Cost Classifications and Estimation 2.0 Introduction Cost classification may be defined as ‘the arrangement of cost items in a logical sequence having regard to their nature and purpose to be fulfilled’. The term cost must be qualified when in use in order that its precise meaning is established in a particular situation; however‚ cost refers to the amount of resources that have been diverted from other uses or sacrificed so as to achieve the desired objective. But the term is used to refer to
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a total of 120 points. Answer all questions. No partial credit is available for multiple choice questions. Be sure to put your answers to the multiple choice questions on your Scantron form. The exam is closed book. A calculator is permitted. GOOD LUCK. Please circle the best answer and fill-in the corresponding circle on your Scantron sheet. Only answers on the Scantron will be scored. PART I: Multiple Choice. Please circle the best answer and fill-in the corresponding circle on your
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Classification of Cost Cost may be classified into different categories depending upon the purpose of classification. Some of the important categories in which the costs are classified are as follows: 1. Fixed‚ Variable and Semi-Variable Costs The cost which varies directly in proportion with every increase or decrease in the volume of output or production is known as variable cost. Some of its examples are as follows: • Wages of laborers • Cost of direct material • Power The cost which does
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Cost Behavior Cost behavior is term for describing whether a cost changes when the level of output changes. The cost can vary proportionately with the changes in the level of activity or unaffected by changes in the level of activity. Costs can be variable‚ fixed‚ or mixed. A cost that does not change in total as output changes is a fixed cost. A variable cost‚ on the other hand‚ increases in total with an increase in output and decreases in total with a decrease in output. Understanding how costs
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pre-determined cost structure to account for and control expenses. WaMu primarily realizes transaction costs‚ fixed costs‚ and variable costs. Because WaMu doesn’t provide free services per-say‚ the sunk costs of the structure are fairly minimal. Transaction costs constitute the next smallest portion of WaMu’s cost structure. WaMu is free of infrastructure based transaction costs like those that smaller retailers who use point of sale services might incur. The primary transaction costs are the commissions
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Assignment: Cost Accounting Applied By Professor Bryan Womack Course Title ACC 350012VA016-1122-001 Cost Accounting February 26‚ 2012 Companies that are successful financially know what their costs are and how those costs are being spent. The company I have chosen wants to change from a general accounting system where costs are put in general categories and they currently do not have any allocation
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Chapter 1 Basic Cost Concepts Learning Objectives • To understand the meaning of different costing terms to understand different costing methods • To have a basic idea of different costing techniques • To understand the meaning of cost sheet In order to determine and take a dispassionate view about what lies beneath the surface of accounting figures‚ a financial analyst has to make use of different management accounting techniques. Cost techniques have a precedence over the other
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P 69‚994. If the cost of making a forging is P 56 per unit and its selling price is P 135 per forged unit‚ find the number of unit to be forged to break-even. Solution: Let: x = number of units to be forged to break-even Income = 135x Expenses = 69‚994 + 56x To break-even: Income = Expenses 135x = 69‚994 + 56x 79x =69‚994 x = 886 units Steel drum manufacturer incurs a yearly fixed operating cost of $ 200‚000. Each drum manufactured costs $ 160 to produce and
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colossal giants crumbling to their knees. The prime aim is to throw light at the subtle inconsistencies that can cost the companies far more than just money but their entire image. The asset of ‘good will’ has its nemesis in these unethical practices surfacing. Management accountants work inside a company‚ handling all internal accounting data. These individual often allocate production costs‚ create management reports and provide support for managerial decisions. Ethical issues can result from managerial
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Ravinder Gahlout(12P098) Srinivasan Ramesh(12P108) Vipul Garg(12P118) Submitted By: 2012 Table of Contents Introduction 3 ASIC Division - Cost Pools 4 Cost accounting system at ASIC: 5 Internal and external customer: 6 Situation at ASIC division (as on March 1996) 7 Western Digital Proposal 7 Capacity Analysis 8 Diferential Manufacturing Cost Budget 10 Introduction Sub Micron Devices started its operations in mind 1980s. The company was located in Phoenix‚ Arizona‚ and had 400 employees
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