predetermined overhead rate? A. Estimated total units in the allocation base divided by estimated total manufacturing overhead costs. B. Estimated total manufacturing overhead costs divided by estimated total units in the allocation base. C. Actual total manufacturing overhead costs divided by estimated total units in the allocation base. D. Estimated total manufacturing overhead costs divided by actual total units in the allocation base. 2. Which of the following would probably be the least appropriate
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Which of the following defines variable cost behavior? Total cost reactionto increase in activity|Cost per unit reactionto increase in activity| a.|remains constant remains constant| b.|remains constant increases| c.|increases increases| d.|increases remains constant| ____ 2. When cost relationships are linear‚ total variable prime costs will vary in proportion to changes in a
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TASK 1: Cost Classification and Ethics The Sorrel Pharmaceuticals Corporation manufactures a variety of drugs that are marketed internationally. Inventories on May 31 and June 30 were as follows: May 31 June 30 Materials Inventory $354‚100 $327‚400 Work in Process Inventory 112‚600 116‚400 Finished Goods Inventory 138‚500 142‚800 Purchases of materials for June were $142‚600. Direct labor costs were incurred and computed on the basis of 27‚000 hours at $8 per hour. Actual overhead costs incurred
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What is Cost & Management Accounting Reporting Systems? Cost Accounting Reporting System deals with the process of tracking‚ measuring‚ recording and classifying the appropriate allocation of expenditure (financial and non-financial) for the determination of the cost of product or service in an organization and for the presentation of suitably arranged data for the purpose of control and guidance of management (Horngren et al‚ 2010). Costs are measured in terms of Direct Costs‚ Indirect Costs and Overhead/Absorbed
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ACCOUNTING FOR BUSINESS II CHAPTER 1 COST SHEET Meaning And Scope of Cost Accountancy The term cost accountancy is wider than the term cost accounting. According to the Terminology of Management and Financial Accountancy Published by the Chartered Institute of Management Accountants‚ London‚ cost accountancy means‚ “the application of costing and cost accounting principles‚ methods and techniques to the science‚ art and practice of cost control. It includes the presentation of information derived
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decisions making‚ and control. An information system need not be a computerized system‚ but the use of computer in information systems can improve the efficiency of information collection‚ processing‚ storing‚ transformation and distribution. An accounting information system (AIS) is the information subsystem within an organisation that accumulates information from the entity’s various subsystems and communicates it to the organisation’s information processing subsystem. The information processing
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Revenue (RM250x1000unit) 250‚ 000 Total cost (RM228x1000unit) 228‚ 000 Profit 22‚000 From a view of kettle : The total contribution lost is RM 22‚ 000 + RM 21‚ 000 = RM 43‚ 000 b) Make or continue buy Total cost of making Associated units making: Total cost of buying Associated units buying: The component RM 95 x 3000 unit RM285‚ 000 The decision is buy because cost of savingRM79‚ 000 (RM 346‚000 – RM285
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SREERAM COACHING POINT COST Management Test Questions & Suggested Solutions by L. Muralidharan‚ FCA.‚ Grad. CWA.‚ COST MANAGEMENT - TEST QUESTIONS & SOLUTIONS Question: 1 Bharata Ltd is considering proposals for design changes in one of a range of soft toys. The proposals are as follows: (a) Eliminate some of the decorative stitching from the toy. (b) Use plastic eyes instead of glass eyes in the toys (two eyes per toy). (c) Change the filling material used. It is proposed that scrap fabric
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Checklist for this Subject Test 1. Answer Books: No 2. Standard MC Answer Sheets: No 3. Calculator: Yes 4. Paper Dictionary: No 5. Open Book: No --------------------------------------- QUESTIONS START FROM HERE ------------------------------------- Question 1 (a) What Grace suggested doesn’t seem to be ethical. First of all the transfer of her personal property to the Company will simply overstate the Company’s asset. Secondly‚ when the expenses were hidden off
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Direct materials cost per unit ($750‚000 ÷ 10‚000) $ 75.00 Conversion cost per unit ($798‚000 ÷ 10‚000) 79.80 Assembly Department cost per unit $154.80 2a. Solution Exhibit 17-16A calculates the equivalent units of direct materials and conversion costs in the Assembly Department of Nihon‚ Inc. in February 2009. Solution Exhibit 17-16B computes equivalent unit costs. 2b. Direct materials cost per unit $ 75 Conversion cost per unit 84 Assembly Department cost per unit $159
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