based costing requires four steps to build its cost point. Traditional costing uses one rate where first‚ activity based costing must identify each activity and estimate its total and indirect cost. Second for activity based costing is that the cost driver for each activity must be estimated along with the total quantity of each driver’s allocation base. Third the cost allocation for each activity must be computed. Fourth costs to cost object are allocated. Activity-based costing focuses on activities
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The term ‘globalization’ in the most basic level can mean the globalization of international trade‚ however it is also expansion of foreign direct investment (FDI)‚ multinational corporations‚ integration of the world capital markets and much more. Thus‚ globalization can be defined as the interdependence of national economies through trade‚ finance‚ production and a growing web of treaties and institutions. The evidence of globalization is clear. Nowadays‚ over $4 trillion in foreign exchange transactions
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a competitive environment. One of the key factors in this success was a change in the costing system. Activity based elements were introduced which identified the number of customer orders and number of types of specialised components as key cost drivers. SEMW’s transformation is a classic case study in process costing.2 2. Strategic reorientation 2.1 COMPetition: the Need for Change3 SEMW commenced in 1937 in Bad Neustadt in the western German state of Bavaria. Most of Siemens’ electric motor
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also cut the truck driver’s lunch fund. This was a fund set aside to make sure there was always a refrigerator full of food in the trucker’s lounge. They had decided that this was not a necessity in the company; it was just a perk to keep their drivers happy. Another budget cut they had to make was to cancel company barbeques and picnics. Most businesses like to treat their employees to a picnic of some sort usually to keep the moral up and make sure hard work doesn’t go unnoticed. The next
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ODFL’s success is its dedicated fleet of freight drivers. ODFL drivers pride themselves on being innovative‚ reliable‚ courteous‚ responsive‚ professional and ethical‚ for they are they are the heart and soul of the freight industry. “Trucking accounts for how we move 80 percent of cargo in our nation” (Bynum‚ 2012 para 1). ODFL however‚ is facing a potentially disastrous problem: as older truck drivers retire there is a growing shortage of new drivers willing to take their place. “The rigors of the
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allocation for indirect costs Cost Pool – Set of costs that are added together before being allocated to cost objects on some common basis Cost Driver/ Allocation base Cost Object Cost Driver Rate = Total Costs in Pool/ Total Quantity of Driver Where total quantity of driver = practical capacity of driver Cost of excess capacity = Cost Driver Rate * Excess capacity Predetermined overhead rate - cost per unit of the allocation base used to charge overhead to products. Predetermined
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B313F Management and Cost Accounting Assignment 1 Date due: 29 October 2008 Weighting: 15% of the total marks of the course Question 1 (25 marks) Mini Case – Seto’s Storage Warehouse Paul Seto owns and manages a commercial storage warehouse. He stores a vast variety of perishable goods for his customers. Under the existing pricing policy‚ he has charged customers using a flat rate of $2.40 per kilogram per month for goods stored. His storage warehouse has 10‚000 cubic metres of
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to know how to be a defensive driver. 2. I want to know how to be safe on the road. L—What you Learned Discuss at least two new things you learned from Module One. 1. That speed kills 2. Accidents on the road are very dangerous and will kill. If you do not have your permit‚ please provide the last four digits of your social security number so that your teacher can issue your drug and alcohol certificate. My last four digits are: 7002 Module 2: The Driver: Complete one option below
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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 and limitations of activity-based costing. 6. Differentiate between value-added and non–value-added activities. 7. Understand the value of using activity levels in activity-based costing.
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four digits are: 8735 Module 2: The Driver: Complete one option below. OPTION 1 Aha Moments: Aha moments are times when you have been reading something and the text suddenly makes sense or becomes clear to you. Please use complete sentences and proper spelling and grammar. Describe three aha moments that you had as you worked through Module Two. 1. Our emotions and attitudes affect our driving. 2. Having the knowledge presented by Drivers Ed‚ it can help prevent accidents and deaths
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