As a consultant you were approached by the board of directors at J&J Manufacturing Company to conduct a seminar as an effort to address Marginal and Absorption Costing. You are commissioned to: Present FIVE (5) arguments in support of the use of: A. Marginal Costing B. Absorption Costing
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As a consultant you were approached by the board of directors at J&J Manufacturing Company to conduct a seminar as an effort to address Marginal and Absorption Costing. You are
commissioned to:
Present FIVE (5) arguments in support of the use of:
A. Marginal Costing
B. Absorption Costing
Step by step
Solved in 2 steps
- Which of the following is/ are considered as the uses of standard costing? Statement 1: Establishing standards that reflect efficient operating conditions Statement 2: Helping managers understand what needs to be done to improve current and future performance. Statement 3: Achieving significant revenue reductions. Group of choices: Statements 1 and 2 Statements 1 and 3 Statements 1, 2 and 3 Statements 2 and 3a) Explain the purpose of a cost quality report (b) Drury-Management & Cost Accounting- outlines four categories of cost that might be included in a cost quality report. Required: List and discuss the four categories of cost.Suppose that your accounting textbook is the cost object of concern. The paper used to print the textbook is a(n) a. fixed cost.b. labor cost.c. direct cost.d. indirect cost.e. period cost.
- Checklist of evidence required Finally, you should reflect on the results of your activity-based costing exercise, by: a) explaining how costs are categorised. b) identifying those cost areas that have the greatest impact on the profitability of the product that you have investigated. c) evaluating the reasons for producing an activity-based cost model. d) explain how ABC model used to improve profitability. A research and problem solving project to explore the costs associated with engineering activities and to complete an activity-based cost model for a product.Match the type of cost shown in the left column with the corresponding description shown in the right column, choosing the appropriate letter in the drop-down list. Question content area bottom Part 1 1. Irrelevant cost A. A cost that has not yet been incurred but which must, under some contract or obligation, be incurred. 2. Future outlay cost B. A cost that is not pertinent to a particular decision. 3. Opportunity cost C. A cost that involves the spending of money or some other transfer of assets. 4. Sunk cost D. A cost which has been incurred in the past. 5. Committed cost E. The cost incurred when one course of action prevents some benefit occurring from another course of action.Please answer each of the following questions in detail. Provide two in-text citations that matches peer reviewed references and include examples whenever applicable. Explain the process costing income statement and provide a hypothetical example of process costing income statement in a manufacturing enterprise. Explain how unit product cost is evaluated in this format. Provide in-text citations and explain your example in detail. Explain the variable costing income statement and provide a hypothetical example of variable costing income statement in a manufacturing enterprise. Provide in-text citations and explain your example in detail.
- Please solve the following task by using the attached picture of background knowledge. What problems can arise if you use the results of your full costing approach for decision accounting, e.g. •Calculation of an additional order ? •Eliminating a product?•Assortment decisions?Are there alternatives for the decision accounting?Marginal and Absorption Costing are TWO (2) techniques which may be used to determine an organization’s production cost.Present FIVE (5)arguments in support of the use of: 1.Absorption Costing 2.Marginal CostingNeed some help making a cheet sheet for an up coming test. please provide examples. The exam covers chapters 1 through 13. Here are some suggested study topics: Cost Classifications - variable, fixed and mixed, period and product, direct and indirect, opportunity, sunk, relevant, traceable, common, etc. Calculate the results of changes to cost assumptions (CVP) Calculate net income based on contribution margin values either dollars or % Application of Manufacturing Overhead - calculate predetermined overhead rate or activity rates applied to a product or job - job order using a predetermined overhead rate or rates and activity-based costing calculate over and underapplied overhead calculate adjusted cost of goods sold Job Costing What is the total cost of the job and average cost per unit. Cost of Goods Manufactured and cost of goods sold Calculate break even and target profit Create a contribution format income statement Gross margin calculations absorption or variable costing…
- Which of the following is not one of the five steps in decision-making process? A. identify alternatives B. review, analyze, and evaluate decision C. decide best action D. consult with CFO concerning variable costsPrepare income statements in both job order costing and activity-based costing formats for a hypothetical case. Your example should include at least three activities and at least two products. If you do both correctly the operating income in both statements should be identical. Explain the initial assumptions and the calculations in detail. Provide in-text citations.From the choices presented in parentheses, choose the appropriate termfor completing each of the following sentences:a. A product, sales territory, department, or activity to which costsare traced is called a (direct cost, cost object).b. Advertising costs are usually viewed as (period, product) costs.c. Factory overhead costs combined with direct labor costs arecalled (prime, conversion) costs.d. Feedback is often used to improve, direct) operations.e. A sacrifice made to obtain some benefit is a (cost, expense).f. The balance sheet of a manufacturer would include an accountfor (cost of goods sold, work in process inventory).g. The implementation of automatic, robotic factory equipmentnormally increases, decreases the direct labor component ofproduct costs.
