COST CONCEPTS AND COST ACCOUNTING By: Aman Jawahar Sarika Deepak Muneer CONTENTS Concept of Cost Cost Accounting Terms in Cost Accounting Elements of Cost Meaning of Overheads Classification of Costs Methods of Costing Types of Costing MEANING: Cost Concept: The term ‘cost’ means the amount of expenses [actual or notional] incurred on or attributable to specified thing or activity. Cost means ‘the price paid for something’. Cost Accounting: Cost Accounting is concerned with recording
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new segment in media player. High quality and reasonable prices can be realized by innovation in technology. Companies who have built technology strategy are more likely to be in the lead. A main quality point in coffee is formation of froth which is mostly attributed to pressure‚ water temperature and rate of mixing. New products may not need a new distribution channel if the companies have already bargaining power. Big retailers such as Wal-Mart‚ Target and Costco can be main off-line distributors
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What is cost of capital? The cost of capital is the cost of obtaining funds‚ through debt or equity‚ in order to finance an investment. It is used to evaluate new projects of a company‚ as it is the minimum return that investors expect for providing capital to the company‚ thus setting a benchmark that a new project has to meet. Importance The concept of cost of capital is a major standard for comparison used in finance decisions. Acceptance or rejection of an investment project depends on the
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Case 1.9 Zzzz Best Company Case 1.9 ZZZZ Best Company‚ Inc. 1. A review is similar to an audit but is less in scope and only provides limited assurance in regards to the presentation of the financial statement. This differs with an audit that gives reasonable assurance that no material errors or illegal acts are detected. The objective of an audit is to provide a reasonable basis for expressing an opinion regarding the financial statements taken as a whole. A review does not provide a basis
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source same End result ! ends with financial statements ! integral part of other business aspects B. Cost Accounting Terminology 1. Nature of Cost Cost - A sacrifice of resources: Cost is a measurement in monetary terms of the amount of resources used for some purpose. Expense - The cost charged against revenue in a particular accounting period. 2. Purposes of Gathering Cost Information Routine decision making:
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Is apparent ‘best practice’ people management likely to deliver best possible performance in the context of an organization you are familiar with? Introduction What apparent best practice people management is (200) Schuler & Jackson (1987)‚ state that strategic human resource management (SHRM) is a term used to signal the view that human resource management (HRM) should enhance organisational performance. It is argued that a firm’s HRM is a potentially powerful source of sustainable competitive
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more on the financial indicators. These were however the lagging indicators. With the implementation of Balance Scorecard non financial perspective provide leading indicators tied to the lagging financial indicators. This proved to be crucial to the company in improving its bottom line. 2. The Balanced Scorecard provide information from four perspectives namely customers‚ financial‚ process and learning & growth. Worldclass has put financial perspective as the most important as this is a
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ways were used to sustain these competitive advantages. 2. Brief description of the Company Core business of AirAsia Berhad is broken travel norms around the globe and has risen to become the world best. Route network through more than 21 countries with applied low cost as their core business. In addition‚ efficient and maintaining a simple aircraft fleet and a route network based on low-cost airports. Besides that‚ objective of AirAsia Berhad operates scheduled domestic‚ regional
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Case Study: ZZZZ Best Company‚ Inc. 1. Ernst & Whinney never issued an audit opinion on financial statements of ZZZZ Best but did issue a review report on the company’s quarterly statements for three months ended July 31‚ 1986. How does a review differ from an audit particularly in terms of the level of assurance implied by auditor’s report? Although a review is similar to an audit‚ it differs from an audit in its limited scope and assurances. The objective of an audit is to provide a reasonable
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management The concept of strategy ➢ Strategy is the great work of organization. In situations of life or death it is the Tao of survival or extinction. Its study cannot be neglected. ----SUN TZU‚ The Art of War.2500 B.C ➢ Strategy is about winning. ➢ Strategy is not a detailed plan or program of instructions‚ it is a unifying theme that gives coherence and direction to the actions and decisions of an individual or an organization. Characteristic of a winning strategy ➢ Goals that
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