- Assignment
- What is the difference between Managerial Accounting and Financial accounting?
- Managerial accounting refers to use of accounting information by managers in order to help them in making decisions that will be of an advantage to the organization.
- Financial accounting refers to financial reports indicating an organizations performance from external users like investors and creditors.
- Describe the Value Chain Analysis
- The value chain analysis refers to the sequence in which customers are included in providing strength to the products of an organization. The value chain consists of the following elements;
- Research and development
- Design
- Production
- Marketing
- Distribution
- Customer service
- Describe the Supply Chain Analysis
- Supply chain analysis refers to the quantitative values that measure economic tradeoffs present in the supply chain.
- What is the five-step decision-making process?
- The first step is identifying the problem. In this step, it is advisable to have a constructive environment in order to identify the correct problem.
- The second step is obtaining the necessary information. The requirements of this step include identifying many alternatives as possible.
- The third step is exploring these alternatives. Logical approach in ranking the alternatives is the key element in this step. It is advisable to make predictions about the future in this step.
- The fourth step is choosing the best alternative. After ranking the alternatives, the steps require choosing between the alternatives and make a decision.
- The fifth step requires implementing the decision in order to give it value. Check your decision. These steps require evaluating the decision and learn about its effects.
- Define the following terms with examples.
- Cost Object:
- Cost object refers to the substantial inputs for a certain products or service in an organization. The tangible inputs may be either labor or material. For example, an organization that manufactures different types of cloths requires predetermined labor and raw materials for the products manufactured.
- Direct Cost
- Direct costs refers to a price is fully accredited to the production of a specific product. The costs include the materials and the expenses included in the production. For example, the cost of pork in a sausage can be attributed directly to the cost of manufacturing the product.
- Indirect Cost
- Indirect Cost refers to the costs not directly associated to manufacturing of a certain product. For example, costs of taxes employed by the government in relation to the product.
- Variable Cost:
- Variable costs refer to the changes in total proportion to the changes in the related volume level or functions that are present in an organization. For example, the cost of a certain building contractor offers. When the more number of houses sold, the more number of nails the contractor will sell.
- Fixed Cost
- Fixed costs refer to the costs that are stable and do not change with the level of sales, for example, the costs of rent.
- Explain the types of manufacturing inventories.
- Merchandise inventory:
- These refer to the goods that a company has manufactured and are ready for use by the final consumer.
- Manufacturing inventory:
- These refer to the list of goods and materials available for the completion of manufacturing processes,
- Elaborates the types of product costs.
- The types of product costs include the following:
- sales commissions
- maintenances costs
- Illustrate the cost flow.
- Cost flow refers to the flow of manufacturing costs incurred from the period through which the materials are invented, all the way to the production process and to finished goods inventory.
- Direct materials inventory work-in-process inventory finished goods inventory Cost of goods sold
- The diagram below illustrates the cost flow visualized.
- Compute the manufacturing unit cost of the following product.
- In order to arrive at the answer of the calculations, I add up the costs of the relevant product and then divide by the number of units produced.
- Supreme Deluxe Regular
- Direct material cost $84 $54 $62
- Direct manufacturing labor cost $14 $28 $8
- Manufacturing overhead costs $42 $84 $24
- Units produced 80 120 100
- Unit cost 1.75 1.38 0.94
640 Words 2 Pages
