Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting LO: 1 Level: Easy 3. Normally a job cost sheet is not prepared for a job until after the job has been completed. Ans: False AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting LO: 2 Level: Medium 4. Job cost sheets contain entries for actual direct material, actual direct labor, and actual manufacturing overhead cost incurred in completing a job. Ans: False AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA
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Management Accounting 1)The opportunity cost of making a component part in a factory with no excess capacity is the: net benefit foregone from the best alternative use of the capacity required. total manufacturing cost of the component. fixed manufacturing cost of the component. variable manufacturing cost of the component. 2) A company has a standard cost system in which fixed and variable manufacturing overhead costs are applied to products on the basis of direct labor-hours. A fixed
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manufacturing overhead consists of costs that cannot be practically traced to jobs. Therefore, if these costs are to be assigned to jobs, they must be allocated rather than traced. 3-2 The first step is to estimate the total amount of the allocation base (the denominator) that will be required for next period’s estimated level of production. The second step is to estimate the total fixed manufacturing overhead cost for the coming period and the variable manufacturing overhead cost per unit of the allocation
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significant tax savings by electing to pay corporate tax under the Deemed Profit Method (also know as “Lucro Presumido”). Here, rather than paying tax on the company’s actual profits, a universal predetermined profit margin is used to calculate the company’s taxable income. 8% of revenue is the predetermined profit margins range for the sale of goods and 32% of revenue used for the sale of service. [1] Eligible companies selling goods at profit margins greater than 8% and those selling services at
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functioning of an organization. Communication is like the engine to a car, without it, it just want run. A company that is experiencing a breakdown in communication cannot flourish and ultimately fail. Therefore if an organization wants to attain new standards of accomplishment, the art of communication must be proficient. As stated earlier in this paper there is nothing more detrimental to a workplace then it being a hostile and a closed environment. I recommend implementing quarterly mandatory communication
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responsibilities require decision-makers to follow expected behaviors of society and the community. Riordan may take substantial risk by upsetting customers by failing to meet existing ethical values. Understanding the existing ethical values and standards of Riordan, the management team will assist senior leaders in planning and committing to social responsibilities. Why a Strategic Plan? A strategic management plan will focus Riordan’s objectives, goals, and efforts on long-term performance
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Concepts: Cost Drivers and Cost Pools. A cost driver is any factor that has the effect of changing the level of total cost. In cost leadership, managing cost drivers is essential. A firm incurs a cost when it uses a resource for some purpose. Often costs are collected into meaningful groups called cost pools. Since individual costs can be group in several different ways, cost pools can be defined in several different ways as well (by cost type, source, or responsibility). Cost Allocation:
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occurred to create this situation? | | A. | | The company incurred more total job costs than the amount budgeted for the job. | | B. | | The actual manufacturing overhead costs were less than the manufacturing overhead assigned to jobs. | | C. | | Estimated manufacturing overhead was less than actual manufacturing overhead costs. | | D. | | The company incurred more manufacturing overhead costs than the manufacturing overhead assigned to jobs. | | | 2) Luca Company overapplied
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Costing and Cost Accumulation in a Batch Production Environment ANSWERS TO REVIEW QUESTIONS 3-1 (a) Use in financial accounting: In financial accounting, product costs are needed to determine the value of inventory on the balance sheet and to compute the cost-of-goods-sold expense on the income statement. b) Use in managerial accounting: In managerial accounting, product costs are needed for planning, for cost control, and for decision making. c) Use in cost management:
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production Cost of Goods Manufactured Work in process inventory, beginning + Raw materials used in production + Direct labor + Manufacturing overhead = Total manufacturing costs - Work in process inventory, ending = Cost of goods manufactured Cost of Goods Sold Finished goods inventory, beginning + Cost of goods manufactured = Cost of goods available for sale - Finished goods inventory, ending = Cost of goods sold Sales - Cost of goods sold = Gross Margin Predetermined Overhead
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