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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Acc 400 Wk 4 DQ 1. What are some of the various lease options? When would you use one option over the others? What could be the financial influence of this decision? The option to lease requires little or no money down. The various lease options are known as capital leases‚ sale type leases‚ direct financing leases‚ leveraged leases and operating leases. The general purpose‚ profitable margins and potential duration of need must be analyzed before a decision is formed to wager the best option
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Question 1: 1. Activity-cost-driver rate for packing: ‚950hours)) = 157.89/ hr 2. ABC system for sugar cookie A. Estimated overhead cost per 1000 cookies Oven costs: ‚)) x 1 = $110.53 Packing costs: 157.89 x 0.5 = $78.95 ? Total overhead costs: $189.48 B. Estimated operating profit for cookies Selling price: $0.75 x 1‚000 = $750 Less Direct material costs: $0.15 x 1000 = ($150)
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Classify each cost listed below as either a product cost or a period cost for purposes of preparing the financial statements for the bank. 1. The cost of the memory chips used in radar set. * Product Cost 2. Factory Heating Cost * Period Cost 3. Factory Equipment maintenance costs. * Period Cost 4. Training costs for new administrative employees * Period Costs 5. The cost of the solder that is used in assembling the radar sets. * Product costs 6. The Travel
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1. Assignment 1A (10 points) (Question for Review 14‚ page 1-23 of your textbook Question: Summarize the procedure followed by the Human Resources Department in hiring new employees. The procedure that may be followed by the Human Resources Department in hiring new employees is: a. Receive request for new employee. b. Examine applications. c. Interview applicants. d. Administer tests. e. Check references. f. Select and notify successful applicant. g. Send information to Payroll Department
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Slugger baseball bats during May. Costs for the Forming Department for the month of May were as follows: Direct materials $33‚000 Conversion costs $17‚000 A total of 8‚000 bats were completed and transferred to the Finishing Department during May. The ending work in process inventory was 100% complete with respect to direct materials and 25% complete with respect to conversion costs. The company uses the weighted-average method of process costing. 1. The cost of the units transferred to the Finishing
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and disadvantages of using the cost of each print as a manufacturing overhead cost driver? 3 Using the information on the next page‚ compute and interpret the predetermined manufacturing overhead rate for Wall Décor. 4 Compute the product cost for the following three items. (a) Lance Armstrong unframed print (base cost of print $12). (b) John Elway print in steel frame‚ no mat (base cost of print $16). (c) Lambeau Field print in wood frame with mat (base cost of print $20). 5 (a) How much
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1) Which of the following statements is true? D. A Management Discussion and Analysis section is required in annual reports to shareholders even when financial results are positive. 2) Notes to the financial statements include which of the following: A. An independent auditors report. 3) Which of the following financial statements is divided into major categories of operating‚ investing‚ and financing activities? D. The statement of cash flows. 4) If the retained earnings account increases from
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Quality Cost 1 Quality is defined from the customer´s point of view l Performance l Performance or the primary operating characteristics of a product or service. Example: For a car‚ it is speed‚ handling‚ and acceleration. For a restaurant‚ it is good food. l Features l Features or the secondary characteristics of a product or service. Example: For a TV‚ it is an automatic tuner. For a restaurant‚ it is linen table cloths and napkins . l Reliability l Reliability
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Virtual Lab: Dependent and Independent Variables Worksheet 1. ECB refers to: E (European corn borer) a. A genetically engineered plant that is resistant to insect pests b. Edible corn byproducts c. An insect pest that reduces corn yield d. European corn borer e. c and d 2. How many days are required for a corn seed to become a mature plant with maximum weight kernels ready to be harvested? D (about 140 days) a. about 23 b. about 65 c. about 140 d. about 180 3. “BT Corn” refers
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