Cost Accounting Manual 2013 STUDY NOTES FOR COST ACCOUNTING BY ATAUSH SHAFI Last Updated on: Tuesday‚ January 01 01‚ 2013 1 © For Suggestions & Feedbacks‚ contact: ATAUSH SHAFI (ataushshafi@gmail.com) Cost Accounting Manual 2013 Table of Contents CIMA OFFICIAL TERMINOLOGY .................................................................................... 3 COST OF GOODS SOLD FORMULE................................................................................ 13 COST CLASSIFICATION ...
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IMPACT OF COST ACCOUNTING ON FINANCIAL DECISION INTRODUCTION In the modern business world‚ the nature and functioning of business organizations have become very complicated. They have to serve the needs of variety of parties who are interested in the functioning of the business. These parties constitute the owners‚ creditors‚ employees‚ government agencies‚ tax authorities‚ prospective investors‚ and last but not the least the management of the business. The business has to serve the needs
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TEST QUESTIONS: Questions 1-3 refer to the following: The following selected data for March were taken from Rubenstein Company’s financial statements: Cost of goods available for sale Manufacturing overhead Cost of goods manufactured Finished goods inventory ‑ ending Direct materials used Sales Selling and administrative expenses Direct labor Work in process inventory ‑ beginning $ 65‚000 20‚000 51‚000 10‚000 15‚000 105‚000 30‚000 20‚000 0 1. The gross
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prior to considering the current year loss‚ is $24‚000. He will be allowed to deduct the $40‚000 loss this year if he is a material participant in the business. a. True *b. False 1279. CHAPTER 11—INVESTOR LOSSES Question TF #4 Judy owns a 20% interest in a partnership (not real estate) in which her at-risk amount was $35‚000 at the beginning of the year. The partnership borrowed $50‚000 on a recourse note and made a $40‚000 profit during the year. Her at-risk amount at the
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All of these choices are true. ANS: D PTS: 1 REF: SECTION 8.1 3. Suppose f(x) = 0.25. What range of possible values can X take on and still have the density function be legitimate? a. [0‚ 4] b. [4‚ 8] c. [2‚ +2] d. All of these choices are true. ANS: D PTS: 1 REF: SECTION 8.1 4. The probability density function‚ f(x)‚ for any continuous random variable X‚ represents: a. all possible values that X will assume within some interval a x b. b. the probability that X takes
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summary of the contents of the document.] compaq [Type the company name] [Pick the date] Contents Concept of Cost Accounting……………………………………………………………………03 Introduction……………………………………………………………………………………..03 Traditional costing v/s activity based costing…………………………………………………..04 Need for an Activity Based Costing……………………………………………………………06 Stages in Activity Based Costing……………………………………………………………....08 Cost Drivers…………………………………………………………………………………….09 Classification of activities………………………………………………………………...……10 Steps
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ADVANTAGES OF COST ACCOUNTING 1. Fixation of responsibility: Whenever a cost center is established‚ it implies establishing a kind of relationship between superior and subordinates. Thus responsibilities are fixed on every individual who is concerned with incurrence of cost. 2. Measures economic performance: By applying cost control techniques such as budgetary control and standard costing it helps in assisting the performance of business. 3. Fixation of price: By providing cost data it
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Oakland Enterprises is only more profitable if it is smaller than Denver Dynamics. d. Further information is needed for a reasonable comparison. e. Oakland Enterprises is more profitable if it is a larger firm than Denver Dynamics. ANS: D PTS: 1 4. Which of the following can offer a type of comparison in financial statement analysis? a. past ratios and figures b. industry averages c. statistics of competitors d. all of the answers are correct e. none of the answers are correct ANS: D PTS: 1
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Obtain information 3. Make predictions about the future 4. Make decisions by choosing among alternatives 5. Implement the decision‚ evaluate performance‚ and learn An example of interdependencies include absenteeism/low employee morale and increased labour costs. 11‐2 Relevant costs are expected future costs that differ among the alternative courses of action being considered. Historical costs are irrelevant because they are past costs and‚ therefore‚ cannot differ among alternative future courses of action
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Test Bank—Chapter One (Data Representation) Multiple Choice Questions 1. Which of the following Boolean operations produces the output 1 for the fewest number of input patterns? A. AND B. OR C. XOR ANSWER: A 2. Which of the following best describes the NOR operation? A. An XOR followed by a NOT B. An OR followed by a NOT C. A NOT followed by a NOT C. An AND followed by a NOT ANSWER: B 3. Which of the following bit patterns cannot be expressed in hexadecimal
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