Cost accounting

The second challenge is how to test and put the data together with the existing information system to make them effective in a company 's decision process. The most difficult challenge will be bringing the computer based data processing and the accounting system together to ensure the most beneficial decisions for a company. Question 1.2 The best combination of paradigms for the

quite difficult. In fact, one of the most contested areas of accounting lies with the treatment of internally generated intangibles assets – Research and Development. In simple words, the basic difference between tangibles and intangibles is that tangibles relates to those physical assets which can be touched such as machineries whereas intangibles refer to assets that do not have a physical presence. However in the world of accounting standards, the definition of intangibles becomes quite precise

are assigned to activities, and activities to cost objects based on consumption estimates. The latter utilise cost drivers to attach activity costs to outputs.’ Activity-based costing (ABC) is a costing methodology that identifies activities in an organization and assigns the cost of each activity with resources to all products and services according to the actual consumption by each. This model assigns more indirect costs(overhead) into direct costs compared to conventional costing. CIMA Official

all the other costing methods, however it’s more accurate. “Costing systems are information systems. They require a specific type of information such as direct labour hours and units produced, to be of value. It is from the input data that product costs and other information are determined according to the specific costing system defined methodology. The results obtained would depend on the costing system used, since the same input data could be used in different ways. In this case the traditional

AND LAW(DEPARTMENT OF BANKING AND FINANCE) RESEARCH TOPIC: A STUDY TO DETERMINE THE REASONS For LOW PASS RATES IN MANAGEMENT ACCOUNTING AND TAX LAW AND PRACTICE- BACHELOR OF COMMERCE IN ACCOUNTING, BANKING AND FINANCE AT THE HARARE AND CHITUNGWIZA REGION OF THE ZIMBABWE OPEN UNIVERSITY. ABSTRACT: Background: A study of the results of Management Accounting and Tax, Law and Practice for the past three semesters revealed average pass rates of 33 and 35% respectively.These low pass rates

As we learned in chapter 7 initially,”… cost systems designs were simple…“(Brewster et.al, p. 236). The goal of the allocation process is to assign overhead in a manner that most appropriately reflects the cause /effect relationship of incurred costs. These cost systems were based on belief that there was a high correlation between direct labor hours and units produced (Brewster et. al, p. 237). ETO’s current cost system only factors in two of their cost components;” direct labor and burden” (Seligram

accurately. That is why they follow a strategy where they try to keep the production cost in a tight manner to make as much profit as they can. For their high-profit rate, they are concerned to keep the product quality as high as possible to beat the competitors. To do so, they are focusing on meeting the customer’s need as early as possible. So their main critical success factors are: • Keeping the production cost in check by operating as efficiently as possible. Late PwC research demonstrated that

entries, closing entries and reversing entries The purpose of closing entry is to transfer profit and loss to owner’s equity account, produce a zero balance in each of the temporary account. P/L summary is another temporary account to which revenue and cost incurred in the period are closed, also it helps avoid excessive

Overhead is applied to jobs at a rate of 150% of direct labor costs. Job # 100 required $500 in direct labor costs. The job was initially budgeted to require $550 in direct labor costs. Overhead applied to # 100 during the period amounted to: Select one: a. $550 b. $750 c. $825 d. some other amount. Question 2 Not yet answered Marked out of 1.00 Flag question Question text Which of the following is an example of a direct material cost? Select one: a. glue and tape, not traceable b. plastic part in

Introduction 1. Product Cost Per Unit Valves Pumps Flow Cont Material ($) 16 20 22 Run Labor hrs 0.25 0.5 0.4 Machine hrs 0.5 0.5 0.2 Receiving O/H 0.1 0.3 3.9 Material handling Once per receipt 0.5 1.8 23.4 Once per production run 0.3 1.2 15.6 Packing and Shipping 0.3 1.1 11.0 Engineering 2.67 2.4 12.5 Maintenance 1.4 1.4 0.5 Depreciation 1.3 1.3 0.5 Production cost per unit 23.28 30.49 89.95 The materials used per unit of production, the Run labor hours and machine hours are provided