Quiz 1. Budgeting is the common accounting tool companies use for planning and controlling. Budgets a. provide a measure of planned financial results. b. focus managers’ energies on exploiting opportunities. c. help managers anticipate potential problems. d. enable managers to control through a set of specific activities with defined corrective actions. 2. [AICPA Adapted] Dewitt Co. budgeted its activity for October 2004 from the following information: * Sales
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INTERNATIONAL B-SCHOOL SUBJECT: FINANCIAL & COST ACCOUNTING Total Marks: 80 N.B.: 1)Allquestionsarecompulsory 2) All questions carry equal marks. Q1) ABC Ltd. Produces room coolers. The company is considering whether it should continue to manufacture air circulating fans itself or purchase them from outside. Its annual requirement is 25000 units. An outsider vendor is prepared to supply fans for Rs 285 each. In addition‚ ABC Ltd will have to incur costs of Rs 1.50 per unit for freight and Rs 10‚000
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ADVANTAGES OF COST ACCOUNTING 1. Fixation of responsibility: Whenever a cost center is established‚ it implies establishing a kind of relationship between superior and subordinates. Thus responsibilities are fixed on every individual who is concerned with incurrence of cost. 2. Measures economic performance: By applying cost control techniques such as budgetary control and standard costing it helps in assisting the performance of business. 3. Fixation of price: By providing cost data it
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Different Fields of Accounting: Accounting includes everything related to the recording‚ presentation and analysis of the financial information of an entity. Accounting has been a part and parcel of the human civilization since centuries now‚ the only thing that differs from time to time is the practices used for accounting purposes. Accounting is one of the most important practices or departments in any organization because it helps in financial recording and maintaining those records. Accounting
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condiments available Wendy’s was able to offer 256 possible hamburger combinations along with soda and other drinks. Hamburger patties were made daily with 100% pure fresh beef and chili was made daily using a secret recipe and from mostly overcooked patties from the day before. Overcooked patties were the result of anticipating high demand for hamburgers‚ thus cooking for high demand‚ and actually having a lower demand. Throwing away the overcooked patties would be very costly but by finding
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HOW MANAGERIAL ACCOUNTING ADDS VALUE TO ORGANIZATION 1. INTRODUCTION Management accounting provides accounting and related information to support the management of an organization in its internal decision-making. It includes product costing‚ relevant costing‚ cost-volume-profit analysis‚ capital budgeting‚ and operational‚ tactical‚ and strategic planning. A major activity included in the management accounting is the measurement of costs of processes that create value. Management accounting is
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Department of Accounting BBA Program COURSE OUTLINE Term: Summer 2012 – 2013 I. Course Code and Title : BBA – 2210: Managerial Accounting II. Credit : 3 credit hours III. Course Description: This course introduces management accounting as an interactive discipline among the young learners and covers a wide range of issues leading to managerial decision making such as: Definition and features of managerial accounting; cost terms‚ concepts‚ and classifications; cost behavior analysis and use; cost-volume-profit
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the following costs and information: | Job 43 | Job 44 | Direct materials | $10‚200 | $34‚400 | Direct labor | 21‚000 | 10‚400 | Applied overhead* | 4‚950 | 7‚370 | Total cost | $36‚150 | $52‚170 | | | | Machine hours | 45 | 67 | *Applied on the basis of machine hours During March‚ Job 45 was started and Job 44 was completed and delivered to the customer. Job 43 was missing a part that was backordered and would be completed in June. The following costs were incurred
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are required to have competencies in cost management‚ performance measurement (financial and non-financial)‚ process management and risk management as a result play a fey role in decision making across the various functional areas of an organization Managerial accounting: the form of accounting concerned with providing information to managers for use in planning and controlling operations and for decision making Financial accounting: the form of accounting concerned with providing information to
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range of accounting application is expanding rapidly‚ along with the increasing demand of economic market. As is well known‚ accounting is a key aspect of business. And in the accounting profession‚ there has been already existed interpenetration and overlapping among the different kinds of accounting. Cost accounting and financial accounting are two main components of accountancy. The former one is a part of accounting. In cost accounting‚ it dramatically researches the variable cost‚ fixed cost‚ overheads
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