TASK 1 (Be able to apply cost concepts to the decision-making process) comprise the following aspects: ➢ Generally speaking‚ Pricing strategies are of two generic types: costs-based and Market-oriented. Whereas cost-plus approaches to pricing are proactive‚ in that prices are largely determined by the organisation’s financial performance objectives‚ market-oriented approaches are reactive to market conditions and are shaped by
Premium Cost accounting Activity-based costing Decision making
sentence true? Manufacturing companies that benefit the most from activity-based costing are those where overhead costs are a _________ percentage of total product cost and where there is ___________ diversity among the various products that they produce. A) low‚ little B) low‚ considerable C) high‚ little D) high‚ considerable 17. Would factory security and assembly activities be best classified at an appliance manufacturing plant as unit-level
Premium Costs Cost accounting Activity-based costing
best answer and fill-in the corresponding circle on your Scantron sheet. Only answers on the Scantron will be scored. 1. Managerial accounting: a. is unregulated. b. produces information that is useful only for manufacturing organizations. c. is based exclusively on historical data. d. is regulated by the Securities and Exchange Commission (SEC). 2. The accounting records of Dolphin Company revealed the following information: Dolphin’s cost of goods sold is: a. $508‚000. b. $529‚000. c. $531
Premium Costs Variable cost Fixed cost
Super Bakery Costing Methods Learning Team D Acc 561 Super Bakery Costing Methods Super Bakery is a virtual company‚ in this company many things go on‚ but it only deals with the core functions of the industry when the other portions of the company are contracted out. Since the bakery is a leader when it comes to the institutional baked goods market‚ the business may have ongoing concerns maintaining the quality of its goods and services. The Super Bakery management department agree
Premium Baking Cost Activity-based costing
Specifically in Inventories management. Cost allocation‚ pricing and budgeting process. From the report‚ improvements of each firms could be discussed as well as suggestions of merging or not.Basically‚ using bugeting process‚ JIT methods‚ activity-based costing‚ absorption costing analysis to provide disadvantages and advantages in separate companies. Main Body CoolSchool is a manufacturer responsible for delivering fixed number of school uniforms for settled schools‚ they prefer
Premium Costs Cost Variable cost
Activity-Based Overhead Rate R&D activities fall into four pools. The four activity pools are market analysis‚ product design‚ product development‚ and prototype testing. The annual costs are $1‚050‚000 for market analysis‚ $2‚350‚000 for product design‚ $3‚600‚000 for product development‚ and $1‚400‚000 for prototype testing. The total estimated drivers for each activity are 15‚000 hours of market analysis‚ 2‚500 designs‚ 90 products‚ and 500 tests. Per the computed activity-based overhead
Premium Management Cost Activity-based costing
following managerial accounting approaches attempts to allocate manufacturing overhead in a more meaningful fashion? a. Theory of constraints b. Just-in-time inventory c. Activity-based costing d. Total quality management Week Two: Cost Allocation Objective: Assess the advantages and disadvantages of an activity-based costing system. 4. As compared to a high-volume product‚ a low-volume product a. usually requires less special handling b. is usually responsible for more overhead costs per
Premium Costs Management accounting Variable cost
1.0 INTRODUCTION 1.1 OVERVIEW OF THE COMPANY Morelli Electric Motor Corporation manufactures electric motors for commercial use. The company produces three models assigned as standard‚ deluxe and heavy duty. The company uses a job costing system with manufacturing overhead applied on the basis of direct labour hours. The system has been in place with minimum change for 25 years. 1.2 THE CURRENT RISING ISSUE For the past 10 years‚ the company’s pricing has been to set each product’s budgeted price
Premium Costs Variable cost Management accounting
International Journal of Trade‚ Economics and Finance‚ Vol. 1‚ No. 2‚ August‚ 2010 2010-023X Factors Influencing Activity-Based Costing Success: A Research Framework Zhang Yi Fei and Che Ruhana Isa becoming more and more popular [3-7] ABC aims to provide accurate costing information to managers to allocate activity costs to products and services by applying cost drivers [8]. Academics who advocate ABC‚ such as‚ Cooper and Kaplan [9]‚ and Swenson [10] argue that it provides more accurate cost
Premium Management accounting Activity-based costing
observing the existing costing allocation‚ we found out there is an issue on the existing costing report that the manager could not be able to see the real situation. In light of this‚ there will be brought to the discussion on the feasibility of using an alternative costing method – Activity based costing (ABC) in the latter paragraphs. The issue of misallocation cost With the use of Traditional Absorption Costing (TAC) which means Wilkerson Company is now only put the costing of direct labor and
Premium Cost accounting Costs Cost