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    Test Bank Cost Accounting

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    Cost Accounting‚ 14e (Horngren/Datar/Rajan) Chapter 2 An Introduction to Cost Terms and Purposes Objective 2.1 1) Cost objects include: A) products B) customers C) departments D) All of these answers are correct. Answer: D Diff: 2 Terms: cost object Objective: 1 AACSB: Reflective thinking 2) Actual costs are: A) the costs incurred B) budgeted costs C) estimated costs D) forecasted costs Answer: A Diff: 1 Terms: actual costing Objective: 1 AACSB: Reflective thinking 3) The general term used to identify

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    Cost Accounting Study Guide

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    Study guide ACG24 Management Accounting This module has been developed using material with the acknowledgement and permission of Horngren‚ C.T.‚ Datar‚ S.‚ Foster‚ G.‚ Rajan‚ M.‚ Ittner‚ C.‚ Wynder‚ M.‚ Maguire‚ W. and Tan R. (2010)‚ Cost Accounting; a Managerial Emphasis (1st Australian Edition)‚ Prentice Hall International‚ Englewood Cliffs‚ New Jersey. We greatly appreciate the support of Leanne Lavelle of Pearson/Prentice-Hall Australia throughout the process. The University of South

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    COST-VOLUMEPROFIT ANALYSIS Julie E. Colandog A systematic examination of the relationship among costcost driver or level of activity (volume)‚ and Sales Less: Variable Costs Contribution Margin Less: Fixed Costs Net Profit xxxx xxxx xxxx xxxx xxxx CONTRIBUTION MARGIN INCOME STATEMENT e s Sa l Total Cost Break-even point Fixed Cost Break-even point is a condition where total revenue equals total cost and profit is equal to zero BREAK-EVEN POINT Break-even point (pesos) = Total Fixed

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    Cost Classification and Pricing Student Name Student University Cost and Price Analysis Cost Classification and Pricing Cost Classification According to Maher‚ L. (2005)‚ cost classification refers to the separation of different expenses in various categories. The classifications of costs are required for any firm in order to accurately track and account for the allocation of varies types of cost categories. For Hawk-eye‚ cost classification is crucial since it plays an important part in

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    COST CLASSIFICATION ASSIGNMENT To classify the various costs would first of all require a definition between the two types of accounting that practically all businesses have to face and a number of key terms which are equally important. These are management accounting and financial accounting. 1. THE DIFFERENCE BETWEEN MANAGEMENT & FINANCIAL ACCOUNTING: Management accounting is concerned with decision making‚ cost apportionment‚ planning and control. It is based within the organisation and is

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    Cost Concepts Semester II Basic Terms • Cost is the amount of expenditure‚ actual (incurred) or notional (attributable)‚ relating to a specific thing or activity. The specific thing or activity may be a product‚ job‚ service‚ process or any other activity • Expenses are expired costs‚ incurred and totally used up in generation of revenue • Loss is lost cost. The term ‘loss’ is used to describe mainly two accounting events. In traditional financial accounting it is used to denote a situation

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    How good is the product? The product in theory has great potential able to save costs in two major industries‚ ceramics in paints. Looking at both individually: 1) Paints: Potentially 12 – 18 cents of savings to original estimations‚ however research with client has shown great difficulty. Was not working well due to suspension problems‚ was unable to have the right shine for use in white paints. Furthermore‚ once quality of end product was acceptable‚ savings was found to be 3cents per a gallon

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    The cost profit analysis (CVP) determines how cost and volume affect a company’s operating income. To successfully perform the analysis the five basic components have to be known. The components are volume or level of activity‚ unit selling prices‚ variable cost per unit‚ total fixed cost‚ and sales mix. Volume or level of activity is how many units are produced or sold. The unit selling prices are the cost that each unit produced is sold or thought to be sold will sale for. The variable cost per

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    Cost‚ Volume‚ and Profit Formulas All businesses require becoming profitable or at some point they will fail. Accounting plays an essential role in determining if the company will become successful and continue to do so over time. Using well-defined formulas in order to assess the exact numbers will facilitate the actions a company needs to carry out in order to maintain its goals. The accounting department would look at the cost-volume-profit analysis to concentrate on the different components

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    consists of:  A. all manufacturing costs. B. indirect materials but not indirect labor. C. all manufacturing costs‚ except direct materials and direct labor. D. indirect labor but not indirect materials. 2. A variable cost is a cost whose cost per unit varies as the activity level rises and falls.  A. True B. False      3. The traditional format income statement is used as an internal planning and decision-making tool. Its emphasis on cost behavior aids cost-volume-profit analysis‚ management

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