External link to Decision Making – Cost Accounting

Decision Making – Cost Accounting

13. 1 Introduction Marginal costing is the ascertainment of marginal cost and of the effect on profit of changes in volume by differentiating between fixed costs and variable costs. Marginal cost is the amount at any given volume of output by which aggregate costs are changed if the volume of output is increased or decreased by one unit. Marginal costing is a very useful tool […]

External link to Cost Accounting Question Paper

Cost Accounting Question Paper

1. Human resource is an example of (an): Unit-level activity. Batch-level activity. Product-level activity. Organization-sustaining activity. 2. Which of the following is not a limitation of activity-based costing? Maintaining an activity-based costing system is more costly than maintaining a traditional direct labor-based costing system. Changing from a traditional direct labor-based costing system to an activity-based costing system changes product margins and other key performance indicators […]

External link to Definition of Activity-Based Cost Accounting

Definition of Activity-Based Cost Accounting

The matching principle of accounting dictates that for every revenue generated, a corresponding cost should be attributed to it.  In order to determine the resulting profit properly, these components should be matched against each other. This has been the guiding convention of financial reporting since the practice of accounting became an integral part of the economy to evaluate properly a firm in a somewhat standardized […]

External link to Cost Accounting Argumentative Essay

Cost Accounting Argumentative Essay

Harvard Business School 9-192-068 Rev. May 1, 1993 DO A Brief Introduction to Cost Accounting T NO Organizations and managers are almost always interested in and concerned about costs. Control of past, present, and future costs is part of every manager’s job. In companies that try to earn profits, control of costs directly affects the amount of profit earned. Knowledge of the cost of products […]

External link to Cost Accounting

Cost Accounting

Publication, any stake or omission that may have crept in is not intentional. It may be taken note of that neither the publisher nor the author will be responsible for any damage or loss of any kind arising to anyone in any manner on account of such errors and omissions. Leaser Type Seated by : Banyan College Printing Department Preface am glad to present this […]

External link to Issues in Budgeting: Management and Cost Accounting

Issues in Budgeting: Management and Cost Accounting

Essay: Issues in Budgeting: Management and Cost Accounting Critical Appraisal Of The Main Arguments Of Relevance Lost Today’s management accountant information, driven by the procedures and cycle of the organisation’s financial reporting system, is too late, too aggregated, and too distorted to be relevant for managers planning and control decisions. (Relevance Lost 1987. Johnson & Kaplan) The above quote is the opening paragraph in Johnson […]

External link to Cost Accounting Chapter 11

Cost Accounting Chapter 11

Horngren, C. T. , Datar, S. M. and Foster, G. (2003) Cost Accounting – A Managerial Emphasis, Pearson Education, Inc. , New Jersey, Eleventh Edition CHAPTER 11 DECISION MAKING AND RELEVANT INFORMATION 11-1 The five steps in the decision process outlined in Exhibit 11-1 of the text are: 1. 2. 3. 4. 5. Obtain information Make predictions about future costs Choose an alternative Implement the […]

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Cost Accounting Analysis

In Barnes Scuba Diving case, the main comparison for the flexible-budget variance analysis would be between the actual results and flexible budget. Static budget would not be useful for this comparison due to the different sales unit output which may result in a misleading and inaccurate result comparison. With reference to the Flexible Budget Section attached in Annex X, Flexible-Budget Variance for Revenues was identified […]

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