ASSIGNMENT 1 : BASIC COST CONCEPT NAME : MATRICS NUMBER : ANSWER Q1 : Product cost is a cost related to the goods that were purchased in order to produce the certain product. Product cost is important to value the inventory of manufactured goods until the goods are sold. The cost of manufactured inventory are product cost. All cost incurred in manufacturing finished goods are stored in inventory until the product are sold. The product cost of the inventory sold become cost of goods sold
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6 Q.No.6 7 Summary: 8 Introduction Cost Management delivers concise articles‚ experienced-based columns and case studies to evaluate how your present investment justification criteria and methods compare with those of other organizations‚ Learn about changing cost management methods and techniques and how they can be used to improve your company’s decision making in this assignment we going to workout calculate and try to find out different costs of company. In this assignment we going to
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Cost and Price Analysis Instructor: Name: Class: Finance 230 Date: Period: Results: 1) Why is it important for the government to exercise good fiscal judgment when spending funds? Government employees are held responsible for use of good judgment so those excessive prices are not paid. 2) List and describe four types of market based pricing. Be sure to provide at least one (1) example of each type. Competitive Offers – response to solicitation encouraging competing offers Established
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OVERHEAD COSTS ACCOUNTING Overheads are indirect costs which can not directly be traced to cost units. The task of the cost accountant is to charge these overhead costs to cost units/products. There are two approaches of charging overhead costs to cost units Viz i. Traditional/conventional absorption costing method and‚ ii. Activity Based Costing (ABC) Classification of overheads Overheads can be classified as production or non production overheads. Production overheads are those incurred
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Cost structures Starbucks How Starbucks minimizes the impact of coffee prices I believe there are two explanations for the "irrelevance" of coffee prices. 1. Purchase contracts 2. Hedging Purchase contracts Starbucks buys most of its co ffee from suppliers through fixed-price commitments. This means that it won’t feel the effect of short-term fluctuations in coffee prices‚ as the price and quantity are fixed. I estimate that these commitments typically last around a year. Hedging
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The Cost of Capital 1 Background As investors desire to obtain the best/highest return on their investments in securities such as shares (Equity) and loans to companies such as debentures (Debt)‚ these returns are costs to the companies paying these Dividends (on equity) and Interest (on Debts)! It all depends on the perspective from which we chose to view the calculation (are we Earning or Paying?) Companies MUST consider the cost of financing they receive in the form of equity or debt if they
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objective was to maximize the firm’s cash position relative to the rest of the class. Using 50 days of historical data‚ the team reviewed re-order points‚ re-order quantity‚ capacity‚ lead times‚ and therefore contract terms. The team also weighed the cost of new machines against capital for inventory and interest rates‚ evaluating the return on investment and the impact a new machine had on lead times. Using this consideration set‚ team Honeybadgers purchased one tuning machine‚ one stuffing machine
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Minimizing the Inventory Cost in the Production Management: Just in Time (JIT) Manufacturing System is a Mile Stone Shirajul Islam M. Phil Researcher‚ Jahangirnagar University‚ Savar‚ Dhaka Abstract This article explains how a firm manages her inventory to gain minimum production cost and earn business success by using JIT (Just in Time) Manufacturing System. It provides a mathematical framework to understand the performance of a farm‚ and argues that inventory cost minimization method is an
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Cost Accounting Role Cost accounting is valuable to an organization if it significantly improves the decision making process within the organization by providing accurate and timely input regarding the cost behavior in organizations. Generally based on standard accounting practices‚ cost accounting is one of the tools that managers utilize to determine what type and how much expenses is involved with maintaining the current business model. At the same time‚ the principles of cost accounting
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I. Cost behavior defined Module 4 Review Questions The left column lists several cost classifications. The right column presents short definitions of those costs. In the blank space beside each of the numbers in the right column‚ write the letter of the cost best described by the definition. A. Curvilinear cost B. Step-wise cost C. Fixed cost D. Mixed cost E. Variable cost F. Total Cost ___E_1. This cost increases in direct proportion to increases in volume; its amount is constant for each unit
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