1/ Variable Costs: The variable cost will be 40% higher [ an increase of 21‚000 - 15‚000=6‚000 units] Direct Material used 1‚060‚000 Variable Costs: Direct Labor 1‚904‚000 Direct material used [ 1‚060‚000 *1.4] 1‚484‚000 Unit costs [ 6‚335‚600 / 21‚000] =$ 301.7 Indirect Materials and supplies 247‚000 Direct Labor [ 1‚904‚000 * 1.4] 2‚665‚600 Variable Cost/ Unit = 228.27 at both 15k & 21k units Power to run plant eqip 213‚000 Indirect Materials
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What is Cost & Management Accounting Reporting Systems? Cost Accounting Reporting System deals with the process of tracking‚ measuring‚ recording and classifying the appropriate allocation of expenditure (financial and non-financial) for the determination of the cost of product or service in an organization and for the presentation of suitably arranged data for the purpose of control and guidance of management (Horngren et al‚ 2010). Costs are measured in terms of Direct Costs‚ Indirect Costs and Overhead/Absorbed
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Use the following to answer question 1: Marger‚ Inc.‚ provided the following data for two recent months: [pic] |1. |Which of the following classifications best describes the behavior of Cost T? | |A) |Variable | |B) |Fixed
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INTRODUCTION Through history and the many years of accounting practice‚ a lot of accounting theories have been developed. Interestingly‚ many of those theories are grounded on the basis of prescribing and proposing how accounting processes should be performed. These are known as normative theories of accounting as they are not built on observation‚ but rather upon the theorist’s deductive judgement‚ and subjective opinion (Goble 2009). Accounting conceptual frameworks are good examples of normative
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The Difference between Economic Profit and Accounting Profit When it comes to business decisions‚ there are many ways to analysis the financial status of a firm. What guidelines determine profit margin? Who uses these guidelines? How is profit used to analysis a firm and its business decisions? This paper will discuss two terms that are used to define profit: accounting profit and economic profit. The first term is called accounting profit which uses the equa-tion. The second term for profit
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For the Year Ended December 31 Sales | | $16000000 | Manufacturing Costs: | | | Variable | $7200000 | | Fixed Overhead | 2340000 | 9540000 | Gross Margin | | 6460000 | Selling and Administrative Costs: | | | Commissions to agents | 2400000 | | Fixed marketing costs | 120000 | | Fixed administrative costs | 1800000 | 4320000 | Net operating income | | 2140000 | Fixed interest cost | | 540000 | Income before income taxes | | 1600000 | Income Taxes
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3.0 Variance Analysis 3.1 Flexible-Budget Variance Analysis In Barnes Scuba Diving case‚ the main comparison for the flexible-budget variance analysis would be between the actual results and flexible budget. Static budget would not be useful for this comparison due to the different sales unit output which may result in a misleading and inaccurate result comparison. With reference to the Flexible Budget Section attached in Annex X‚ Flexible-Budget Variance for Revenues was identified to be a favourable
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Direct Cost 2. Indirect Cost 3. Cost Object 4. Cost Driver 5. Cost Allocation 6. Cost Sheet 7. Semi variable cost 2. Write a detailed note on Target Costing. (DEC‚ 2010) 3. Write a note on methods of absorption of overheads. (DEC‚ 2010) 4. Write a note on classification of overheads. (DEC‚ 2010) 5. Write short notes on the following: i. Product Costs ii. Period costs iii. Out of pocket cost iv. Sunk Costs v. Opportunity cost vi. Replacement cost vii. Joint cost (DEC‚ 2011)
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buyer or seller‚ the goods are at the risk of the party in fault as regards any loss which might not have occurred but for such fault. So the precise time is important in a Sale of Goods. (From Lecture 4.2 Page 57) (b) [i] What is the difference between ascertainment and unconditional appropriation to a contract under section 20 Rule 5 of the Sale of Goods Act? [ii] Provide a practical example for the sale of certain goods which clearly explains this distinction. * Rule 1.Where there
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(CBA) Course Syllabus BFIN 340: Cost Accounting I COURSE INFORMATION Course Code & Title: BFIN 340: Cost Accounting I Credits: 3 credits Prerequisite: BFIN 231 Classroom: H204 Schedule: TTh: 8:00 – 9:15 Term: Fall 2014 INSTRUCTOR INFORMATION Instructor: Rima Hakim Office: Bldg G‚ Room 101-H Office Hours: TTh 9:30 – 11:30‚ Else by appointment Instructor’s Email: hakimrc@rhu.edu.lb Textbook & Material: Cost Accounting. 15th edition‚ Horngren‚ Datar and
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