GIBSON INSURANCE COMPANY Activity-Based Costing; Allocating Corporate Costs DATE OCT 22‚ 2012 CASE ANALYSIS Gibson Insurance Company sells two types of financial products: annuities and life insurance‚ all sales are done by in-house agents. The annuities are tax deferred investments that offer scheduled payout options and lump sums to their investors. The life insurance policies pay benefits to the designated beneficiaries in the event the policyholder passes away. At the end of
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School of Business Department of Accounting and Finance Course Name: Managerial Accounting Course Code & Section No: ACT202 Section: 18 Semester: Fall 2014 Instructor & Department Information 1. Instructor Name: Syed Asif Hossain 2. Office Room NAC 737 3. Office Hours: ST 1:30 - 3:30; MW 10:30 - 12:30; Thursdays By Appointment 4. Office Phone: 5. Email Address: asif.nsubus@gmail.com 6. Department: Accounting and Finance 7. Links Google Drive: https://drive.google.com/folderview?id=0B1JHAN5MllM5WUszSWZ0d3JmRDg&usp=drive_web
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organization of social transactions and relations and such transformation is evaluated in terms of processes’ extensity‚ velocity‚ impact and intensity; these generate irregular or transcontinental flows‚ exercise and interaction of power and networks of activity (Ervin & Smith‚ 2008‚ pp – 4). Modern business environment is also characterized by high end technologies and the technology that is dominating the business environment is the information and communication technology. Internet and related technologies
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and strategies. III. Course Learning Outcomes (CLOs): On completion of this course‚ students should be able to: 1. Students should develop a basic understanding of managerial accounting concepts such as cost‐volume‐profit‚ budgeting‚ product costing and cost behaviors. 2. Students should be able to generate and use cost information when making pricing and resource allocation decisions. 3. Students should
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strategy of producing a full range of products. As a small company competing against large companies in a commodity market‚ management believes FHPC must offer a full range of both products and services. Thus‚ Forest Hill’s strategy is to create a niche based on service and rapid response to customer needs. QUESTIONS AND ANALYSIS 4. What are some examples of complexity that drive overhead costs for Forest Hill? FHPC produces 20 different grades of paperboard requiring several changes in quantities
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level of activity (p.385)” Robert is using a budgeted level of activity and comparing it to the actual level of activity as the basis for the evaluations. The information that is received from an evaluation done in this manner is going to be misleading. The budgeted level of activity is not always going to be the same as the actual level of activity‚ so a true comparison is impossible. For example my company manufactures safety belts for motor vehicles and the budget is based on an activity level
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work-in-process inventories. Question 2 Identify and explain each of the three major cycles of the total-life-cycle-costing approach How does the total-life-cycle costing approach differ from traditional product-costing? Explain. Answer Research‚ Development‚ and engineering cycle: target costing and value engineering Manufacturing cycle: activity-based costing‚ Kaizen costing post-sale service and disposal cycle Each part of value chain is managed by different organizational function it integrates
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Good afternoon everyone. We would like to begin by introducing ourselves; we are team four and my name is Jenny. Today our presentation will propose an improved costing system for the printing division of Corelio. The outline of our presentation is as follows. Firstly‚ I will describe the problem that Corelio is currently facing with regards to its costing system. Joy will state the recommendation briefly and give an industry analysis. Emm will discuss the strategic management accounting
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like to utilize the Activity Based Costing (ABC) approach to analyze the high customer distribution and costs to determine which types of companies they should pursue for expansion. In order to determine if the CEO is right in his contribution margin based assumption as well as and in an effort to allocate customer support and distribution costs‚ I have been hired as an consultant to prepare segment income statements that allocate based on revenues and the other on activities. Income Statements
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Name of student:_________________ 9 Activity-Based Costing Review Question Answers 9-4 It will require more work. Significant amounts of indirect costs are allocated using only one or two cost pools. All or most costs are identified as output unit-level costs. Products make diverse demands on resources because of differences in volume‚ process steps‚ batch size‚ or complexity. Products that a company is well suited to make and sell show small profits while products for which a company is
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