Cost Accounting - Chapter 1 1. Flexibility is said to be the hallmark of modern management accounting‚ whereas standardization and consistency describe financial accounting. Explain why the focus of those two accounting systems differs. Financial accounting is more about the bigger picture—it evaluates the finances of the organization as a whole‚ using historical‚ quantitative‚ monetary‚ and factual data. It is more formal and requires the use of GAAP. The information financial accounting
Premium Cost accounting Management Management accounting
INTRODUCTION Realised-profit‚ matching-based‚ historical cost accruals accounting (HCA) has for over fifty years been repeatedly challenged as being an inadequate basis for the measurement of "income" which reports increments in the value of businesses. Such challenges continue unabated and are made by both accounting standards regulators and by academic commentators. Despite its obvious deficiencies for measuring valuation based income‚ and subject to concept of prudence‚ internationally HCA remains
Premium Balance sheet Generally Accepted Accounting Principles Costs
between the alternatives. Relevant information requires a high degree of precision. Relevant information includes qualitative as well as quantitative data. 2. Select the correct statement regarding relevant costs and revenues. A. Relevant costs are also known as avoidable costs. B. Relevant costs are future-oriented. C. Relevant revenues must differ between the alternatives. D. All of the above. 3. Andy is trying to decide which one of two job offers he will accept. Several items are presented below:
Premium Costs Variable cost
COSTS OF STEAM Issue The client expects a reduction in steam generation costs and does not care about energy consumption. Learning Objectives Establishing a list of cost items of steam generation Understanding the different methods of specific steam cost calculation Knowing how to calculate the specific steam costs Rating of the relative importance of cost items Appreciation for specific steam generation costs sensitivity with respect to cost items Recognition of negative
Premium Depreciation Costs Interest
Chain Cost (TSCC) program developed by Owens & Minor and Virginia Mason? * Virginia Mason Medical Center (VM) hired Owens & Minor (O&M) as its alpha vendor for medical/surgical supplies in 2004. At that time O&M was performing JIT and low unit measure services for VM. Together VM and O&M worked together to create a new supply chain process called the Total Supply Chain Cost (TSCC) pricing program. * TSCC was is an activity-based model that assigned all the cost drivers
Premium Pricing Costs Procurement
Agri-environment contract adoption under fixed and variable compliance costs. This report looks at the agri-environment contract adpted by farmers’ to be able to contribute and partake in the enrivonmental schemes through pressure groups and government. It provides disctinct description to the differences in fixed and variable costs. The purpose of explaining the differences were to illustrate how farmers partaking to the project would be different than how much land will be needed to chip in the
Premium Cost Costs Variable cost
Marginal Revenue and Marginal Cost An understanding of marginal revenue and marginal cost is economically crucial to owning and operating a successful business. Marginal revenue is the amount of change in total revenue by selling one additional product. So if a company sells four extra unit of product and brings extra total revenue of 500 dollars than the marginal revenue for this month would be 125 dollars. This is found by taking the change in total revenue‚ 500 dollars‚ and dividing it by the
Premium Marginal cost Profit maximization Microeconomics
What problems we are facing? • Financial result in 2003 10 Part I. Introduction What problems we are facing? • Sales increase Loss in record • Costs Raising • Ways of regaining the profitability 11 Part I. Introduction Research Direction 12 Part I. Introduction Five representative orders 13 Part I. Introduction Cost drivers Activity Warehouse Space People to move carton Commercial Freight
Premium Expense Costs Customer service
the relevant cost is the cargo cost only. Therefore‚ profit contribution of carrying I ton of tapioca from Balik and Singapore: Expected revenue $5.10 Less freight cost (0.25+0.56) 0.81 Profit Contibution 4.29 From Singapore to Balik: Expected Revenue $2.70 Less freight cost (0.16+0.32+0
Premium Variable cost Costs Cargo
Cost-Volume-Profit Analysis Self-Test Questions 1. The difference between the sales price and the total variable costs is the contribution margin. (D) 2. The breakeven volume in units (perfume sticks) for 2005 is TR-VC-FC=PBT MR=900000/1800 = 500 TR-VC-FC=0 VC/Q = 495000/1800 = 275 Q*MR - Q(VC/Q) = FC Q = _____FC_____ MR-VC/Q Q = 247500/(500 275) Q=1100 Therefore (B) 3. If sales volume is expected to be 2100 units with prices/costs same‚ after-tax net income is expected
Premium Variable cost Management accounting Contribution margin