Management Accounting Marginal and absorption costing General: Product cost = Unit cost Page | 1 Production cost CGS Inventory Marginal Cost 1. Unit cost Direct material Direct Labour Direct expenses Variable production overheads 2. CGS = Units sold X unit cost 3. Inventory = units X unit cost (Production units - Sales units) 4. Contribution per unit = Selling price per unit – unit cost – variable non production cost Absorption costing 1. Unit cost Unit cost as per
Words: 271 - Pages: 2
Information | |No. | | | | | | |1 |Need for Cost Projection or Prediction: | | | | | | | |
Words: 1637 - Pages: 7
year. GIC’s current cost allocation system must be revised to accommodate the implementation of a new management planning and performance management system. The goal is to better allocate GIC’s corporate support-service costs to the business lines and business units in a result of more precise pricing strategies, sales compensation and improved cost control. We have analyzed GIC’s situation based on the given information, and concluded with a solution to improve the old cost allocation system.
Words: 2156 - Pages: 9
once, with the objective of selling through it quickly.- Jon Kubo, Vice President and CIO. The Wet Seal Inc. is an American retailer of modern clothing and accessories. They currently have functioning 504 outlets. Wet Seal is acknowledged for its low cost and fashionable attire. To stay in the competitive market it is essential for the fast-fashion shops to best stock right-size products in each of their 504 stores. The Wet Seal has been increasing sales, decreasing sales losses and increasing limitations
Words: 545 - Pages: 3
relationship of activity inputs to outputs. To improve activity efficiency is to produce the exact activity output with lower cost for the inputs used. Cost and trend then becomes important to measures of efficiency. Quality main concern is doing things correctly the first time it is done. If activity is defective, activity will have to be repeated which causes unnecessary cost and reduction in efficiency. Time required performing an activity which is critical. Longer times means, more intake of
Words: 884 - Pages: 4
Delong is not sure about the difference between cost accouting and a cost accounting system. Explain the difference to Joe. Answer: Cost accounting involves the measuring, recording, and reporting of product costs. A cost accounting system consists of manufacturing cost accounts that are fully integrated into the general ledger of a company. (b) What is an important feature of a cost accounting system? Answer: An important feature of a cost accounting system is the use of a perpetual inventory
Words: 478 - Pages: 2
Health Network (the Network) embarked on the Activity Based Costing (ABC) study. Firstly, the Network needed to gain a better understanding of its unit-of-service costs, which had been rising at a rate of 10% per year. In fact it had recently been rated the third-highest cost hospital in the state of Massachusetts. Being a high cost provider could make the Network uncompetitive for Medicaid and other public contracts. Secondly, the Network’s new operating budget required a $14 million reduction
Words: 1132 - Pages: 5
E15-4 Analyze costs of manufacturing and determine missing amounts. (LO 2, 6), AN Manufacturing cost data for Orlando Company, which uses a job order cost system, are presented below. Case A Case B Case C Direct materials used $ (a) $ 83,000 $ 63,150 Direct labor 50,000 140,000 (h) Manufacturing overhead applied 42,500 (d) (i) Total manufacturing costs 145,650 (e) 213,000 Work in process 1/1/14 (b) 15,500 18,000 Total cost of work in process 201,500 (f) (j) Work in
Words: 1268 - Pages: 6
Managing Financial Principles and Techniques - Financial and Investment analysis Contents 1. Be able to apply cost concepts to the decision-making process 2 2. Be able to apply forecasting techniques to obtain information for decision making 4 3. Be able to participate in the budgetary process of an organization 5 4. Be able to recommend cost reduction and management processes for an organization 7 5. Be able to use financial appraisal techniques to make strategic investment decisions
Words: 3451 - Pages: 14
Finance in the Hospitality Industry TASK 1: Sources of Finance and costs Sources of funds are very important to decide management decisions as well as long term strategies of any organisation. As per the Sharan (2005, pp. 210-218) following funding methods should be noted. Retain Profits. Increasing the revenue and reducing the cost this can be increased in a systematic manner. Bank Loans. It is advisable to go for a loan under lower interest rate. Because if the loan interest rate is
Words: 2183 - Pages: 9
