input based cost driver basis. Robert Kaplan and Antony Atkinson have given an illustration as how the joint and by-products costing method can be used as a tool in the resource allocation process. The paper aims to generate further discussion‚ with illustration from more industries to help formulate proper guidelines on this complex issue of joint and by-product costing. 2.0: Acknowledgement Going through various sources of information we arrived at the generally accepted cost accounting
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Komatsu‚ Ltd. (A) Target Costing System Komatsu • • • • • • • Founded 1917 Takeuchi Mining Co.‚Komatsu Ironworks 1921 Komatsu‚ Ltd. 1991- International Firm Revenue Y989 bn NI Y31bn Construction Equipment‚ Industrial Machinery- Core Business. Electronics applied products – New Business : 80% • Rest from construction‚ unit housing‚ cheimcals‚ plastics and SW Development • 1989: “3G” : Growth‚ Globalisation and Group Diversification • 1995 : Exp Y 1.4 Tn; Worldwide production by 2000; Develop
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Activity Based Costing [pic] Overview of Activity Based Costing Activity-based costing (ABC) is a methodology for more precisely allocating overhead to those items that actually use it. ABC works best in complex environments‚ where there are many machines and products‚ and tangled processes that are not easy to sort out. Problems with Activity Based Costing Many companies initiate ABC projects with the best of intentions‚ only to see a very high proportion of the projects either fail‚
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Defining‚ Modeling & Costing IT Services Integrating Service Level‚ Configuration & Financial Management Processes In our cost driven economy IT is facing increasing pressure to account for and reduce cost wherever possible. The old axiom “You must do more with less” has never had such an impact on IT operations and support as it does today. Thousands of IT managers are being placed in a situation which forces them to defend their staffing levels against both internal as well as external threats
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Send Print Share ABC: too much activity and not enough costing? by Brian Rutherford 03 Feb 2001 Diploma in Financial Management Relevant to Paper D2 | | Activity based costing (ABC) hit the world of financial management with a very large bang in the late 1980s. Within a few years 20% of the UK’s largest companies were using‚ or at least piloting‚ ABC systems. By the turn of the millennium‚ however‚ the proportion of adopters was no higher‚ while one third of those adopting the technique
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CHAPTER 12 Cost Sheet (or) Statement of Cost ELEMENTS OF COST Introduction Elements of cost are necessary to have a proper classification and analysis of total cost. Thus‚ elements of cost provide the management with necessary information for proper control and management decisions. For this purpose‚ the total cost is analysed by the elements or nature of cost‚ i.e.‚ material‚ labour and overheads. The various elements of costs may be illustrated as below: Elements of Cost ~ t
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Cost/Benefit Analysis for Implementing ECM‚ BPM Systems Determining the ROI for a significant investment‚ such as adopting an ECM or BPM system‚ is no easy task. Doug Allen‚ CRM‚ CDIA+ T he adoption of enterprise content management (ECM) and business process management (BPM) systems is often spurred by regulatory and compliance concerns. As Thomas Hogan‚Vignette president and chief executive officer‚ told Computerworld‚ the move to adopt ECM technology is driven by “two fundamental business
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Activity-based costing in restaurants 1. Introduction Interest in cost and management accounting practices in the restaurant industry is rising (Raab et al.‚ 2009; Annaraud et al.‚ 2008). Pavesic (1985) has initiated research in pricing and cost accounting for restaurants‚ introducing the concept of profit factor (PF) in menu engineering (ME). Prior studies‚ such as the one presented in Chan and Au (1998) investigate the implications of not incorporating overhead costs in menu-item profitability
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Advantages and disadvantages of variable costing Many managers use variable costing for internal reporting and decision making since it has number of advantages (Myers par. 1). First‚ on variable costing reports costs are organized by behavior which makes it easier to understand. Also‚ variable costing statements facilitate cost volume profit (CVP) analysis because it separates cost behavior by fixed and variable. Under variable costing‚ changes in inventory or production do not affect the
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group project Chapter 18: Process Costing Abstract This paper identifies the key points on Process Costing. It covers over various topics like the flow of costs through a process costing system‚ how to calculate equivalent units of production for direct materials and conversion costs‚ the preparation of a production cost report‚ and how to prepare journal entries for a process costing system. Examples will also be shown on how process costing is used in the real world through
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