1) A well-designed activity-based costing system starts with __________. A. analyzing the activities performed to manufacture a product B. assigning manufacturing overhead costs for each activity cost pool to products C. computing the activity-based overhead rate D. identifying the activity-cost pools 2) "Generally accepted" in the phrase generally accepted accounting principles means that the principles __________. A. have been approved for use by the managements of business
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work-in-process inventories. Question 2 Identify and explain each of the three major cycles of the total-life-cycle-costing approach How does the total-life-cycle costing approach differ from traditional product-costing? Explain. Answer Research‚ Development‚ and engineering cycle: target costing and value engineering Manufacturing cycle: activity-based costing‚ Kaizen costing post-sale service and disposal cycle Each part of value chain is managed by different organizational function it integrates
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The Impact of ABC and EVA on Business Profitability and Performance. Value-added activity-based costing (ABC) and economic value added (EVA) measures have much impact on business profitability and performance. With the implementation of the ABC methodology‚ companies are able to pinpoint the products that are most profitable‚ determine what contributes to financial performance‚ forecast costs‚ profits‚ and amount of resources needed‚ identify the root of poor financial performance and
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1. Describe when it is appropriate for a company to use a job-order costing system. Answer Job order cost system provides per unit cost of manufactured products. Job order cost system is used by the companies that manufacture custom products for customers or batches of similar products. Job order cost system is used in the companies that offer many different products or services to its customers. Example Industries where job order cost system is used are Furniture manufacturing‚ Apparel manufacturing
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Introduction Activity Based Costing (ABC) addresses internal operating concerns and is an augmentation to the traditional cost management system. It is not a replacement for traditional accounting‚ but makes use of the source documents provided from standard job costing systems. ABC looks at a business unit’s events as cost drivers and assigns all company resources and accumulated costs against those events in a time-phased sequence. Revenue tracking provides management with a different point
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Title of the Report: Case Analysis of ‘The Cooperative Bank’ The Purpose: The purpose of the report is to submit the analysis of The Cooperative Bank based on the Activity Based Costing methodology To whom it is submitted (Name of the instructor): Prof. Sandhya Bhatia‚ Professor‚ Managerial Accounting‚ Indian Institute of Management‚ Udaipur Name of the Author: Abhishek Sengupta Anubhav Nigam Ravindran Damodaran Saurabh Srivastava Date of Submission: 24 February 2013
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Bibliography: 1. Bellis-Jones Hill Group‚ customer case:’DHL-customer profitability in action’ (www.bellisjoneshill.com). 2. CIMA Official Terminology 2005 edition; CIMA publishing. 3. Chutchian-Ferranti‚ Joyce: Activity based Costing‚ Journal: Computerworld; (AUT database). 4. Cleland‚ Alan S :Balancing customer and shareholder value; Financial Executive 1987(AUT database) 5. Colin Drury :Management Accounting for Business (4th edition;) pages 162‚163‚164 & 202. 6. Criag Deegan/Grant
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Executive Summary This report analyses the costs associated with two of Coffee Beans Inc. products‚ Moana Loa and Malaysian blends based on two different costing methodologies‚ namely the traditional job costing system that the company uses so far and the Activity Based Costing (ABC). ABC provides us with a more detailed and accurate estimation of the real cost of the products and it can serve as the basis for suitable strategic decisions‚ concerning products mix‚ pricing‚ suppliers and market
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Should companies operate in Violent Areas: |Yes |No | |The higher the risk‚ the bigger the reward |Easy mark for kidnapping | |Disease is still a bigger risk than violence |There are about 8.000 kidnappings per year‚ most of them foreign | |
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Kitchen Positions Depending on the size and theme of your restaurant‚ you may have just one cook running the show‚ or you may have several cooks working together. The term chef and cook are often used interchangeably. Originally a chef was a professionally trained individual. Today‚ it is often applied to anyone who works in a kitchen. Here is a breakdown of the various cooking positions that can be found in one restaurant kitchen. Executive Chef - This is the head chef. He is the guy (or girl)
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