THE COST AND SALES CONCEPT Cost is defined as a reduction in the value of an asset for the purpose of securing benefit or gain. Cost is defined in a hotel and restaurant as the expense to a hotel or restaurant for goods or services when the goods are consumed or the services are rendered. KINDS OF COSTS 1. Fixed costs – are those that are normally unaffected by changes in sales volume. They are said to have little direct relationship to the business volume because they do not change
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11 Allocation of Joint Costs and Accounting for By-Product/Scrap Objectives After completing this chapter‚ you should be able to answer the following questions: LO.1 LO.2 LO.3 LO.4 LO.5 How are the outputs of a joint process classified? What management decisions must be made before beginning a joint process? How is the joint cost of production allocated to joint products? How are by-product and scrap accounted for? How should not-for-profit organizations account for the cost of a joint activity?
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boxes of staples a year. The boxes cost $4 each. It costs $10 to order staples‚ and carrying costs are $0.80 per box on an annual basis. Determine: (A) the order quantity that will minimize the sum of ordering and holding boxes of staples (B) the annual cost of ordering and carrying the boxes of staples 2. . A service garage uses 120 boxes of cleaning cloths a year. The boxes cost $6 each. Ordering cost is $3 and holding cost is 10 percent of purchase cost per unit on an annual basis. Determine:
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CASE STUDY NOTES/ ANALYSIS THE TRUE COST OF ACQUISITION. INTRODUCTION -The department of defense has highlighted its vision and mission but has not broken these down into objectives for each function - Without a breakdown of this mission into workable action plans/ objectives it is therefore very hard to create performance measure and standards of practice - This is evident by the recent happening of Darlene Druyun’s actions while acting in the position of head of procurement - There
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Lesson-13 Elements of Cost and Cost Sheet Learning Objectives • • • To understand the elements of cost To classify overheads on different bases To prepare a cost sheet Elements of Cost Raw materials are converted into finished products by a manufacturing concern with the help of labor‚ plants etc. The elements that constitute the cost of manufacturing are known as elements of cost. The elements of cost include the following: • • • Material Labor Expenses Each of these elements is again subdivided
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Why a Total Reward Program is Important As the labor force becomes more highly developed and demanding‚ rivalry between organizations for talented employees is drastically increasing. It is extremely important that organizations make their company more enticing as an incomparable career opportunity. Instituting a total rewards system into an organization can do much to help it invite the paramount talent available and significantly condense turnover. The longevity of an organization’s employees is
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Chapter 2—Cost Terminology and Cost Behaviors MULTIPLE CHOICE 1. The term "relevant range" as used in cost accounting means the range over which a. | costs may fluctuate. | b. | cost relationships are valid. | c. | production may vary. | d. | relevant costs are incurred. | ANS: B PTS: 1 DIF: Easy OBJ: 2-2 NAT: AACSB: Reflective Thinking LOC: AICPA Functional Competencies: Measurement‚ Reporting 2. Which of the following defines variable cost behavior
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ECO561 1. Purely competitive firms increase total revenue by * increasing production (To increase revenue‚ firms look to increase price or quantity‚ as price multiplied by quantity equals total revenue. Purely competitive firms can sell as much as they want at the market price. Adding additional units of the product does not result in a change in the market price. Therefore‚ since purely competitive firms do not influence price‚ they increase total revenue by increasing quantity). 2. What are
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is a subject people constantly debate‚ especially in regards to total war. Questioning the morality of total war is an issue due to the elasticity of the definition‚ which is dependent upon the individual. General William T. Sherman’s total war strategy in Georgia and the Carolinas is arguably morally acceptable -even though it included waging war against the civilian population- when taking into account the benefits versus the costs. There were excessive actions taken by Sherman’s soldiers‚ which
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Biyani’s Think Tank Concept based notes Cost Accounting [ B.Com. Part-II] B.N. Gaur MBA‚ PGDBM‚ Lecturer Deptt. of Commerce & Management Biyani Girls College‚ Jaipur Fore more detail:- http://www.gurukpo.com Published by : Think Tanks Biyani Group of Colleges Concept & Copyright : ©Biyani Shikshan Samiti Sector-3‚ Vidhyadhar Nagar‚ Jaipur-302 023 (Rajasthan) Ph : 0141-2338371‚ 2338591-95 • Fax : 0141-2338007 E-mail : acad@biyanicolleges.org Website :www.gurukpo.com; www
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