only. B. II only. C. III only. D. I and III. E. II and III. Answer: D LO: 1 Type: N 2. Many traditional costing systems: A. trace manufacturing overhead to individual activities and require the development of numerous activity-costing rates. B. write off manufacturing overhead as an expense of the current period. C. combine widely varying elements of overhead into a single cost pool. D. use a host of different cost drivers (e.g.‚ number of production setups‚ inspection hours‚ orders processed) to improve
Premium Cost accounting Costs Activity-based costing
Question 1 Not yet answered Marked out of 1.00 Flag question Question text Overhead is applied to jobs at a rate of 150% of direct labor costs. Job # 100 required $500 in direct labor costs. The job was initially budgeted to require $550 in direct labor costs. Overhead applied to # 100 during the period amounted to: Select one: a. $550 b. $750 c. $825 d. some other amount. Question 2 Not yet answered Marked out of 1.00 Flag question Question text Which of the following is an example of a direct material
Premium Management accounting Costs Cost accounting
AN IDEAL APPROACH TO STANDARD COSTING By Jitesh Chandak INTRODUCTION Before you start your study on standard costing you must be clear in your mind that you are going to study a chapter which wants more practice and hard work to develop a strong and sound concept. Costing can be defined as “The technique and process of ascertaining costs.” Standard costing is a technique‚ which uses standards for cost and revenue for the purpose of control through
Premium Cost accounting Cost Variance
is daunting as outsourcing seems to be catching on as a way to cut costs. Overhead Burden Rate We have used direct labor as the allocation base to calculate the figures given below. However machine hours may be a better allocation base as the plants are highly mechanized. |From Budgets |1988 |1989 |1990 | |[Total Overhead/Direct Labor] x 100 |109‚890/25‚294 |78157/13537
Premium Costs Outsourcing Cost
Methods of Cost Variability The Methods * The Comparison Method * High and Low Point or Range Method * The Equation Method * The Average Method * The Graphic Method (Scatter diagram) * The Method of Least Squares * The Analytical Method or Degree of Variability Method Illustration From the following month-wise information in respect of semi-variable costs of a firm‚ segregate the cost into fixed and variable elements: Months2009 | Production (Units) | Semi Variable
Premium Costs Variable cost Management accounting
1. Problem 10-23 Activity and Spending Variances a. Activity variance for end of March computation: FAB CorporationActivity VariancesFor the Month Ended March 31 | | | | | | Planning Budget | Flexible Budget | Activity Variances | Machine-hours (q) | 30‚000.00 | 26‚000.00 | | | | | | | | Utilities ($20‚600 + $0.10q) | $ 23‚600.00 | $ 23‚200.00 | $ 400.00 | F | Maintenance ($40‚000 + $1.60q) | 88‚000.00 | 81‚600.00 | 6‚400.00 | F | Supplies ($0.30q)
Premium Variable cost Costs Fixed cost
(in thousands of dollars) have been taken from the accounting records of Larden Corporation for the just-completed year. Sales $950 Purchases of raw materials $170 Direct labor $210 Manufacturing overhead $220 Administrative expenses $180 Selling expenses $140 Raw materials inventory‚ beginning $70 Raw materials inventory‚ ending $80 Work-in-process inventory‚ beginning $30
Premium Variable cost
Motivation for Investments Companies make investments for at least three reasons. First‚ companies transfer excess cash into investments to produce higher income. Second‚ some entities‚ such as mutual funds and pension funds‚ are set up to produce income from investments. Third‚ companies make investments for strate gic reasons. Short-Term Investments Cash equivalents are investments that are both readily converted to known amounts of cash and mature within three months. Many investments‚ however
Premium Balance sheet Generally Accepted Accounting Principles Inventory
growth to occur. Growth potential also includes regional sales and consideration is given to regions where sales stand to grow. Cost is given a weight of 3. The cost category includes lease‚ equipment‚ wage rates‚ material costs and manufacturing overhead. The company does consider cost when expanding‚ but it is not as important as production‚ growth potential and job market. Finally‚ government assistance is given a weight of 3. Government assistance usually results in lower financial considerations;
Premium Marketing Economics Revenue
to as sales revenue and is calculated by multiplying the number of items sold by their average price. For example if the average price of a book is Rs.10. The number of books sold is 10‚000. The turnover is therefore: 10‚000 x Rs10 = Rs.100‚000 Cost of sales is the cost of buying in the items to trade them. In this case the cost of buying the books. For example‚ the bookshop may buy in books at an average cost of £5 each. Assuming that it has bought in 1‚000 books. Cost of sales is therefore:
Premium Generally Accepted Accounting Principles Balance sheet Income statement