& 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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INTRODUCTION Life cycle costing is one of the various techniques in strategic management. It is a procurement as well as production costing technique that considers all life cycle costs. Besides‚ it is also a tool to determine the most cost-effective option among different competing alternatives to do a project‚ when each is equally appropriate to be implemented on technical grounds.This report will discuss life cycle costing in the view of production costing technique. In manufacturing‚ the
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ACCT346 Final Exam Study Guide YOU MAY WANT TO PRINT THIS GUIDE. 1. The Final Exam is open book and open notes. The maximum time you can spend in the exam is 3 hours‚ 30 minutes. If you have not clicked the Submit for Grading button by then‚ you will be exited from the exam automatically. In the Final Exam environment‚ the Windows clipboard is disabled‚ so you will not be able to copy exam questions or answers to or from other applications. 2. You should click the Save Answers button in the exam
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http://www.writework.com/essay/issues-product-costing-unimportant-virtual-organisations-o Issues of product costing are unimportant for virtual organisations that outsource production operations." Essay by hotsanjaysoni‚ B-‚ March 2005 The topic states that is product costing important for virtual organisations that are outsourcing their production operations. Virtual organisations are those corporation that operate in the world of e-business or e-commerce. A virtual organisation can be defined
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Case3 The Indian Business Process Offshoring Industry Global business process offshoring (BPO) has been becoming more popular in the last two decades. Increasing cost pressures made Western companies start to offshore IT activities to developed economies‚ which offered them cost attractiveness. One of the countries with the most developed Offshoring industry is India accounting for 30% of the global BPO Industry. Case’s Facts: * Global business process offshoring (BPO) industry is $50billion
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ABC Costing Activity-based costing (ABC) is a special costing model that identifies activities in an organization and assigns the cost of each activity with resources to all products and services according to the actual consumption by each. This model assigns more indirect costs (overhead) into direct costs compared to conventional costing models. Aims of model With ABC‚ an organization can soundly estimate the cost elements of entire products and services. That may prepare decisions on
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COST AND MANAGEMENT ACCOUNTING Target Costing at Toyota Akriti Kapoor 11PGDM003 Section A Introduction There are numerous differences between management practices in Western companies and companies in Japan. One of the main differences is related to cost reduction. A manager in Europe or the United States generally expects to use cost information to make decisions about pricing and investments‚ while a Japanese manager expects to use cost information to control costs. Toyota uses cost
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Absorption and marginal costing (Relevant to AAT Examination Paper 3: Management Accounting) Li Tak Ming‚ Andy Deputy Head‚ Department of Business Administration‚ Hong Kong Institute of Vocational Education (Kwai Chung) Introduction Absorption costing and marginal costing are alternative cost accumulation systems used to ascertain product or job costs for inventory valuation and cost of sales. Absorption costing Absorption costing includes both variable and fixed production costs in the
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bases Activity-based costing Exercises 17.1 Topic Accounting terminology 17.2 17.3 17.4 17.5 Understanding cost flows Job costing journal entries Overhead cost drivers Real World: Granite Construction‚ Inc. Cost classifications Cost flow and financial statements Journalizing and reporting Journalizing and reporting Journalizing and reporting Journalizing and reporting Solving for missing information Solving for missing information Financial reporting Activity-based costing Using ABC for bidding
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Activity Based Costing can be defined as an accounting methodology that assigns costs to activities based on their use of resources‚ rather than products or services. This enables resources and other associated costs to be more accurately attributed to the products and the services which they use. It doesn’t change or eliminate any costs; it provides detailed information about how costs are consumed. (Online manager-net.com). Traditional cost accounting looks at what is spent‚ while ABC methods
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