The Flexible Budget and Standard Costing: Direct Materials and Direct Labor - II
Direct Materials Standards
Price Standards Usage Standards
Use competitive bids for the quality and quantity desired.
Use product design specifications.
The Hong Kong Polytechnic University School of Accounting and Finance AF 3112: Management Accounting 2 Semester 2, 2008/2009
Instructor: Lecturer: Office: E-mail: Tel.: Consultation hour:
Dr. Woo-Jong Lee Li Ka Shing Tower (M747) [email protected]
9.36 Relative Sales Value at Split-Off and Constant Gross Margin Percentage Methods (1) Relative sales value at split-off method Product Product Y Product Z X Total $80,000 $70,000 $50,000 $200,000 40% $32,00 0 35% $28,000 25% $20,000 100% $80,000
Economic order quantity Annual cost of ordering and storing XL-20 annual annual requiremen t cost order quantity holding per + cost = order order per 2 quantity unit = = = (2)(annual requiremen per t)(cost order) annualolding per h cost unit (2)(4,8
A transfer price is the price charged when one segment (for example, a division) provides goods or services to another segment of the same company. The transfer price creates revenues for the selling segment and
Extra problem Lecture 8:
Direct materials efficiency, mix, and yield variances.
Direct materials efficiency, mix, and yield variances. The Energex Company produces a gasoline additive, Gas Gain, that increases engine efficiency and improves gasoline milea
Service Department Costing: An Activity Approach
Reasons for Allocating Service Department Costs
To encourage operating departments to wisely use service department resources. To help measure the profitability of operating departments. To value
Joint Product Processes
A number of products are produced from a single raw material input.
Joint Product Processes
Concept: in some industries, a number of products are produced f
Innovative Inventory and Production Management Techniques
Just-in-Time (JIT) Systems
Receive customer orders. Schedule production. Receive materials just in time for production. Complete parts just in time for assembly into products. Complete p
Systems Design: Process Costing
Similarities Between Job-Order and Process Costing
Both systems assign material, labor and overhead costs to products and they provide a mechanism for computing unit product cost. Both systems use the same manufac