first part of the report will focus on the cost behavior and how this will benefit the company when it comes to profit making, as the company managers do not clearly understand the relationship between business activities and the costs of those activities. It will then go on to discuss cost function and how it can be derived for this company. The last part of this report will focus into the company’s profit and how it can be predicted in relation to the changes in volume, costs and prices. It will
Name: Class: Cost Accounting Date: 02.12.2012 Quiz 5 1) Absorption costing: A) expenses marketing costs as cost of goods sold B) treats direct manufacturing costs as a period cost C) includes fixed manufacturing overhead as an inventoriable cost D) is required for internal reports to managers 2) Variable costing: A) expenses administrative costs as cost of goods sold B) treats direct manufacturing costs as a product cost C) includes fixed manufacturing overhead as an inventoriable
for the purpose of preparing reports for statutory reporting, decision making and control. Types of accounting Bookkeeping is the recording of financial transactions. Transactions include sales, purchases, income, receipts and payments by an individual or organization. Bookkeeping is usually performed by a bookkeeper. Bookkeeping should not be confused with accounting. The accounting process is usually performed by an accountant. The accountant creates reports from the recorded financial transactions
chapter: Variable costs Relevant range Contribution margin Break-even point Fixed costs Semi variable costs Economics of scale Sales mix Unit contribution margin Each of the following statements may (or may not) describe one of these technical terms. For each statement, indicate the accounting term described, or answer “None” if the statement does not correctly describe any of the terms. a. The level of sales at which revenue exactly equals costs and expenses. Break-even point. b. Costs remain
Difference between Variable & Absorption Costing When it comes to managerial accounting, the way that information is presented can affect decision-making for a business. In a manufacturing environment, companies can use absorption costing or variable costing when accounting for the costs of products produced. While these methods are similar, they have some key differences that can impact the company. Absorption Costing * Absorption costing, also known as full costing is a method by
income statement | reports the assets, liabilities, and stockholders’ equity at a specific date. | | presents the revenues and expenses for a specific period of time. | | summarizes the changes in retained earnings for a specific period of time. | | reports the changes in assets, liabilities, and stockholders’ equity over a period of time. | Multiple Choice Question 112 | | | | Your answer is correct. | | | An income statement | reports the assets, liabilities
decision making process and an awareness of the users of accounting information. The major purposes of accounting are to formulate overall strategies and long-run plans. Resource allocation decisions such as product, pricing and customer emphasis. Cost planning and control of activities. The measuring of the performance of the company.[1] The managing director at ABX Co does not understand the difference between financial accounting and management accounting; and therefore is finding it hard to
REVIEW QUESTIONS CHP 2,3 CHAPTER 2 True/False ____ 1. The cost management information system is primarily concerned with producing outputs for internal users using inputs and processes needed to satisfy management objectives. ____ 2. Cost assignment is one of the key processes of the cost accounting system. ____ 3. The three methods of cost assignment are direct tracing, driver tracing, and allocation. ____ 4. Intangible products are goods produced by converting raw material into finished products
ABC Company Report ABC Company is a manufacturing firm that specializes in making cedar roofing and siding shingles. The company currently has annual sales of around $1.2 million, which is a 25% increase from the previous year. The company has an aggressive growth target of reaching $3 million annual sales within the next three years. ABC Company would like to begin a new project opportunity in order to help reach the growth targets. This project involves using some of the shingle scrap
Underapplied d. None of the above 3. Using the variable costing method, which of the following costs are assigned to inventory? a. Variable factory overhead costs and variable selling and admin costs b. Variable factory overhead costs c. Variable selling and admin costs d. Neither 4. Which of the following statements is true? I. When completed units are sold, work in process inventory account is credited II. The journal entry required to record indirect labour costs includes a debit to factory overhead