have evaluated the different proposals and come up with one project that we recommend. In doing this‚ we have calculated the change in profits compared with the draft budget and compiled the Break-even charts to justify our recommendation. Marginal Costing Profit Statement of the draft budget £(000) £ (000) Sales 1000 Less Cost of sales: Direct Materials 320 Direct wages 200 Variable factory overheads 100 (620) Contribution 380 Less Fixed Costs:
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Basics Fixed costs Activ. Based Costing Target Cost. Life-Cycle Costing Cost Benchmarking Prof. Dr. P. Weber-Dreßler Stategic Costing.ppt (p. 1) Strategic Costing Strategic Costing Basics Contents Fixed costs Part 1: Basics to strategic costing 1. Traditional costing vs. strategic costing 2. Specifics of strategic costing 3. Tools of strategic costing Activ. Based Costing Target Cost. Life-Cycle Costing Cost Benchmarking Prof. Dr. P. Weber-Dreßler Stategic
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Marginal and absorption costing Topic list 1 Marginal cost and marginal costing 2 The principles of marginal costing 3 Marginal costing and absorption costing and the calculation of profit 4 Reconciling profits 5 Marginal costing versus absorption costing Syllabus reference D4 (a) D4 (a) D4 (b)‚ (c) D4 (d) D4 (e) Introduction This chapter defines marginal costing and compares it with absorption costing. Whereas absorption costing recognises fixed costs (usually fixed production costs) as
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and become such a big part of the economy. What is it? Something no bigger than the size of a paper clip‚ the coffee bean. Nearly ninety five countries in the world depend on coffee exports for at least half of their exporting revenue. Only countries that have a warm‚ dry climate‚ are about 1‚500 meters above sea level‚ and within 1000 miles of the equator can productively grow coffee‚ giving countries like Brazil‚ Peru‚ and Columbia a comparative advantage. With such an advantage‚ one would think
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ways that one can gain knowledge. One way is through personal experiences. By actually doing something‚ you know that through the experience you have in your mind. For example‚ you are walking through the living room and you stub your toe on the coffee table experiencing pain. This type of knowledge we pick up early in life. Another way we pertain knowledge is through someone else’s experiences. For example‚ like a teacher explaining something to a student like 2+2 equals 4 or c-a-t spells cat
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I. Discuss Process Costing‚ clearly bringing out its advantages and disadvantages. DEFINITION Costs are accumulated in costing systems. According to Glautier and Underdown (2001)‚ the development of costing systems reflects the manner in which accounting methods have been adapted to the needs of different forms of activity and technology‚ and also to the appearance of advanced manufacturing techniques that have been a feature of recent years. Cost accounting systems allow full product costs to
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(n.d.). Coffee Production. Retrieved 7 30‚ 2013‚ from All You Need to Know About Coffee: http://www.nescafe.com/coffee_production_en_com.axcms Coffee grown in Africa‚ Asia and Latin America‚ in so called ‘coffee belt’ Brazil is the biggest producer‚ followed by Vietnam and Colombia Some countries specialise in one type of coffee bean Coffees have typical regional taste- influenced by soil and weather conditions Coast Rica produces mild coffee with a nutty flavour; Indonesian coffee has thick
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Absorption costing: * It is costing system which treats all manufacturing costs including both the fixed and variable costs as product costs * In absorption costing‚ all costs are absorbed into production and thus operating statements do not distinguish between fixed and variable costs. * Absorption costing is a process of tracing the variable costs of production and the fixed costs of production to the product. Absorption costing is used to cost products and to report financial
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Exercises (Group A) (15-20 min.) E 4-22A Req. 1 Plantwide overhead rate = Estimated total manufacturing costs Estimated cost allocation base = = $1‚150‚000 25‚000* direct labor hours = = $46 per direct labor hour *When calculating plantwide overhead rates‚ all direct labor hours incurred in the plant are used. (continued) E 4-22A Req. 2 Departmental overhead rate Machining Dept. overhead rate = = Finishing Dept. overhead rate Total department overhead
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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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