Amerah alhajri 120016323 Q1 1-clear up assignment reason. on the off chance that the intention is to rouse the utilization of the administrations of a recently framed division, maybe no expenses ought to be dispensed in the event that the reason for existing is to dishearten working division directors from over-utilization of the administrations of bolster offices, then a rate for every unit of administration may be substantial and not in light of genuine expenses on the off chance that the reason for existing is to decide the full cost of items or administrations for long haul estimating choices, then all bolster expenses ought to be assigned 2-recognize cost pools. the reason will figure out if both settled and variable bolster division expenses ought to be dispensed the reason will figure out which expenses ought to be designated Q2 1-physical output. >> 2- market based.>> a-
P., Tsay, B., & Olds, P. R. (2011). Fundamental managerial accounting concepts (6th ed.). New York, NY: McGraw-Hill Irwin. WILLSON, T. (2014). Finding Budget Flexibility - or Not: The Impact of Fixed and Variable Cost.
These costs come in the form of lower prices of products as well as shipping, sourcing of supplies and manufacture remain with the vendor (Smith, Palazzo, & Bhattacharya,
(UKEssays, 2018) This method is suitable for companies that produce large quantities of similar products in a continuous process, by calculating the average cost for each unit that passes through the production process, that is, it eliminates the need to track costs for each product separately, It is a method that suits the Wet Suit World company if it produces large
By looking further into costs the awareness should increase (Antikainen, Roivainen, Hyvärinen, Toivonen, & Kärri, 2005). Knowing what each activity costs opens up an opportunity that allows managers to improve and therefore reduce the cost where possible (Cooper & Kaplan, 1991). Overall, changing the system at G.G. toys could enhance their performance as ABC-costing system has been linked to both the product being of better quality and the cycle time being shorter (Ittner, Lanen & Larcker, 2002). Cooper and Kaplan (1991) discuss that having an ABC costing system could have a financial gain for companies. Managers decision are critical, especially if the strategy is to earn profit.
FRAME 14 CONTINUED... The toral costs to be assigned to the various products manufactured are usually measured in accordance with the principles of financial accounting. The accrual concept, the distinction between costs that are to be capitalized and those that are to be expensed, the various methods of depreciation, and similar topics apply equally here. Product cost information is used for purposes other than the preparation of financial statements, however, and for these other purposes, the principles of financial accounting do not necessarily apply.
Wilkerson is currently using the traditional costing system. “Companies that use the traditional costing method assume that the volume metric is the underlying driver of manufacturing overhead cost.” Traditional product costing was established when direct material costs and direct labor costs accounted for the bulk of product costs incurred inside a firm. In the Wilkerson company, materials and labor costs are centered around the prices of materials and labor rates.
Also, various methods of controlling costs such as standard costing system and flexible budgets have close relation with the variable costing system, in turn making it easy to use those methods. 3. Companies using variable costing system are able to prepare income statement in contribution margin format that provides necessary information for cost volume profit (CVP) analysis. On the flip side, this data cannot be directly obtained from a traditional income statement prepared under absorption costing
Introduction: Here in this assignment a management accounting report needs to be prepared for analyzing how management accounting can be useful in providing the managerial information for the purpose of decision making. The organization selected to make this analysis is Southwest Airline. It is a management accounting report in which starting from the background of the company, the management accounting system of the company has been analyzed and how its’ providing the information for the purpose of management decisions being evaluated. Background of the company: Southwest Airlines was shaped in 1978 with reason to serve voyaging service via air course. What's more, after consolidation southwest aircrafts persistently succeed regarding productivity, great worker and union connection and consumer loyalty.
In determining whether or not user-friendly budgets are having an impact on citizen participation in local governments it is necessary to conduct a survey. This survey will consist of several different questions. The questions will examine the overall effectiveness of the user-friendly budget document. The main object of the survey is to see if user-friendly budgets are influencing citizen participation in local government. In order to better understand the influence of user-friendly budgets and how it relates to citizen participation it is best to conduct a survey of those participating in local government meetings.
The choice of inventory accounting methods, specifically for the case of FIFO and LIFO, has developed into a decision, which includes varying consequences and comes with specific implications and benefits, such as communicating private information with FIFO (Hughes, and Schwartz, 1988, p.42) or tax benefits for the choice of LIFO (Morse and Richardson, 1983, p.125). Every firm and manager has to face the decision of which accounting method to choose, and has to include several aspects into their decision making process and weigh the pros and cons in general. However, the empirical evidence (Frankel and Hsu, 2015, p.48) shows some controversies as to what inventory accounting methods firms decided to use in the past, even though the theory would
Pay for Performance and Employee Incentive are two compensation systems an organization may choose to adopt in designing a compensation package for their employees whereby monetary rewards are based on measured performance within the control of participants and groups.. Pay-for-performance is by far one of the most popular forms of compensation that employees can offer their workforce, even with its popularity, the question of whether or not it is the best way to compensate remains. The term “pay for performance” refers to a pay strategy where evaluations of individual and/or organizational performance have significant influence on the amount of pay increases or bonuses given to each employee. It makes major contribution to performance through
In terms of controlling, the management of Marks and Spencer has frequent reporting of expenditures with costs to provide a form of feedback. The reactions of managers to such type of data rely on the expectations or the formal budget or planned targets. The management believes in collecting and assigning cost data that is being shifted away from control. There is a recognition related to the repetitive exercise of planning and re-planning for creating a full time job for accountants. The assessment and evaluation of cost data in the aspects of launching new product by Marks and Spencer is about gaining insights and learning ways for achieving the goals of organisation in most effective manner.
Sales (40,000 x 5) 200,000.00 Cost of goods sold (40,000 x 3.50) 140,000.00 Gross Margin 60,000.00 Selling and Administrative expenses 50,000.00 (40,000 x 0.75 + 20,000) Net Operating Income 10,000.00 1(c) The net operating loss is determined by using the variable cost of 5,000 and then the net income is calculated with the absorption cost at 10,000. The variation happens because the absorption cost and the fixed overhead is capitalized within the inventories instead of being expensed on the income statement. If I take the variable costing and absorption costing the net operating incomes can be reconciled by figuring out how much of the fixed manufacturing overhead that was deferred within the inventories within the month. Fixed manufacturing overhead start of the inventories
Tutorial 4 26 August 2014 Name: James Surname: Gilbert Student Number: 201404266 Tutorial Group: 1 The Relevance of Accounting History as an Academic Discipline.
