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Give five disadvantages to using an activity-based costing system:
1. The company may be making single or few products,
2. The company may have low overhead costs as compared to direct labor,
3. The company may only have simple data available,
4. The company may have less non-product costs, and finally
5. The system may be too costly to install and/or execute
Based on these answers, why would a company who only makes a few products not want to use such a system? Is this kind of process more important to a company such as Ford or Boeing, who have several product lines and need to keep track of multiple lines of production?
The corporation sold 1,200 shares of treasury stock for cash at 72 per share. Journalize the treasury stock transactions.
What are the corresponding units for direct materials and conversion costs, correspondingly, for June?
A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.
For August, Busters Consulting and Mediation Practice(BCMP) worked 900 hours for Quebec company and 2,100 hours for Ontario Corporation. BCMP bills clients at rate of $300 per hour
Describe how a job analysis increases productivity, aids in job description creation, and guides employee team formation.
What are some of the nonfinancial measures provided by managerial accounting to assist managers in the decision-making process?
What are the major cost drivers involved in the school's educational process? How do you think the school might attempt to control costs? Describe how the Business School adds value and who receives this value.
Evaluate Pursco's foreign tax credit limitation under the subsequent independent assumptions.
Needham Company uses normal costing in its job-costing system. Partially completed T-accounts and additional information for Needham for 2008 are as follows:
Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.
Vintech Company is planning to produce 1,800 units of product in 2011. Each unit requires 4 pounds of materials at $6 per pound and a half hour of labor at $17 per hour. The overhead rate is 70% of direct labor
Reed company employs a standard costing system. Manufacturing overhead is applied to products based on machine hours (MH). Employ the following information to make the needed calculations:
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