COSTING INTRODUCTION Historically‚ because of the industrial background of cost accounting‚ specific order costing has tended to centre around the manufacturing environment. Given the developments both in cost accounting and performance evaluation over the last 20 years or so‚ cost accounting is now being applied in manufacturing‚ non manufacturing ‚ service and even in non profit making organizations. Cost Accounting is usually considered only as it applies to manufacturing operations. In today’s
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Costing 1 1.2 Historical Background 2 1.3 Objectives of Target Costing 3 2 Target Costing Principles 4 2.1 Price Led Costing 4 2.2 Customer Focus 4 2.3 Design Focus 5 2.4 Cross-Functional Involvement 5 2.5 Life Cycle Cost 5 3 Distinguishing Target Costing from Traditional Cost Management 6 4 Setting up a Target Costing Management 8 4.1 Fundamental Work 8 4.2 Systems of Managing Target Costing 8 4.3 Principles of Target Costing 9 4.4 Procedures of Target Costing 9 4.5 Risk of Target Costing
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CHAPTER 20 Job Order Cost Accounting ASSIGNMENT CLASSIFICATION TABLE Brief Exercises A Problems B Problems Study Objectives 1. Explain the characteristics and purposes of cost accounting. Describe the flow of costs in a job order cost accounting system. Explain the nature and importance of a job cost sheet. Indicate how the predetermined overhead rate is determined and used. Prepare entries for jobs completed and sold. Distinguish between under- and overapplied manufacturing overhead. Questions
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Question 1) Generally Accepted Accounting Principles require that product costs include all manufacturing costs and only manufacturing costs. Activity-based costing usually does not include all manufacturing costs and will often include nonmanufacturing costs. Therefore‚ ABC is not currently acceptable under GAAP. Kenco’s costing system is preferable under GAAP because it includes all manufacturing costs‚ and only manufacturing costs. Kenco currently uses one cost driver: a product’s consumption
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ISSUES IN ACCOUNTING EDUCATION Vol. 28‚ No. 3 2013 pp. 637–652 American Accounting Association DOI: 10.2308/iace-50464 Dream Chocolate Company: Choosing a Costing System Kip R. Krumwiede and W. Darrell Walden ABSTRACT: This case is about a small‚ but real‚ company‚ Dream Chocolate (D.C.)‚ which makes custom-labeled‚ high-quality candy bars for special events and advertising purposes. Like many small companies‚ D.C. has an inadequate costing system and needs a much better one as it starts to get
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companies cost of capital is 10%( the five year annuity discount factor for this is 3.791) . The company has set a target NPV for the scheme of +£10‚000‚000. Required: Calculate the target annual operating costs that would be allowed to achieve the targeted NPV. Activity 2 Target Costing A company is planning to replace its current production process with a new one‚ and has produced the following estimates: Selling price per unit Variable cost per unit Fixed annual operating costs Sales
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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 cost? Select one: a. glue and tape‚ not traceable b. plastic part in
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requires the company to consider altering their current production schedule towards dolls that are producing a higher margin. The second is the costing system currently being used in the Chicago plant. G.G. Toys should change its existing cost accounting system from traditional costing to activity-based costing because it is calculating its manufacturing overhead on only one cost‚ direct labour. Since overhead at the Chicago plant is high‚ the cost accounting system must be accurate. Different types
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hours per unit. 0.80 machine hours per unit. 0.83 machine hours per unit. © Copyright 2013 Institute of Certified Management Accountants 3. While gathering information to use in preparing the annual budget‚ a company identifies cost drivers associated with manufacturing costs. Which one of the following is a quantitative analysis method the company can
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headings and references (Total 8 pages) ANNOVIM PLC ANNOVIM PLC INTRODUCTION Managers in Annovim Plc have to understand since the early 1980s a number of ‘innovative’ management accounting techniques have been developed such as activity-based techniques (costing‚ budgeting and management)‚ strategic management accounting and the balanced scorecard. From the context of the assignment‚ each division is regarded as a profit centre‚ where the divisional managers of the three divisions i.e. candy bars
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