Definition and Explanation of Job Order Costing System: A job order costing system is used in situations where many different products are produced each period. For example clothing factory would typically made many different types of jeans for both men and women during a month. In a job order costing system‚ costs are traced to the jobs and then the costs of the job are divided by the number of units in the job to arrive at an average cost per unit. Job order costing system is also extensively used
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factored in to allow for fluctuations in the output. The profit margin is computed as a fixed percentage of the average total cost of the product. Pricing - full cost-plus pricing Full cost plus pricing seeks to set a price that takes into account all relevant costs of production. This could be calculated as follows: Total budgeted factory cost + selling / distribution costs + other overheads + MARK UP ON COST An illustration of applying this method is set out below: Consider a business with the following
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Activity Based Costing Accounting 2020 Professor Richard McDermot Traditional Costing Systems • Product Costs – Direct labor – Direct materials – Factory Overhead • Period Costs – Administrative expense – Sales expense Appear on the income statement when goods are sold‚ prior to that time they are stored on the balance sheet as inventory. Appear on the income statement in the period incurred. Traditional Costing Systems • Product Costs – Direct labor – Direct materials – Factory Overhead •
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1. The cost of a computer system installed last year is an example of: (Points: 2) a sunk cost a relevant cost a differential cost an avoidable cost 2. In evaluating different alternatives‚ it is useful to concentrate on: (Points: 2) variable costs fixed costs total costs relevant costs 3. Relevant costs in a make-or-buy decision of a part include: (Points: 2) setup overhead costs for the manufacture of the
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Is the Bible still relevant today? Sure‚ the Bible was relevant once upon a time‚ in that long-ago era of shepherds and scribes. That story of how the Hebrew people emerged from their centuries of slavery in Egypt is a gripping account‚ but does it have any connection to my world of lightning fast e-mails and jet travel? The problems of a fish swallowing a disobedient prophet named Jonah and how to get Daniel out of a den of lions seem pretty far removed from fixing my transmission or resurrecting
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Are the Federalist papers still Relevant? Keith Morphis The question of “Are the federalist papers still relevant?” is a very important question. It is especially important the current state of affairs in this country over the last 20 plus years. Throughout history also in other nations the arguments of the Federalist Papers ring true and human nature seems to reinforce them. One quote from the Federalist No.10 paper that I feel is more relevant now than ever especially for someone on the left is
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Blog Post Essay 3/2/15 Is Animal Farm still relevant today? Yes‚ and in a few ways. First‚ one element of the story is how power can corrupt any leader. Power hungry leaders are almost completely normal in our society today. Secondly the book has an element of human nature. Humans have a selfish side as shown by some of the animals‚ but also a caring side as shown by other animals. Finally‚ Animal Farm is relevant today because it has an element of propaganda
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never finished what it has to say. To Kill a Mockingbird teaches us about race relations. The US has not solved all of the problems in the book yet. Therefore‚ students should continue studying To Kill a Mockingbird‚ until the problems are solved and its claimed irrelevant. To kill a mockingbird is relevant because of the debate we’re having today if it wasn’t relevant we wouldn’t be talking about it. The irrelevant side are just people with two reasons “we wanna protect our kids from language
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volume-based product costing system. The Overhead costs of Duo plc have been allocated using the Traditional costing system in table 1. The Overhead costs have been allocated using Direct Labour Hours (DLH) of production (Direct Labour Hour absorption approach). That is‚ Total Overhead costs were divided by the addition of all DLHs‚ giving us the overhead rate per labour hour (£10.345). This method was used since‚ firstly‚ it is the basic method of traditional volume-based costing‚ and secondly‚
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benefits and limitations of using target costing and life-cycle costing systems over the costing and performance measures currently being utilised by the company. The techniques currently being used by the company are useful for keeping costs under control‚ but they do not give an indication of the maximum costs the company can allow for designing new product features or profits over the total life cycle of a product. Target costing. Target costing is a pricing method used by companies as
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