Abc Costing Method

In: Business and Management

Submitted By seresa
Words 1800
Pages 8
Running head: SAMPLE FOR STUDENTS

1

Sample APA Paper for Students Interested in Learning APA Style 6th Edition Jeffrey H. Kahn Illinois State University

Author Note Jeffrey H. Kahn, Department of Psychology, Illinois State University. Correspondence concerning this sample paper should be addressed to Jeffrey H. Kahn, Department of Psychology, Illinois State University, Campus Box 4620, Normal, Illinois 61790-4620. E-mail: jhkahn@ilstu.edu.

SAMPLE FOR STUDENTS Abstract The abstract should be a single paragraph in block format (without paragraph indentation), and the appropriate length depends on the journal to which you are submitting, but they are typically between 150 and 200 words. (Students should consult their instructor for the recommended length of the abstract.) Section 2.04 of the APA manual (American Psychological Association [APA], 2010) has additional information about the abstract. The abstract is important because

2

many journal readers first read the abstract to determine if the entire article is worth reading. The abstract should describe all four parts of an empirical paper (i.e., Introduction, Method, Results, and Discussion). Consider writing one or two sentences summarizing each part of a paper, and you’ll have a nice abstract.

SAMPLE FOR STUDENTS Sample APA Paper for Students Interested in Learning APA Style Before getting started you will notice some things about this paper. First, everything is double-spaced. Second, margins are 1-inch wide on all sides. Third, there are several headings

3

used throughout to separate different parts of the paper; some of the headings are in bold. Fourth, and this is perhaps a surprise, there is exactly one space after each punctuation mark, including periods. Fifth, the upper left of each page has a running head in all capital letters, and the upper right has the page number. Try to…...

Similar Documents

Costing Methods

...Costing Methods Paper ACC/561 July 1, 2012 Costing Methods Super Baker previously used the traditional costing system to manage its cost management. Super Bakery changed its business strategy to an Activity-Based Costing system, to identify at the activities associated with each order. Because Super Bakery outsources its business operation, an Activity-Based Cost system would be beneficial to track effectiveness of each vendor. Activity-Based Costing strategic gives the company detailed information of its operational performance to adjust the strategic planning for better profit margins (Kimmel, Weygandt, & Kieso, 2009). Activity-Based Costing System Super Bakery management installed the Activity-based system because the traditional costing system was not effective tracking the profit margin for the company expenditures. Super Bakery has an elevated overhead cost because of the numerous outsources entities used. The Activity-Based Cost system is used to monitor the activities of each vendor and the process of manufacturing, and distribution. Understanding that overhead costs represent a dominate portion of total costs, Kimmel, Weygandt, and Kieso (2009) state Activity-Based Cost leads to more cost pools used to assign overhead costs to products. Activity-Based Cost is effective for controlling of overhead costs, and monitors costs direct or indirectly involved in product activity. Activity-Based Cost is an important factor in management decisions that are......

Words: 559 - Pages: 3

Abc Costing System

... | |Learning outcomes |At the end of this course, students are able to: | | |Compare and explain about costs and the best ways to make better decisions in the selection of products, price and investments. [C4] | | |Prepare and produce a budget, understand chain processes and apply the said techniques. [P4] | | |Utilise strategic costing, understand and implement ways to review inventory and quality, and measure the performance of | | |processes/systems. [A3] | | |Show teamwork skills in applying strategic costing and performance measurement. [TS] | |Student learning |Lectures | |time |28 hours | | | ......

Words: 2279 - Pages: 10

Abc Costing

...November 7, 2012 Writing Assignment 2 ABC Costing 1. Briefly describe the ABC system adopted in Super Bakery. The ABC system implemented by Super Bakery was done to separate costs by customer instead of allocating overhead evenly across the entire customer base. Their reason for doing this was simple; they wanted to see how profitable each customer was. In the nature of this business, it is described in the article that “…very few customers’ orders consume the same amount of resources.” (Davis 4) Because of this reason, different customers produced different amounts of profits, and this is one reason that Super Bakery adopted an ABC system. Another reason this company adopted the ABC system was to track outside contractors. The business is a virtual corporation, and the people who work for them often have the power to make more decisions. If they are too free to make these decisions on their own, it often happens that they try to do certain things with money to make their job easier. While doing this, it could be hurting the virtual company at the same time. With an ABC system in place, the type of spending brokers, contractors, and other outside workers is monitored closer and can be tracked more easily. 2. Do you think it is necessary to adopt an ABC system in Super Bakery? Why or why not? What are the benefits/costs? I believe that with this type of business, it is absolutely necessary to have an ABC system in place. Because of the way this......

Words: 387 - Pages: 2

Costing Methods

...Costing Methods Paper Erica Rice ACC/561 18 February 2013 Edward Hastings Costing Methods Paper What strategies did the management of Super Bakery, Inc. use? Super Bakery’s challenges are to control cost by reducing the overhead for serving their customers in different parts of the country, and by doing this they can use the ABC method; Activity-Based Costing System to enhance control over overhead costs and under ABC, the company can trace many overhead costs directly to activities by allowing some indirect costs to be identified as direct costs like the customer’s order cost for every individual customer that seems to be the same amount. The managers can become more aware of their responsibility to control the activities that generate those costs. The second reason that Super Bakery’s went with ABC was because of trying to control cost in the business part of the company like, manufacturing, sales, warehousing, and shipping. By taking control of the product cost this should contribute to settling selling prices that can help them achieve desired product success. With a more precise cost data the managers could decide on whether to buy or make a product part or piece, and whether to remove a product. ABC helps the managers to minimize the amount of overhead that is payable to their product. If the overhead is payable based upon the amount of direct labor used, then the managers can minimize the amount of overhead payable to their product by minimizing the amount......

Words: 749 - Pages: 3

Abc Costing

...either general rules from which more specific rules are derived or specific rules themselves. Examples of such principles would be the objectives principle expressed in Chapters 1of the revised IASB/FASB CF. The failure to note that principles can be of either kind has contributed to the confusion about the nature of the principles included in accounting theories and in CFs. This confusion was noted at the outset of the search for principles. Littleton once commented that ‘the word ‘principles’ has undoubtedly been overworked in accounting literature. It has been extensively used by both accounting practitioners and academic writers with little discrimination…Each book usually contains a mixture of axioms, conventions, generalizations, methods, rules, postulates, practices, procedures, principles, and standards. These terms cannot all be synonyms. And little effort has been expended in showing that they are not, although the need for separation becomes more apparent as time passes” (1938 p. 16). These two meanings of ‘principle’ were evident in the debate between Byrne and May about the nature of the ‘principles’ that were to be agreed by practicing accountants following the 1929 Stock Market Crash in the U.S. Both kinds of principle might be expressed in a conceptual framework and, arguably, are actually expressed in the IASB/FASB conceptual framework. One major problem with understanding conceptual frameworks and their purposes is the failure to adequately understand the......

Words: 12464 - Pages: 50

Abc Costing

...Coverdrive Ltd Case Study: Activity Based Costing Situation At a recent management meeting at Coverdrive Ltd, the members of the senior management team discussed the introduction of a new product to the company’s range of high quality, hand made cricket bats. A major agenda item was pricing. The management accountant, since his appointment, had given much thought to pricing policy and one of his concerns was that of dealing with the recovery of overhead within a full cost pricing policy. The discussion centred around the traditional method currently in use, compared and contrasted with ABC, Activity Based Costing a technique which re-examines the problem that has faced accountants for decades – that of allocation and absorption of overhead. Traditional pricing method has been based upon absorption costing and the treatment of overhead usually followed a set procedure. ( Cost centres are identified and established within the organisation. ( Cost centres may be producing or service centres. ( Wherever possible a direct charge is made to a cost centre ie allocated overhead. ( Where overhead is jointly incurred it is apportioned to the cost centres on an equitable base. ( The overhead cost for the service centre is then transferred to producing centres. ( The total overhead cost for each producing centre is then divided by for example, machine or labour hours per the cost centre. ( An overhead recovery rate results. ( This is then used to...

Words: 1460 - Pages: 6

Abc Costing

...* Traditional Costing * * Under Traditional Costing, all operating expenses are allocated by percent of sales. This causes the larger segments to carry more cost automatically. For Southlake, Textbooks generate the most income, however the gross profit percentage is only 26%. Clothing has one of the best gross profits and generates the 2nd most income. With traditional costing, computers are operating at a loss. Under Traditional Costing, all operating expenses are allocated by percent of sales. This causes the larger segments to carry more cost automatically. For Southlake, Textbooks generate the most income, however the gross profit percentage is only 26%. Clothing has one of the best gross profits and generates the 2nd most income. With traditional costing, computers are operating at a loss. ABC Costing * When allocating the operating costs based on cost driver rather than percentage of sales the segments performance differs. Depending on management’s choice of cost driver, results will vary. We allocated all costs to each product line but used different drivers. Under ABC costing, less cost is allocated to the biggest segment, textbooks. Textbooks still create the most income, but both supplies and computers are operating at a loss. When allocating the operating costs based on cost driver rather than percentage of sales the segments performance differs. Depending on management’s choice of cost driver, results will vary. We allocated all costs to......

Words: 861 - Pages: 4

Costing Methods

...Costing Methods Strategies Used By Super Bakery Inc. Super Bakery Inc. was a virtual corporation preferring to outsource its main business applications. This was with a view of minimizing the cost of operation relative to its income levels. By outsourcing, Super Bakery could control the flow of the activities that yielded its revenue. This was without necessarily acquiring to take the immense responsibility of bearing the risks involved with each stage of production and transaction. This explains the realization of its goal in reduction of expenses. Otherwise, it would incur the expenses through the acquisition of relevant assets for the various processes involved. These processes include machinery for production of the different products, maintenance of these machines as well as their replacement whenever that need came up and the costs of production. Examples of costs of production include the cost of raw materials and other inputs as well as overhead costs such as the cost of electricity, water, salaries and wages for the greater number of employees who would have to be directly and indirectly involved in the process (Staubus, 1971). Costs of transportation of inputs as well as finished products to the various distribution points is also eliminated, as is the costs of storage of raw materials and finished products before transportation to the target market (Horngren & Foster, 2003). Super Bakery employed the traditional costing methods that relied on listing of the......

Words: 985 - Pages: 4

Abc Costing System

...cz Abstract Paper analyses the specifics of the application of Activity-Based Costing method in hospital management. Primary objective of the paper is to outline the methodology of the ABC application in hospitals. First part of the paper analyzes the ways of ABC implementation in published foreign studies. Second part describes the individual steps in ABC application and discusses the differences in the application procedures between the manufacturing and hospital organization. Key words: Healthcare Management, Cost Management, Activity-based costing, Introduction In the last decade, many non-profit and hospital organizations started to face difficulties and challenges in balancing limited resources and costs to provide their demand for services. Due to the introduction of modern medical techniques and medicines and consequent increase of consumed costs, many hospitals are under pressure to adopt more advanced cost management techniques usually utilized only in profit organization sector. Hospital managers frequently seek the advanced techniques, for better understanding of relations between the cost and provided services. One of the key factors of effective company management is ability of accurate estimation of the cost of products. Product costing is an essential economic tool used to quantify the cost of individual interventions carried out. The need for an accurate method of costing in hospital organizations is frequently emphasized by many authors. Gujral et......

Words: 3077 - Pages: 13

Costing Methods

...COSTING METHODS PAPER Super Bakery Inc. ACC/561 March 28, 2012 Deborah Adkins COSTING METHODS PAPER Super Bakery Inc. The costs of a company can be classified according to different criteria. Depending on the method we have Direct, indirect, Fixed and, Variable costs. There are also costs that have a mixed nature: they can be semi-fix or semi-variable. And of course the costs that as already incurred on or are still pending which are Potential and, incurred costs. The same way there are different methods of costing that every industry fallow to establish the cost of their products depending on the nature of their products and the type of organization. Some of the most important or most used methods of costing are: job, contract, batch, process, service and operation costing there is also a method call Activity Based Method or ABC which one of the most important management innovations of the last hundred years and considered a new method for defining the costs of products and services. Under this new methodology, the bases used in the determination of indirect costs and some administrative costs are units of measure determined by the most significant operational activities undertaken during the production process. In the case of Super Bakery “a virtual, nationwide supplier of mineral, vitamin and protein enriched baked goods to the institutional food market” (John Wiley & Sons, 2009). The company needed to coordinate and regulate many functional......

Words: 468 - Pages: 2

Costing Methods

...Costing Methods Tony Zazzarino University of Phoenix Costing Methods Super Bakery Incorporated is a nationwide bakery that supplies bakery items to schools. Super Bakery is a virtual corporation that performs only strategic parts of the business, and the other activities are outsourced. The company wanted to the maximum value with little investment in operating functions. The company has reviewed the initial strategy to increase the profit while improving some of the current systems (Kimmel, Weygandt, & Kieso, 2009). Strategies The initial strategy of the company was to charge the same for every customer order making an assumption that each order cost the same to make. The management team took the cost and spread the costs evenly over the customer base with the knowledge that each customer order was a different cost (Kimmel et al., 2009). The management’s strategy was the orders that cost the company more to make were offset by the orders less costly to make. The management of the company realized the company had a better profit potential if the company used an activity-based costing system (ABC). ABC System The decision the management of Super Bakery made to install an ABC system was a good decision. The company needed to realize the cost of each order versus the overall cost of the outsourcing. An ABC system will allow the management to find the actual cost of each outsourced company. The installation......

Words: 682 - Pages: 3

Abc Costing

...Development of Product Costing Module in ERP for L&T Kansbahal Works, Kansbhal, Orissa : A Case Study 1 Seema G. Bhol, 2Arun Mishra & 3Srikanta Patnaik Sambalpur University, Burla, Orissa, India, 2Head (IT Services), L&T, Kansbhal, Orissa, India, 3 Department of Computer Science ITER , SOA University , Bhubaneswar, Orissa, India E-mail : guptaseema@hotmail.com, arun-kbl@kbl.ltindia.com, patnaik_srikanta@yahoo.co.in 1 Abstract - One need to be very accurate in what the products and services are costing. Inaccurate cost components could cost an organization more dearly. So, to full fill our present and future requirements and ambitions in all respect of life, it is essential enhance our expertise to link the power of today's information technology with the tools of economic theory and business strategy.[2] This paper aims at throwing new lights on various developments and formulate strategy for their implementation. Keywords— Business Mapping Report (BMR), Product costing, Dataflow Diagram, Enterprise Resources Planning (ERP), cost overhead, cost centres, Cost variance report, WIP. . 1. INTRODUCTION businesses, non-profit organizations and governments now all utilize ERP systems. The use of erp module saves time and money without sacrificing accuracy and control. Product costs are analysed quickly and accurately, which empowers the organization with the ability to perform minute analysis and projections of product cost. Few of the many advantages of product costing are: • •......

Words: 8613 - Pages: 35

Costing Methods

...Costing Methods Paper Monisha Bisor ACC/561 November 21, 2011 Carol Demuth Super Bakery, Inc. Super Bakery, Inc. was formed in 1990 by Franco Harris, a former professional football player. Super Bakery sells vitamin and nutrient-enriched baking goods as a virtual corporation. Super Bakery’s selling, manufacturing, warehousing, and shipping activities are outsourced to external companies in different locations. Strategy Super Bakery faced several challenges in the first four years of operating. They needed to penetrate an existing market that had seen little growth in the baking goods sector. Management realized the need for change. They began to develop unique strategies. The first strategy was to target the school system segment of the food market with healthy, low-calorie, nutritious donuts. This was appealing to the school system market because Super Bakery’s product would help increase sales that were declining due to increased government health requirements. Next Super Bakery began refrigerating, vacuum sealing, and distributing their products across the nation. They were able to break the barrios of local markets and they became a national presence. They gained numerous customers and provided good customer service. Super Bakery helped its customers saved money, too. Finally, Super Bakery was able to lessen investment in permanent staff, fixed assets, and working capital by outsourcing all operating activities and becoming a virtual......

Words: 298 - Pages: 2

Costing Methods

...Costing Methods: Super Bakery ACC 561 Costing Methods: Super Bakery, Inc. Super Bakery, Inc. has a strategy in place that is in place to add maximum value to the company all the while making investments that are minimal. The company initiated an outsourcing strategy; instead of a multifunctional organization by taking activities that were selling, manufacturing, warehousing, and shipping. The outsourced companies will be combined and this will allow for a more organized work flow (Kimmel, Weygandt, & Kieso, 2009). The managers and employees at Super Bakery, Inc. thought it was a good idea to implement an activity-based costing system (ABC). This system would create a tracking system that would be more accurate on dealing with the costs in each order. By using the ABC system Super Bakery are hoping to improve their pricing and also has different customers that are located around the country (Kimmel, Weygandt, & Kieso, 2009). In my opinion the activity-based costing system is the best system that was chose by Super Bakery. The ABC system uses unit costs and not total costs, by choosing this method; it will show the costing system a little better. Super Bakery can use the ABC system as a way to track the costs of their products they have to suppliers and distributors. This company believes that because of these reasons this chosen system will work and be effective. A job order cost system and a process......

Words: 416 - Pages: 2

Abc-Costing

...ACTIVITY-BASED COSTING Activity-Based Costing (ABC) adalah suatu sistem informasi akuntansi yang mengidentifikasi berbagai aktivitas yang dikerjakan dalam suatu organisasi dan mengumpulkan biaya dengan dasar dan sifat yang ada dan perluasan dari aktivitasnya. ABC memfokuskan pada biaya yang melekat pada produk berdasarkan aktivitas untuk memproduksi, mendistribusikan atau menunjang produk yang bersangkutan. Sistem ABC timbul sebagai akibat dari kebutuhan manajemen akan informasi akuntansi yang mampu mencerminkan konsumsi sumber daya dalam berbagai aktivitas untuk menghasilkan produk secara akurat. Hal ini didorong oleh: 1. Persaingan global yang tajam yang memaksa perusahaan untuk cost effective 2. Advanced manufacturing technology yang menyebabkan proporsi biaya overhead pabrik dalam product cost menjadi lebih tinggi dari primary cost. 3. Adanya strategi perusahaan yang menerapkan market driven strategy Kelemahan sistem akuntansi biaya tradisional: a. Akuntansi biaya tradisional dirancang hanya menyajikan informasi biaya pada tahap produksi. b. Alokasi biaya overhead pabrik hanya didasarkan pada jam tenaga kerja langsung atau hanya dengan volume produksi. c. Ada diversitas produk, dimana masing-masing produk mengkonsumsi biaya overhead yang berbeda beda. Penerapan ABC sistem akan relevan bila biaya overhead pabrik merupakan biaya yang paling dominan dan multiproduk. Dalam merancang ABC sistem, aktivitas untuk membuat dan menjual produk digolonhkan dalam 4......

Words: 962 - Pages: 4