You are responsible for any questions and problems that you were assigned for homework or that we worked in class. Also‚ you should be able to discuss and/or answer questions related to your readings/case(s) and the Wall Street Journal. Cost Management and Strategy – refer to your assigned questions and problems Cost Drivers and Basic Cost Concepts -- What is a cost? Define cost pools. What is a cost object? cost assignment? Contrast a direct cost with an indirect cost. Define cost allocation
Premium Management accounting Costs Variable cost
Question 1: i. Fixed Cost = ($660 + $770) x 3‚000 units = $4‚290‚000.00 Variable Cost = $550 + $825 + $420 + $275 = $2‚070 Total Variable Cost = $2‚070 x $3‚000 = $6‚210‚000.00 Unit Contribution Margin = Sales – Variable Cost = $4‚350 – $2‚070 = $2‚280 ii. Contribution Margin Ratio = Total Variable Cost Total Sales = $2‚280 x 3‚000 $4‚350 x 3‚000 = 0.524137 iii. Break even volume in units = Total Fixed Cost Unit Contribution Margin = $4
Premium Variable cost Costs Contribution margin
Managerial Acctg Quiz 1 – Fall 2012 NAME_ ______________________ Chapters 1 and 2 10 Points 1. Complete the answer sheet below by placing an "X" under each heading that identifies the cost involved. The "Xs" can be placed under more than one heading for a single cost. (5 Points) Variable Cost Fixed Cost Direct Materials Direct Labor Manufactu ring Overhead Period Cost Materials costs X X Production line workers wages X X Production Equipment
Premium Manufacturing Costs Variable cost
Executive Summary Traditional management systems rely on volume to allocate overhead. Indirect cost is allocated to items such as direct labor hours‚ units produced or the production of machine hours. Using only single cost drivers‚ potentially distorts cost estimates especially when dealing with high volume production. The implementation of Activity Based Costing serves as a solution to this downside in traditional systems. ABC utilizes various cost drivers both volume and non-volume related to
Premium Customer relationship management Supply chain management Management
ACCOUNTING FOR BUSINESS II CHAPTER 1 COST SHEET Meaning And Scope of Cost Accountancy The term cost accountancy is wider than the term cost accounting. According to the Terminology of Management and Financial Accountancy Published by the Chartered Institute of Management Accountants‚ London‚ cost accountancy means‚ “the application of costing and cost accounting principles‚ methods and techniques to the science‚ art and practice of cost control. It includes the presentation of information derived
Premium Management accounting Cost accounting Cost
TOPIC: ACTIVITY-BASED MANAGEMENT INTRODUCTION Activity based management (ABM) is an approach to management that aims to maximize the value adding activities to the customers while minimizing or eliminating non-value adding activities. The objective of ABM is to improve the efficiency and effectiveness of an organization in securing its markets. It draws on activity based-costing (ABC) as its major source of information and focuses on managing activities to (1) reduce costs‚ (2) create performance
Premium Management accounting Process management Costs
IKEA assignment 1. Given the SWOT analysis presented in the case‚ what are IKEA’s key competitive advantages? What strategic focus should the company take as it looks to further expand into the U.S. market? - I think that the Ikea’s key competitive advantages are‚ their lower cost products‚ everyone is looking for a good deal and if they are able to buy a chair for $50 instead of $100 and assemble is easy I think people will buy the $50 chair. Also another advantage is the customers in
Premium United States IKEA Strategic management
Accounting II Final Exam Review Chapter 18 Direct and Indirect Costs -Cost – a payment of cash or a commitment to pay cash in the future for the purpose of generating revenues. A. Cost object – costs that are often classified by their relationship to a segment of operations. Ex. Product‚ sales territory‚ a department‚ or an activity‚ such as research and development 1. Direct Cost = identified with and can be traced to a cost object Ex. The wood for a guitar is a direct cost of the
Premium Variable cost Costs Fixed cost
Accounting has a primary function to provide and develop data measuring the performance and disclosure of the company or organization to assist managers‚ investors‚ tax authorities and decision makers. The individual in the role of accounting is called an accountant and he or she has the responsibility to prepare financial statements such as balance sheets‚ income statements‚ and cash flows. The different categories for accounting are financial‚ cost‚ internal and external accounting. Finance has
Premium Balance sheet Financial statements Generally Accepted Accounting Principles
Agenda – Submit term projects to TURNITIN ASAP – Assignment #2 due April 1st 1159pm • List the coauthor’s name in the subject line. • Teaching Evaluation • Transfer pricing (cont.) – Stanco Inc. • Review chapters 11 and 12 & the practice final – Practice Q1 and Q2 • Review chapters 8 and 9 and the practice final – Practice Q3 and Q4 ACTG 2020 Week 11 1 • Online Course Evaluations (ONCE)/ & Seymour Schulich Teaching Excellence Awards (Schulich TEA) – TEA: http://schulich.yorku.ca/tea. – ONCE:
Premium Costs Variable cost Price