10026_041410_96

# 10026_041410_96 - -Use white handout(given in class for...

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-Final Exam scheduled for May 22 nd (Saturday night) will be moved. Date TBA Just-in-time Method -Total Quality Management: *The goal is zero defects. *Results in companies reducing the number of company’s materials, products, etc. are bought from. *Move things to one cell (A/B/C) Backflush Costing: -Method for dealing with JIT in accounting. -Summary of journal entries. Fixed and Variable Costs: -constant rate per unit of activity (cost driver) -allows us to predict future costs Example Problem: 15,000 MH 20,000 MH Cost A) \$60,000 \$80,000 60,000/15,000=\$4 80,000/20,000=\$4 *Proved it’s a variable cost. Cost B) \$90,000 \$90,000 90,000/15,000=\$6 90,000/20,000=\$4.50 *Proved it’s a fixed cost. Cost C) \$45,000 \$50,000 45,000/15,000=\$3 50,000/20,000=\$2.50 *Proved it’s a mixed cost. Scatter Graph: -Activity (cost driver) is on the x-axis. -Cost is on the y-axis. -Shows graphically if the cost driver used is a good cost driver. High-Low Method -Objective method; should get the same answer as every other student/professor.

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Unformatted text preview: -Use white handout (given in class) for class example.-The method defines its own relevant range.-DM are always variable costs.-DL is usually a variable cost, but not always.-OH is a mixed cost. *The most theoretically correct method is the Least Squares Regression, but not responsible for it. ~Responsible for only high-low method, scatter graphs, and accounting analysis. Learning Curves:-get better (faster) the more times it is done.-always a new situation and repetitive tasks by humans.-Next topic covered will be cumulative average.-Take home quiz handed out today will be due on Monday. White Handout Example Problem (High-Low Method) MH OH Cost High 3900 39,500 Low 3000 35,000 Change 900 hours \$4500 Change in Dependent Variable = \$4500 = \$5 per hour Change in Independent. Variable 900 High: Total Cost 39,500 VC (3900*5) (19,500) FC \$20,000 Y=a+bx Total Cost=FC+VC Y= \$20,000+5x...
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## This note was uploaded on 08/25/2010 for the course ACCT 327 taught by Professor Gillespie,j during the Spring '08 term at University of Delaware.

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10026_041410_96 - -Use white handout(given in class for...

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