Costs Essays

Basic Manufacturing Cost Categories

The term direct labor is reserved for those labor costs that can be essentially traced to individual units of products. Direct labor is sometime called touch labor, since direct labor workers typically touch the product while it is being made. Manufacturing Overhead Cost: Manufacturing overhead, the third element of manufacturing cost, includes all costs of manufacturing except direct material and direct labor. Enumerate and define the different classifications of costs On the basis of Nature or Elements: One of the…

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Assignment_ Operations Decision

Allentown Manufacturing Company is a family owned business that manufactures cardboard boxes. Currently, the company has a manpower rate of 100 workers that work 20 out of a month. The company has been able to last through some of the toughest economic times, but recently the AMC’s fixed cost is “high enough”, and their total costs are exceeding their total revenue. Assess the current environmental scan factors that are relevant to the decision making process. Determine the factors that will…

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Ten Key Elements of Economics

In the book, Common Sense Economics, the author describes the ten key elements of economics. The key that I consider is the most important is “No Such Thing as a Free Lunch”. This element states that it is impossible to get something for nothing. Whatever goods and services are provided must constantly be funded for by someone. In other words, not every price is a monetary price. For example, a city council chooses to build a new school. By doing…

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Cost Accounting Terminologies

Cost accounting, as a tool of management, provides management with detailed records of the costs relating to products, operations or functions. Cost accounting refers to the process of determining and accumulating the cost of some particular product or activity. It also covers classification, analysis and interpretation of costs. The cost so determined and accumulated may be the estimated future costs for planning purposes, or actual (historical) costs for evaluating performance. The Institute of Cost and Management Accountant (ICMA), London, defined…

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Cost Accounting

1.Flexibility is said to be the hallmark of modern management accounting, whereas standardization and consistency describe financial accounting. Explain why the focus of those two accounting systems differs. Financial accounting is more about the bigger picture—it evaluates the finances of the organization as a whole, using historical, quantitative, monetary, and factual data. It is more formal and requires the use of GAAP. The information financial accounting provides is more suitable for external users such as investors, creditors, and the SEC….

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Memo_ Understanding the Telecommunications Revolution

We are developing a product that would revolutionize the way we use telecommunications. Picture a cell phone that uses 3d graphics to communicate with someone by simply clicking on the video- camera-function that is found on all smartphones. This cell phone will transform simple phone usage to virtual encounters that will enhance our current and future customer’s lives. The plan is to have this android smartphone be available to the consumer market as of 2015. In order for this to…

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Challange Faced by University Students

Education is the most important aspect of learning for every generation established in every mode. In university there are different field of studies with different years of each program. It is obvious that new students are going to face further challenges in university. In this case, these challenges could be the burden which can pull them out of the school without completing their studies. This essay will discuss these challenges in condition of financial, social, and academic. To begin with,…

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Importance of Break Even Analysis

It is an undisputable fact that every business’ objective is to survive and make profit as compensation of being in existence. Frankly, predicting a precise amount of sales or profits is nearly impossible. No business aims at making losses whatsoever. Given this, a person starting a new business often asks, ‘’ At what level of sales will my company make a profit? ” This question clearly predicts the uncertainty of businesses on the level of sales at which profits will…

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Managerial Accounting Quiz 1

Chapters 1 and 2 10 Points 1. Complete the answer sheet below by placing an “X” under each heading that identifies the cost involved. The “Xs” can be placed under more than one heading for a single cost. (5 Points) Variable Cost Fixed Cost Direct Materials Direct Labor Manufactu ring Overhead Period Cost Materials costs X X Production line workers wages X X Production Equipment rental X X Factory Building depreciation X X Advertising costs X X 2. A partial…

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Actions to Reduce Fixed Costs

  •Increase volume such that the fixed costs become a smaller proportion of the cost base. •Derive value from sweating the assets by working them as much as is safely and practically possible. For example, airlines plan their schedules to maximize night-time flying between 11pm and 6am when there are often legal restrictions on landings and take-offs. •Outsource on a unit cost basis, thus making the cost variable rather than fixed. For example, buying in a component at a cost…

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Control Cycles a General Model

A general model of organizational control includes four components that can operate in a continuous cycle and can be represented as a wheel. These elements are: 1. Setting a goal. Project goal setting goes beyond overall scope development to include setting the project baseline plan. The project baseline is predicated on an accurate. Work Breakdown Structure (WBS) process. Remember that WBS establishes all the deliverables and work packages associated with the project, assigns the personnel responsible for them, and creates…

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Beer in Pastel

1. PESTEL analysis for Western European brewing industry. Political factors: * Government is restricting consumption of beer and alcohol products by imposing special laws. * Government initiating social events emphasizing the harmful effects of beer on the human health. * Higher penalty for being influenced by alcohol when doing crimes. Economic factors: * Many European countries are controlling the amount of beer sold in bars, clubs and bars. * Governmental acts and restrictions increased the amount of beer sold through…

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Shelter Partnership

•A non-profit organisation whose primary objective is providing a Service or “social good”, can benefit from cost accounting practices that provide meaningful data. •Simply producing a set of accounts that provide cost data for the entire entity may not provide enough information to enable meaningful analysis. •Non-profit organisations use resources and the challenge is to measure them against the goal orientated activities of the entity. •The goal orientated activities of the non-profit organisation should be classified into programs and these…

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Managerial Accounting

To Mr. George Friedman and Bill Compton, here are some options on ways to operate base of household incomes. Below are various ways to decide which might best fit in your organization. “Managerial skills are important in an organization and in leadership, especially managerial decision making. These help achieve the goals of the organization and harness the potential of everyone inside the organization” (Managerial Skills, n.d). The fee for food is $1.25 per student each day. Staff will received a…

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Color Scope Case Management Accounting

Printing sector, which is due to the new technologies coming to the market, that made a change the competitive position of the company. The impact of the external environment ? Problem Identified: ? Lowering of the barriers to entry due to the cheaper technologies implemented in the market ? Advanced technology grinding down the quality-based competitive advantage. ? High competition from large national chains and small stand-alones ? Price pressures and loss of high margins, i. e. rent Management Accounting…

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