Chapter 2 1. Which of the following would be considered a product cost for external financial reporting purposes? a. Cost of a warehouse used to store finished goods. b. Cost of guided public tours through the company’s facilities. c. Cost of travel necessary to sell the manufactured product. d. Cost of sand spread on the factory floor to absorb oil from manufacturing machines. 1. Which of the following would be considered a product cost for external financial reporting purposes
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budget is a key management tool for planning‚ monitoring‚ and controlling the finances of a project or organization. It estimates the income and expenditures for a set period of time for the particular project or organization. The main purpose of budgeting system is used for control. Budget has it own essential features‚ which includes policies‚ data‚ documentation and period. A budget id based on the policies needed to fulfill the objectives of the entity. Data is usually expressed in monetary terms
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“Budgeting is a key component in management short and long term planning” INTRODUCTION Budgeting (or profit planning) is a process or technique with broad applications in the management of a business‚ school or government agency. The rules apply to not-for-profits‚ as well. The process involves the formation of definite and specific plans or budgets for a limited future period‚ usually the ensuing fiscal or calendar year. These plans‚ which take into account all phases of the budgeted operations
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organization is the main resource that is needed by a manager to manage other resources in operating an organization‚ which indicates that a large proportion of management work is done through people of the organization. As easy as it may seems managerial work still requires manager to be personally involved in dealing with eventualities. Therefore‚ it is important that all managers be equipped with some qualifications‚ skills‚ values and motivation. In accordance to this‚ i would like to share a
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Accounting (Managerial) 530 Portfolio Case Study Imagine you are applying to become a trainee in a management consulting company‚ Solutions Inc.‚ which claims to deliver innovative solutions. They are looking for innovative employees who engage with their work. The selection process will be rigorous. You know you will be asked to submit reports based on questions regarding your knowledge of management accounting practice and strategic management accounting. To provide a context for the reports
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Chapter 9 Profit Planning and Activity-Based Budgeting McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies‚ Inc. All rights reserved. Learning Objective 1 9-2 Learning objective 1 • List and explain five purposes of budgeting systems. Purposes of Budgeting Systems Budget Budget a detailed plan‚ expressed in quantitative terms‚ that specifies how resources will be acquired and used during a specified period of time. 1. Planning 2. Facilitating Communication and Coordination 3
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------------------------------------------------- Subject: Managerial Accounting Case 1 Seligram In the Seligram case‚ the existing cost accounting system measured two components of cost: direct labor and burden. All burden cost‚ which is the overhead‚ was grouped into a single cost pool and was calculated only by using a burden rate per direct labor dollar. This may cause problems since direct labor and overhead are not consumed by the products in the same proportion. Simply using the same burden
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Running head: Defining the essential purpose‚ importance‚ functions and managerial concepts to a manager Defining the essential purpose‚ importance‚ functions and managerial concepts to a manager Albrenny Leslie‚ Email albrenny@yahoo.com Defining the essential purpose‚ importance‚ functions and managerial concepts to a manager Abstract This paper explores six aspects of managing‚ such as‚ who are managers‚ manager’s tasks‚ what makes a good manager‚ universality of management
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Chapter 1 Cost Accounting: Information for Decision Making Solutions to Review Questions 1-1. Financial accounting is designed to provide information about the firm to external users. External users include investors‚ creditors‚ government authorities‚ regulators‚ customers‚ competitors‚ suppliers‚ labor unions‚ and so on. Cost accounting systems are designed to provide information to internal users (managers). This difference is important‚ because it affects the design of the systems. Financial
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Lab budgeting and cost accounting under DRGs Medical Laboratory Observer‚ Feb‚ 1985 by W. Glenn Cannon Cost accounting is not a solution to management problems. It is a management tool designed to provide information that facilitates sound decisions. The two primary objectives of cost accounting are 1) to match cost with revenue and 2) to match resource consumption with the units of service provided. Under the DRG system‚ matching revenue with cost and evaluating appropriate utilization levels
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