Relationship between Fixed and Variable Costs Used in a Flexible Budget A budget is a quantitative expression of a plan of action. Budgets help to coordinate and implement plans and are considered as chief devices for disciplining management planning (Horngren et al. 2008). It is very important for employees to understand the concept of budget operations. Knowing budget operations can eliminate the possibilities for incorrect information to be reported. Businesses must choose which variables will determine
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consistency principle states that businesses should use the same accounting methods and procedures from period to period" (Harrison‚ Horngren‚ Lemon‚ & Lemon‚ 2004‚ p. 279) Hence the financial statement of Carroll Company violates the consistency principle. I - C. "The time-period concept ensures that accounting information is reported at regular intervals" (Harrison‚ Horngren‚ Lemon‚ & Lemon‚ 2004‚ p. 114). Still‚ the company believes that quarterly financial information can be issued whenever it is
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References: Deloitte. (2004‚ June 22). IAS PluS. Key Differences Between IFRSs and US GAAP. Retrieved November 28‚ 2012‚ from http://www.iasplus.com/iasplus/0406ifrsus.pdf. Harrison‚ W.‚ Horngren‚ C.‚ & Thomas‚ W. (2010). Financial Accounting (8th edition). Upper Saddle River‚ NJ: Pearson Prentice Hall. Jae‚ J. (2011‚ March 27). FIFO LIFO Inventory Valuation Methods. Retrieved November 28‚ 2012‚ from Old School Value: http://www.oldschoolvalue
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paper‚ is the completion of the accounting cycle by hand without the use of a computerized accounting system. The accounting cycle for manual accounting is the process by which companies produce their financial statements for a specific period (Horngren & Harrison‚ 2007). Typically‚ in a manual accounting cycle the following steps are taken: Analysis of transactions‚ journalizing entries‚ posting to the ledger‚ preparing an unadjusted trial balance‚ preparing a worksheet‚ preparing financial
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Drury‚ C. (2008). Management and Cost Accounting (illustrated‚ reprint ed.). Cengage Learning EMEA. Heath‚ Huddart‚ & Slotta. (2009). Retrieved July 27‚ 2013‚ from http://www.personal.psu.edu/sjh11/BA521/NEW/Class08/TransferPricing.pdf Hill‚ I Horngren‚ C. T.‚ & Foster‚ G. (1991). Cost accounting: A managerial emphasis‚. Prentice-Hall. Jain‚ P. K. (2000). Cost Accounting. Tata McGraw-Hill Education. Kinney‚ M. R.‚ & Raiborn‚ C. A. (2012). Cost Accounting: Foundations and Evolutions (9th
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AMERICAN INTERNATIONAL UNIVERSITY – BANGLADESH Faculty of Business Administration 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;
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for each activity must be computed. Fourth costs to cost object are allocated. Activity-based costing focuses on activities. The costs of those activities become the building blocks for measuring (allocating) the costs of products and services. (Horngren‚ Harrison‚ Jr & Oliver‚ 2008) This method of costing does require more time to compute the cost to the activity yet it earns that money back plus dividends by having a more accurate forecast of the true costs that are associated with each activity
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an appropriate explanation. Because the total cost of Minnetonka making the bindings is $10.00‚ this is the maximum purchase price they should accept. If they were to pay any more than the $10.00‚ the company would be showing a loss in profit. (Horngren‚ Sundem‚ Stratton‚ Burgstahler‚ & Schatzberg‚ 2008) Instead of sales of 10‚000 pairs of skis‚ revised estimates show sales volume at 12‚500 pairs. At this new volume‚ additional equipment‚ at an annual rental of $10‚000 must be acquired to manufacture
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Introduction Today’s economy is faced with challenges such as constantly increasing competition on world markets‚ more and stronger technological innovations‚ etc. Although certain changes that occur are the stimulus to economic activity‚ also‚ some movements on the market may become a threat. In fact‚ the current economic crisis as recession has covered all countries of the world‚ and the consequences that result are very critical. Lowering production and other economic activities are caused
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Yankee Candle Company History A simple gift from a young man to his mother is responsible for the birth of a successful company. That young man was Mike Kittredge he melted crayons to create a candle for his mother for Christmas. The creation was an instant hit with friends and neighbors and he found it difficult to keep up with the demand. The result of that simple gift to his mother turned into a multimillion dollar company. In 1969‚ a young man made a special gift for his mother; in 1999 the
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