Activity Based Costing can be defined as an accounting methodology that assigns costs to activities based on their use of resources‚ rather than products or services. This enables resources and other associated costs to be more accurately attributed to the products and the services which they use. It doesn’t change or eliminate any costs; it provides detailed information about how costs are consumed. (Online manager-net.com). Traditional cost accounting looks at what is spent‚ while ABC methods
Premium Cost accounting Cost Costs
E18-5 Organic Growth Company is presently testing a number of new agricultural seeds that it has recently harvested. To stimulate interest‚ it has decided to grant to five of its largest customers the unconditional right of return to these products if not fully satisfied. The right of return extends for 4 months. Organic Growth sells these seeds on account for $1‚500‚000 on January 2‚ 2012. Companies are required to pay the full amount due by March 15‚ 2012. (a) Prepare the journal entry for
Premium Rate of return Revenue Financial statements
Apr 29 to May 2‚ 2011 Track title: Quality‚ Processes and JIT Abstract Servitization of manufacturing is a fairly recent approach addressed in literature. The term is recognized as the process of creating value by integrating products with services. Servitization is supposed to contribute to a sustainable society through its potential to support dematerialization‚ i.e. reduction of materials used in production and consumption. Key aspects of lean are resource efficiency and customer-orientation
Premium Manufacturing Lean manufacturing Toyota Production System
better estimate costs‚ the company recently adopted an activity-based costing system. Last year‚ the company incurred $300‚000 in overhead costs. Based on an intense study of their company‚ the following activities‚ allocation bases‚ and percentages of overhead costs were determined: Activity | Allocation Base | Proportion of Overhead Cost | Purchasing | Number of purchase orders | 25% | Materials processing | Number of square feet | 50% | Sales | Number of sales orders | 25% | The number
Premium Sales order Cost Procurement
Activity Based Costing The major strength of activity based costing is the ability to estimate the cost of individual products and services precisely. By transferring overhead costs to individual units of products or services‚ ABC helps identify inefficient or non-profitable products or activities that help into the profitability of efficient processes or highly profitable products. 1. More accurate costing of products/services Product cost determination under activity-based costing is more accurate
Premium Cost Decision making Costs
1 AN OVERVIEW OF TARGET COSTING Introduction Many managers often underestimate the power of target costing as a serious competitive tool. When general managers read the word “costing”‚ they naturally assume it is a topic for their finance or accounting staff. They miss the fact that target costing is really a systematic profit and cost management process. What Is Target Costing? CAM-I defines target costing as the maximum amount of cost that can be incurred on a product and still earn the required
Premium Cost Costs Price
Multiple Choice Questions 1. The NFL is able to customize their newsletter by _____. A) tracking what pieces are clicked on B) providing news about the individual fan’s favorite team C) matching the individual fan’s specific interests D) enabling fans to update their profile E) all of the above Answer: E Page: 637 Difficulty: moderate 2. Which of the following is NOT a possible outcome once a consumer is satisfied? A) committed customer B) discontinued use
Premium Marketing Brand Decision making
Job Analysis Leanne Lanier BUS226: Introduction to Personnel Administration Robin Wetherington March 3‚ 2014 Perform a job analysis for a position of your choice (examples are a previously-held job‚ present job‚ future job you would like). What compensation‚ training‚ and employee performance needs must be addressed in order to attract and keep this position filled with qualified talent? How will you determine if the current job description effectively represents the tasks
Premium Employment Recruitment Human resource management
MARGINAL AND ABSORPTION COSTING Marginal costing is a technique in which production units are valued at marginal cost of production and fixed costs are written off as period costs. It follows that‚ stocks are valued using only the variable cost of production whereas fixed costs are treated as relating to the period and must be taken off in total. Management accounting is based on marginal costing. TERMINOLOGY USED. Gross contribution: Is the difference between sales value and variable costs
Premium Marginal cost Costs Cost
Cardio Pulmonary Practical The main aim of the practical was to assess‚ what affects did light exercise have on the systolic and diastolic blood pressure‚ heart and respiration rate‚ tidal volume‚ minute volume and percentage of gas. The readings were taken before exercise‚ during exercise and after exercise. Blood pressure is defined as the amount of pressure exerted on the vessels walls‚ during blood flow. Blood pressure can be measured using a sphygmomanometer. The upper value indicates the
Premium Blood pressure Blood Heart