additional costs incurred. Actual variable costs increased from $218 to $247.50‚ causing an unfavourable flexible-budget variable cost variance of $59 457. The next section‚ 3.2 Variable and Fixed Variance Analysis‚ will look into the specific causes of this increased in cost and resources consumed. Understanding the reasons why actual results differ from budgeted amounts can help Barnes better manage its costs and pricing decisions in the future. If Barnes have not been able to pass these costs on to
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Conceptual Framework Cost Accounting Cost accounting‚ as a tool of management‚ provides management with detailed records of the costs relating to products‚ operations or functions. Cost accounting refers to the process of determining and accumulating the cost of some particular product or activity. It also covers classification‚ analysis and interpretation of costs. The cost so determined and accumulated may be the estimated future costs for planning purposes‚ or actual (historical) costs for evaluating
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In today’s society one of the biggest factors in the competitive global marketplace is a high quality product. In most businesses their goal is to create products or services and sell them to customers for a profit. These products or services must live up to a certain quality standard expected by customers. If the quality level is not met‚ there are consequences to face for the business. Therefore‚ quality is important to a business for a number of reasons. Customer and Retention is one of the reasons
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range of accounting application is expanding rapidly‚ along with the increasing demand of economic market. As is well known‚ accounting is a key aspect of business. And in the accounting profession‚ there has been already existed interpenetration and overlapping among the different kinds of accounting. Cost accounting and financial accounting are two main components of accountancy. The former one is a part of accounting. In cost accounting‚ it dramatically researches the variable cost‚ fixed cost‚ overheads
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capital/equity. (b) Prepare a tabular analysis of the transactions using the following account titles: Cash‚ Accounts receivable‚ Prepaid rent‚ Supplies‚ Delivery van‚ Truck‚ Accounts payable‚ Y’s capital. Problem # 2 On June 01 2004 Mr. Tanim started an accounting consultancy agency. The following transactions took place in the month of June: 01: Invested tk. 20‚000 as capital in the business. 04: Hired a personal secretary at a monthly salary of tk. 4‚000. 06: Purchased supplies for tk
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Cost Accounting - Chapter 1 1. Flexibility is said to be the hallmark of modern management accounting‚ whereas standardization and consistency describe financial accounting. Explain why the focus of those two accounting systems differs. Financial accounting is more about the bigger picture—it evaluates the finances of the organization as a whole‚ using historical‚ quantitative‚ monetary‚ and factual data. It is more formal and requires the use of GAAP. The information financial accounting
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Topic:Responsibility Accounting and Cost Control. Subject: Management control systems Index: |Sr.No |Topic |Page No | |1 |Meaning of Responsibility Accounting |3 | |2 |Steps involved in Responsibility Accounting
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Question 1 0 out of 1 points If the opening balance of equity is $45‚000‚ the closing balance is $60‚000 and profit is $27‚000‚ calculate the amount of dividends paid which will appear as a financing outflow in the statement of cash flows. Answer Selected Answer: Nil. Correct Answer: $12‚000. Question 2 1 out of 1 points If ’other expenses’ in the profit and loss report is $32‚000 including $8‚000 of depreciation‚ accrued ’other expenses’ at the beginning
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Ex-MBA 2011-2014 ( Batch - Weekend ) Semester - 2 Subject: Managerial Accounting ------------------------------------------------- Title : Methods / techniques of cost accounting Submitted by : Vishwajeet Gaikwad – 2011G04 Submitted to : Prof. Sameer
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CHAPTER 1 INTRODUCTION TO COST ACCOUNTING QUESTIONS 1. Management accounting stresses the informational needs of internal users over those of external users (the focus of financial accounting). Because of this perspective‚ management accounting provides information in a format that is flexible and relevant to a particular manager‟s usage. Financial accounting‚ on the other hand‚ must provide some uniformity in the manner in which information is presented for it to be comparable among companies and
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