Cost Accounting Essay Examples

In the hills of the Carajas in South East Amazonia, in Brazil, there are huge deposits of high-grade iron and other minerals. The amount of iron found is the most that have ever been found in the world, an estimated 18 billion tonnes. To make the most of this huge and profitable resource, the government […]

There is a significant contrast between the measurement of costs using the traditional costing method and the ABC costing method. The allocation of activity costs to products by ABC is done using cost drivers, while traditional costing method uses quantity drivers such as direct labor cost. The continuous use of traditional costing method, which has […]

This investigation will contrast the different types of organisation; it will help develop your mind to the wide range of organisations that are available. I have chosen one private sector business, which is a type of business that is owned by an individual, group of people or shareholders. However companies owned by shareholders are often […]

Coco’s corporate strategy along with reducing unnecessary costs for advertising. The plaintiff, the State of Florida, utilizes an approach which allocates indirect costs to the three deferent grades of gasoline based on the average amount of gasoline sold from each grade. On the other hand, the defendant, Buybacks, utilizes an approach in which the indirect […]

The Singapore Youth Olympic Committee is responsible for selecting a location for the 2010 Youth Olympic Game that meets the demands of the International Olympic Committee (IOC) and can accommodate all international Olympians. The committee aims to host the YOG at a low cost. After analyzing various factors such as capacity and IOC requirements, it […]

Discuss the role of efficiency and effectiveness in the creation of value This requires a definition of value, a relationship between quality or performance of a product and its price and discussion of the trade-off between efficiency and effectiveness. Creating value means striking the most appropriate balance between efficiency and effectiveness for the market need […]

The term “aircraft commonality” refers to the aspect of technical similarities between different models of an airliner family.

How would you describe the goals of the company as a whole? Is this, or are these, the same as the goals of the company’s marketing organization and the company’s 25 managers of manufacturing plants? Explain. Corporate – Generate profits, earn satisfactory rate of return investment, meet customers’ needs, maintain price and quality, grow or […]

The following article focuses on the process of costing and pricing a product for organizations, regardless of their activity level. It highlights the significance of taking into account different costs, such as vehicle purchasing or maintenance expenses, while considering their specific characteristics.The following expenses are deducted from the gross income: Mortgage, Business Rates, Wages Extra […]

On the basis of Michael Porter’s (1980) competitive strategies, how does Baldwin currently compete? Justify your answer. In this case, Baldwin currently competes on differentiation strategy. Baldwin had been making bicycles for almost 40 years and there are ten models in the company’s line. The company only focuses on making bicycles ranging from a small […]

Consider that you are selling a line of toys that, because they are made overseas where labor costs are far lower, can be sold using a low-price strategy. If a buyer raises a price-based objection, what would you say to convince him that your price is appropriate? Price objections are one of the biggest obstacles […]

Happyland Construction is expanding and growing its operations. A large capital investment is needed to purchase a crane for the next decade. The GargantuLift 6000 crane model from Mega Corporation is highly recommended by various departments such as engineering, maintenance, finance, purchasing, and management. The top management must decide whether it is more financially sound […]

The general principle for cost inclusion into inventory for US GAAP and IFRS is similar but not exactly the same. First let us look at US GAAP. The basis of accounting for inventories is “cost,” which is explained in ASC 330-10-30 paragraph 1 as “the sum of the applicable expenditures and charges directly or indirectly […]

Initially, Dickison orders 1000 widgets from International Widget at a cost of $5 per widget and requests a delivery timeframe of sixty days. However, after signing the contract, Dickison verbally asks International to expedite the delivery to thirty days. International agrees to this change. The question is whether this modification holds legal weight. Both parties […]

Global Electronics, Inc. (GEI) is a company based in Sarasota, Florida. It has about 2,300 employees spread across three fabrication facilities located in Huntsville, Alabama; Evansville, Indiana; and Reading, Pennsylvania. GEI also operates an assembly and test facility with 4,000 employees in Kuala Lumpur, Malaysia. The company’s focus is on developing discrete power semiconductors, analog/digital/mixed-signal […]

Cost per outcome is the total cost of all units of service. Very simply, if you don’t know what it costs to achieve a certain output/outcome, you can’t know how much to charge for your services. A budget systems model is the foundation from which budgeting systems can be used to evaluate the success of […]

Incremental Analysis is a managerial decision-making process that comprises four steps, namely: 1. Identifying the problem, 2. Determining and evaluating potential courses of action, 3. Making a decision, and 4. Reviewing the outcomes of the decision. As accountants, we play a crucial role in steps 2 and 4. Step 2 consists of presenting relevant data […]

Assigning cost can be a tedious process, and traditional costing methods such as job order and process order costing systems will not accurately assign cost. Super Bakery, Inc. , a company that produces nutrient enriched doughnuts, had to restructure their costing system in order to appropriately price their products. It was eventually decided to use […]

In Cosi, a semi- autographical play by Louis Nowra, various characters are faced with challenges that exist in real life and throughout the play some characters rise to the challenges put before them and overcome them, while others fail. Using that concept Louis Nowra hopes to communicate the challenges that people must undergo in their […]

1. Should ABM maximize its profits? I do not think ABM should maximize pill’s profits. If scientists researched long time only for a new stem-cell based drug, it deserves to get high profits, because they spend their time, money and every only for the research. But they were working a different study and they discovered […]

Traditional costing versus Activity-based costing Advantages and disadvantages Costing systems are the programs that supply information about the value of direct labor hours and numbers of units produced. With the help of data such as product cost, the managers can generate estimation of cost associated with different activity carried in the organization. The costs systems […]

Two managers recently graduated purchase Air Tex Aviation, a firm on the verge of bankruptcy. In front of the discrepancies of the current control system, Ted Richards and Frank Edwards decide to implement a system which improves transfer pricing, cost allocation and autonomy. Therefore, this case wonders about the difficulties to implement it and the […]