the various methods used in costing, the budgeting formation and formation process, and the different types of budgeting. The attainment of coordination will also be factored since it is key to the success of a business. Task 1 Assessment criteria 1.1 a. Identify and explain the various ways by which cost can be classified discussion the value of costs classification including any weaknesses in your argument In the world of business there are a range of costing methods are actually used by
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five main essential objectives of cost accounting, which are; I. Ascertain of cost They are two main methods of ascertaining cost, which are post costing and continuous costing. Post costing; this means an analysis of actual information as they are recorded in the financial book. Its accurate and mainly used in cost plus pricing. Continuous costing; aims at collecting information about cost as and when the activity takes place so that as soon as a job is completed the cost of completion would
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with that of a leading credit card company. What type of benchmarking is the company using? A B C D Internal benchmarking Competitive benchmarking Functional benchmarking Strategic benchmarking 2 Which of the following BEST describes target costing? A B C D Setting Setting Setting Setting a a a a cost by subtracting a desired profit margin from a competitive market price price by adding a desired profit margin to a production cost cost for the use in the calculation of variances selling price
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Q3: Discuss the concepts of Financial Decision Measures, responsibility accounting, Profit & Investment centers, and highlighting examples relevant to each. • Financial Decision Measures Financial Decisions Financial Decisions are decisions that involve: (1) Determining the proper amount of funds to employ in a firm (2) Selecting projects and capital expenditure analysis (3) Sourcing funds on the most favorable terms possible (4) Managing working capital such as inventory and
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Ashley American InterContinental University Unit 3 Discussion Board Managerial Accounting ACCT310-1205B-06 January 27, 2013 Job order costing is used in situations where there are different products that are being produced each period. According to accounting for to management (2000), the costs are traced to the jobs and then the cost of the jobs that are divided by the number of the units in the job that are arrive at the cost per unit (para. 1). The type of industry that uses this type
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higher cost of paperwork because we are using the Job Order Costing and the Conley System uses process costing. Conley Corporation uses Process costing in accumulating cost of production. We are costing products based on per job order bases. Conley is costing their production on a per department basis because it has standard model design. Our products are based on costumer's specification, and therefore each product is unique. Process costing can not be used under our present set-up. Possible reasons
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systems be implemented within this particular industry? Does an industry exist in which the job order and the processing cost systems would not be suitable? Explain your rationale." Business - Accounting Alternative Costing Methods The text presents job and processing costing systems as virtual “polar extremes,” there are many situations where it may be best for a company to use a hybrid system that combines attributes of both systems. Describe such a situation and discuss how the hybrid system
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MANAGMENT ACCOUNTING Launchbreak LTD 1. Be able to analyse cost information within a business 1.1 classify different types of cost 1.2 use different costing methods 1.3 calculate costs using appropriate techniques 1.4 analyse cost data using appropriate techniques 2. Be able to propose methods to reduce costs and enhance value within a business 2.1 prepare and analyse routine cost reports 2.2 use performance indicators to identify potential improvements 2.3 suggest improvements
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M4 - Analyse the reasons why costs need to be controlled to budget? Introduction: For this task I will be analysing the advantages and disadvantages about the business that Brad owns which involves transporting business people to and from airports using luxury cars and limousines. Addition to this I will also be explaining what the words budget, fixed, variable and total costs mean. One of the main topics that I will be covering is the fact that if Brad does nothing with his costs what the
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CHP3: .Predetermined MOH RATE = Total estimated MO-Cost/Total Estimated allocation base. .MOH allocated to a job = Predetermined MOH rate x Actual amount of allocation base. .Job costing uses applied (Allocated) MOH not Actual .Job Costing: reduces future cost, assess probability, bidding custom orders, prepare cost of goods sold .Step #1 – Estimate total manufacturing overhead for the year. This is a projected amount of manufacturing overhead you expect for all jobs worked on in the next year
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