Top PDF Cost Accounting, Chapter 2 11ch02

Cost Accounting, Chapter 2 11ch02

Cost Accounting, Chapter 2 11ch02

Relevant Range Example Relevant Range Example Assume that fixed leasing costs are $94,500 for a year and that they remain the same for a certain volume range 1,000 to 5,000 bicycles...[r]

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Test Bank Cost Accounting 14E by Horngren  8 chapter

Test Bank Cost Accounting 14E by Horngren 8 chapter

manufacturing overhead, a spending variance for the fixed overhead component, an efficiency variance for the variable overhead, and a production-volume variance for the fixed overhead. When the firm uses a 3-variance approach, the fixed and variable spending variance is combined into a single variance, while the variable overhead efficiency is still shown separately and the fixed overhead production- volume variance is singled out. In the 2-variance method, the fixed and variable spending variances are combined into one amount along with the variable efficiency, and then the fixed production-volume is shown as a separate variance. The 1-variance method shows the difference between the actual costs incurred and the flexible-budget amount for the output level achieved.
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interntional Accounting chapter 2 (2)

interntional Accounting chapter 2 (2)

A fundamental concept of basic accounting. In any one given accounting period, you should try to match the revenue you are reporting with the expenses it took to generate that revenue in the same time period, or over the periods in which you will be receiving benefits from that expenditure. A simple example is depreciation expense. If you buy a building that will last for many years, you don't write off the cost of that building all at once. Instead, you take depreciation deductions over the building's estimated useful life. Thus, you've "matched" the expense, or cost, of the building with the benefits it produces, over the course of the years it will be in service.
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Test Bank Cost Accounting 14E by Horngren  21 chapter

Test Bank Cost Accounting 14E by Horngren 21 chapter

Stage 1 of a capital budgeting project is the identify projects stage in which a firm determines which types of capital investments are necessary to accomplish organization objectives and strategies. Stage 2 is the obtain information stage in which a firm gathers information from all parts of the value chain to analyze alternative projects. Stage 3 is the make predictions stage in which the firm forecasts all potential cash flows attributable to the alternative projects. Stage 4 is the make decisions by choosing among alternatives stage in which the firm determines which investment yields the greatest benefit and the least cost to the organization. Stage 5 is the implement the decision, evaluate performance, and learn stage that is further separated into two sub stages: (1) obtain funding and make the investments selected in the stage 4 process, and (2) track the realized cash flows, compare against the forecast numbers, and revise plans if necessary.
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Test Bank Cost Accounting 14E by Horngren  7 chapter

Test Bank Cost Accounting 14E by Horngren 7 chapter

Direct manufacturing labor's unfavorable efficiency variance may have been caused by: (1) poor working conditions, (2) changes in the production process (learning something new initially takes longer), (3) different types of direct materials to work with, or (4) poor attitudes on behalf of the workers.

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Test Bank Cost Accounting 6e by Raiborn and Kinney  2 chapter

Test Bank Cost Accounting 6e by Raiborn and Kinney 2 chapter

Predetermined overhead rates should be used for three reasons: (1) to assign overhead to Work in Process during the production cycle instead of at the end of the period; (2) to compensate for fluctuations in actual overhead costs that have no bearing on activity levels; and (3) to overcome problems of fluctuations in activity levels that have no impact on actual fixed overhead costs. DIF: Moderate OBJ: 2-2

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Test Bank Cost Accounting 14E by Horngren  11 chapter

Test Bank Cost Accounting 14E by Horngren 11 chapter

2) Local Steel Construction Company produces two products, steel and wood beams. Steel beams have a unit contribution margin of $200, and wood beams have a unit contribution margin of $150. The demand for steel beams exceeds Local Steel Construction Company's production capacity, which is limited by available direct labor and machine-hours. The maximum demand for wood beams is 90 per week. Management desires that the product mix should maximize the weekly contribution toward fixed costs and profits.

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Test Bank Cost Accounting 14E by Horngren  16 chapter

Test Bank Cost Accounting 14E by Horngren 16 chapter

28) Silver Company uses one raw material, silver ore, for all of its products. It spends considerable time getting the silver from the ore before it starts the actual processing of the finished products, rings, lockets, etc. Traditionally, the company made one product at a time and charged the product with all costs of production, from ore to final inspection. However, in recent months, the cost accounting reports have been somewhat disturbing to management. It seems that some of the finished products are costing more than they should, even to the point of approaching their retail value. It has been noted by the accounting manager that this problem began when the company started buying ore from different parts of the world, some of which require difficult extraction methods.
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Chapter 2 Accounting and accounting info

Chapter 2 Accounting and accounting info

This definition has a number of strengths. It identifies that accounting information should include both financial and operational information. It stresses the increasing importance of supporting strategic decision making in the organisation as a result of a volatile and competitive business environment. It views Accounting as more than the technique of processing and measuring data. Behavioural and social responsibility aspects are recognised in the definition as attributes. This view is, however, restricted as it defines Accounting from a Management Accounting perspective and overlooks the financial reporting aspects. Another limitation is that it does not state specifically that in Accounting change and continuous improvement are measured, although it is implied. By facilitating change, the implication is that accounting information should include aspects such as flexibility and companies’ ability to adapt to change.
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Cost Accounting, Chapter 6 11ch06

Cost Accounting, Chapter 6 11ch06

Ending Inventory Budget Ending Inventory Budget Cost per finished unit: Materials $ 4 Labor 21 Variable manufacturing overhead 24 Fixed manufacturing overhead 5* Total $54... Ending[r]

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Cost Accounting, Chapter 13 11ch13

Cost Accounting, Chapter 13 11ch13

Price-Recovery Component Price-Recovery Component Cost effect of price-recovery component Input prices in 2004 – Input prices in 2003 Actual units of inputs or capacity that would hav[r]

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Cost Accounting, Chapter 12 11ch12

Cost Accounting, Chapter 12 11ch12

Time Horizon of Pricing Decisions Time Horizon of Pricing Decisions Short-run decisions have a time horizon of less than a year:  pricing a one-time-only special order  adjustin[r]

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Cost Accounting, Chapter 11 11ch11

Cost Accounting, Chapter 11 11ch11

Profitability, Activity-Based Costing, and Relevant Costs Profitability, Activity-Based Costing, and Relevant Costs Assume that if Mountain View Furniture drops Cohen’s business it ca[r]

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Cost Accounting, Chapter 10 11ch10

Cost Accounting, Chapter 10 11ch10

Nonlinearity and Cost Functions Nonlinearity and Cost Functions A step function is a cost function in which the cost is constant over various ranges of the level of activity, but the c[r]

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Cost Accounting, Chapter 9 11ch09

Cost Accounting, Chapter 9 11ch09

Comparing Income Statements Absorption Costing Comparing Income Statements Absorption Costing Total fixed production costs are $54,000 at a normal capacity of 12,000 units.. Fixed nonm[r]

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Cost Accounting, Chapter 8 11ch08

Cost Accounting, Chapter 8 11ch08

Integrated Analysis Integrated Analysis Actual manufacturing overhead incurred: Variable manufacturing overhead $244,775 Fixed manufacturing overhead 300,000 Total $544,775 Overhead [r]

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Cost Accounting, Chapter 1 11ch01

Cost Accounting, Chapter 1 11ch01

Budget Actual Variance Revenues $59,000 $60,000 $1,000 F Cost of goods sold 42,000 43,400 1,400 U Wages 6,700 7,000 300 U General 1,300 900 400 F Fixed costs 5,000 5,000 0 Operating income $ 4,000 $ 3,700 $ 300 U

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Cost Accounting, Chapter 3 11ch03

Cost Accounting, Chapter 3 11ch03

Cost-Volume-Profit Assumptions and Terminology Cost-Volume-Profit Assumptions and Terminology Operating income = Total revenues from operations – Cost of goods sold and operating cos[r]

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Cost Accounting, Chapter 4 11ch04

Cost Accounting, Chapter 4 11ch04

Variations of Normal Costing Variations of Normal Costing Home Health budget includes the following: Total direct labor costs: $400,000 Total indirect costs: $96,000... Variations of [r]

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Cost Accounting, Chapter 5 11ch05

Cost Accounting, Chapter 5 11ch05

ABC and Department Indirect-Cost Rates ABC and Department Indirect-Cost Rates Many companies have evolved their costing system from using a single cost pool to using separate indirect-[r]

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