would estimated cost information be useful if you were a hospital administrator? The Director of a Cinema hall? The Marketing vice president of a bank? Cost information is the information about the different costs that are incurred in the operation of the organization or a business process. Here the cost includes all cost like material cost‚ labor costs‚ and all other overhead costs that are incurred depending on the type of business they operates. The main objectives of cost information are:
Premium Costs Variable cost
Study guide ACG24 Management Accounting This module has been developed using material with the acknowledgement and permission of Horngren‚ C.T.‚ Datar‚ S.‚ Foster‚ G.‚ Rajan‚ M.‚ Ittner‚ C.‚ Wynder‚ M.‚ Maguire‚ W. and Tan R. (2010)‚ Cost Accounting; a Managerial Emphasis (1st Australian Edition)‚ Prentice Hall International‚ Englewood Cliffs‚ New Jersey. We greatly appreciate the support of Leanne Lavelle of Pearson/Prentice-Hall Australia throughout the process. The University of South
Premium Management accounting Costs Variable cost
1. The cost of a computer system installed last year is an example of: (Points: 2) a sunk cost a relevant cost a differential cost an avoidable cost 2. In evaluating different alternatives‚ it is useful to concentrate on: (Points: 2) variable costs fixed costs total costs relevant costs 3. Relevant costs in a make-or-buy decision of a part include: (Points: 2) setup overhead costs for the manufacture of the
Premium Costs Variable cost
Cost Classification and Pricing Student Name Student University Cost and Price Analysis Cost Classification and Pricing Cost Classification According to Maher‚ L. (2005)‚ cost classification refers to the separation of different expenses in various categories. The classifications of costs are required for any firm in order to accurately track and account for the allocation of varies types of cost categories. For Hawk-eye‚ cost classification is crucial since it plays an important part in
Premium Costs Cost Cost accounting
will maximize profit by producing that level of output at which A. the additional revenue from the last unit sold exceeds the additional cost of the last unit by the largest amount. B. the additional revenue from the last unit sold equals the additional cost of the last unit. C. total revenue exceeds total cost by the largest amount. D. total revenue equals total cost. E. both b and c 2. The function a decision maker seeks to maximize or minimize is the ________ function. A. optimal B. decision-making
Premium Marginal cost Costs Economics
MIT ICAT Operating Costs and Productivity Measures Dr. Peter P. Belobaba 16.75J/1.234J Airline Management February 15‚ 2006 MIT ICAT DOT Form 41 • Form 41 contains traffic‚ financial‚ and operating cost data reported to the DOT by US Major airlines – Data is reported and published quarterly for most tables – Detail of reporting differs for different expense categories • Aircraft operating expenses by aircraft type and region of operation • Other expenses more difficult to allocate
Premium Expense Operating expense Airline
The first such report appears below: Note that the revenues and costs in the above report are unit revenues and costs. For example‚ the average office expense is $135 per exchange completed on the planning budget; whereas‚ the average actual office expense is $112 per exchange completed. Legal and search fees is a variable cost; office expenses is a mixed cost; and equipment depreciation‚ rent‚ and insurance are fixed costs. In the planning budget‚ the fixed component of office expenses was
Premium Costs Variable cost
Answers to Warm-Up Exercises E9-1. Answer: Weighted average cost of capital N 10‚ PV $20‚000 (1 0.02) $19‚600‚ PMT Solve for I 8.30% 0.08 $20‚000 $1‚600‚ FV $20‚000 E9-2. Cost of preferred stock Answer: The cost of preferred stock is the ratio of the preferred stock dividend to the firm’s net proceeds from the sale of the preferred stock. rp Dp Np rp (0.15 $35) ($35 $3) rp $5.25 $32 16.4% E9-3. Cost of common stock equity Answer: The cost of common stock equity can be found by dividing the dividend
Premium Trigraph Weighted average cost of capital Stock
Cost Accounting‚ 14e (Horngren/Datar/Rajan) Chapter 2 An Introduction to Cost Terms and Purposes Objective 2.1 1) Cost objects include: A) products B) customers C) departments D) All of these answers are correct. Answer: D Diff: 2 Terms: cost object Objective: 1 AACSB: Reflective thinking 2) Actual costs are: A) the costs incurred B) budgeted costs C) estimated costs D) forecasted costs Answer: A Diff: 1 Terms: actual costing Objective: 1 AACSB: Reflective thinking 3) The general term used to identify
Premium Variable cost Costs
Chapter 8: Cost Estimation Strategic Role of Cost Estimation * Cost Estimationthe development of a well-defined relationship b/t a cost object and its cost drivers for the purpose of predicting the cost * Facilitates strategic mgmt is 2 ways * Helps predict future costs * Helps identify key cost drivers for a cost object and which driver is most useful * Using Cost Estimation to Predict future costs * Strategic mgmt requires accurate estimates for the
Premium Statistics Regression analysis Variable cost