- The document discusses static and flexible budgets and how flexible budgets improve performance evaluation by accounting for actual activity levels.
- It provides an example of CheeseCo's static budget analysis which shows favorable cost variances but does not indicate whether good cost control or lower activity caused the variance.
- To determine this, a flexible budget is created for CheeseCo's actual activity level of 8,000 machine hours. This reveals an unfavorable cost control variance of $3,350, indicating costs were not well controlled.
Acc mgt noreen09 flexible budgets and overhead analysisJudianto Nugroho
This document discusses flexible budgets and their advantages over static budgets. It provides an example of how to prepare a flexible budget for variable and fixed overhead costs using different activity levels. The flexible budget allows for "apples to apples" cost comparisons by showing costs that should have been incurred at the actual activity level. This improves performance evaluation by revealing variances related to cost control and separating variances due to activity from those due to cost control.
This document discusses flexible budgets and overhead analysis. It begins by explaining the advantages of flexible budgets over static budgets, noting that flexible budgets allow for "apples to apples" cost comparisons by showing costs that should have been incurred at the actual activity level. The document then provides an example of preparing a flexible budget for CheeseCo, calculating variable and fixed overhead costs across different activity levels. It concludes by discussing how to prepare a performance report using a flexible budget to analyze variances between budgeted and actual costs.
Managerial Accounting Garrison Noreen Brewer Chapter 10Asif Hasan
The document discusses static budgets and flexible budgets. A static budget is prepared for a single planned activity level and is difficult to use for performance evaluation when actual activity differs. A flexible budget can be prepared for multiple activity levels and allows for "apples-to-apples" cost comparisons at the actual activity level. The document provides an example of CheeseCo preparing both a static budget and flexible budget to evaluate performance when actual activity was lower than planned. Variances are identified to determine whether favorable cost variances were due to lower activity or good cost control.
Flexible budgets allow overhead costs to vary based on changes in activity levels. They separate fixed and variable costs. Variable costs change proportionally with activity, while fixed costs remain constant within the relevant range. The document demonstrates how to prepare a flexible budget for CheeseCo based on machine hours. It also shows a budget performance report that calculates variances between the flexible budget and actual results to analyze performance. Most of the $11,650 total variance was due to lower activity levels, while $3,350 was due to poor cost control of variable overhead costs.
This document discusses the differences between variable costing and absorption costing. Variable costing treats fixed manufacturing overhead costs as period expenses, while absorption costing allocates these costs to inventory. Absorption costing results in higher product costs and cost of goods sold, but lower net operating income compared to variable costing when production exceeds sales. The two methods will produce the same net income over multiple periods if production equals sales. Worked examples are provided to illustrate the calculations and reconcile the income statements under each method.
Standards are benchmarks used to measure performance. There are two main types of standards - quantity standards which specify the amount of input needed, and cost standards which specify the price of each input unit. Variances measure the difference between actual and standard performance, and are analyzed to identify issues. Direct materials and direct labor standards are set based on bills of materials, time studies, and efficiency goals. Price and quantity variances are calculated separately to analyze purchasing and production performance.
Acc mgt noreen09 flexible budgets and overhead analysisJudianto Nugroho
This document discusses flexible budgets and their advantages over static budgets. It provides an example of how to prepare a flexible budget for variable and fixed overhead costs using different activity levels. The flexible budget allows for "apples to apples" cost comparisons by showing costs that should have been incurred at the actual activity level. This improves performance evaluation by revealing variances related to cost control and separating variances due to activity from those due to cost control.
This document discusses flexible budgets and overhead analysis. It begins by explaining the advantages of flexible budgets over static budgets, noting that flexible budgets allow for "apples to apples" cost comparisons by showing costs that should have been incurred at the actual activity level. The document then provides an example of preparing a flexible budget for CheeseCo, calculating variable and fixed overhead costs across different activity levels. It concludes by discussing how to prepare a performance report using a flexible budget to analyze variances between budgeted and actual costs.
Managerial Accounting Garrison Noreen Brewer Chapter 10Asif Hasan
The document discusses static budgets and flexible budgets. A static budget is prepared for a single planned activity level and is difficult to use for performance evaluation when actual activity differs. A flexible budget can be prepared for multiple activity levels and allows for "apples-to-apples" cost comparisons at the actual activity level. The document provides an example of CheeseCo preparing both a static budget and flexible budget to evaluate performance when actual activity was lower than planned. Variances are identified to determine whether favorable cost variances were due to lower activity or good cost control.
Flexible budgets allow overhead costs to vary based on changes in activity levels. They separate fixed and variable costs. Variable costs change proportionally with activity, while fixed costs remain constant within the relevant range. The document demonstrates how to prepare a flexible budget for CheeseCo based on machine hours. It also shows a budget performance report that calculates variances between the flexible budget and actual results to analyze performance. Most of the $11,650 total variance was due to lower activity levels, while $3,350 was due to poor cost control of variable overhead costs.
This document discusses the differences between variable costing and absorption costing. Variable costing treats fixed manufacturing overhead costs as period expenses, while absorption costing allocates these costs to inventory. Absorption costing results in higher product costs and cost of goods sold, but lower net operating income compared to variable costing when production exceeds sales. The two methods will produce the same net income over multiple periods if production equals sales. Worked examples are provided to illustrate the calculations and reconcile the income statements under each method.
Standards are benchmarks used to measure performance. There are two main types of standards - quantity standards which specify the amount of input needed, and cost standards which specify the price of each input unit. Variances measure the difference between actual and standard performance, and are analyzed to identify issues. Direct materials and direct labor standards are set based on bills of materials, time studies, and efficiency goals. Price and quantity variances are calculated separately to analyze purchasing and production performance.
Chapter 6 Connect Quiz (Variable Costing and Segment Reporting:Tools for Mana...Emily Bauer
1. Aaker Corporation reported a total contribution margin of $198,000 for the most recent month. The contribution margin was calculated as (Selling Price - Variable Costs) x Units Sold.
2. Meyer Corporation reported total fixed expenses of $78,000. This was calculated by adding the traceable fixed expenses of $45,000 and the common fixed expenses of $33,000.
3. For a manufacturing company, the absorption costing unit product cost for the month was $96 per unit. This was calculated by taking the variable costs per unit plus the fixed manufacturing overhead costs allocated on a per unit basis.
3. Analisi delle Spese Generali e Budget FlessibileManager.it
The document discusses overhead rates and overhead variances. It provides an example of a company, ColaCo, that prepared a budget for overhead including variable and fixed overhead rates. It then demonstrates how to calculate variable and fixed overhead variances based on the budgeted overhead rates and actual results. Variable overhead variances include a spending variance and efficiency variance. Fixed overhead variances include a budget variance and volume variance. Formulas and explanations are provided for each type of overhead variance.
The document provides accounting information for Textbook Inc. including costs incurred, revenues, and beginning and ending inventory balances. It asks to prepare a schedule of cost of goods manufactured and an income statement including cost of goods sold. The answer provides the requested schedules, showing costs of raw materials, direct labor, manufacturing overhead, cost of goods sold, and net profit.
The document discusses static budgets and performance reports for CheeseCo. A static budget was prepared for CheeseCo based on a planned level of activity of 10,000 machine hours. However, actual activity was lower at 8,000 hours. While total overhead costs were below budget, it is difficult to determine if this was due to good cost control or lower activity levels without adjusting the static budget to reflect actual activity levels. To answer the relevant question of how much of the favorable cost variance was due to lower activity versus good cost control, the static budget must be flexed to the actual level of activity.
This document discusses manufacturing costs and their classification. It defines three basic manufacturing cost categories: direct materials, direct labor, and manufacturing overhead. It also distinguishes between product costs (direct materials, direct labor, manufacturing overhead) and period costs (selling costs, administrative costs). The document provides examples of costs that fall under each category and presents schedules for calculating cost of goods manufactured and cost of goods sold.
This document discusses cost behavior analysis and the use of fixed and variable costs. It defines fixed and variable costs, explaining that total variable cost is proportional to activity level while total fixed cost remains constant. Variable cost per unit remains the same over a relevant range, while fixed cost per unit decreases as activity increases. Examples of variable costs include materials, labor, commissions. Fixed costs include depreciation, taxes, salaries. The proportion of fixed to variable costs differs between industries and there is a trend toward higher fixed costs as knowledge workers replace manual labor.
This document provides a 100-question multiple choice exam on accounting concepts related to job order costing, activity-based costing, budgeting, and managerial accounting. Some key topics covered include manufacturing overhead application, standard costing, make-or-buy decisions, and pricing strategies. The exam questions require understanding of concepts like variable versus fixed costs, cost-volume-profit analysis, and variances.
Managerial Accounting in class exercise chapter 4 solutionHelen Wong
This document provides solutions to questions about calculating costs for a startup food manufacturer. It summarizes how to calculate manufacturing overhead, allocate it to products, determine cost of goods manufactured, and prepare related journal entries and financial statements. Key steps include calculating actual manufacturing overhead, allocating it to products based on direct labor costs, adjusting for differences between actual and allocated overhead, and using this information to prepare an income statement for the year.
This document summarizes exercises from Chapter 12 of Cost Accounting, 9th Edition. It includes 11 exercises covering topics like work-in-process, overhead application rates, fixed and variable overhead rates, normal and actual capacity, budgeted and actual overhead, and overhead variances including spending and idle capacity variances. Calculations are shown for overhead application, budgeting, and analyzing variances at different production capacity levels.
The document discusses manufacturing overhead variance calculations. It provides examples of calculating total, controllable, and volume variances given actual overhead costs, standard hours, budgeted overhead amounts, normal capacity hours and production levels. The total variance is the difference between actual overhead and applied overhead. The controllable variance is the difference between actual and budgeted overhead. The volume variance is based on fixed overhead rates and the difference between normal and actual capacity.
Activity based costing & activity based managementPiyush Gaur
The document discusses activity based costing (ABC) and how it addresses limitations of traditional costing methods. It explains that ABC allocates overhead costs to products based on multiple cost drivers like direct labor hours, machine hours, and number of purchase orders rather than a single driver. This provides a more accurate reflection of how overhead resources are consumed. The document provides an example to illustrate how ABC can allocate overhead costs differently than traditional methods based on a single driver.
The document discusses and compares absorption costing and variable costing methods. It provides an example of a company, Harvey Co., which produces one product. It calculates the income statement and unit product costs of Harvey Co. for two periods using both absorption and variable costing to demonstrate the differences between the two methods. Absorption costing allocates all manufacturing costs, including fixed overhead, to inventory, while variable costing treats fixed overhead as a period cost.
This document contains a case study with multiple parts involving various costing and decision making scenarios for several companies. Part A involves analyzing fixed and variable costs and contribution margin for a manufacturing company. Part B involves break-even analysis using contribution format income statements. Part C involves a special order decision using relevant costs. Part D involves a make-or-buy decision using relevant costs. Part E involves deciding whether to further process or sell intermediate products using relevant costs. Part F involves deciding whether to drop a product using avoidable and relevant costs.
The document provides information on cost allocation and absorption costing for several companies. It includes:
- Calculating total cost per unit for a company using absorption and marginal costing, finding inventory value differs between the two methods.
- Analyzing production costs and profitability of different chocolate products using absorption costing, finding one product is unprofitable.
- Calculating overhead rates allocated to different cost pools and products for two companies, determining total overhead costs per unit for each product.
- Calculating overhead costs for two models using activity-based costing and drivers, finding one model is more expensive to produce.
The document outlines various manufacturing cost accounting concepts and calculations including job order costing, activity-based costing, standard costs, flexible budgets, relevant costs, and breakeven analysis. It also provides examples of direct materials and labor variance calculations and analyzing utilization of a constrained manufacturing resource.
Peraturan Pemerintah ini mengatur tentang penyelenggaraan pendidikan tinggi dan pengelolaan perguruan tinggi di Indonesia. Menteri pendidikan memiliki peran penting dalam pengaturan, perencanaan, pengawasan, pembinaan, dan koordinasi pendidikan tinggi. Peraturan ini juga mengatur tentang pendirian perguruan tinggi negeri dan swasta serta program studi yang dapat ditawarkan.
Rencana pelaksanaan pembelajaran mata pelajaran Bahasa Arab ini membahas standar kompetensi, kompetensi dasar, indikator, alokasi waktu, tujuan pembelajaran, materi, metode, kegiatan pembelajaran, penilaian, dan sumber belajar."
The document discusses various methods of securing online transactions. It describes two new pieces of banking malware, OddJob Trojan and Zeus Mitmo, that target financial information. OddJob Trojan keeps banking sessions open after logout, while Zeus Mitmo variants target smartphones. The document also discusses online payment options like credit cards, stored value cards, smart cards, digital cash, and e-wallets that can be used to enhance security of online transactions.
This document discusses a child who wanted their father to come home from work earlier. The father's company used Bloomfire to allow remote work, and Dropbox to share files between the office and home. An accounting software called IRIS also allowed cloud-based work. Using these collaborative tools allowed the father to spend more time with his child playing after work. The father, Ranjit, can be contacted at 0845 617 1266 to discuss how his company can help other businesses implement similar flexible work arrangements.
Chapter 6 Connect Quiz (Variable Costing and Segment Reporting:Tools for Mana...Emily Bauer
1. Aaker Corporation reported a total contribution margin of $198,000 for the most recent month. The contribution margin was calculated as (Selling Price - Variable Costs) x Units Sold.
2. Meyer Corporation reported total fixed expenses of $78,000. This was calculated by adding the traceable fixed expenses of $45,000 and the common fixed expenses of $33,000.
3. For a manufacturing company, the absorption costing unit product cost for the month was $96 per unit. This was calculated by taking the variable costs per unit plus the fixed manufacturing overhead costs allocated on a per unit basis.
3. Analisi delle Spese Generali e Budget FlessibileManager.it
The document discusses overhead rates and overhead variances. It provides an example of a company, ColaCo, that prepared a budget for overhead including variable and fixed overhead rates. It then demonstrates how to calculate variable and fixed overhead variances based on the budgeted overhead rates and actual results. Variable overhead variances include a spending variance and efficiency variance. Fixed overhead variances include a budget variance and volume variance. Formulas and explanations are provided for each type of overhead variance.
The document provides accounting information for Textbook Inc. including costs incurred, revenues, and beginning and ending inventory balances. It asks to prepare a schedule of cost of goods manufactured and an income statement including cost of goods sold. The answer provides the requested schedules, showing costs of raw materials, direct labor, manufacturing overhead, cost of goods sold, and net profit.
The document discusses static budgets and performance reports for CheeseCo. A static budget was prepared for CheeseCo based on a planned level of activity of 10,000 machine hours. However, actual activity was lower at 8,000 hours. While total overhead costs were below budget, it is difficult to determine if this was due to good cost control or lower activity levels without adjusting the static budget to reflect actual activity levels. To answer the relevant question of how much of the favorable cost variance was due to lower activity versus good cost control, the static budget must be flexed to the actual level of activity.
This document discusses manufacturing costs and their classification. It defines three basic manufacturing cost categories: direct materials, direct labor, and manufacturing overhead. It also distinguishes between product costs (direct materials, direct labor, manufacturing overhead) and period costs (selling costs, administrative costs). The document provides examples of costs that fall under each category and presents schedules for calculating cost of goods manufactured and cost of goods sold.
This document discusses cost behavior analysis and the use of fixed and variable costs. It defines fixed and variable costs, explaining that total variable cost is proportional to activity level while total fixed cost remains constant. Variable cost per unit remains the same over a relevant range, while fixed cost per unit decreases as activity increases. Examples of variable costs include materials, labor, commissions. Fixed costs include depreciation, taxes, salaries. The proportion of fixed to variable costs differs between industries and there is a trend toward higher fixed costs as knowledge workers replace manual labor.
This document provides a 100-question multiple choice exam on accounting concepts related to job order costing, activity-based costing, budgeting, and managerial accounting. Some key topics covered include manufacturing overhead application, standard costing, make-or-buy decisions, and pricing strategies. The exam questions require understanding of concepts like variable versus fixed costs, cost-volume-profit analysis, and variances.
Managerial Accounting in class exercise chapter 4 solutionHelen Wong
This document provides solutions to questions about calculating costs for a startup food manufacturer. It summarizes how to calculate manufacturing overhead, allocate it to products, determine cost of goods manufactured, and prepare related journal entries and financial statements. Key steps include calculating actual manufacturing overhead, allocating it to products based on direct labor costs, adjusting for differences between actual and allocated overhead, and using this information to prepare an income statement for the year.
This document summarizes exercises from Chapter 12 of Cost Accounting, 9th Edition. It includes 11 exercises covering topics like work-in-process, overhead application rates, fixed and variable overhead rates, normal and actual capacity, budgeted and actual overhead, and overhead variances including spending and idle capacity variances. Calculations are shown for overhead application, budgeting, and analyzing variances at different production capacity levels.
The document discusses manufacturing overhead variance calculations. It provides examples of calculating total, controllable, and volume variances given actual overhead costs, standard hours, budgeted overhead amounts, normal capacity hours and production levels. The total variance is the difference between actual overhead and applied overhead. The controllable variance is the difference between actual and budgeted overhead. The volume variance is based on fixed overhead rates and the difference between normal and actual capacity.
Activity based costing & activity based managementPiyush Gaur
The document discusses activity based costing (ABC) and how it addresses limitations of traditional costing methods. It explains that ABC allocates overhead costs to products based on multiple cost drivers like direct labor hours, machine hours, and number of purchase orders rather than a single driver. This provides a more accurate reflection of how overhead resources are consumed. The document provides an example to illustrate how ABC can allocate overhead costs differently than traditional methods based on a single driver.
The document discusses and compares absorption costing and variable costing methods. It provides an example of a company, Harvey Co., which produces one product. It calculates the income statement and unit product costs of Harvey Co. for two periods using both absorption and variable costing to demonstrate the differences between the two methods. Absorption costing allocates all manufacturing costs, including fixed overhead, to inventory, while variable costing treats fixed overhead as a period cost.
This document contains a case study with multiple parts involving various costing and decision making scenarios for several companies. Part A involves analyzing fixed and variable costs and contribution margin for a manufacturing company. Part B involves break-even analysis using contribution format income statements. Part C involves a special order decision using relevant costs. Part D involves a make-or-buy decision using relevant costs. Part E involves deciding whether to further process or sell intermediate products using relevant costs. Part F involves deciding whether to drop a product using avoidable and relevant costs.
The document provides information on cost allocation and absorption costing for several companies. It includes:
- Calculating total cost per unit for a company using absorption and marginal costing, finding inventory value differs between the two methods.
- Analyzing production costs and profitability of different chocolate products using absorption costing, finding one product is unprofitable.
- Calculating overhead rates allocated to different cost pools and products for two companies, determining total overhead costs per unit for each product.
- Calculating overhead costs for two models using activity-based costing and drivers, finding one model is more expensive to produce.
The document outlines various manufacturing cost accounting concepts and calculations including job order costing, activity-based costing, standard costs, flexible budgets, relevant costs, and breakeven analysis. It also provides examples of direct materials and labor variance calculations and analyzing utilization of a constrained manufacturing resource.
Peraturan Pemerintah ini mengatur tentang penyelenggaraan pendidikan tinggi dan pengelolaan perguruan tinggi di Indonesia. Menteri pendidikan memiliki peran penting dalam pengaturan, perencanaan, pengawasan, pembinaan, dan koordinasi pendidikan tinggi. Peraturan ini juga mengatur tentang pendirian perguruan tinggi negeri dan swasta serta program studi yang dapat ditawarkan.
Rencana pelaksanaan pembelajaran mata pelajaran Bahasa Arab ini membahas standar kompetensi, kompetensi dasar, indikator, alokasi waktu, tujuan pembelajaran, materi, metode, kegiatan pembelajaran, penilaian, dan sumber belajar."
The document discusses various methods of securing online transactions. It describes two new pieces of banking malware, OddJob Trojan and Zeus Mitmo, that target financial information. OddJob Trojan keeps banking sessions open after logout, while Zeus Mitmo variants target smartphones. The document also discusses online payment options like credit cards, stored value cards, smart cards, digital cash, and e-wallets that can be used to enhance security of online transactions.
This document discusses a child who wanted their father to come home from work earlier. The father's company used Bloomfire to allow remote work, and Dropbox to share files between the office and home. An accounting software called IRIS also allowed cloud-based work. Using these collaborative tools allowed the father to spend more time with his child playing after work. The father, Ranjit, can be contacted at 0845 617 1266 to discuss how his company can help other businesses implement similar flexible work arrangements.
This document discusses how building a community using Bloomfire can help complete an organization's mission by keeping networks, contacts, and information in one centralized place. It suggests Bloomfire could increase awareness, motivation, productivity, and knowledge sharing among employees, clients, and salespeople. The document recommends taking a free trial of Bloomfire through Clarivon to understand how it can help an organization achieve its goals.
1. Dokumen ini membahas cara membuat aplikasi login pengguna menggunakan PHP dengan membuat database pengguna, form login, autentikasi pengguna, dan pembatasan akses halaman.
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3. Tutorial ini menjelaskan proses autentikasi pengguna secar
Tiga dokumen tersebut membahas tentang sumber dana bank, jenis-jenis simpanan seperti giro, tabungan, dan deposito beserta contoh transaksinya, serta penjelasan mengenai tabungan kartu pintar dan transaksinya secara online dan offline.
1. Penelitian ini bertujuan untuk mengetahui perbedaan hasil pembelajaran senam irama melalui model mengajar langsung dan model mengajar kooperatif di SMPIT As-Syifa Boarding School Subang.
2. Variabel yang diteliti adalah hasil belajar siswa dalam keterampilan teknik dasar gerakan langkah kaki senam irama.
3. Penelitian ini diharapkan dapat memberikan kontribusi terhadap peningkatan kualitas pembelajaran
Rencana pelaksanaan pembelajaran Bahasa Arab untuk kelas 4 semester 1 membahas tentang alat-alat sekolah. Materi pelajaran meliputi kata-kata, percakapan, dan teks tentang alat-alat sekolah. Siswa diajak untuk mendengarkan, berbicara, membaca, dan menulis teks terkait alat-alat sekolah. Tujuannya agar siswa dapat memahami dan berinteraksi dalam bahasa Arab mengenai alat-alat sekolah
Dokumen ini membahas desain web dinamis menggunakan Macromedia Dreamweaver 8 untuk mempromosikan SMA Kartika 1-1 Medan kepada masyarakat umum melalui internet. Tujuannya adalah memberikan informasi sekolah secara online seperti profil, visi misi, data siswa, guru, dan alumni.
This document discusses 4 test slides. Slide 1 and 2 introduce the test, while slides 3 and 4 provide further details about the test content and objectives. The slides help outline and explain a test being administered.
Franklin downloaded free software from a website and installed it, causing his system to reboot and malfunction. This suggests the software was malware that compromised Franklin's system. It's important to only download software from trusted sources to avoid infecting systems with malware. Home computer users are often vulnerable to attacks because they lack security awareness or don't think they have valuable data, but even small amounts of personal data can be misused if stolen. A new type of malware called "Fakefrag" pretends to erase users' files to scare them into paying a ransom, showing that scareware scams are an ongoing threat.
Flexible budget (Management Accounting)Abdul Basit
The document discusses flexible budgets and how they can be used to more accurately evaluate performance when actual activity levels differ from planned levels. It provides an example of preparing a flexible budget for the Cheese Company, including calculating variable and fixed costs at different activity levels. A flexible budget performance report is then shown comparing the flexible budget to actual results at the achieved activity level of 8,000 machine hours. This identifies variances in variable costs due to differences in activity levels versus poor cost control.
Management Accounting (Flexible budget)Abdul Basit
A flexible budget is a budget that adjusts or flexes for changes in the volume of activity. The flexible budget is more sophisticated and useful than a static budget, which remains at one amount regardless of the volume of activity.
This document provides an overview of flexible budgets and overhead analysis. It begins by explaining the limitations of static budgets when actual activity levels differ from planned levels. It then introduces flexible budgets, which can be prepared for multiple activity levels, allowing for better performance evaluation. An example is provided of preparing a flexible budget for CheeseCo based on machine hours. Variances are calculated by comparing actual results to the flexible budget prepared for the actual level of activity. This reveals variances due to cost control versus those due to differences in activity levels. The document discusses choosing an appropriate activity base and calculating variable overhead variances using both actual and standard hours.
The document outlines various manufacturing cost accounting concepts and calculations including job order costing, activity-based costing, standard costs, flexible budgets, relevant costs, and breakeven analysis. It also provides examples of direct materials and labor variance calculations, a flexible budget performance report, and calculating contribution margin to determine best use of a constrained resource.
Managerial Accounting Garrison Noreen Brewer Chapter 07Asif Hasan
This document provides an overview and comparison of absorption costing and variable costing methods. It includes examples calculating costs and income for a company under both methods. The key points are:
- Absorption costing includes an allocation of fixed overhead in product costs, while variable costing includes only variable costs in product costs.
- Absorption costing results in higher inventory values and cost of goods sold than variable costing.
- Variable costing produces consistent net operating income regardless of changes in production volume, while absorption costing results are affected by production volume.
- Reconciling the differences in net income between the two methods involves tracking the fixed overhead amounts included in or released from inventory.
Colour Plus manufactures and sells jackets. It analyzed variances using static and flexible budgets.
The static budget variance showed unfavorable variances due to actual production and sales being lower than budgeted. The flexible budget revealed this variance was due to lower sales volume.
The flexible budget variance was also unfavorable, indicating higher actual costs and lower revenues than the flexed budget. This variance is due to differences in pricing and costs on a per unit basis.
Conducting variance analysis with both static and flexible budgets allows Colour Plus to determine whether variances are due to inaccurate forecasting or controllable performance issues.
- Absorption costing allocates both variable and fixed manufacturing costs to inventory, while variable costing allocates only variable manufacturing costs to inventory and expenses fixed manufacturing costs.
- Using variable costing versus absorption costing results in different net operating income when production levels change between periods, even if sales remain the same, because absorption costing shifts fixed costs between periods.
- Variable costing is preferred by managers for decision making and performance evaluation because net operating income is consistent regardless of production changes. However, absorption costing is required for external financial reporting.
This document discusses absorption costing and variable costing. Absorption costing includes both variable and fixed production costs in inventory and cost of goods sold, while variable costing includes only variable costs. Variable costing is more consistent with contribution margin analysis and decision making. Absorption costing is required for external financial reporting and tax purposes, but variable costing provides more useful information to management for decision making.
The document discusses relevant costs for decision making. It defines relevant costs as costs that differ between alternatives. It identifies avoidable costs as relevant costs, as they can be eliminated by choosing one alternative over another. Unavoidable costs like sunk costs and future costs that do not differ between alternatives are never relevant. The document uses examples to illustrate identifying relevant costs and sunk costs. It discusses applying relevant costs to decisions like whether to purchase a new machine or keep an old one, and whether to add or drop a business segment.
Actual Cost Vs Plan Projection Powerpoint Presentation SlidesSlideTeam
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Actual Cost Vs Budget Powerpoint Presentation SlidesSlideTeam
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Actual Cost Vs Budget PowerPoint Presentation Slides SlideTeam
The document provides budget and actual cost comparisons for various expenses. The raw material costs were $30,000 or 25% over budget due to an increase in raw material prices. A quarterly budget analysis shows variances between budgeted and actual revenues, expenses, and net income. A flexible budget analysis scales variable costs based on a 25% increase in production units from the original budget.
Manufacturing cost accounting ppt @ mba financeBabasab Patil
The document provides an overview of manufacturing cost accounting concepts and calculations including job order costing, activity based costing, standard costs, and flexible budgets. It discusses calculating product costs, contribution margin, breakeven analysis, master budget components including direct materials budget, labor variances, and flexible budget performance reports. The key information covered relates to accounting for costs in a manufacturing environment.
Actual Cost Vs Plan Projection PowerPoint Presentation Slides SlideTeam
Are you facing trouble in creating a professional presentation on the concept of actual cost vs plan projection? Do not worry! SlideTeam has come up with the predesigned actual cost vs plan projection PowerPoint presentation slides. Using this actual vs forecast PPT presentation, you can represent an organization future revenue and expenditure. This planning budgeting and forecasting presentation PPT includes a template on relevant sub-topics such as actual cost vs budget, month wise budget forecasting, overhead cost budget analysis, quarterly budget analysis, master budget vs actual variance analysis, actual vs budget analysis, actual vs target variance, budget vs plan vs forecast, forecast vs actual budget, and forecast and project. It also covers a template on budget vs forecast vs. actual. With the assistance of these financial planning PPT slides, you will be able to achieve an organization economic prosperity. Employ this PPT presentation to compare the past and present report to predict the future performance of an organization. Our PowerPoint designers have used visuals and images of charts and graphs so that you can quickly represent the financial statistics of the business. So, do not wait; download this actual vs. forecast PPT presentation. Achieve the correct ambiance with our Actual Cost Vs Plan Projection PowerPoint Presentation Slides. Create the exact atmosphere you desire.
This document outlines the key concepts and objectives for a chapter on variable costing and performance reporting. It discusses the differences between absorption costing and variable costing, how each method determines product costs and reports income. Absorption costing allocates all production costs to products, while variable costing only includes costs that vary with production levels. The chapter will teach how to compute unit costs, prepare income statements, contribution margin reports, and convert between the two costing methods. It provides examples comparing income reporting when units produced equal and do not equal units sold.
Actual Vs Budget Variance PowerPoint Presentation SlidesSlideTeam
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Plan Vs Forecast PowerPoint Presentation SlidesSlideTeam
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This document discusses various methods for accounting for overhead costs in management accounting. It covers budgeting overhead rates, applying overhead to products using a budgeted rate, and accounting for under- or over-applied overhead. It also compares variable costing and absorption costing methods, including calculating income statements and production volume variances under each method. The key difference between the methods is how fixed manufacturing costs are treated in determining cost of goods sold and gross profit.
The Changing Role of Managerial Accounting in a GLOBAL Business EnvironmentAbdullah Rabaya
Absorption costing and variable costing treat fixed manufacturing overhead costs differently. Absorption costing includes a portion of fixed overhead in the product cost, while variable costing excludes fixed overhead. This leads to differences in reported income when production levels differ from sales volumes between periods. However, over multiple periods, total income is the same under both absorption and variable costing.
How MJ Global Leads the Packaging Industry.pdfMJ Global
MJ Global's success in staying ahead of the curve in the packaging industry is a testament to its dedication to innovation, sustainability, and customer-centricity. By embracing technological advancements, leading in eco-friendly solutions, collaborating with industry leaders, and adapting to evolving consumer preferences, MJ Global continues to set new standards in the packaging sector.
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The Strategy Implementation System offers a structured approach to translating stakeholder needs into actionable strategies using high-level and low-level scorecards. It involves stakeholder analysis, strategy decomposition, adoption of strategic frameworks like Balanced Scorecard or OKR, and alignment of goals, initiatives, and KPIs.
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Part 2 Deep Dive: Navigating the 2024 Slowdownjeffkluth1
Introduction
The global retail industry has weathered numerous storms, with the financial crisis of 2008 serving as a poignant reminder of the sector's resilience and adaptability. However, as we navigate the complex landscape of 2024, retailers face a unique set of challenges that demand innovative strategies and a fundamental shift in mindset. This white paper contrasts the impact of the 2008 recession on the retail sector with the current headwinds retailers are grappling with, while offering a comprehensive roadmap for success in this new paradigm.
[To download this presentation, visit:
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This PowerPoint compilation offers a comprehensive overview of 20 leading innovation management frameworks and methodologies, selected for their broad applicability across various industries and organizational contexts. These frameworks are valuable resources for a wide range of users, including business professionals, educators, and consultants.
Each framework is presented with visually engaging diagrams and templates, ensuring the content is both informative and appealing. While this compilation is thorough, please note that the slides are intended as supplementary resources and may not be sufficient for standalone instructional purposes.
This compilation is ideal for anyone looking to enhance their understanding of innovation management and drive meaningful change within their organization. Whether you aim to improve product development processes, enhance customer experiences, or drive digital transformation, these frameworks offer valuable insights and tools to help you achieve your goals.
INCLUDED FRAMEWORKS/MODELS:
1. Stanford’s Design Thinking
2. IDEO’s Human-Centered Design
3. Strategyzer’s Business Model Innovation
4. Lean Startup Methodology
5. Agile Innovation Framework
6. Doblin’s Ten Types of Innovation
7. McKinsey’s Three Horizons of Growth
8. Customer Journey Map
9. Christensen’s Disruptive Innovation Theory
10. Blue Ocean Strategy
11. Strategyn’s Jobs-To-Be-Done (JTBD) Framework with Job Map
12. Design Sprint Framework
13. The Double Diamond
14. Lean Six Sigma DMAIC
15. TRIZ Problem-Solving Framework
16. Edward de Bono’s Six Thinking Hats
17. Stage-Gate Model
18. Toyota’s Six Steps of Kaizen
19. Microsoft’s Digital Transformation Framework
20. Design for Six Sigma (DFSS)
To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations
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BriansClub.cm, a famous platform on the dark web, has become one of the most infamous carding marketplaces, specializing in the sale of stolen credit card data.
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