Define cost object and give three examples Cost object is defined as “Anything for which a separate measurement of cost is desired”. The term cost object and cost objective is synonymous. Cost object may refer to a process‚ a cost centre‚ and cost units. Cost unit is a quantitative unit of product or service in relation to which cost are ascertained. Cost centre is a location‚ function or item of equipment in respect of which cost are ascertained. 2. Define cost accumulation
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explain why the answer chosen is correct‚ and why the other choices would not be correct. Please support your response. Let’s begin with the questions on Page 1. Page 1 1. Indirect labor is a part of: B. Conversion cost. Labor that cannot be physically traced to particular product is treated as indirect labor and as manufacturing overhead. Conversion cost is the sum of direct labor and manufacturing overhead. These costs are incurred to convert materials into the finished product. Indirect
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NIKE‚ INC.: COST OF CAPITAL Book value vs. Market value While calculating the Nike’s cost of capital using both the book value (Exhibit 1.1) and the market value (Exhibit 1.2)‚ I could notice the mistake Cohen made finding the equity value. Cohen used the book value to reflect equity value. Although the book value is an accepted measure to estimate the debt value‚ the equity’s book value is an inaccurate measure of the value perceived by the shareholders. Since Nike is a publicly traded company
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Health services managers are essentially interested in how costs are affected by changes in volume. Cost behavior refers to a cost ’s reactions to activity level. A cost may rise‚ fall‚ or remain constant as activity levels fluctuate. We can classify several types of costs on the basis of their relationship to the amount of services provided‚ often referred to as activity‚ utilization‚ or volume (Gapenski‚ 2012). When dealing with the future there is a level of uncertainty of volume with regard
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Study Material INTEGRATED PROFESSIONAL COMPETENCE COURSE Cost Accounting and Financial Management Part 1 : Cost Accounting Vol. I The Institute of Chartered Accountants of India (Set up by an Act of Parliament) New Delhi PAPER 3 COST ACCOUNTING AND FINANCIAL MANAGEMENT Part – 1 : Cost Accounting VOLUME – I BOARD OF STUDIES THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA This study material has been prepared by the faculty of the Board of Studies. The objective of the
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Allocate joint product costs according to the benefits-received approaches and the relative market value approaches. 3. Describe methods of accounting for by-products. 4. Explain why joint cost allocations may be misleading in management decision making. 5. Discuss why joint production is seldom found in service industries. This chapter describes the joint production processes and their outputs—joint products and by-products. Several methods are developed to allocate joint costs to joint products
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The costs that were needed in order to continue fighting had many negative effects on Canada. As the military enlisted a vast number of soldiers‚ many lives were negatively affected by the war in various ways- which included death for numerous Canadians. Also‚ financial strain and time commitment needed had tremendous costs to Canada. Then‚ the goals that were set out and the outcomes that were met had significant costs. The government pulling out from the Afghan war was caused by the costs to Canada
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Narration I went to the Emergency Room for the first time when I was thirteen years old. It all came about when I was skateboarding in front of my grandma’s house and I tried to do a trick. I almost pulled it of‚ but I messed it up in the end and headed to the ground with my hands down. My right wrist was twisted the wrong way in the air when I landed hard on the ground‚ it just broke it. At first it did not hurt at all‚ but when I looked down at my warped and twisted wrist ‚ all of a sudden
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Cost Variance Analysis Presented by : Edmund C. Cabrera MBA Student Universidad de Manila Definitions STANDARD COSTS – are predetermined or target unit costs of production which should be attained under efficient conditions. It is the amount and costs of direct material‚ direct labor‚ and factory overhead required to produce one unit of finished product. STANDARD COST SYSTEM – is an accounting system which uses standard costs rather than actual costs to account for units as they flow through
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OVERHEAD COSTS ACCOUNTING Overheads are indirect costs which can not directly be traced to cost units. The task of the cost accountant is to charge these overhead costs to cost units/products. There are two approaches of charging overhead costs to cost units Viz i. Traditional/conventional absorption costing method and‚ ii. Activity Based Costing (ABC) Classification of overheads Overheads can be classified as production or non production overheads. Production overheads are those incurred
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