aCost Management
Assignment Semester 1 2011
Table of content
Detail: Pages
Introduction 1
Q.NO.1 2
Q.No.2 3
Q.No.3 4
Q.No.4 5
Q.No.5 6
Q.No.6 7
Summary: 8
Introduction
Cost Management delivers concise articles, experienced-based columns and case studies to evaluate how your present investment justification criteria and methods compare with those of other organizations, Learn about changing cost management methods and techniques and how they can be used to improve your company’s decision making in this assignment we going to workout calculate and try to find out different costs of company. In this assignment we going to calculate manufacturing overhead, product cost, period cost, cost of good manufactured and
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Hiring personnel - facility level
2. Managing parts inventory - product level
3. Purchasing - batch level
4. Testing prototypes - product level
5. Designing products - product level
6. Setting up equipment - batch level
7. Training employees - facility level
8. Inspecting machined parts - batch level
9. Machining - unit level
10. Assembling - unit level
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QUESTION 5
ANSWER
William Manufacturing Company Molding Department: Production cost Report, June 2008 Quantities | (a)Physicals Units | (b)Materials Total | Conversion Costs | Total |
Units to be accounted for: | | | | | Work in Progess July 1 | 0 | | | | Started in to Production | 20000 | | | | Total Units | 20000 | | | | Units accounted for: | | | | | Transferred out | 18000 | 18000 | 18000 | | Work in Progress July 31 | 2000 | 2000 | 1200 | (2000*60%) | Total units | 20000 | 20000 | 19200 | | | | | | | Units costs: | | | | | Costs | | $198000 | 163200 | $361,200 | Equivalent Units | | 20000 | 19200 | | Units costs (c) | | $9.9 | $8.5 | $18.40 | Cost to be accounted for: | | | | | Work in progress 1 July | | | | 0 | Started in Production | | | | $361,200 | Cost Reconciliation Schedule: | | | | | Cost accounted for: | | | | |
Typically, net profit is measured on a quarterly or annual basis. When compared with a company net profit during other periods, it can provide a useful measure for how profitable a company is over time and the overall performance of the company & management team.
This report will provide insight on what your management team should do concerning production costs. We will examine 2 different scenarios and provide our decision as to which makes most sense. In the first scenario, the total fixed cost of the production is 1,000,000. In the second
Apple Valley Family Practice is a medical practice with four locations in the Minneapolis/St. Paul area. The clinical staff consists of 20 physicians, all of whom practice in one or more areas of family medicine, and 46 physician extenders and nurses.
While we are performing our analysis on different aspects of the company, we look at the three main types of cost. When we remain devoted to improving our costs, and the faults related, we show our same devotion to our consumers. This is portrayed by the quality of products we put on the shelves. Prevention costs, appraisal costs and Failure costs are areas
The common cost allocation methods which are used most often by health care organizations are the direct and the step- down methods. These methods are commonly used to help determine the costs of the services provided by the health care organizations. It is important to these agencies to know the costs of operation for each department. They can make smart business decisions on whether they can make investments, determine which department is making a profit or losing one, make improvements where necessary and have a sense of foundation for the future. There are other common cost allocation methods for patients-level costs, such as relative value units (RVU), ratio of cost to charges (RCC) and activity based costing (ABC) which gives us
However, as a new member with a new product, electronic product in North American market, the reputation is also an important attribute. Especially, quick delivery time is a key attribute for this company, due to the demand of quick delivery in all markets. Moreover, the manufacturing process of the new product, electronic product, on which our company will definitely focus, has a lot demands. Such as, technology, innovation and quick delivery time even the ability to make the product be the first one appearing in the market (other company, which is developing the same product, may become our competitive opponents). Especially, technology is predicted to play the most important role in the manufacturing process. On the other hand, the traditional cost system has a lot of limitations. Traditional costing system focuses on the cost reduction and the efficiency, particular the products with relatively few standardized components; Clifton, however, produces a wide range of airplane components. In addition, nonfinancial aspects of
Cost of 401’s – we have 3,000 in inventory so 3,000 x 0.4 = 1,200
First, we have identified if there is really an insufficiency in the amount of selling prices set by the Sales Department, in reference to Exhibit 1 of the case. We did this through identifying the maximum amount of overhead costs that the company can incur for the three products and comparing it with the total overhead costs. See Table 1 for details.
Bhimani, A., Horngren, C., Datar, S., Rajan, M. et al. (2012) Management and Cost Accounting. 5th ed. Edinburgh: Prentice Hall, p.369 - 378.
Would factory security and assembly activities be best classified at an appliance manufacturing plant as unit-level, batch-level, product-level, or organization-sustaining?
INTRODUCTION Businesses – from manufacturing, merchandising and service industries alike – take careful consideration in the analysis of their costing systems in order to be able to set up competitive prices in the market. Misallocation of costs may lead to incorrect price estimates, continuous production of unprofitable products, and ineffective processing schedules. In this case study, we will discuss the costing methods which Zauner Ornaments have used or is currently using and, in conclusion, be able to distinguish the advantages and disadvantages of each costing method. CASE CONTEXT The case seeks to assist Zauner’s comptroller, Yu Chia-yi, in determining the best costing method for their overhead costs. In addition we also aim to
The Following involves the analysis of the costing techniques followed by the company along with its Budgeting system. It also involves the Investment appraisal analysis for the given data.
The purpose of this paper is to answer a few important questions: Why do companies allocate costs? How do companies allocate costs? And how this cost allocation can affect the decision making of the company. It is important for the companies to find the proper method to allocate the costs. Cost allocation is an important issue in many companies because many of the costs associated with designing, producing and distributing products and services are not easily identified with the products and services that are created. It would have been easier for companies to allocate cost if costs were directly traceable with the products and the cost allocation would have been minor issue for the company. The decision-making
Under the new cost system, two broad sources of costs were identified: manufacturing and SM&A. All costs within these categories were reclassified as either volume driven or order driven. Hence, four cost pools were set up.
According to an accounting textbook, cost is defined as a resource sacrificed or foregone to achieve a specific objective. It is something given up in exchange. It is necessary for project managers to understand project cost management since project costs money and consumes resources.