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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THE PRICING BARRIER Objectives: * Studying the Indian luggage industry before entering into the market * To study why Gibraltar had not launched its products in the industry * How to enter the Indian luggage market to break Monarch’s monopoly and Gibraltar’s brand recall * How to use advertising to compete with the pre-positioned brands and create a market competition Diagnosis: * European brand Tufflug had plans to enter the Indian luggage market but did not‚ after Gibraltar
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Culturally Rich Inventions The digit zero and the numbering system Chess Algebra‚ Trigonometry‚ and Calculus The decimal system The game of Snakes and Ladders The value of “pi” Noble prizes in Literature‚ Physics‚ Economics‚ Peace and Medicine Ayurveda is the earliest literature of medicine known to mankind. The father of medicine‚ Charaka‚ practiced medicine 2500 years ago. Until 1896‚ India was the only source for diamonds to the world India never invaded any country in her 10‚000 years
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American Culture The American Culture is rich‚ complex‚ and unique. Our culture‚ which is an important component of the nation’s identity‚ emerged from short‚ rapid European invasion of the Americas‚ sparsely settled by diverse native peoples. The African’s arrival added yet another layer of unique cultural complexity to the territories named the New World. These three cultures‚ European‚ Indian‚ and African were very different and yet a lot alike. Their ways of life were greatly diverse although
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Cost Accounting: A Managerial Emphasis‚ EXHIBIT 11-1 Accounting Information and the Decision Process FIVE-STEP SEQUENCE Step 1: Gathering Information AN ILLUSTRATION The current manufacturing line uses 20 employees‚ 15 operating machines‚ and 5 handling materials‚ for a total cost of $640‚000. The rearrangement of the manufacturing assembly line is expected to eliminate materials-handling costs‚ equivalent to $160‚000. The cost of the rearrangement will be $90‚000. Historical
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Carolyn Watson September 13‚ 2014 Week 3 – Manufacturing & Service Problems Manufacturing & Service Problems Problem #1: For each of the following variables‚ explain the differences (in general) as one moves from a workcenter to an assembly line environment (Jacobs & Chase‚ 2011). a. Throughput time (time to convert raw materials into product) – During the manufacturing process which is considered as the workcenter (e.g. job shop) that usually involves a specialist who does a specific job or
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same time‚ however‚ the industry is criticized for its marketing and pricing practices—and even for its research and development priorities. Industry’s consistently high profits and large expenditures on research and development as well as on marketing that foster scrutiny and criticism. The pharmaceutical industry is unique in the sense that that it is fundamentally based in research and development (R&D) but is also a manufacturing industry. Like other industries within the health sector‚ elements
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22‚ 2014 Quiz 6 If you are starting out in a new business‚ especially a service/manufacturing business‚ understanding the cost accounting system and which cost accounting system will work best for your company‚ is the first step to being successful. Once you find someone to help you navigate those waters‚ let them help you sail the rough seas of direct and indirect inventory‚ direct and indirect labor costs‚ and how to allocate factory overhead as well. While it all may sound confusing‚ having
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Cost management | Wilkerson Company Case | | 1. What is the competitive situation faced by Wilkerson? The competitive situation faced by Wilkerson is quite severe. Price cutting in its main product has led to a huge drop in profit. While price increase in another product line partially made up the loss. We will discuss the detailed situation line by line. (1) Valves It was the first product line developed by Wilkerson and its high quality brought it a loyal customer base. Even
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S5 Manufacturing Account/LWL Manufacturing Accounts ( A. ) Function of a Manufacturing Acccount For those businesses which deal with manufacturing products. It is common in today’s business to act both as manufacturer ( ) and retailer ( ). e.g Crocodile‚ Bossini‚ G2000‚ U2. What is the advantage as being a manufacturer as well as a retailer? Division of Costs The purpose of a Manufacturing Account is to ascertain Cost of Production ( ). B. Cost of Production = Prime Cost + Factory
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