Introduction Glaser Health Products manufactures medical items for the health care industry. Production involves machining‚ assembly and painting. Finished units are then packed and shipped. The financial controller is interested to introduce an activity-based costing (ABC) system to allocate (or distribute) indirect costs to products. Indirect costs‚ as distinct from direct costs‚ cannot be unambiguously linked to specific products. The controller would like to calculate product costs based on ABC for
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job costing Definition (according to business dictionary) An order-specific costing technique‚ used in situations where each job is different and is performed to the customer’s specifications. Job costing involves keeping an account of direct and indirect costs. Since both types of costs are usually closely related (a job requiring high input of labor and material is likely to consume more power‚ machine time‚ supervision time‚ inspection time‚ etc.) indirect costs may be applied as an estimated
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MARGINAL COSTING Introduction This paper explores the use of cost accounting information for decision-making purposes. DEFINITION OF KEY TERMS Marginal cost: This is the cost of a unit of a product or service‚ which would be avoided if that unit or service was not produced or provided Break-even point: This is the volume of sales where there is neither profit nor loss. 1 9 6 COST ACCOUNTING S T U D Y T E X T Margin of safety: This is the excess of sales over the break-even volume in
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CS765 - Aspects of System Administration Slide 1 CS765 - Aspects of System Administration Filesystems and Disks Department of Computer Science Stevens Institute of Technology Jan Schaumann jschauma@cs.stevens.edu http://www.cs.stevens.edu/~jschauma/765-ASA/ Lecture 02: Filesystems and Disks January 30‚ 2006 CS765 - Aspects of System Administration Slide 2 Topics covered Adding‚ (re-)partitioning‚ mounting disks requires understanding of: basic disk concepts basic filesystem
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REVIEW OF THE LITERATURE BATCH COSTING INTRODUCTION Historically‚ because of the industrial background of cost accounting‚ specific order costing has tended to centre around the manufacturing environment. Given the developments both in cost accounting and performance evaluation over the last 20 years or so‚ cost accounting is now being applied in manufacturing‚ non manufacturing ‚ service and even in non profit making organizations. Cost Accounting is usually considered only as it applies to
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Uniform Costing and Inter Firm Comparison UNIFORM COSTING Uniform Costing is not a distinct method of costing. In fact‚ when several undertakings start using the same costing principles and/or practices they are said to be following uniform costing. The basic idea behind uniform costing is that the different concerns in an industry should adopt a common method of costing and apply uniformly the same principles and techniques for better cost comparison and common good. The principles and methods
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A process costing system is a costing system in which the cost of a product or service is obtained by assigning costs to masses of like or similar units. Unit costs are then calculated on an average basis. Process costing systems are used in industries that produce like or similar units which are often mass produced. In these industries‚ products are manufactured in a very similar way. The companies usually use the same amount of direct materials‚ direct manufacturing labor costs and manufacturing
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they do not make a difference between those costs that are fixed‚ and those that are variable. As a result‚ management became obligated to rely on the alternative variable costing method which provides better information for managerial accounting purposes. Although it is not allowed for external reporting‚ the variable costing method is preferred by managers because it generates great tools for internal decision making purposes CITATION Nat76 \l 1033 (Accountants‚ 1976). Introduction Accounting
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Kaizen Costing A Report Kaizen Costing The ultimate objective of manufacturing industries today is to increase productivity through system simplification‚ organizational potential and incremental improvements by using modern techniques like Kaizen. Most of the manufacturing industries are currently encountering a necessity to respond to rapidly changing customer needs‚ desires and tastes. For industries‚ to remain competitive and retain market share in this global market‚ continuous improvement
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A mundane product or service costing less than $5. Ms. Swathi calls for Maggi noodles almost every time someone returns from India or when she goes home. As she lives is a shared accommodation she turns to instant noodles whenever she and her friends want to have something quick which wouldn’t force them to do a lot of cleaning afterwards. All of them generally decide on Maggi‚ as they all have grown up eating Maggi. They do not remember since when‚ but all are accustomed to the taste and they
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