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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Part 2 What are the variable costs? Meals the high and low $4‚900 - $3‚500 =1‚400 Cost the high and low $26‚000.00 - $20‚500.00 = $5‚500.00 The variable cost per meal is $5‚500 divided by $1‚400 which is $3.93. The variable cost for the low month is $5‚500 multiplied by $3.93which is $13‚755.00. What are the fixed costs? The total fixed cost is subtracting the variable from low time period: $20‚500 - $13‚755.00 = $6‚745 How many meals will
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40‚000 | | 100‚000 | | 404 | | | | 20‚000 | 20‚000 | 40‚000 | | 405 | | | | | 20‚000 | 20‚000 | | Total | 90‚000 | 120‚000 | 90‚000 | 60‚000 | 40‚000 | 400‚000 | 2 Physical Measures Method | Produced | Proportion | Joint Cost Allocation | Unit Cost | 401 | 90‚000 | (90‚000/400‚000)0.225 or 22.5% | (200‚000 x 0.225)45‚000 | (45‚000/90‚000)0.5 | 402 | 120‚000 | (120‚000/400‚000)0.3 or 30% | (200‚000 x 0.3)60‚000 | (60‚000/120‚000)0.5 | 403 | 90‚000 | (90‚000/400‚000)0.225 or 22.5%
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Structure Setting and Adjustment | Definition | A pay structure is a collection of pay rates or pay ranges.Structure setting and adjustment is the process of developing‚ adjusting‚ and maintaining a pay structure. | Purpose | Pay structures are used to help organizations: * maintain pay levels that are competitive with the external labor market‚ * maintain internal pay relationships among jobs‚ * recognize and reward differences in level of responsibility‚ skill‚ and performance‚ and
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HSM 260 Checkpoint Scavenger Hunt Week 1 July 29‚ 2011 GAAP- (Generally Accepted Accounting Principles) - The rules that govern the way accountants generate financial reports. http://www.investopedia.com/terms/g/gaap.asp Basic accounting formula- The formula used in accounting that shows the total assets‚ liabilities‚ and the shareholders equity. Assets = Liabilities + Shareholder Equity. http://www.investopedia.com/terms/a/accounting-equation.asp Transaction‚ t-account- An analysis
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Product cost is the cost of direct labor‚ direct materials‚ and manufacturing overhead that are consumed to create a product. Product cost can also be considered the cost of the labor required to deliver a service to a customer. Direct Material Cost Definition: Direct material cost is the cost of materials used to manufacture a product or provide a service. Direct Labor Definition: Direct labor is production or services labor that is assigned to a specific product‚ cost center‚ or work order
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Capstone 9 Usha Dillard April 17‚ 2013 HSM/260 Wanda Rainey-Reed I think it is very important especially if you want to improve the services that are being provided to the clients‚ no organization wants to have a loss‚ and every organization wants to have growth‚ especially when it deals with health sector. So having a proper financial management for the human service organization would give it an edge over other organization in Quality of Service and Net growth per year. Which I think that
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Foundations Paper I chose to write about The United Way of America. The reason I chose this organization was because I have seen pretty much advertised in many human service place. Even as a kid‚ I can recall seeing at least the well-known logo that identifies the organization. Before researching and gathering the information needed to complete this paper‚ I knew that this organization was a well known nationally established entity. What I did not know was the extent of it service. I was
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Cost Control and Cost Reduction A business enterprise must survive‚ grow‚ and prosper. Cost Control and Cost Reduction are activities necessary for ensuring that these objectives are fulfilled. With the liberalization of the Indian Economy and Globalization‚ there is now a cut throat competition from various concerns of the world. As a result there is now a race to secure a place for survival. This has increased the importance of cost control and Cost Reduction. Cost Control “Cost control
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Break-even (economics) In economics & business‚ specifically cost accounting‚ the break-even point (BEP) is the point at which cost or expenses and revenue are equal: there is no net loss or gain‚ and one has "broken even." A profit or a loss has not been made‚ although opportunity costs have been "paid‚" and capital has received the risk-adjusted‚ expected return.[1] It is shown graphically as the point where the total revenue and total cost curves meet. In the linear case the break-even point
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