost is irrelevant. The
Premium Costs Blu-ray Disc
ACCOUNTING CO-ORDINATOR: P Gopaul Siphesihle Secondary PRODUCTION COST STATEMENTS LO2: AS 2: MANAGERIAL ACCOUNTING Prepare ‚ present‚ analyse and report on cost information for a manufacturing Enterprise by compiling a production cost statement. 1. The financial statements of manufacturing enterprises The financial statements of the manufacturing enterprise differs very little from those of the merchandising enterprise. Account titles on the balance sheet of the manufacturer are similar to those
Premium Manufacturing Inventory Costs
Cost Reduction Techniques I. Introduction a) Why the need for cost reduction measures b) Who can implement these methods? c) Can I really make a difference? Organizing and Developing a Successful Cost Reduction Program a) What management can do about cost reductions b) Developing your cost reduction program c) Waste Prevention and its impact to the bottom line d) Operational analysis – a key to many savings e) Promoting a cost reduction program f) Communication results to all levels of management/organization
Premium Management Costs Cost
An Introduction to Strategic Cost Management (SCM) Vance Chan Associates www.vancechan.com Introduction to SCM ©1998 Vance Chan Associates. Not to be reproduced without permission. 1 The challenge Rising costs are everyone’s concern… Introduction to SCM ©1998 Vance Chan Associates. Not to be reproduced without permission. 2 The challenge In today’s economy‚ most companies must make fundamental changes to cost structure while trying to maintain growth Slower revenue
Premium Cost Management accounting Costs