Business (UKM-GSB-LHDN) Cost Classification: Government Agency PROBLEM 2-56 The Department of Natural Resources is responsible for maintaining the state’s parks and forest lands‚ stocking the lakes and rivers with fish‚ and generally overseeing the protection of the environment. Several cost incurred by the agency are listed below. For each cost‚ indicate which of the following classifications best describe the cost. More than one classification may apply to the same cost item. The Answers
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Quality Cost 1 Quality is defined from the customer´s point of view l Performance l Performance or the primary operating characteristics of a product or service. Example: For a car‚ it is speed‚ handling‚ and acceleration. For a restaurant‚ it is good food. l Features l Features or the secondary characteristics of a product or service. Example: For a TV‚ it is an automatic tuner. For a restaurant‚ it is linen table cloths and napkins . l Reliability l Reliability
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and its previous peripheral role as a low-cost manufacturing site on the periphery of the world economy. What do you think? Mattel’s global sourcing in China‚ like all other toy manufacturers‚ was based on both low-cost manufacturing‚ low-cost labor‚ and a growing critical mass of factories competitively vying for contract manufacturing business. Do you think the product recalls and product quality problems are separate from or part of pursuing a low-cost country strategy? Many companies in many
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11 Allocation of Joint Costs and Accounting for By-Product/Scrap Objectives After completing this chapter‚ you should be able to answer the following questions: LO.1 LO.2 LO.3 LO.4 LO.5 How are the outputs of a joint process classified? What management decisions must be made before beginning a joint process? How is the joint cost of production allocated to joint products? How are by-product and scrap accounted for? How should not-for-profit organizations account for the cost of a joint activity?
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COMPARISON OF INDIRECT COST MULTIPLIERS FOR VEHICLE MANUFACTURING Technical Memorandum in support of Electric and Hybrid Electric Vehicle Cost Estimation Studies by Anant Vyas‚ Dan Santini‚ and Roy Cuenca Center for Transportation Research Energy Systems Division Argonne National Laboratory 9700 South Cass Avenue Argonne‚ Illinois 60439 April 2000 Work Sponsored by United States Department of Energy Assistant Secretary for Energy Efficiency and Renewable Energy Office of Transportation
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challenges associated with managing in a business with high fixed costs like airlines? To understand the challenges firms face with regard to high fixed costs we must first have a basic understanding. A fixed cost is a routine cost the company incurs despite production‚ and changes in volume. It is a cost that must be paid routinely‚ but the amount of the expense may vary. Firms with high fixed costs must have complete understanding of what fixed costs exist that will be incurred‚ and how much revenue they
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Classify each cost listed below as either a product cost or a period cost for purposes of preparing the financial statements for the bank. 1. The cost of the memory chips used in radar set. * Product Cost 2. Factory Heating Cost * Period Cost 3. Factory Equipment maintenance costs. * Period Cost 4. Training costs for new administrative employees * Period Costs 5. The cost of the solder that is used in assembling the radar sets. * Product costs 6. The Travel
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Task 1 Task 1 A start-up cost is a cost that you start with for example in the flower shop it would be a deposit on the shop and the first month’s rent. Also the first lot of stock‚ advertisement a sign‚ table‚ counter‚ till and a credit card machine. The operating costs are costs that you carry on paying for throughout the time your business is open‚ for example in the flower shop they would be rent‚ wages‚ heating and lighting‚ insurance‚ loan interest‚ drawing (personal salary) ‚ ribbons
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source same End result ! ends with financial statements ! integral part of other business aspects B. Cost Accounting Terminology 1. Nature of Cost Cost - A sacrifice of resources: Cost is a measurement in monetary terms of the amount of resources used for some purpose. Expense - The cost charged against revenue in a particular accounting period. 2. Purposes of Gathering Cost Information Routine decision making:
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Generally‚ the term cost of production refers to the ‘money expenses’ incurred in the production of a commodity. But money expenses are not the only expenses incurred on the production of a commodity. There are number of services and inputs such as entrepreneurship‚ land‚ capital etc.‚ which are offered by an entrepreneur without changing any price or receiving any payment for them. While computing the total cost of production‚ allowance should be made for such expenses. It is therefore essential
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