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Cost accounting book by sohail afzal pdf
2-3 Managers believe that direct costs that are traced to a particular cost miley jab hum tum 1st episode object are more accurately assigned to that cost object than are indirect allocated costs.
Distribution Number of deliveries made.
When costs are allocated, managers are less certain whether the cost allocation base accurately measures the resources demanded by a cost object.Costs are described as variable or fixed with respect to a particular relevant range.The inventoriable (manufacturing) cost per unit for 5,000 flanges.80 5,000 28,000 47,000 Average (unit) cost 47,000 5,000 units.40 per unit.This difference is caused by the fixed cost increment from 101 to 200 tons being spread over an increment of 80 tons, while the fixed cost increment from 201 to 300 tons is spread over an increment of only 20 tons.Inventoriable costs are all costs of a product that are regarded as an asset when they are incurred and then become cost of goods sold when the product is sold.2-12 Direct material costs are the acquisition costs of all materials that eventually become part of the cost object (work in process and then finished goods and can be traced to the cost object in an economically feasible way.Goods partially worked on but not yet completed.Fixed, Variable and Total Cost of Graduation Party Number of attendees Fixed costs Variable costs Total cost. . Accounting Number of transactions processed. This will include: Depreciation on mixing machines Mixing Department manager Materials handlers (of the Mixing Department) Machinist (running the mixing machines) Machine Maintenance personnel (of the Mixing Department) Maintenance supplies (if separately identified for the Mixing Department) Of course the yeast and flour will also.The relevant range for the total fixed costs is from 0 to 100 tons; 101 to 200 tons; 201 to 300 tons, and. However, in order to make a profit, Gayles Glassworks also needs to cover the period (non-manufacturing) costs of 10,000, or 10,000 5,000 2 per unit.Manufacturing-sector companies purchase materials and components and convert them into different finished goods.Finished goods available for sale in October 2011 (from requirement 5) 1,790 Subtract: Cost of goods sold (1,770) Finished goods inventory 10/31/ (3040 min.) Cost of goods manufactured, income statement, manufacturing company.
2-4 Factors affecting the classification of a cost as direct or indirect include the materiality of the cost in question, available information-gathering technology, design of operations 2-5 A variable cost changes in total in proportion to changes in the related level of total activity or volume.
Cost object: Videos sold in video section of store Cost variability: With respect to changes in the number of videos sold There may be some debate over classifications of individual items, especially with regard to cost variability.
As shown in the table in requirement 2, for 500 attendees the total cost will be 3,600 and the cost per attendee will.20. Human Resources Salaries and wages of employees.Function Representative Cost Driver. If the cost object is Mixing Department, then anything directly associated with the Mixing Department will be a direct cost.Finished goods inventory 10/1/ Cost of goods manufactured (moved from WIP) 1,660 Cost of finished goods available for sale in October 2011 1,790 . Number of attendees Variable cost per person (9 caterer charge 5 student door fee) Fixed Costs 1,600 1,600 1,600 1,600 1,600 1,600 1,600 Variable costs (number of attendees variable cost per person),200 1,600 2,000 2,400 Total costs (fixed variable) 1,600 2,000 2,400 2,800 3,200 3,600 4,. . Research and Development Number of new products being developed.2-19 (1520 min.) Classification of costs, merchandising sector.
The annual relevant range will be between 4,200 and 8,400 jaw breakers.