Chapter 4-1 Activity-Based Costing Managerial Accounting Fifth Edition Weygandt Kimmel Kieso Chapter 4-2 study objectives Chapter 4-3 1. Recognize the difference between traditional costing and activity-based costing. 2. Identify the steps in the development of an activity-based costing system. 3. Know how companies identify the activity cost pools used in activity-based costing. 4. Know how companies identify and use cost drivers in activitybased costing. 5. Understand the benefits
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Activity-Based Costing ABC Company produces two products: Product A and Product B. Recently appointed management decided to change from a unit-based‚ traditional costing system to an activity-based costing system. The following data have been gathered‚ to assess the effect of the change: Product type Quantity Prime Costs Machine Hours Material Moves Setups Product A 60‚000 €150‚000 3‚500 6‚800 800 Product B 15‚000 € 30‚000 2‚750 1‚200 450 Expenditures (€) €180‚000 €120‚000
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The Pacific Oil Company “Look‚ you asked for my advice‚ and I gave it to you‚” Frank Kelsey said. “If I were you‚ I wouldn’t make any more concessions! I really don’t think you ought to agree to their last demand! But you’re the one who has to live with the contract‚ not me!” Static on the transatlantic telephone connection obscured Jean Fontaine’s reply. Kelsey asked him to repeat what he had said. “OK‚ OK‚ calm down‚ Jean. I can see your point of view. I appreciate the pressures you’re under
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Backflush Costing Backflush costing is a traditional and standard costing systems track costs as products pass from raw materials‚ to work in progress‚ to finished goods‚ and finally to sales. Such systems are called ’sequential tracking systems’ because the accounting system entries occur in the same order as purchases and production. Sequential tracking is common where management desires to track direct material and labor time to individual operations and products. Backflush costing is a method
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Galvor Company Galvor company is a company built in France by Georges Latour in 1946 as a fabricator. Highest growth period took place in 1960 – 1971‚ with 1.062.000 franc in sales revenue in 1971. The rise of the company led to an offer of purchasing equity from the company. Latour controls much of the company’s operations and retains his control over the management. In 1973‚ Latour considered selling the company to take time off work and spend time with his family. Galvor was sold to Universal
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Introduction This article will discuss the advantages and disadvantages of sales force automation. Nowadays‚ salesperson in many companies have relied on top performers to keep competitive. That means a successful salesperson should take a special approach. Sales force automation is the system that contain the use of hardware and software to achieve automate the business tasks of sales and its also tie together functions‚ for example‚ sales tracking and expense reports. sales force automation also
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MID TERQuestion 2 1. In order to obtain information about benchmarks‚ a manager might join a trade association for the company’s particular industry. Answer True False 2 points Question 3 Management accounting and financial accounting are similar in which of the following respects? | | Both use the same unit of measurement. | | | Both rely heavily on the double-entry system. | | | Both produce almost all of their respective informational reports on a routine monthly basis
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Phone Number Email: e-mail address Date of Submission: Calender date [Surname] 2 Table of Contents List of Figures and Tables ............................................................................................... 4 Introduction ..................................................................................................................... 5 Research Methodology ................................................................................................... 7 Company Background
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USES OF TALLY: 1. Tally is the device or operation to maintain all types of accounts especially for an Institution or Firm where lot of regular‚ weekly‚ monthly‚ yearly computational work and statement are required to be made. For a trained person in Tally it becomes child play and often error free 2. Tally is an accounts and inventory management software which is having many other features too. With the latest version of this software Tally9 you can 1. do all basic accounting functions‚
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INTRODUCTION The Tavazo company is a family-business which operates in the food industry. Started upon an entrepeunarial initiative in the 1930s in Iran‚ its business has been developed such as Tavazo now commercializes products such as dried fruits and nuts and operates in activities from growing to retailing. The development has also been geographical as it entered the Canadian market by 2010. Now considering further expansion‚ the company asks for recommendations to decide of its future strategy
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