Reasons for good stock control: 1. Good stock control helps the business minimise storage costs (e.g. heating‚ lighting‚ security). 2. Good stock control helps the business avoid loss of sales and thus revenue due to items not being in stock. 3. Good stock control helps the business minimise the risk of theft‚ deterioration and obsolescence. 4. Good stock control helps the business improve its customer service (e.g. the ability to inform customers when new stock will arrive. 5. Good stock
Premium Management accounting Cost Costs
BUSA 5061 Managerial Accounting Students Name: Teresa Willette Professors Name: Dr. Conner/Dr. Pollard Date 3/20/2011 Executive Summary The following analysis is written for Dakota Office Products to evaluate current business operations and recommend future actions necessary to ensure company success. In the analysis of the company we will identify inefficient business practices that have led to the companies first profit loss in its history. We will evaluate the companys current pricing structure‚
Premium Costs Management accounting Cost accounting
resulting from new and amended IFRSs issued up to 31 March 2004. The section “Changes in this Edition” at the front of this volume provides the application dates of these new and amended IFRSs and also identifies those current IFRSs that are not included in this volume. International Accounting Standard 2 Inventories (IAS 2) is set out in paragraphs 1-42 and the Appendix. All the paragraphs have equal authority but retain the IASC format of the Standard when it was adopted by the IASB. IAS 2 should be read
Premium Inventory Cost accounting
A B Direct material cost ($) 2 40 Variable production overhead cost ($) 28 4 Overall hours per product unit (hours) 0.25 0.15 ������ Original estimates of production/sales of products A and B are 120‚000 units and 45‚000 units respectively. The selling prices per unit for A and B are $60 and $70 respectively. ������ Maximum demand for each product is 20% above the estimated sales levels. ������ Total fixed production overhead cost is $1‚470‚000. This is absorbed by
Premium Marginal cost Manufacturing Bottleneck
keeps costs down to the company itself as major operating‚ and manufacturing expenses are outsourced. Super Bakery adopted the Activity Based Accounting (ABC) to simplify their cost accounting method. The ABC method benefit companies that assign costs based on cost drivers and how they reflect the depletion of the resources to create the product. Complications with Current Accounting System Super Bakery uses the ABC accounting system that is a management tool that focuses on reducing costs and
Premium Cost Manufacturing Costs
method of cost accounting by marking up purchased products by 15% to cover warehousing‚ freight‚ and distribution and then adding another markup to cover general and selling expense plus an allowance for profit. Dakota has also introduced electronic data exchange (EDI) and a new internet site which allowed customer orders to be placed so that clerks would not have to enter customer and order data manually. Several customers have switched to this method for the convenience but Dakota’s costs have continued
Premium Costs Cost driver Management accounting
RELEVANCE LOST (DISCUSSIE EN ONTWIKKELINGEN) Relevance lost is a title of the book written by Johnson and Kaplan‚ where they were complaining that management accounting techniques emerged centuries ago‚ are still used‚ but they no longer relevant in today’s highly competitive environment. CHAPTER 5 - CONTROLLING THE MULTI DIVISIONAL ORGANIZATION 64. What are the two major obstacles to the success of the integrated firm? 1. Complexity - or the bureaucratic paralysis caused by complexity
Premium Management accounting Costs Cost accounting
Chapter 5: Activity-Based Costing MULTIPLE CHOICE QUESTIONS 1. Consider the following statements regarding traditional costing systems: I.Overhead costs are applied to products on the basis of volume-related measures. II.All manufacturing costs are easily traceable to the goods produced. III.Traditional costing systems tend to distort unit manufacturing costs when numerous goods are made that have widely varying production requirements. Which of the above statements is (are) true? A. I only. B. II only
Premium Cost accounting Costs Activity-based costing
JUST-IN-TIME‚ AND SIMPLIFIED COSTING METHODS 20-1 Cost of goods sold (in retail organizations) or direct materials costs (in organizations with a manufacturing function) as a percentage of sales frequently exceeds net income as a percentage of sales by many orders of magnitude. In the Kroger grocery store example cited in the text‚ cost of goods sold to sales is 76.8%‚ and net income to sales is 0.1%. Thus‚ a 10% reduction in the ratio of cost of goods sold to sales (76.8 to 69.1% equal to 7.7%)
Premium Costs Inventory Cost
traditional standard cost system address these key success factors? The traditional standard cost system was introduced for old style or traditional production system. Because of the dynamic changes‚ rapid volume production‚ number of different outputs of the ASICA‚ division doesn’t fit into the framework of the current accounting system. When we use the traditional system‚ it was a functional based accounting system. But when we use ASIC‚ it needs a product oriented accounting system. In some conditions
Premium Management New product development Manufacturing