Product and Service Costs Output represents one of the most important cost objects. There are two types of output: products and services. Products are goods produced by converting raw materials through the use of labor and indirect manufacturing resources‚ such as the manufacturing plant‚ land‚ and machinery. Televisions‚ hamburgers‚ automobiles‚ computers‚ clothes‚ and furniture are examples of products. Services are tasks or activities performed for a customer or an activity performed by a customer
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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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6 Q.No.6 7 Summary: 8 Introduction Cost Management delivers concise articles‚ experienced-based columns and case studies to evaluate how your present investment justification criteria and methods compare with those of other organizations‚ Learn about changing cost management methods and techniques and how they can be used to improve your company’s decision making in this assignment we going to workout calculate and try to find out different costs of company. In this assignment we going to
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Cost Accounting Chapter Module-1 - Introduction to Cost Accounting Definition Cost: - Generally cost refers to all expenses incurred in producing a product or rendering service. But‚ from the cost accounting point of view “Cost is a normal sacrifice of resources in the creation of product or services”. Costing: - Costing is defined as “the technique and process of ascertaining cost of a given thing”. According to CIMA it is defined as “the establishment of budgets‚ standard‚ costs and
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Job Order Cost System There are two main cost accounting systems used: Job order cost systems and Process cost systems. Both have very distinct differences that help each specialize in a certain type of manufacturing company. The job order cost system in particular is used to "provide product costs for each quantity of a product that is manufactured." When a product is called to be manufactured‚ then it is called a job. Once the job is ordered‚ the manufacturing company must go through a flow
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Prime Cost YES.....Conversion Cost NO. Prime Cost YES.....Conversion Cost YES. Prime Cost NO....Conversion Cost NO. Prime Cost NO.....Conversion Cost YES. | 2. (TCO A) The costs of staffing and operating the accounting department at Central Hospital would be considered by the Department of Surgery to be (Points : 6) | direct costs. sunk costs. incremental costs. None of the above | 3. (TCO A) The cost of lubricants
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MANAGERIAL AND COST ACCOUNTING LARRY M. WALTHER & CHRISTOPHER J. SKOUSEN DOWNLOAD FREE TEXT BOOKS AT BOOKBOON.COM Managerial and Cost Accounting © 2009 Larry M. Walther‚ under nonexclusive license to Christopher J. Skousen & Ventus Publishing ApS. All material in this publication is copyrighted‚ and the exclusive property of Larry M. Walther or his licensors (all rights reserved). ISBN 978-87-7681-491-5 Download free books at BookBooN.com 2 Managerial and Cost Accounting
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Inventoriable costs are expensed when incurred. Answer Selected Answer: False Correct Answer: False Question 2 1 out of 1 points Correct Finished goods inventory is ordinarily held for sale by a manufacturing company. Answer Selected Answer: True Correct Answer: True Question 3 1 out of 1 points Correct Indirect labor is not a component of manufacturing overhead. Answer Selected Answer: False Correct Answer: False Question 4 1 out of 1 points Correct The following equation
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Types of costs Classification of costs: • Materials – costs of raw materials‚ components and other goods used. • Labor – cost of employees wages and salaries. • Expenses – costs which cannot be included in materials and labor. Variable costs – these costs varies directly with changes in the level of quantity‚ over a defined period of time. Fixed costs – are not affected by the changes in the level of activity‚ over a defined period of time. Semi variable costs – for example
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business control systems are: Capital Cost this is physical items and property. It is includes anything with life of three years and over. For example this can be lands/buildings‚ Vehicles‚ computers and other equipments. Revenue Costs this covers the costs of day-to day running the business. For example‚ fuels and maintenance of vehicles and equipments. it could also include salaries‚ advertising and promotion materials‚ and insurance. Indirect Cost this is the cost that directly invested or attributed
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