1.An accounting system that collects financial and operating data on the basis of the underlyingnature and extent of the cost drivers isa.Direct costing.c.Cycle-time costing. b.Activity-based costing.d.Variable costing.2.The resource utilized by a given product divided by the total amount of the resource availableis called thea.Activity driver.c.Cost object. b.Consumption ratio.d.Sustaining activity.3.Which of the following statements is true?a.The traditional approach to costing uses many different
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[pic]standard [pic]actual [pic]process [pic]job order 2. Process costing is used in companies that _______. (Points: 1) [pic]engage in road and bridge construction [pic]produce sailboats made to customer specifications [pic]produce bricks for sale to the public [pic]construct houses according to customer plans 3. A producer of ____ would not use a process costing system. (Points: 1) [pic]gasoline [pic]potato chips [pic]blank
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Costing System 1. Costing System 1.1 Illustrate the costing system currently used by Devon Quality in Cost Centre 3 The costing system currently used by Devon Quality Dairy in the Cost Centre 3 is a traditional costing system this is because in this case study Devon Quality Dairy are allocating there expenses to products using volume based drivers. In this case study, the resources consumed by Devon’s Cost Centre 3 are depreciation, labour, utilities and other, which are all of the costs
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products and services adds to the complexity of getting work done throughout an organization. This complexity is one of the chief causes of rising costs everywhere. Although in these new circumstances some companies underrate the cost accounting systems’ importance, we cannot put them aside. Cost accounting has to provide relevant cost information for corporate executives to make correct decisions. Traditional cost techniques cannot model the really needed expenditures for producing a product well
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the inadequacies of the existing cost allocation system and investigation of using an Activity Based Costing (ABC) method. Dakota Office Products utilizes a traditional cost allocation system. Direct and indirect costs associated with operations are allocated to sold goods. DOP offers a comprehensive product line in office supplies. Traditional cost systems used in such product diversity can cause cost distortions (Martin). Costs were allocated using the activity based costing method to determine where
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Aaron Wilson, Brittni Henson, Dennie Smyth & Joshua Boatright Midwest Office Products Case ACCT. 6233 October 15, 2012 1. Based on the interviews and data in the case, estimate: a. The cost of processing cartons through the facility The two costs of processing cartons through the facility are warehouse costs and warehouse personnel costs. The total processing costs are $54/carton. Cartons/yr | 80000 | Commercial Freight | 75000 | Desktop Delivery | 5000
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Management Accounting Costing and Budgeting Introduction: Management accounting is the most vital part of accounting process. The function of this department is increasing day by day. Because in the present world many company are rising very quickly. The function of management accounting is to manage the process of accounting department. It is very essential for manage all kinds of this activity. There are various functions in accounting. Management accounting remotes all the functions of accounting
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TARGET COSTING FOR SUPPLY CHAIN MANAGEMENT Target Costing is a process to make sure that a product launched with particular functions, quality and price can be made at a cost that would generate a reasonable amount of profit. It is different from the other costing approaches as it is a part of the company’s product development and introduction process. Therefore target costing requires all the information regarding the company’s competitive, product and supply chain strategies. After getting this
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Practice Exam 2 1. Short Stay Surgery uses a job costing system for all patients who have surgery. The clinic uses a normal costing system with operating hours as the allocation base. For the month of March, estimated total operating hours in the surgery suits were 3,200 hours. The estimated overhead costs for the suites were $640,000. Patient Sarah Handy was in surgery for 2.5 hours. Other costs related to Handy’s surgery include: Patient medicine $ 50
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