Essays Tagged: "Cost accounting"
The historical cost accounting convention.
INTRODUCTIONRealised-profit, matching-based, historical cost accruals accounting (HCA) has for over fifty years been repeatedly challenged as being an inade ... el, look at possible alternatives and finally will provide a detailed explanation of why Historical Cost accounting is still the conventionally used method.What are Historical Costs?Historical cost is ... erally accepted accounting principle requiring all financial statement items be based upon original cost. Historical cost means what it cost the company for the item. It is not fair market value. This ...
Subjects: Businesss Research Papers > Accounting
Discuss how standard costing is used in management planning and control systems!
Standard costs, flexible budgeting, and variance analysis--all are vital components of an effective cost acco ... g, and variance analysis--all are vital components of an effective cost accounting system. Standard Costs are predetermined costs that are usually expressed on a per-unit basis; they are target costs, ... costs that should be attained. One can think of a standard as a budget for a single unit. Standard costs are the building blocks of a flexible budgeting and feedback system (the comparison of actual ...
Subjects: Businesss Research Papers > Accounting
Pierre S. Dupont This essay was assigned for analysis of the life and contributions of influential leaders to business and leadership thought.
mpany, which was a steel firm partly owned by the DuPont family. Here he learned a great deal about cost accounting and financial management from the company's president, Arthur Moxham. He left briefl ...
Subjects: Businesss Research Papers
Does the production volume variance provide parallel information for evaluating the effects of exceeding or falling short of production targets?
performance to be compared with an actual one. This includes sales and margins.In the same way that costs can be broken down into material. Labour and overheads with price / rate and efficiency varian ... me varianceIn all these, the standard sales margin is the standard selling price minus the standard cost. If marginal costing is used, then the phrase 'sales margin' is simply replaced by 'sales contr ...
Subjects: Businesss Research Papers
ABC--- The proponents of activity based costing claim that this approach to costing provides more accurate product costings. On what do they base these claims
ave already significantly changed in the past 30 years. These new changes have rendered traditional cost accounting methods lack of managers' demands for correct, detailed, correlative information for ... rrelative information for decision making such as strategic thinking, production promotion plan and cost control etc.. Also the new modern methods have effectively reduced the correlative importance o ...
Subjects: Businesss Research Papers > Accounting
"The principle of historical cost is still used in accounting when there is a large measure of agreement that it is inappropriate." Discuss.
Synopsis.Historical Cost Accounting is a traditional valuation method as it reflects only on the past cost of the asset, ... word constraints I have focused primarily on Fair Value Accounting as an alternative to Historical Cost Accounting. Although Fair value accounting is a theoretically superior valuation methodology, t ... ithin Fair Value Accounting have ensured that most companies conservatively remain using Historical Cost Accounting.What are Historical costs?Historical cost is a generally accepted accounting princip ...
Subjects: Businesss Research Papers > Accounting
Banking.
Costs can be classified in different ways, depending on which data is needed:1. Direct costs and ind ... ied in different ways, depending on which data is needed:1. Direct costs and indirect costs. Direct costs are costs which are directly related to making a product, considering indirect costs this firs ... ng a product, considering indirect costs this firsthand function cannot be specifically traced to a cost object.2. Manufacturing costs. In manufacturing costs are categorize as direct costs i.e direct ...
Subjects: Businesss Research Papers > Accounting
Inflation Accounting
ScenarioAn asset is acquired at a cost of $10,000 with a five-year life and no anticipated salvage value. Straight-line depreciation i ... e years 2001 - 2004?* What would the holding gain be under EIP for the years 2001 - 2004?Historical Cost AccountingWe will start with the depreciation according to historical cost accounting as a basi ... istorical cost accounting as a basis for the following calculations. The asset was purchased with a cost of $10,000 and a useful live of 5 years with no anticipated salvage value. We are also assuming ...
Subjects: Businesss Research Papers > Accounting
Arctic Insulation: Teaching Commentary
OVERVIEWThis is an excellent short case to cover basic concepts in cost analysis for cost control and managerial decisions. The case always works well for me in class. ... y asking a student to comment on the division manager's comment that it isn't possible for per-unit costs to be rising for both products when total volume is rising and total cost is falling. Is there ... believe it is useful for students to see why.The division manager is on the "hot seat" because unit costs are rising and the president sees this as poor cost control. If the apparent per-unit cost inc ...
Subjects: Businesss Research Papers > Case Studies
Managerial accounting and financial accounting.
order to achieve an organization's goals (Thompson, 2006). Managerial Accounting is widely known as Cost Accounting all over the world. Management accounting is concentrated towards managers of organi ... nternal reports would deal with the best marketing mix of products to maximize profits and minimize costs. "The Institute of Management Accountants (IMA) is the world's leading organization dedicated ...
Subjects: Businesss Research Papers > Accounting
Dell Corporation - Case Study
lved.The general consensus of financial accounting is that it reports past results using historical-cost accounting. Financial accounting is backward-looking and sacrifices decision relevancy for obje ... formation. In the restaurant business management is held accountable for the unit's inventory, food costs and labor costs. It is important that the data provided is accurate and reliable. Falsifying i ...
Subjects: Businesss Research Papers > Case Studies > Computer and Electronics Companies
Managerial accounting and financial accounting: Evaluate how ethics plays a vital role in accounting.
order to achieve an organization's goals (Thompson, 2006). Managerial Accounting is widely known as Cost Accounting all over the world. Management accounting is concentrated towards managers of organi ... nternal reports would deal with the best marketing mix of products to maximize profits and minimize costs. "The Institute of Management Accountants (IMA) is the world's leading organization dedicated ...
Subjects: Businesss Research Papers > Accounting
Accounting versus cash based accounting
the expense if possible (e.g. Sales to COGS).Additionally, cash-basis accounting is not viable for cost accounting in manufacturing operations because expense is not associated with product cost.Exam ...
Subjects: Businesss Research Papers > Accounting
COST ACCOUNTING SYSTEMS DESIGN AND SAP-LEARNING FR
The article discusses about features of the German cost accounting system and ways that company running it can exploit its capabilities. Cost accountin ... hat is on its way to becoming a world standard in business software. This system is based on German cost accounting philosophy. Managerial accounting has taken a very different path in Germany than it ... ces in the valuation of positions, which can add up to 10% or more difference between financial and cost accounting data. German coat accounting has its roots in Nazi regime, at which time the economy ...
Subjects: Businesss Research Papers > Accounting
Flexible Budget
relevant range of activity. The activity index is direct labor hours.Step 2: Identify the variable costs, and determine the budgeted variable cost per unit of activity for each cost. There are three ... eted variable cost per unit of activity for each cost. There are three variable costs. The variable cost per unit is found by dividing each total budgeted cost by the direct labor hours used in prepar ...
Subjects: Businesss Research Papers > Accounting
Cost descriptors Dys Singa University of Phoenix MBA 503: Introduction to Finance and Accounting
Cost Descriptors MemoTo: All Human Resource ManagersFrom: Jane Doe MBACC: Jim Jones CFODate: April 2 ... , it was apparent that our Human Resource Managers (HRM) lack the basic knowledge of the accounting cost descriptors terminology and concepts. The use of efficient cost accounting techniques in accord ... at all HRM understand how the organizations budget expenditures are affected by various operational costs. In order to facilitate effective forecast and business decision-making this memo will define ...
Subjects: Businesss Research Papers
Organisation Behaviour Problems And Solutions(Case Study)
right job for her. When she went to work, she was shock to find out there was no vacancy for her in Cost Accounting. Instead, she had been assigned to Management Information Services (MIS). Her job wa ... her he will settle the matter. It seems as though Rob did not keep his word. Vernon Moore the chief cost accountant saw Fran looking miserable and after learning the situation she is in, he took her t ...
Subjects: Businesss Research Papers > Case Studies > E-commerce
Activity Based Costing at IT Service Desk
onThe purpose of ABC is to address the first two questions at issue which deals with clarifying the cost structure of the Service Desk. The purpose of ITIL is to assist with the descriptions of the or ... organizational functions and processes that occur within an IT Service Desk environment.Traditional CostingTraditional cost systems are often associated with financial accounting focus and include dir ...
Subjects: Businesss Research Papers > Accounting
Employer/Employee Relations
, "The distinction is significant for tax law compliance and categorization, for benefit plans, for cost reduction plans, and for discrimination claims." Furthermore, each organization is also respons ... similar companies, hires a diverse workforce with varying shifts and constantly changing needs. The cost of employees is very expensive. According to the U.S. Department of Labor Bureau of Labor Stati ...
Subjects: Businesss Research Papers > Management
Cost Accounting
Cost Accounting � PAGE �2� Running Head: COST ACCOUNTINGCost Accounting� ... ng helps the management in decision making. Decisions of the management are based on information of cost & cost concepts and cost accounting is a part of management accounting (Management Accounti ... part of management accounting (Management Accounting).Ans. 2Cost objective is a measurement of the cost for a special purpose. In cost objective an accountant does time calculation. It determines res ...
Subjects: Businesss Research Papers > Accounting