incurrence until they finally become expenses on the income statement. 6. Is it possible for costs such as salaries or depreciation to end up assets on the balance sheet? Explain. 7. “The variable cost per unit varies with output‚ whereas the fixed cost per unit is constant.” Do you agree? Explain. 8. Only variable costs can be differential costs. Do you agree? Explain. Part 2: Compulsory Section Problem 1 (15 marks) Richmond‚ Inc.‚ operates a chain of 44 department stores. Two years ago‚ the board
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STANDARD COSTING VARIANCES Materials Actual Production X X X Vs. Standard Usage Standard Price Actual Usage Actual Production X X X Vs. Standard Usage Standard Price Actual Usage Actual Price Actual Price Total Variance Actual Production X X X Vs. Standard Price Actual Usage Actual Usage Actual Production X X X Vs. Standard Price Actual Usage Actual Usage Price Variance Actual Price Actual Price Standard Price Standard Price Actual Usage
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direct labor is $4.00 per unit‚ variable manufacturing overhead is $6.00 per unit‚ and fixed costs are $12‚000 for the units produced‚ then what would be the cost assigned to 2‚000 of units in ending inventory? If direct materials are $8.00 per unit‚ direct labor is $4.00 per unit‚ variable manufacturing overhead is $6.00 per unit‚ and fixed costs are $12‚000 for 6‚000 units produced‚ what is the total cost per unit under throughput costing? Under throughput costing‚ are product costs higher or
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Backflush Costing Backflush costing is a traditional and standard costing systems track costs as products pass from raw materials‚ to work in progress‚ to finished goods‚ and finally to sales. Such systems are called ’sequential tracking systems’ because the accounting system entries occur in the same order as purchases and production. Sequential tracking is common where management desires to track direct material and labor time to individual operations and products. Backflush costing is a method
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be confused with profit. The contribution of a product refers to how much it contributes to the fixed costs and profit of the business once variable costs have been covered. It can be calculated either per unit of output or in terms of total contribution of all units produced. Contribution ignores fixed costs and only considers any surplus left once variable costs have been subtracted from revenue. Hence‚ contribution is what a product contributes towards the fixed costs of the business and‚ once
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Abstract: This experiment explores the technique of absorption spectroscopy. The procedures deal with the wavelengths and absorption of dyes in a sample of grape Kool-aid. The use of Beer’s Law helps to determine values of absorption. Introduction: This experiment demonstrates another technique used in the analysis molecules with light. The study of light absorbed my molecules is known as absorption spectroscopy. This is very easily the opposite of emission spectroscopy because it occurs when
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Airline Operating Costs By Peter Horder‚ Senior Vice President SH&E Ltd Prepared for: MANAGING AIRCRAFT MAINTENANCE COSTS Conference Brussels‚ 22 January 2003 Agenda Introduction Current Airline Environment Airline Cost Elements Indirect and Direct Operating Costs Overhead Cost Control Balance Sheet Effects Reference Sources Conclusions 1 Introduction Current airline environment Safety considerations and costs – Security restrictions – Insurance implications Cost reduction
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Two general approaches are used for costing products for the purpose of valuing inventories and cost of goods sold. One approach is called absorption costing. Absorption costing is generally used for external financial reports. The other approach called variable costing is preferred by some companies for internal decision making and must be used when an income statement is prepared in the contribution format. Ordinarily absorption costing and variable costing produce different figures for net income
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Activity Based Costing The major strength of activity based costing is the ability to estimate the cost of individual products and services precisely. By transferring overhead costs to individual units of products or services‚ ABC helps identify inefficient or non-profitable products or activities that help into the profitability of efficient processes or highly profitable products. 1. More accurate costing of products/services Product cost determination under activity-based costing is more accurate
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current product costing system requires a lot of research and pre-planning. In order to determine the most effective product costing system management must decide which costs should be included in the product costs‚ at what level will direct costs be tracked‚ how indirect costs will be structured‚ and when to capture the indirect costs. Once all the costs have been identified and organized into fixed‚ variable‚ or overhead categories‚ management must then decide which product costing system would provide
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