Activity-Based Costing (ABC) is when you figure out the cost of activities to then discover the cost of products and services. ABC occurs in in four stages. These steps are as follows: identify activities and calculate their estimated total costs‚ identify the allocation base for each activity and estimate the total quantity of each allocation base‚ compute the predetermined overhead allocation rate for every activity‚ and allocate indirect costs to the cost object. I will use the production of a
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Why People Use Social Networking Sites Petter Bae Brandtzæg and Jan Heim SINTEF‚ Forskningsveien. 1‚ 0314 OSLO‚ Norway pbb@sintef.no Abstract. One of the recent popular social media platforms is the social networking site (SNS). Thus far‚ few previous studies have empirically investigated people’s motivations for SNS usage‚ especially not outside the U.S. This study combines a large-scale quantitative and qualitative research design‚ by asking 1‚200 SNS users an open question regarding their
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7. An investor is evaluating the use of the bottom-up approach and the top-down approach to fundamental analysis. The investor wants to use the approach that will best enable them to structure a diversified share portfolio that will achieve specified income returns and capital gains. Which approach do you recommend the investor adopt? We can use bottom-up approach to make a comparison of the performance indicators with other similar firms in the same industry and thus mixes a wide variety of investments
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Differences between Activity-Based Costing and Traditional Cost Strategy Activity-based costing (ABC) is a costing model that identifies overhead activities in an organization and assigns the cost of each activity resource to all products and services according to the actual consumption‚ while traditional costing equally distributes all overhead expenses. Thus‚ an organization employing ABC‚ can precisely estimate the cost of its individual products and services for the purposes of identifying and
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Life cycle costing is one of the various techniques in strategic management. It is a procurement as well as production costing technique that considers all life cycle costs. Besides‚ it is also a tool to determine the most cost-effective option among different competing alternatives to do a project‚ when each is equally appropriate to be implemented on technical grounds.This report will discuss life cycle costing in the view of production costing technique. In manufacturing‚ the uses of this technique
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TOPIC: Some students prefer to study alone while others prefer to study in groups. In my opinion the best method for success in school or university is the way of studying.Some prefer to study on the their own while others support the idea that sduying in groups gives better results.As far as I am concerned‚I prefer the latter for the following reasons. The first advantage of studying in group is that the student can save time.When students study alone‚they have always go through the annoying
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ACTIVITY-BASED COSTING MODEL I. Definition Activity based costing (ABC) is an accounting method that identifies the activities a firm performs creating the real cause of the overhead‚ and then assigns the indirect costs of those activity only to the products that are actually demanding the activities. An activity based costing (ABC) system recognizes the relationship between costs‚ activities and products‚ and through this relationship assigns indirect costs to products less arbitrarily than
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Costing Methods Paper Nikkei Crowder Acc/561 Ena Wu January 30‚ 2012 Costing Methods Paper Former Steelers’ running back Franco Harris created Super Bakery Inc.‚ in 1990. “Super Bakery is a virtual corporation‚ in which only the core‚ strategic functions of the business are performed inside the company. The remaining activities—selling‚ manufacturing‚ warehousing‚ and shipping—are outsourced to a network of external companies”. When management suspected that the established
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unnoticed. The most susceptible are small to medium size enterprises (SMEs) that account for over 90 percent of all businesses. In the current high-stakes economic climate‚ consumer goods and services companies face unprecedented challenges and extreme financial pressure. Increasing competition from companies around the world creates a need for tighter linkage among strategy‚ performance metrics‚ and shareholder value creation. Intensified scrutiny from financial markets means you need to more effectively
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STANDARD COSTING (VARIANCES) 1.1 Material costs variance = (Standard quantity x Standard Price) – (Actual quantity x Actual price) MCV = (SQ × SP) – (AQ × AP) 1.2 Material price variance = Actual quantity × (Standard price – Actual price) MPV = AQ × (SP – AP) 1.3 Material usage variance = Standard price (Standard quantity – Actual quantity) MUV = SP × (SQ –AQ) 1.4 Material cost variance = Material usage variance + Material price variance MCV = MUV + MPV 1. Material Variance Material usage
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