C) $250 D) $1,740 Sales – COGS = Grossprofit 4000000- XX = 2390000 4000000-2390000= 1610000 COGS – COGM = XX 1610000- 1560000=50000 200000+50000=250000 2) Zarvo Moldings allocates manufacturing overhead to jobs based on machine hours. The company has the following estimated costs for the upcoming year: Direct materials used | $ 25,000 | Direct labor costs | $ 62,000 | Salary of factory supervisor | $ 41,000 | Advertising expense
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developed to serve the particular needs of management. It helps companies to formulate business strategies and make right business decisions. Many different kinds of management accounting systems are available, some include cost-accounting system, job-costing system and inventory management system. In order to make a smart business decision, it is important to select an appropriate management accounting system that integrates with the company’ financial accounting system. Management accounting innovations
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as already mentioned, the company is using the simple-costing method for its product allocation, and, therefore, inadvertently misallocates its product costs for specific grades. Instead of spreading the costs uniformly to all grades using the material costs as a cost driver, the company should use the activity-based costing system to allocate its product costs. That way, the cost of each of the grades will be allocated based on how much activity (grade changes, slitting) it actually used. Moreover
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TABLE OF CONTENTS ACKNOWLEDGEMENT 2 INTRODUCTION 3 CONTENT 4 1.0 DEFINITION OF TARGET COSTING 4 2.0 THE PURPOSE OF TARGET COSTING 4 3.0 CHARACTERISTIC OF TARGET COSTING 4 4.0 PRIMARY PROCESS OF TARGET COSTING 5 5.0 LIFE CYCLE COSTING 6 6.0 COST REDUCTION EFFORT 6 7.0 ADVANTAGES OF TARGET COSTING 7 CONCLUSION 9 APPLICATION TO INDUSTRY 9 REFERENCES 10 ACKNOWLEDGEMENT In performing our assignment, we had to take the help and guideline of some respected person, who deserve
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lots of time on purchasing and scheduling and management activities as well as money. In order to come up with a management decision under this situation, the controller is considering of using the activity-based costing (ACB) system to create the financial statement instead of using the traditional, job order costing system. Unlike the job order costing which maintains records and allocate cost on top of direct labor, ABC focuses on activities. Therefore, it leads more cost pools to be used to assign
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GERMAN CULTURE March 18, 2009 TABLE OF CONTENTS INTRODUCTION 1 REVIEW OF LITERATURE 1 ANALYSIS 2 CONCLUSIONS AND RECOMMENDATIONS 7 LIST OF REFERENCES 8 INTRODUCTION Grenzplankostenrechnung (GPK) is a German-based costing methodology that was developed in the late 1940's and 1950's. GPK is credited to an automotive engineer, Hans George Plaut, and an academic, Wolfgang Kilger. They worked together to identify and deliver a comprehensive methodology to give exact
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following questions: Requirement #1 – Using Activity Based Costing to determine the cost per product. a.) Use Exhibit #4 to calculate the activity rates per each activity for the material related overhead and the other overhead amounts. b.) Use the rates you calculated in part a to calculate the total overhead applied to each product. (You should use the activities in Exhibit 5. Where activity numbers have been provided use the actual activity amounts not their percentages as the case writers
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Healthcare reforms on Hospital Costing Systems The costing systems implemented in hospitals has been the same for a while now. It’s worked and has been easily allocated based off of averages from previous years. Now as times change so will the costing systems for hospitals in order to get the most beneficial cost-reductions to them as well as improve on efficiency. This article looks into how accountants for hospitals can redesign, reposition, and re-implement costing ideas to allocate on a per-unit
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level activities and not related to the number of units produced. While adopting the approach in which manufacturing overhead is treated as a period expense would be more accurate and assign more of the overhead cost to the flow controllers, this is not the most accurate either. 3. How does Wilkerson’s existing cost system operate? Develop a diagram to show how costs flow from factory expense accounts to products. Wilkerson’s existing cost system is a tradition value based costing systems
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* Question 1 1 out of 1 points | | | Managerial accounting is primarily focused on | | | | | Selected Answer: | B. providing managers with relevant information to help achieve organizational goals. | Answers: | A. providing the Internal Revenue Service with information to determine the amount of taxes owed. | | B. providing creditors information on the status of their loans. | | C. providing managers with relevant information to help achieve organizational goals. | |
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