Performance Rating 38 6.7 Allowance Factor 40 6.8 Standard Time 41 VII. Standard Practice 42 7.1 Work Instruction per Workstation 43 VIII. Computation of Unit Cost 46 8.1 Material Cost 46 8.2 Labor Cost 46 8.3 Energy Cost 46 8.4 Standard Unit Cost of the Product 46 IX. Wage Incentive Plan 47 Recommendation Bibliography Curriculum Vitae
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ACC310: Cost Accounting 1 Instructor: Susan Paris Date: April 18, 2011 Outline I: Introduction a. What is Activity Based Costing b. How Does it Work II. Body a. What does ABC do for Firms b. How to develop the ABC system in a firm c. What are the Steps d. Examples III. Conclusion IV. References Abstract Activity Based Costing was developed in the manufacturing sector of the United States during the 1970’s and 1980’s. This system is used as a method for developing cost estimates
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unique products or services require process-costing accounting systems. ____ 2. In process costing, each producing department has its own work-in-process account. ____ 3. The difference between actual overhead and applied overhead is the overhead variance. ____ 4. Using a time ticket, the cost accounting department can enter the cost of direct materials onto the correct job-order cost sheet. ____ 5. Process costing accumulates costs by processing departments rather than by individual
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Project Times and Costs Estimating ESTIMATING PROJECTS Estimating The process of forecasting or approximating the time and cost of completing project deliverables Types of Estimates Top-down (macro) estimates: analogy, group consensus, or mathematical relationships Bottom-up (micro) estimates: estimates of elements of the work breakdown structure WHY ESTIMATING TIME AND COST ARE IMPORTANT Estimates are needed to determine how long the project should take and its cost. Estimates are
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Managerial Accounting 505 Week 2 Quiz Week 2 Quiz - In job-order costing, all of the following statements are correct with respect to labor time and cost except: C. A machine operator performing routine annual maintenance work on a piece of equipment would charge the maintenance time to a specific job. Those hours should be charged to overhead For which situation(s) below would an organization be more likely to use a job-order costing system of accumulating product costs rather than
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identified, and corrective action is taken on a timely basis. If the variance is favorable, the reasons therefore are also searched out, so further advantage can be taken of the situation. An example is a variance between actual cost and standard cost for labor in a standard cost accounting system. In the area of data processing, an exception report may reflect those transactions not meeting the standards or requirements for the program being run. I Pad Hardware Quantity
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Case Study I ACCT-505 Managerial Accounting Information Provided Materials Purchased $325,000 Direct Labor $220,000 Sales $1,350,000 Gross Margin 30% Cost of Goods Available for Sale $1,020,000 Prime Costs $545,000 Manufacturer Overhead 65% Conversion Direct Materials $325,000 Beginning Balances Raw Materials $41,000 Works in Progress $56,000 Finished Goods $35,000 Conversion Cost= Manufacturing Overhead + Direct Labor Manufacturing Overhead= 65% of Conversion
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Deere & Company In 1837, Deere and Company was founded by John Deere. Deere & Company is one of the seven full-line farm equipment manufacturers in the world. During the three-decade, post-World War II boom period, Deere expanded its product line, built new plants, ran plants at capacity, and still was unable to keep up with demand. During this same period, Deere had diversified into off-the-road industrial equipment for use in the construction, forestry, utility, and mining industries. Competitive
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|Managerial Accounting | |Course Code |EBF 2043 | |Credit hours |3 | |Prerequisite |Accounting
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activities and then allocates a cost to each activity. ABC subsequently assigns these costs to all the services or products associated with the actual consumption. By applying ABC, a business can accurately estimate the cost of an individual product or service. Organisations can then recognize and remove those products or services that are unprofitable or adjust pricing to match strategic decisions. This tool is generally used for evaluating product/service and customer cost and profitability. Thus ABC
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