Variable costing vs Absorption costing Variable and Absorption costing are two different methods and ways that many organizations use to determine and calculate product cost. The income statements formats of both methods include period and product costs. However‚ each one has a different cost classification definition. Both have the same direct material and direct labor allocation‚ the differences is how they report the income‚ product‚ and pricing One of the main differences between
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A process costing system is a costing system in which the cost of a product or service is obtained by assigning costs to masses of like or similar units. Unit costs are then calculated on an average basis. Process costing systems are used in industries that produce like or similar units which are often mass produced. In these industries‚ products are manufactured in a very similar way. The companies usually use the same amount of direct materials‚ direct manufacturing labor costs and manufacturing
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IE401-Econ401 MidTerm Managerial Economics NAME: Each of the 20 multiple choice questions is worth 3 points. Mark your answers on the ANSWER KEY on page 5. Also provide BRIEF answers to each of the 4 “essay type/logical” questions. Multiple-Choice Questions 1. A manufacturer produces 1‚000 basketballs each day‚ which it sells to customers for $30 each. All costs associated with production and sales total $10‚000; however‚ if the manufacturer were to produce one
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& Service costing Service Costing Unit costing is the method of costing used when the cost units are identical. Identical cost units should have identical costs and this concept of equality of costs is the basic feature of unit costing. It may be noted that process costs‚ output costing and service costing are the sub-divisions of unit costing method. Service Costing – Nature and Problem: Service or operating cost is the cost of providing services. Service costing is the term
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hydrolysis was carried out through reflux boiling for 20 minutes with 10ml 0f 1.5M concentrations of diluted sulphuric acid. Reducing sugars concentrations were determined by spectrophotometry using the 3‚ 5 dinitrosalicylic acid (DNS) method. The first sample was operated as blank for zero. The stock solution was prepared in order to find the unknown concentration of carbohydrate cereals powder‚ jam (total sugar content) and jams (reducing sugar content). The absorbance of stock solution were 0.017‚0.030
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Target Costing on Mercedez – Benz Mercedes-Benz (MB) is one of the world ’s most successful car manufacturers since its establishment in 1886. They used target costing in the design and production of one of its products‚ the M-Class‚ which is a new sports utility vehicle model‚ in response to their first time suffering loss in 1993 because of cost inefficiency and problems with material purchasing and adapting to market changes. MB started developing a range of new products such as the C-Class
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ACT 2131 – QUIZ 1 solution MATRIX NO: ______________________ Answer all questions by using OMR form given 1. Managerial accounting: A. has its primary emphasis on the future. B. is required by regulatory bodies such as the SEC. C. focuses on the organization as a whole‚ rather than on the organization’s segments. D. Responses a‚ b‚ and c are all correct. 2. The plans of management are expressed formally in: A. the annual report to shareholders. B. Form 10-Q submitted
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Quality cost measurement under activity-based costing Wen-Hsien Tsai National Central University‚ Chung-Li‚ Taiwan‚ Republic of China Introduction Many companies in the world gradually promote quality as the central customer value and regard it as a key concept of company strategy in order to achieve the competitive edge (Ross and Wegman‚ 1990). Measuring and reporting the cost of quality (COQ) is the first step in a quality management program. Even in service industries‚ COQ systems receive considerable
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Unit 4 Research Assignment 1 Using Global Variables A global variable is a variable with a global scope. The set of global variables are known as the global environments or global state. Global variables are used to pass information between sections of codes that do not share the same caller/callee relations like threads and signal handlers. Without a proper locking code using the global variables will not be thread-safe except for read only values. For programs‚ it is best
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Activity Based Costing The major strength of activity based costing is the ability to estimate the cost of individual products and services precisely. By transferring overhead costs to individual units of products or services‚ ABC helps identify inefficient or non-profitable products or activities that help into the profitability of efficient processes or highly profitable products. 1. More accurate costing of products/services Product cost determination under activity-based costing is more accurate
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