11 Allocation of Joint Costs and Accounting for By-Product/Scrap Objectives After completing this chapter‚ you should be able to answer the following questions: LO.1 LO.2 LO.3 LO.4 LO.5 How are the outputs of a joint process classified? What management decisions must be made before beginning a joint process? How is the joint cost of production allocated to joint products? How are by-product and scrap accounted for? How should not-for-profit organizations account for the cost of a joint activity?
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Cost Control and Cost Reduction A business enterprise must survive‚ grow‚ and prosper. Cost Control and Cost Reduction are activities necessary for ensuring that these objectives are fulfilled. With the liberalization of the Indian Economy and Globalization‚ there is now a cut throat competition from various concerns of the world. As a result there is now a race to secure a place for survival. This has increased the importance of cost control and Cost Reduction. Cost Control “Cost control
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Cost Management or Cost Control In broad sense‚ both the terms have the same meaning. Yet cost management seems to connote broader perspective. Cost control to an un-initiated may mean cutting down the incurrence of cost or expenditure every time or in every situation. In reality it is not always so. In many specific situations‚ many times‚ one has to spend or incur cost in order to gain or make more money. It is in fact like an investment. Cost management sounds better then. Profits Making
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Generally‚ the term cost of production refers to the ‘money expenses’ incurred in the production of a commodity. But money expenses are not the only expenses incurred on the production of a commodity. There are number of services and inputs such as entrepreneurship‚ land‚ capital etc.‚ which are offered by an entrepreneur without changing any price or receiving any payment for them. While computing the total cost of production‚ allowance should be made for such expenses. It is therefore essential
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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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ASSIGNMENT ON COST CONTROL AND COST FREDUCTION SUBMITTED BY‚ MOHAMMED NAFAISE E.K ROLL NO: 1600 COST CONTROLL & COST REDUCTION COST CONTROL The practice of managing and/or reducing business expenses. Cost controls starts by the businesses identifying what their costs are and evaluate whether those costs are reasonable and affordable .Then if necessary
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generate profit for the organisation. In every firm there are environmental factors which influence the ability to develop and maintain a business structure‚ success and relationships with customers; they are internal and external factors (Thomas & Norman 1988). Internal factors are those the firm can control and external factors are beyond the firm’s control. Fragrance Direct is an online supplier of grooming products‚ but has not focused on male fragrance until now. Considering the major players
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In Living the Sabbath‚ Norman Wirzba discusses the numerous ways in which the developing world has begun to lose touch with God‚ our individual selves‚ and the importance of rest. Today’s world has no place for rest or reflection. The fast-paced society we live in is entirely focused on unrelenting economic gain and efficiency and has crafted a society in which people work abysmally long hours for little wages. Although this economic lifestyle has crafted a country of immense luxury‚ the people have
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strength usually falls into one of two headings: • Cost advantage • Differentiation By applying these strengths in either a broad or narrow or narrow scope‚ three generic strategies result: • Cost leadership • Differentiation • Focus These strategies are applied at business unit level. They are called generic strategies because they are not firm or industry dependant. Cost Leadership: This generic strategy calls for being the low cost producer in an industry for a given level of quantity
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baseline for self-approval. We will be looking at three different views of thinking starting with William Golding’s three kinds of thinking‚ in “Thinking as a Hobby”‚ moving to Mark Twain’s two kinds of thinking‚ in “Corn-Pone Opinions”‚ and lastly James Harvey Robinson’s 4 kinds of thinking‚ in “On Various Kinds of Thinking.” William Golding describes three different grades of thinking: grade-three‚ grade-two‚ and grade-one. Golding once “viewed grade-three thinking with an intolerant contempt and an incautious
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