CHECK THESE SAMPLES OF Use of Activity-based Costing and Economic Value Analysis for the Justification
According to the Consortium for Advanced Manufacturing-International (CAM-I), activity based costing is a costing model “that assigns cost activities based on their use of resources, and assigns costs to cost objects, such as products or customers, based on their use of activities” (Lewis, 1995, p.... Activity based costing, value chain analysis, and customer profitability are the three major frameworks that assist an organisation to evaluate its business flow....
17 Pages
(4250 words)
Research Paper
There is also generating a planned design for the solution based on the software, implementation of the software, a test drive for the software, use of the software in the market and lastly maintenance and fixing of any abnormalities in its use (Brooks 2005).... Nevertheless, all this approaches share a common understanding and towards the following laid down processes: analysis of the problem, a market research on the problem, coming up with requirements for the proposed business solution....
4 Pages
(1000 words)
Essay
Activity Based Costing & economic value Added Measure and their impact on Process Improvement & Business Profitability Introduction The concept of Activity based costing hinges on allocation or apportionment of cost lay emphasize on allocation or apportionment of the direct costs as far as practicable to the concerned activities without leaving a room for estimation.... economic value Added Measures economic value addition (EVA) is generally discussed with reference to the financial performance, and acts as a complementary tool in the measurement of the performance in a broader perspective, keeping in line with the expectations of the stakeholders, where the finer details of the cost is not perceived as important as in the case of management practices of ABC....
5 Pages
(1250 words)
Essay
In the efforts to implement the Strategic Management Accounting approach in organizations,modern business enterprises find activity-based costing as an improved costing system by which the problem of large number of indirect costs and their allocation problem can be overcome… It has been observed that ABC method is the most sought after innovation in the field of management accounting in the last two decades....
11 Pages
(2750 words)
Assignment
DBE, which is the abbreviation of “disadvantaged business enterprise”, is a wide subject to cover and there are many things we need to consider but in this piece of writing I am going to Compare and contrast absorption costing with marginal costing and DBE.... First off, we… So I am starting off with the basic of accounting;
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9 Pages
(2250 words)
Essay
The company should focus on budgets and the competition and seek to add value to its products.... This, however, requires the implementation of strategies such as the Balanced Scorecard, which will allow the organization to create value for its many stakeholders including customers.... The researcher uses the examples of Nokia and Carphone Warehouse to discuss the strengths and weaknesses of each overhead costing approach....
13 Pages
(3250 words)
Essay
Activity-Based-Costing Question (a) Market analysis Annual cost 050,000 Estimated drivers; 15,000 hrs.... Activity-based rate
1,050,000/15,000 = $ 70 per hour
Product design
Annual cost for product design; $ 2,350,000
Number of designs done annually; 2,500 designs
Activity-based rate
2,350,000/2,500= $ 940 per product design
Product development
Annual cost for product development= $ 3,600,000
Number of products developed annually; 90 products
Activity-based rate
3,600,000/90 =$ 40,000 per product development
Prototype design
Annual cost for prototype test = $ 1,400,000
Annual number of tests= 500 tests
Activity-based rate
1,400,000/50 = $ 28,000 per test
Question (b)
Costing for 1,800hrs market analysis
1,800 X 70 = $ 126,000
Costing for 280 product designs
280 x 940 = $ 263,200
Costing for 10 product development
10 x 40,000 = $ 400,000
Costing for 92 engineering tests
92 x 28,000 = $ 2,576,000
Total cost; 2,576,000 + 400,000 + 263,200 + 126,000
$ 3,265,200
Question (c)
Costing for 800hrs marketing analysis
800 x 70 = $ 560,000
Costing for 178 product designs
178 x 940 = $ 167,320
Costing for 3 product development
3 x 40,000 = $ 120,000
Costing for 70 engineering tests
70 x 28,000 = $1,960,000
Total cost; 560,000 + 167,320 + 120,000 + 1,960,000
$ 2,807,320
Question (d)
' Benefits of activity based costing
Charging clients on a service or product should be based on calculative figures or else the price of the end product will either low or high....
2 Pages
(500 words)
Essay
Limitations to Financial Reporting Institute of Chartered Accountants in England and Wales
The institution has identified a number of limitations with the present day financial reporting system such as disclosure of intangible asset values, the justification of fair value assumptions made and so on....
4 Pages
(1000 words)
Essay