Contract costing is a system of job costing that is applied to relatively large cost units‚ which normally take a considerable length of time to complete. Building and construc¬tion work‚ civil engineering and shipbuilding are some examples of industries where large contract work is undertaken‚ and where contract costing is appropriate. Contract Costing deals with the books of the Contractor only‚ i.e. the cost of the work and measuring the profit or loss on the contract. Contract costing is
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Was the existing system adequate in the past? Why or why not? Why is it no longer adequate? The existing system was adequate in the past due to heavy reliance on direct labor hours. The ETO served as a central cost center‚ and transferred the costs to other divisions at direct costs plus allocated burden. Being in the late 1970s and early 1980s‚ technology testing of components required fewer cycles‚ and less complicated structures. Hence‚ such testing on products could be carried out by direct
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Unit 6 Statement of Cash Flows and Financial Statement Analysis & The Metrics of a Company Unit Assignment Kaplan University January 18‚ 2013 AC505: Advanced Managerial/Cost Accounting |Transaction |Operating |Investing |Financing | |A. Paid bills to insurers and utility providers
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Bakery business plan Introduction We want to open a bakery likes 85 degrees C in the Songjiang University Town around our school. First‚ we will introduce 85 degrees C.It is Taiwan-style catering company‚ mainly engaged in supplying coffee and dessert. Its name means that "coffee tastes best at the temperature of 85 degree centigrade " ‚ and it’s set up on the basic of five-star chef and banquet’s specified top-level coffee .This shop is a new form of creative‚ it makes shop more bright with
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Super Bakery Analysis The Super Bakery utilizes a business model that permits lower expenses of labor‚ equipment‚ factories‚ administrative spaces‚ structures‚ etc. This model is defined as a “virtual corporation minimizes investment in human resources‚ fixed assets‚ and working capital” (Kimmel‚ 2009‚ p. 910). This method obviously keeps costs down to the company itself as major operating‚ and manufacturing expenses are outsourced. Super Bakery adopted the Activity Based Accounting (ABC) to simplify
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Bakery project Joy Bakery Reform Project Prepared Expressly for Ms. Liu Yan Chairman Board of Directors Joy Bakery Table of Contents Part I Finding Probiern(s) . . . . . . . I 1. Current Business Analysis . . . . . . . . . . . 1 2. Focus Group Report . . . . . . . . . . . . . . 2 3. SWOT Analysis . . . . . . . . . . . . . . . . 4 Part II Deciding the Project objectives) . . 5 1. Objective
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Which of the following involves significant financial investments in projects to develop new products‚ expand production capacity‚ or remodel current production facilities? A) capital budgeting B) working capital C) master budgeting D) project-cost budgeting Answer: A Diff: 1 Terms: capital budgeting Objective: 1 AACSB: Reflective thinking 2) The two factors capital budgeting emphasizes are: A) qualitative and nonfinancial B) quantitative and nonfinancial C) quantitative
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this formula Direct labor cost = 40000 = 6250 Hours Per D.Labor hours rate 6.40 1) Prime Cost (2) Conversion Cost Material opening 24000 Direct labor 40000 + purchase 56000 FOH Applied Material available for use 80000 6250 Hours@ 8 50000 - Material ending (20000) Conversion cost 90000 Material used 60000 + Direct labor 40000 Prime Cost 100000 (3) Cost of goods manufactured (4) Cost of goods sold Prime cost 100000 Cost of goods manufactured
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quality of decisions made using that information. True False 3. An operating unit of an organization is called a profit center if it is responsible: only for revenues. for investments in assets. for costs and revenues. only for costs. 4. Properly designed management control systems have both fixed compensation and contingent compensation. True False 5. Controllable revenue is included in a performance report of a:
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fully allocating all costs to products‚ customers‚ and other costing objects in an activity-based costing system. This results in overstated costs. More accurate product costs may result in increasing the selling prices of some products. 3. Matt Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 8‚000 units and of Product B is 6‚000 units. There are three activity cost pools‚ with total cost and total activity as
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