Acct 311 Company Project Part 1 Company

Accounting 311 Company Project Part 1 – Company Survey

1. Industry of company surveyed: General Electric
2. Type of Managerial Accounting Used: Job Order  Process Costing  Other: Explain 
3. List 3-5 of the most significant direct Materials from a cost basis: Chemicals
spare parts Filter Membrane Rental Trails and Trucks
4. List 3-5 of the most significant direct Labor elements from a cost basis {list skill level – e.g. journeyman mechanic, apprentice painter, master carpenter, journeyman welder, etc, etc, etc.}
Drivers Field representative at sight Production Labor
5. How does the company decide whether a cost is direct or indirect?
The cost is identify and has a direct relationship to the sale being made/ order being served and where the significant benefit is more related to the process or the profit than it is direct. Where we cannot identify the cost of the project its indirect
6. List 3-5 of the most significant Indirect Cost elements from a cost basis
Plant maintance Office and Administation overhead Health and safety
7. How many overhead rates does the company use? Single  Multiple 
8. What is considered the cost driver (denominator) of the overhead rate(s)? List in the space provided:
Sales are considered the cost driver of the overhead rates. This is because if they want to know anything like production percentage they take sales as the cost driver.
9. How often does the company revise its predetermined overhead rate? Once a year
10. In 500 characters or less: Describe the company’s budgeting process; include: Does the company have a written strategic plan; how operating and planning budgets differ; does the company have a budget committee or one person who develops the budget; how is budget guidance issued to the budgeting team/person; how often does the company develop a budget; when during their fiscal year do they prepare the budget for the next budget period.
Yes, the Company has a written strategic plan, which states that where they want to be in the market. Company uses Operating budget for Purchases, production and Sales, they use planning budget to know how much they are going to investment, and how they going to make a particular year sales better than the previous year sales. Company has a budgeting Team. Budgeting Team consists of people from different departments, so that every department gets enough money, due to which departments are satisfied, as there was no partiality among the departments in the budget. Every Department is given enough money, so that they can use that this year, and can also save for next year. As there are many departments, each department come with there budget, and than they combine all department budget to get one budget as a whole for the company. Company develops a budget once a year, but if there is a inflation than company make budget twice a year. Company usually prepares the budget in August or September for next fiscal year. Company does not wait for December and January. Company also prepares three-year plan, so they can estimate where they will after three years. Three -Year budgets are subject to changes due to the performance of the company.