Essay on Cost Accounting

Cost Accounting Answers

CHAPTER 4 JOB COSTING 4-1Cost pool––a grouping of individual indirect cost items. Cost tracing––the assigning of direct costs to the chosen cost object. Cost allocation––the assigning of indirect costs to the chosen cost object. Cost-allocation base––a factor that links in a systematic way an indirect cost or group of indirect costs to cost objects. 4-2In […]

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The Classic Pen Company

The Classic Pen Company A Case Analysis The Classic Pen Company – A Case for Activity Based Costing Introduction: • Low-cost producer of traditional Blue and Black ink pens • Profit margins of over 20% of sales • 5 years earlier- introduced Red Pens using same technology at 3% premium • Recently, introduced Purple Pens […]

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Delaney Motors

Increase marketing effort and improve the cost accounting system of Body Shop As mentioned earlier, the cost accounting system is used to accumulate costs in providing service or manufacturing products. The cost accounting is used by management to determine proper service costs, to support product pricing decisions, and to identify opportunities for cost reduction and […]

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Pedro: “Nuts”

In order to build up a selling price of a product, it is important that costs are communicated in the best way possible; this can be easily done by effectively making use of management accountant’s role whereby they are able to distinguish what costs are used for a product through cost classification and assigning them […]

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Standard Soap Company Cost Accounting

1. 0 Introduction Standard Soap Corp. (SSC) is a $ 30-35 million company producing 5,000 different varieties of bar soap. SSC has four broad production processes– transformation of raw materials, drying of bulk soap, production of soap batches and packaging. However, there are underlying complexities involving up to 5000 different paths during these production processes. […]

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Abc Costing in Banking

Budgeting and Cost Accounting Professor Gunter April 15, 2013 Activity-based costing (“BBC”) is considered one of the best and most popular tools for allocating costs by identifying individual activities as cost objects. Originally, activity-based costing was mainly used in manufacturing industries but, due to its preciseness, this system has recently grown popular in the service […]

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Wriston Case Memo

Subject: Proposal for Detroit Plant Date: May 26th, 2012 Background and Issues Detroit Plant, serves as the first plant of HEED division within Written Group, which almost all division products could trace their roots from, cannot achieve an acceptable level of profitability for years even we raise the prices or cut wages. The morale of […]

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Historical cost accounting

Advantages •Historical cost histories are straightforward to bring forth •Historical cost histories do non enter additions until they are realized •Historical cost histories are still used in most accounting systems Disadvantages •Historical cost histories give no indicant of current values of the assets of a concern •Historical cost histories do non enter the chance costs […]

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Cost Accounting Analysis

1. Dickison orders one thousand widgets at $5 per widget from International Widget to be delivered within sixty days. After the contract is consummated and signed, Dickison orally requests that International deliver the widgets within thirty days rather than sixty days. International agrees. Is the contractual modification binding? A- Both parties are merchants, the change […]

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