Process costing is used for homogenous products (continuous flow processes such as producing cans of soda). Job-order costing is used in situations where the organization offers many different products or services‚ such as in furniture manufacturing‚ hospitals‚ and legal firms. Process costing is used where units of product are homogeneous‚ such as in flour milling or cement production. The purpose of a job order cost accounting system is to assign and accumulate costs for each job‚ i.e
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profits. In addition to higher bonuses‚ managers can manipulate earnings numbers to impress shareholders and protect their jobs. One of the methods used by management to achieve desired income is to manipulate the LIFO inventory method. This method allows management to dip into the LIFO “reserves” and to make carefully timed year-end purchases. Efforts to change accounting standards to those that are closer to reality have been rejected as being unauditable or too volatile. A second beneficiary
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http://http://www.nytimes.com/1984/06/08/business/market-place-analysts-favor-harnischfeger.html Markgraf‚ B. (n.d.). What Is a LIFO Liquidation? The Houston Chronicle. Retrieved from http://http://smallbusiness.chron.com/lifo-liquidation-51049.html Bank‚ E. (n.d.). The Effects of LIFO Liquidation on Balance Sheets. The Houston Chronicle. Retrieved from http://smallbusiness.chron.com/effects-lifo-liquidation-balance-sheets-67480.html
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1. Describe clearly the accounting changes Harnischfeger made in 1984 as stated in Note 2 of its financial statements. In 1984‚ the Corporation has computed depreciation expense on plants‚ machinery and equipment using the straight-line method for financial reporting purposes. Prior to 1984‚ the Corporation used principally accelerated methods for its U.S. operating plants. 2. What is the effect of the depreciation accounting method change on the reported income in 1984? How will this change
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September 24‚ 2010‚ from http://www.inventorymanagementreview.org/justintime FIFO (n.d.). First In‚ First Out. Retrieved Sept 26‚ 2010 from http://www.investopedia.com/terms/f/fifo.asp Hedrick‚ F.‚ Barnes‚ F.‚ Davis‚ E.‚ Whybark‚ D.‚ & Murray‚ K. (n.d.). U.S. Small Business Administration: Inventory Management. Retrieved September 24‚ 2010‚ from http://www.sba.gov/idc/groups/public/documents/sba_homepage/pub_mp22.pdf Inventory Using FIFO Method (n.d.). Retrieved Sept 26‚ 2010 from http://www.ehow.com Just
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Introduction In our coursework group assignment‚ our group had chosen the Apollo Food Holdings Berhad which is listed on the main board of the Bursa Kuala Lumpur. Apollo Food Holdings Berhad is a Malaysia-based company engaged in investment holding and provision of management services. Its own subsidiaries are Apollo Food Industries (M) Sdn Bhd‚ which is engaged in manufacturing and trading in many compound such as chocolates‚ chocolate confectionery products and cakes. The company is manufacturing
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entered into the Sales Journal. ABFA1023 FUNDAMENTALS OF ACCOUNTING (f) Returns to supplier amounting to RM1‚050 on 26 December 2010 was omitted from the books. (g) Inventory count sheet included inventories that were valued wrongly based on FIFO method totalling RM8‚000‚ instead of the company policy of average cost method‚ which would have totalled RM6‚500. (h) Inventory count included some damaged goods‚ with historical cost of RM19‚000. Estimated repair cost of RM1‚500 would enable these
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of the organization and with the completion of this project we have learned that how operations Management Strategies plays very important role in achieving an organizational goals. The restaurant follows Just In Time (JIT) and First In First Out (FIFO) to manage inventory. Inventory‚ is divided into three types consisting of Daily‚ Weekly and Monthly inventory. The daily inventory consists fast moving products like Krushers‚ Non-veg items‚ ice-creams. Here the orders are placed by the inventory
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know that how to looking for what the inventory had included. For example is this company inventory had included Raw Material‚ Work- in- Process and also Finish Goods. We also can know how this company arranges their stock by using first in first out (FIFO) method or Weighted Average Cost (WAC) method. Our group had chosen HUP SENG Industries BERHAD to support us in assignment. HUP SENG Industries BERHAD established in 1958‚ it had become the most quality biscuit manufacturing. Today‚ it is one of Malaysia’s
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Identifying relevant Malaysian Financial Reporting Standard with Inventory Cycle Referring to have been stated above‚ the selected company was a small sized entity and therefore‚ the processes under its inventory cycle was not complex like those in retailers as well as manufacturers. Figure 1.1 Inventory cycle with shaded area for activities related to MFRS Principally‚ the fundamental issue in accounting for inventories is to define the amount to be recognized as asset as well as amount
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