REVIEW QUESTIONS CHP 2‚3 CHAPTER 2 True/False ____ 1. The cost management information system is primarily concerned with producing outputs for internal users using inputs and processes needed to satisfy management objectives. ____ 2. Cost assignment is one of the key processes of the cost accounting system. ____ 3. The three methods of cost assignment are direct tracing‚ driver tracing‚ and allocation. ____ 4. Intangible products are goods produced by converting raw material into finished products
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Chapter: 1 Facility Location Models 1.1 Introduction Facility Location is a geographic location of manufacturing/service facilities where transformation activities from inputs into the output are performed. Selecting a location of facilities is very crucial decision not only for manufacturing unit but also for service unit. Generally it is a strategic decision and involves lot of activities. It starts from identifying the suitable locations based on certain criteria and then evaluating all locations
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of past decisions. ▪ The provision of information which explains current trends. ▪ The provision of information for decision making. ▪ The provision of information for planning and control. Traditionally management accounting provided cost information to management for the control and decision making process. The concern of the management accountant today is much wider and includes the provision of both financial information and non-financial information. Management accounting is
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IGNOU MBA MS - 04 Solved Assignment 2011 ------------------------------------------------- Course Code : MS - 04 ------------------------------------------------- Course Title : Accounting and Finance for Managers ------------------------------------------------- Assignment Code : MS-04/SEM - I /2011 ------------------------------------------------- Coverage : All Blocks Note: Answer all the questions and send them to the Coordinator of the Study Centre you are attached with. 1. Following
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from a local printing shop when necessary. The cost of using the equipment is $350. The materials used in one shirt cost $8‚ and Gina can sell these for $15 each. (a) If Gina sells 20 shirts‚ what will her total revenue be? What will her total variable cost be? (F) Fixed Cost= $350.00 (V) Variable Cost= $8.00 (S) Selling Price= $15.00 (X) Number of Units Sold= 20 Revenues = (S)(X) = (15)(20) = $300.00 Total Variable Cost = (V)(X) = (8)(20)
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possible we first had to investigate if it would be realistic to expend the business of Cottontex. We had to set up a new production facility‚ which includes issues related to the expansion of the production facility. We also had to calculate what the cost will be for Cottontex‚ if they would expand their business. Summary The starting point of the project is the product. The required product is a straight cotton skirt in a dark blue colour. To gain more knowledge about the specifications of the
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revenues do not cover total costs. If revenues are greater than variable costs‚ but not total costs‚ the firm is better off producing in the short run rather than shutting down‚ even though it is incurring a loss. The reason is that the firm will be stuck will all its fixed cost and have no revenue if it shuts down‚ so its loss will equal its fixed cost. If it continues to produce‚ however‚ and revenue is greater than variable costs‚ the firm can pay for some of its fixed cost‚ so its loss is less than
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Break-even point is that point at which there is neither profit nor loss. It is at point costs are equal to sales. It is otherwise called as balancing point‚ neutral point‚ equilibrium point‚ loss ending point‚ profit beginning point etc. After BEP is achieved‚ all the further sales will contribute to profit. At BEP‚ Sales – Variable cost = Fixed costs. OR Contribution = Fixed costs. Break-even analysis Break-even analysis is an analytical technique that is used to determine the probable
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Prologue Managerial Accounting and the Business Environment Study Suggestions ( The prologue describes important aspects of the contemporary business environment. While there are no written assignments‚ you should be familiar with the major ideas as background for your study of managerial accounting. HIGHLIGHTS A. In many industries‚ a company that does not continually improve will find itself quickly overtaken by competitors. The text discusses
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DISCUSSED: 1. Process Costing 2. Direct and absorption costing 3. Standard Costing PROCESS COSTING INPUT W-I-P LOSSES Normal & abnormal OUTPUT Process costing - statements 3 Process cost reports: 1) 2) 3) Quantity statement (also called production statement) Production cost statement Cost allocation statement (also called allocation statement) Process costing – methods of stock valuation -The weighted average method -FIFO-method “What’s the difference?” Process costing
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