The document discusses various methods for allocating support department costs, common costs, and revenues. It describes the single-rate and dual-rate methods for allocating support department costs, as well as the direct, step-down, and reciprocal methods. For common costs, it outlines the stand-alone and incremental cost allocation methods. Finally, it discusses revenue allocation for bundled products using stand-alone and incremental revenue allocation approaches.
I. Introduction
II. Causes of the current financial crisis
III. A timeline of the most important events
IV. Fannie and Freddie
V. The current financial crisis’ nature
VI. The great depression & lessons from the past
VII. The Impact on Emerging Countries.
VIII. How to solve this problem
IX. Executive Summary
X. Sources
I made this paper for my English course. It\'s a nice paper if you\'re interested in the crisis. You don\'t need to be an economist to understand what I\'m writing about, it\'s written in clear,understandable English!
This version still contains some errors...(it\'s not the final version)
I. Introduction
II. Causes of the current financial crisis
III. A timeline of the most important events
IV. Fannie and Freddie
V. The current financial crisis’ nature
VI. The great depression & lessons from the past
VII. The Impact on Emerging Countries.
VIII. How to solve this problem
IX. Executive Summary
X. Sources
I made this paper for my English course. It\'s a nice paper if you\'re interested in the crisis. You don\'t need to be an economist to understand what I\'m writing about, it\'s written in clear,understandable English!
This version still contains some errors...(it\'s not the final version)
CHAPTER 3Product Costing and Cost Accumulation in a Batch PrEstelaJeffery653
CHAPTER 3
Product Costing and Cost Accumulation in a Batch Production Environment Focus on ethics (Located before the Chapter Summary in the text.)
Did Boeing exploit accounting rules to conceal cost overruns and production snafus?
According to the circumstances alleged in the Business Week article cited in the text, Boeing did not handle its cost overruns, production problems, and the merger with McDonnell-Douglas in a transparent manner. Boeing allegedly acted to conceal its worsening operational problems through “earnings management” to ensure that the merger would be approved by the stockholders of both companies. While the method of “program accounting” is common in the aircraft industry, in this rather extreme case that accounting method did not result in a fair portrayal of the company’s financial and operational situation. As a result, the merger was approved on the basis of alleged misleading information, and it is the investors who will bear the brunt of this action.
The company’s top executives and their accountants must share the responsibility for these actions, the former for providing the data and the latter for approving it for public release. No accounting system should be used as a tool to cover up operational problems and mislead shareholders. One wonders also what the auditors were doing to assess the accuracy of the accounting information. Answers to Review Questions
3-1(a)Use in financial accounting: In financial accounting, product costs are needed to determine the value of inventory on the balance sheet and to compute the cost-of-goods-sold expense on the income statement.
1. Use in managerial accounting: In managerial accounting, product costs are needed for planning, for cost control, and for decision making.
1. Use in cost management: In order to manage, control, or reduce the costs of manufacturing products or providing services, management needs a clear idea of what those costs are.
(d)Use in reporting to interested organizations: Product cost information is used in reporting on relationships between firms and various outside organizations. For example, public utilities such as electric and gas companies record product costs to justify rate increases that must be approved by state regulatory agencies.
3-2In a job-order costing system, costs are assigned to batches or job orders of production. Job-order costing systems are used by firms that produce relatively small numbers of dissimilar products. In a process-costing system, production costs are averaged over a large number of product units. Process-costing systems are used by firms that produce large numbers of nearly identical products.
3-3Concepts of product costing are applied in service industry firms to inform management of the costs of producing services. For example, banks record the costs of producing financial services for the purposes of planning, cost control, and decision making.
3-4a.Material requisition form: A document upon which the product ...
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