Cost Accounting Cost accounting is a step further to and a refinement of financial accounting in which cost of manufacturing and selling each product or job or rendering service is determined‚ not at the time of accounting period but at the time when the product is manufactured or any service is rendered. In simple words‚ costing is a systematic procedure for determining the unit cost of output produced or services rendered. It provides for an analysis of the expenditure which enables the management to
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Week 4 Practice Quiz 1. Budgeting is the common accounting tool companies use for planning and controlling. Budgets a. provide a measure of planned financial results. b. focus managers’ energies on exploiting opportunities. c. help managers anticipate potential problems. d. enable managers to control through a set of specific activities with defined corrective actions. 2. [AICPA Adapted] Dewitt Co. budgeted its activity for October 2004 from the following information:
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LABOUR COST ACCOUNTING. It is concerned with identifying the amount of labour costs to be changed to jobs and overhead accounts. Where a manufacturing organization operates a job costing system‚ information on the labour costs should be properly captured from the following documents:- i) Job Cards: This is open for each job‚ when the job is started‚ the time of starting is entered on the job card and when it is completed‚ the completion time is also entered. The difference between the two
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EntertainmentNow.com Prepared for Dr. Lucian Zelazny Department of Accounting McCoy College of Business 601 University Drive San Marcos‚ Texas 78666 Prepared by Veronica Piña Rupinder Singh Ashley Vollmer April 23‚ 2013 EntertainmentNow.com Case Overview EntertainmentNow.com is considered one of the world’s leading Internet retailers of entertainment products that sells an array of books‚ music‚ videos‚ and DVD’s‚ toys‚ and small electronics on the company’s International website
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Executive summary Cost management is a critical technique to every business firm; the main issue for manager making decision is cost control and profit maximization. This report aims to analyze the different cost occur in a real business based on a case study of Gearbulk Australasia Pty Ltd such as costing systems and value chain. The main methodologies we used in this project are face to face interview of the company’s line manager who called Bryan. It provides us lots of insights of cost control and
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Accounting Reporting Criteria (GM and Toyota) Team B Megan Wooliver September 7‚ 2010 Accounting Reporting Criteria In order to keep up with the times most organizations of today are finding themselves consistently coming up with different ways to keep accounting information personal as well as accurate. Providing good accounting information not only leads to better decisions but also increase in profit. Even two different organizations that provide a similar product or service have
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Intermediate Accounting Review Exam 3 Chapter 4 Statement of Cash Flows (SCF): is an essential component within the set of basic financial statements. Is presented for each period for which results of operations are provided. Operating Activities: inflows and outflows of cash related to the transactions entering into the determination of net operating income. Cash inflows include cash received from: 1. Customers from the sale of goods or services. Ex./ collection of cash from customers
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1/ Variable Costs: The variable cost will be 40% higher [ an increase of 21‚000 - 15‚000=6‚000 units] Direct Material used 1‚060‚000 Variable Costs: Direct Labor 1‚904‚000 Direct material used [ 1‚060‚000 *1.4] 1‚484‚000 Unit costs [ 6‚335‚600 / 21‚000] =$ 301.7 Indirect Materials and supplies 247‚000 Direct Labor [ 1‚904‚000 * 1.4] 2‚665‚600 Variable Cost/ Unit = 228.27 at both 15k & 21k units Power to run plant eqip 213‚000 Indirect Materials
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COST ACCOUNTING-MMS FORMAT OF COST SHEET Opening stock of Raw Material XX Add: Raw material purchased XX Less: Closing Stock of Raw Material XX Raw Material Consumed ZZ Direct Labor XX Direct Expenses. XX PRIME COST ZZ Add: Factory Overheads: Indirect Material XX Indirect Labor XX Indirect Expenses XX GROSS WORKS COST/FACTORY COST ZZ Add: Opening WIP XX Less: Closing WIP XX COST OF GOODS MANUFACTURED
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11. A total variance is best defined as the difference between total a. actual cost and total cost applied for the standard output of the period. b. standard cost and total cost applied to production. c. actual cost and total standard cost of the actual input of the period. d. actual cost and total cost applied for the actual output of the period. 12. The term “standard hours allowed” measures a. budgeted output at actual hours. b. budgeted output at standard hours. c. actual output
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