MARGINAL COSTING Introduction This paper explores the use of cost accounting information for decision-making purposes. DEFINITION OF KEY TERMS Marginal cost: This is the cost of a unit of a product or service‚ which would be avoided if that unit or service was not produced or provided Break-even point: This is the volume of sales where there is neither profit nor loss. 1 9 6 COST ACCOUNTING S T U D Y T E X T Margin of safety: This is the excess of sales over the break-even volume in
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Discuss Process Costing‚ clearly bringing out its advantages and disadvantages. DEFINITION Costs are accumulated in costing systems. According to Glautier and Underdown (2001)‚ the development of costing systems reflects the manner in which accounting methods have been adapted to the needs of different forms of activity and technology‚ and also to the appearance of advanced manufacturing techniques that have been a feature of recent years. Cost accounting systems allow full product costs to be accumulated
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the accounting systems that support Just in Time system. Just in time is the inventory system that produced the required items at the right time and the right place. Accounting was delay the recording of transaction during process is known as back flush accounting. The system is the transaction was only recorded once the product was completed. Back flush accounting is the system that focuses on the output of organization and then work backwards when allocating costs between costs of goods sold and
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1. Problem: Incorrect overhead allocation method 2. Cause: Internal: Incorrect method adopted External: Owners are mandated to purchase the liability insurance‚ economic growth; restrict by government (heavy regulation) low autonomy 3. Influence: Target become hard to be reached‚ low incentives‚ wrong decision shall be made 4. Conclusion: Replace the current method with an alternative method: relative i.e. using costing method which have different bases for respective overhead generated
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Kaizen Costing A Report Kaizen Costing The ultimate objective of manufacturing industries today is to increase productivity through system simplification‚ organizational potential and incremental improvements by using modern techniques like Kaizen. Most of the manufacturing industries are currently encountering a necessity to respond to rapidly changing customer needs‚ desires and tastes. For industries‚ to remain competitive and retain market share in this global market‚ continuous improvement
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Activity-Based Costing ABC Company produces two products: Product A and Product B. Recently appointed management decided to change from a unit-based‚ traditional costing system to an activity-based costing system. The following data have been gathered‚ to assess the effect of the change: Product type Quantity Prime Costs Machine Hours Material Moves Setups Product A 60‚000 €150‚000 3‚500 6‚800 800 Product B 15‚000 € 30‚000 2‚750 1‚200 450 Expenditures (€) €180‚000 €120‚000
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Fa’amatai: A Traditional Religious System Samoa is considered as one of the most remarkable islands in the Pacific known for its traditional system of governance which is the Matai (chief) system. This matai system is defined as the chiefly traditional indigenous form of local governance in the Samoan islands. Some believe its structure and framework is very unique. Many believe its system can be analyzed as a phenomenon that surrounds its people at all times. In this paper‚ it focuses on the framework
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Drawbacks of traditional information management system o Not user friendly Traditional information system is not so user friendly. While any user will use it they will face many difficulties‚ like problem in finding students name in a student register. Most of the organizations are used to follow this type of information system. If any user wants to add up any thing he or she might make any mistake in it. Traditional information management system is a non user friendly system compare to new
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Kaizen Costing What is Kaizen costing? Kaizen is a Japanese term that means continuous improvement. Kaizen events can be defined as making improvements through a process that emphasize small incremental amounts rather than large or radical improvement. Therefore in order to achieve this kaizen costing not include only continuous cost reduction but also continuous improvement of performance by increase the efficiency throughout the process. Why we need Kaizen costing? Market prices of a product
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DATABASE MANAGEMENT SYSTEM (DBMS) A Database Management System (DBMS) is a software program that typically operates on a database server or mainframe system to manage structured data‚ accept queries from users‚ and respond to those queries. A typical DBMS has the following features (Stair and Reynolds‚ 2004): Provides a way to structure data as records‚ tables‚ or objects Accepts data input from operators and stores that data for later retrieval Provides query languages for searching‚ sorting
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