In this file you will find overview of the work ACC 349 Week 2 Discussion Questions Discuss Question 1 What is activity-based costing? What are some of the key elements of activity-based costing? How does this method differ from a more traditional costing method? Discuss Question 2 What are value-added processes? How do you determine if a process adds value? How does identification of value-added processes help a company run more efficiently and effectively? Business
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Corporation According to the activity based costing‚ the manufacturing overhead should be apportioned in the following method The Direct Material cost per unit and the direct labour cost per unit for the valves‚ pumps and the flow controller is given below. Direct Material Direct Labour Total Units Cost/unit cost/unit Valves 7500 16 12.35 Pumps 12500 20 16.25 Flow Controller 4000 22 13 The total manufacturing overhead of $654600 should be apportioned based on the activity required for manufacturing
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format is designed for management accounting systems. | Planning and control: | Financial accounting helps in making investment decision‚ in credit rating. | Management Accounting helps management to record‚ plan and control activities to aid decision-making process. | External Vs. Internal: | A financial accounting system produces information that is used by parties external to the organization‚ such as shareholders‚ bank and creditors. | A management accounting system produces information that is
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1998 p. 116. Answer all four requirements of the case study. In addition to these requirements you are recommended to exhibit your ability to: 1) Critically evaluate the advantages and drawbacks of traditional costing systems. 2) Compare activity-based costing systems to traditional costing systems. 3) Analyze the circumstances and provide arguments with solid numbered reasoning to support appropriateness of any of the two systems. 4) Foresee and critically assess the implications of moving
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Managerial Analysis 17-2 Alberto Nicholas. University of Phoenix ACC561/PD14MBA08 June 18‚ 2015 Dr. Norris Dorsey Managerial Analysis 17-2 A) Compute the activity-based overhead rate for each activity pool. Activity Cost pools Cost Driver Annual Cost Total estimated Drivers Activity-based overhead rate Market Analysis Hours of Analysis $1‚050‚000 15‚000 hours $70.00 Product Design Number of Designs $2‚350‚000 2‚500 designs $940 Product Development Number of Products $3‚600‚000 90 products
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freight. An additional markup is added to cover the approximate cost for general and selling expenses‚ plus an allowance for profit. The markups were determined at the start of each year‚ based on actual expenses in prior years and general industry and competitive trends. Actual prices to customers were adjusted based on long-term relationships and competitive situations‚ but were generally independent of the specific level of service provided to that customer‚ except for desk top deliveries. The current
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_______________ Tutor______________________ Name- Mohammed Bhuiyan ID-000668860 “ABC is still relevant for companies in all geographical locations – critically discuss” The theory of activity based costing (ABC) was developed in 1970’s to understand the product and customer cost and profitability based on the production or performing process in the manufacturing center of United State (Glad & Becker‚ 1996). Later‚ it got the reorganization after getting introduced by Kaplan and Copper in
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The high cost of serving such customers can be caused by their unpredictable order patterns‚ small order quantities for customized products‚ nonstandard logistics and delivery requirements‚ and large demands on technical and sales personnel. Activity-based pricing may be used to ensure that companies charge prices that are high enough to cover the high costs of serving such customers. Customers may‚ in response‚ change their behavior to become lower cost-to-serve customers. Companies may also improve
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Accounting……………………………………………………………………03 Introduction……………………………………………………………………………………..03 Traditional costing v/s activity based costing…………………………………………………..04 Need for an Activity Based Costing……………………………………………………………06 Stages in Activity Based Costing……………………………………………………………....08 Cost Drivers…………………………………………………………………………………….09 Classification of activities………………………………………………………………...……10 Steps Involved in the Implementation of Activity Based Costing……………………………..11 Working Example……………………………………………………………………………...13 ABC
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International Review of Business Research Papers Vol.6‚ No.1 February 2010‚ Pp. 1-17 Utilization of Activity-Based Costing System in Manufacturing Industries – Methodology‚ Benefits and Limitations1 Boris Popesko2 The subject matter of this paper is the detailed consequences of putting in place an Activity-Based Costing system and its structure within the manufacturing industry. Moreover‚ it defines steps within ABC application‚ as well as analyzing the input and output information and data
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