COST ANALYSIS OBJECTIVES INTRODUCTION MEANING DEFINITIONS TYPES OF COSTS MONETARY COSTS REAL COSTS OPPORTUNITY COSTS ECONOMIC COSTS ACCOUNTING COSTS INCREMENTAL COSTS SUNK COSTS FUTURE COSTS PRIVATE‚ EXTERNAL AND SOCIAL COSTS FIXED / SUPPLEMENTARY / OVERHEAD COSTS VARIABLE / PRIME COSTS REPLACEMENT COSTS PRODUCTION COSTS SELLING COSTS CONTROLLABLE COSTS DIRECT COSTS INDIRECT COSTS SHORT RUN COSTS CURVES LONG RUN COSTS CURVES OBJECTIVES To understand the meaning of cost. To discuss different types
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COST ACCOUNTING Select the one best answer for each: 1. Which one of the following would not be classified as manufacturing overhead? a. Indirect labor b. Direct materials c. Insurance on factory building d. Indirect materials 2. Prime costs of a company are $3‚000‚000‚ manufacturing overhead is $1‚500‚000 and direct labor is $750‚000. What is the amount of direct materials? a. $1‚500‚000. b. $750‚000. c. $2‚250‚000.
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10/12/04 4:49 PM Page 259 8 C H A P T E R COST CURVES 8.1 LONG-RUN COST CURVES APPLICATION 8.1 The Long Run Cost of Trucking APPLICATION 8.2 The Costs of Higher Education APPLICATION 8.3 Economies of Scale in Refining Alumina? APPLICATION 8.4 Hospitals Are Businesses Too APPLICATION 8.5 Tracking Railroad Costs APPLICATION 8.6 Economies of Scope for the 8.2 S H O RT- R U N C O ST C U RV E S 8.3 SPECIAL TOPICS IN COST Swoosh Experience Reduces Costs of Computer Chips APPLICATION 8.7 8.4
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Costs and Revenues What is cost? If you go to a store and like an item and you want to buy it‚ which of the following questions would you ask: What’s the price of …..? 0R How much does …. cost? Examples of costs – set-up Examples of costs - running Fixed Costs 5000 What happened to the fixed costs if for some reason the company had technical problems and was unable to produce for 2 weeks? What happens if the landlord decided to raise the rent due to high property prices
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CONFIDENTIAL AC/OCT 2010/ACC116/165/211 UNIVERSITI TEKNOLOGI MARA FINAL EXAMINATION COURSE COURSE CODE EXAMINATION TIME INTRODUCTION TO COST ACCOUNTING / COST ACCOUNTING ACC116/165/211 OCTOBER 2010 3 HOURS INSTRUCTIONS TO CANDIDATES 1. 2. 3. This question paper consists of five (5) questions. Answer ALL questions in the Answer Booklet. Start each answer on a new page. Do not bring any material into the examination room unless permission is given by the invigilator. Please check to
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Street Journal. Cost Management and Strategy – refer to your assigned questions and problems Cost Drivers and Basic Cost Concepts -- What is a cost? Define cost pools. What is a cost object? cost assignment? Contrast a direct cost with an indirect cost. Define cost allocation. What is an allocation base? Contrast cost assignment with cost allocation. What is a direct material? Direct labor? Indirect material? Indirect labor? factory overhead? What are conversion costs? Prime costs? What are the
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Product cost is the cost of direct labor‚ direct materials‚ and manufacturing overhead that are consumed to create a product. Product cost can also be considered the cost of the labor required to deliver a service to a customer. Direct Material Cost Definition: Direct material cost is the cost of materials used to manufacture a product or provide a service. Direct Labor Definition: Direct labor is production or services labor that is assigned to a specific product‚ cost center‚ or work order
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COSTING SUPPORT AND COST CONTROL IN MANUFACTURING A COST ESTIMATION TOOL APPLIED IN THE SHEET METAL DOMAIN PROEFSCHRIFT ter verkrijging van de graad van doctor aan de Universiteit Twente‚ op gezag van de rector magnificus‚ prof.dr. F.A. van Vught‚ volgens besluit van het College voor Promoties in het openbaar te verdedigen op vrijdag 3 mei 2002 te 15.00 uur. door Erik ten Brinke geboren op 15 maart 1973 te Hardenberg Dit proefschrift is goedgekeurd door: de promotor prof.dr.ir. H
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do so by utilizing break even analysis. Before we can find our solution‚ we should discuss Salem Data Services’ (SDS) accounting report step by step. To begin‚ the various costs incurred to SDS should be grouped into either variable‚ or fixed. The only variable costs that have any relation to the total revenue hours listed from exhibit 2 are “power” and “Operations: hourly personnel.” Other expenses listed are fixed costs. Now‚ we have our data to calculate unit variable cost per revenue hour.
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business and how the new equipment will help the business to function and the cost of the product will determine what the managers of the business decides. Marginal costs are change in total costs divided by change in output. Marginal revenue is the change in total revenue divided by change in output. Increase in fixed costs means that when the fixed costs cannot be changed it is the short run and when the fixed costs change it is the long run. The second questions that I chose to answer was
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