Analysis 24-2‚ 24-5 Analysis‚ communication‚ judgment B. Ex. 24.6 B. Ex. 24.7 B. Ex. 24.8 B. Ex. 24.9 B. Ex. 24.10 Computing labor cost variances Journal entry for direct labor Computing materials cost variances Journal entry for direct materials Overhead cost variances 24-1‚ 24-3‚ 24-5 Analysis‚ judgment 24-3 Analysis 24-3 Analysis 24-3 Analysis 24-4 Analysis‚ communication Exercises 24.1 24.2 24.3 24.4 24.5 24.6 Learning Topic Objectives Skills Accounting terminology 24-1–24-5 Analysis Relationships
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term advantage for the center compare to its competitors with similar services. 2. In the past‚ the medical center aggregated all facility costs and then allocated the total amount on the basis of square footage. This methodology assigned an average cost rate to each patient service department‚ regardless of whether its space is new or old‚ or prime or poor. The proposed allocation for the Dialysis Center‚ on the other hand‚ requires it to bear the true facility costs of its new space. What are
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first is that the contribution margin must equal the difference between the selling price and the variable cost price not including the cost of tomato’s‚ and secondly the cost of the tomato crop is a sunk cost regardless of whether the cost is an average or a ratio based on quality. If any of the crop is not used‚ or if the costs of tomatoes was applied prior to optimizing production‚ not all the costs are captured in the analysis. This was one of the findings of our analysis and a key omission made
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Chapter 5: Cost Behavior: Analysis and Use As we shall see in later chapters‚ the ability to predict how costs respond to changes in activity is critical for making decisions‚ controlling operations‚ and evaluating performance. Three major classifications of costs were discussed in this chapter—variable‚ fixed‚ and mixed. Mixed costs consist of variable and fixed elements and can be expressed in equation form as Y = a + bX‚ where X is the activity‚ Y is the cost‚ a is the fixed cost element‚ and
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Ten years ago our electric motor business was in real trouble. Low labor rates allowed the Eastern Bloc countries to sell standard motors at prices we were unable to match. We had become the high-cost producer in the industry. Consequently‚ we decided to change our strategy and become a specialty motor producer. Once we adopted our new strategy‚ we discovered that while our existing cost system was adequate for costing standard motors‚ it was giving us inaccurate information when we used it to
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As sales exceed the break‑even point‚ a high contribution‑margin percentage A. increases profits faster than does a low contribution-margin percentage A compensation plan where the sales force is paid salary plus commission is a _______. D. mixed cost An increase in total variable cost usually indicates ___________. B. the cost-driver activity level is increasing The following information is for Kinsner Corporation: Total fixed costs
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University of Pangasinan PHINMA Education Network Dagupan City SCHOOL OF GRADUATE STUDIES AND PROFESSIONAL STUDIES Master in Business Administration CASE STUDY ON FINANCIAL PLANNING AND FORECASTING Submitted by: NARVI M. MONTANO MBA Student Submitted to: PELILIA C. VELOSO‚ CPA‚ LLB‚ DBA Professor First Semester Academic Year 2010-2011 Financial Planning and Forecasting Case Study ________________________________________ ENTREPRENEURIAL DECISION MAKING: CONNECT CABLE
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Question 2A) Weighted-Average Method of Process Costing‚ Assembly Department of nanotech pte ltd ‚ for June 20X9 flow of cost in June Physical Units Units to be accounted for Work in process‚ June 1 10‚000 Started (transferred) into production 160‚000 Total units 170‚000 Units accounted for Completed and transferred out 152‚000 Work in process‚ June 30 18‚000 Total units
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divided by current liabilities to determine the current ratio. Riordan ’s current ratio is 2.10‚ and this suggests that the company is efficient in operating its business cycle. The industry ratio is 2.98. Riordan’s current ratio is above industry average‚ which means that Riordan is able to meet short-term obligations or satisfy short-term creditors. Debt Ratio The debt ratio reveals the extent to which a company is financed with debt. Creditors look at this ratio when they are trying to decide
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Costing and Activity-Based Costing Traditional Costing Systems Allocates overhead using a single predetermined rate. Job order costing: direct labor cost is assumed to be the relevant activity base. Process costing: machine hours is the relevant activity base. Assumption was satisfactory when direct labor was a major portion of total manufacturing costs. Wide acceptance of a high correlation between direct labor and overhead costs. Chapter 4-6 SO1 Recognize the difference between traditional
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