How To Write A Criticism Paper

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Activity Based Costing And How It Works

Activity Based Costing And How It Works

I chose to write about activity based costing. I chose to write this paper because I wanted to know more about activity based costing and how it works. According to our text, activity based costing (ABC) has received a lot of attention since the 90's. ABC has a lot of more details and can be more complicated than all the other costing methods, however it's more accurate. "Costing systems are information systems. They require a specific type of information such as direct labour hours and units produced, to be of value. It is from the input data that product costs and other information are determined according to the specific costing system defined methodology. The results obtained would depend on the costing system used, since the same input data could be used in different ways. In this case the traditional costing system or an activity based costing system" (Marx.) A costing system should provide information to help minimize waste, but should not be wasteful in itself. In other words, the resources required to design, implement and maintain a costing system should be less than the benefit derived from the use of the system (Marx.) "Activity based costing (ABC) assigns manufacturing overhead costs to products in a more logical manner than the traditional approach of simply allocating costs on the basis of machine hours. Activity based costing first assigns costs to the activities that are the real cause of the overhead. It then assigns the cost of those activities only to

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Activity Based Costing 22

Activity Based Costing 22

Activity Based Costing

Worked Example



The following information provides details of the costs, volume and transaction cost drivers for a period in respect of XYZ Ltd:



Products A B C Total

Sales and production (units) 90,000 30,000 15,000 135,000

Raw materials usage (units) 10 7 14 1,320,000

Direct materials cost (£) 30 40 15 4,125,000

Direct labour hours 2.5 3 1.5 337,500

Machine hours 5 3 7.5 652,500

Direct labour cost (£) 20 30 10 2,850,000

Number of production runs 5 10 50 65

Number of deliveries 18 7 50 75

Number of receipts 50 70 700 820

Number of production orders 45 25 60 130



Overhead costs £

Set up 75,000

Machines 1,000,000 ... Show more content on Helpwriting.net ...The receiving overhead rate is



Total receiving overheads

Total number of receipts £900,000

820



£1,097.56 per receipt



Using this rate as a constant allows us to evaluate the product overhead apportionments: overheads per receipt x receipts per product group



For product A:



£1,097.56 per receipt x 50 receipts



£54,878



Product A B C

Receiving overheads apportionment £54,787.0 £76,829.3 £768,292.7



We then divide these product apportionments by the number of units made for each product, to derive the cost per unit for receiving goods. The calculations here give the following results:



Product A B C

Receiving cost per unit £0.60976 £2.5610 £51.2195



Notice, when compared with Drury 's method of using the overhead rate as a percentage of direct materials cost, the version presented here gives a radically different result. Had we applied Drury 's method, the product receiving cost per unit would have been:



Overhead absorption rate:



£900,000 x 100 = 21.82%



= £4,125,000



Applying this rate to each product 's material costs gives:



Product

A B C

£6.55 8.73 3.27



The method we have used applies the full spirit of ABC by identifying and using fully the ABC approach. The other overhead rate, the Machine Hour Rate, is £3.79. This is calculated by dividing the total other overheads by the number of machine hours applied, or worked. In

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Activity Based Costing 12

Activity Based Costing 12

Activity–Based Costing



Activity–Based Costing

Activity based costing (ABC) is a costing method that is designed to provide managers with cost information for strategic and other decisions that potentially affect capacity. Activity based costing is a subset of activity–based management. Activity based costing is used to determine product costs and for internal decision–making and for managing activities. Traditional Absorption costing is for external financial reporting.

Activity–based costing is a suitable and appropriate method for companies with multiple products or services who are having problem of inaccurate costing information and need to know which products are really profitable and which are the one that is making loss. For ... Show more content on Helpwriting.net ...Secondly, these activities are traced to the products, services, or customers for whom the activity is performed.

In conclusion, ABC stands out by breaking down the costs into a very detailed level. This information will give management a very clear picture of which processes come with high costs but little value and how to improve the process or to eliminate the process entirely. This method is suitable for use when there is high overhead, complex product and in very competitive market.

Difference between Activity–Based Costing and Traditional Absorption approach

Activity based costing systems accumulate costs into activity cost pools. These are designed to match to the major activities or business processes. The costs in each cost pools are largely caused by a single factor called the cost driver. Whereas in traditional costing, systems accumulate costs into facility–wide or department cost pools. The costs in each cost pool are different. There are many costs of different processes, which are not caused by a single factor.

Activity based costing systems allocate costs to products, services, and other cost objects from the activity cost pools using allocation bases corresponding to cost drivers of activities cost. Whereas in traditional costing, systems allocate to products using volume–based allocation bases, for example, units, direct labor, machine hours or revenue dollars.

In terms of hierarchy of costs, activity based costing allows for

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Activity Based Costing From The Perspective Of Competitive...

Activity Based Costing From The Perspective Of Competitive...

ACTIVITY BASED COSTING FROM THE PERSPECTIVE OF COMPETITIVE ADVANTAGE: A STUDY OF NIGERIAN MANUFACTURING FIRMS



Anyadiegwu Peace Ebele1, Prof. Ifurueze Meshach S. 2

1, 2 Department of Accountancy Chukwuemeka Odumegwu Ojukwu University (COOU) Igbariam, Anambra State

Email: ebele_okpala@yahoo.com Phone: +2348038947784



ABSTRACT

The focus of this study was to examine activity based costing from the perspective of competitive advantage. ABC can support the strategic management process and provide significant benefit to organizations. This examination utilized the contingency theory as a theoretical basis for the study. Descriptive survey design was adopted. The data gathering instrument employed for this study is a structured questionnaire. Data are analyzed through SPSS version 16. Reliability analysis using Cronbach's alpha value was applied on data collected. Factor analysis was employed using principal component method followed by Varimax with Kaiser Normalization, to find the factors or dimensions that explain variances by the data set. The factor analysis is based on four dimensions, namely, overall performance, strategic cost allocation method, increased efficiency and increased effectiveness having the factor loadings of over ±0.3. The regression results are positive and significant at the 5% level. Findings reveal that there is no statistically significant difference in cost reduction attained by ABC over Traditional costing, though ABC tended to have higher effect.

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How To Write A Critical Lens Essay

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Accounting, Personal Finance and Personal Finance Software

Accounting, Personal Finance and Personal Finance Software

a) Accounting is the social science that studies, measures, analyzes and records the heritage of organizations, businesses and individuals, in order to serve in decision–making and control, presenting the information previously recorded, systematically and useful for different stakeholders. It also has a technique that produces structured and systematic quantitative and valuable information, expressed in monetary units on transactions made by economic entities and certain identifiable and quantifiable economic events that affect it, for the purpose of providing it to the various public stakeholders. The purpose of accounting is to provide information at a given moment and the results obtained over a period of time, which is useful to users in making their decisions, both to control the past administrative events, and tor estimate future results, providing such rational and efficient decisions Accounting is very important as all companies as well as individuals must keep track of their business and financial affairs, so to get higher profits. In addition, accounting is necessary to obtain legal information. We could say that, at a personal level, accounting is the financial tool that helps us go throughout our financial plan, showing us where we are financially at each period of time, and advising us in order to make the best economic and financial decisions. b) Personal finance planning is not easy, and the big picture, in fact, can be complicated to understand. There are

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Accounting Analysis of the 2011 Annual Report for Bank of...

Accounting Analysis of the 2011 Annual Report for Bank of...

Table of Contents

1. Executive Summary 2

2. Overview 2

3. Description of key accounting policies and standards 2 3.1 Loans and advances at amortised cost (Asset) 2 3.2 Deposits and borrowing (Liability) 2 3.3 Employee benefits (Expense) 2

4. Flexibility of Management in Selecting the Key Accounting Policies 3 4.1 Loan and Advances at Amortized Cost 3 4.1.1 Flexibility Analysis 3 4.1.2 Accounting policies analysis 3 4.2 Deposits and Borrowing 4 4.2.1 Flexibility Analysis 4 4.2.2 Accounting Policies Analysis 4 4.3 Employee Benefits 4 4.3.1 Flexibility Analysis 4 4.3.2 Accounting policy analysis 4

5. Quality of Disclosure Made in BOQ Accounts 5 5.1 Business Strategy and Economic Consequences 5 5.2 Notes to the ... Show more content on Helpwriting.net ...Theoretically, investors require a discount on bonds because the market interest rate at the time of issue is higher than the coupon payments on the bond. Therefore, by amortizing the discount at the market interest rate, accounting statement of Bank of Queensland will exactly reveal the economic reality of the bond issue and its true cost of debt.

4.2Deposits and Borrowing

4.2.1 Flexibility Analysis

Due to the characteristics of banking industry, there is a high flexibility for management in these two liabilities. It is noticeable that deposits and borrowing accounted for about 97% of total liabilities on the balance sheet. Occupying 69% of total deposits, managers pay more attention to Retail Banking Services because of itsattractiveness to customers compared to other types of deposits.

4.2.2 Accounting Policies Analysis

This policy states that securitization set–up costs relating to on–balance sheet assets are included with securitization borrowings, and amortization is recorded as interest expense. Initially, excluding off–balance sheet costs makes the liability much smaller and enlarges their net assets. Likewise, interest on debt is a tax–deductible expense and creates a tax shield benefiting Bank of Queensland. The major function for this policy is to save cash flows for BOQ.

4.3 Employee Benefits

4.3.1 Flexibility Analysis

Employee expenses mainly consist of share based payments and employee benefits. All of

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Accounting 2302 Summer 2015 – Budget Project

Accounting 2302 Summer 2015 – Budget Project

ACCOUNTING 2302

Summer 2015 –

BUDGET PROJECT



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Objective: To understand and apply the basic concepts of profit planning.



Due date: At the end of class 13

Late submissions will be penalized 15 points and will be accepted no later than class 15



Grading: This project is worth 40 points.



Required: You need to prepare a comprehensive 6–month budget, including supporting schedules and a report for the period January 1, 2010 to June 30, 2010 for Henron, Inc (a fictional company). This project must include:

1. Sales Forecast and Budget..........

2. Cash Receipts budget................

3. ... Show more content on Helpwriting.net ...7. Forty percent of the inventory purchases are paid for in the month of purchase and the remaining 60% are paid in the following month (i.e. all of the previous month's Accounts Payable are paid off by the end of any month.)



8. Per a prior contract, a cash payment of $50,000 for equipment previously purchased is due in January. Another payment of $30,000 is due in February. Depreciation on the equipment previously purchased is included in the overhead cost detailed in item 11 below. Also, dividends of $12,000 are to be paid in March.



9. Monthly operating expenses consist of the following (if these are cash expenses, they are paid when incurred):



Salaries and Wages $3,000

Sales Commissions 7% of sales revenue

Rent $8,000

Other Variable Cash Expenses 6% of sales revenue

Supplies Expense: See note $2,000

Other: See note $48,000



Note: Other general and administrative overhead is expected to be $48,000 per month. Of this amount, $24,000 represents depreciation and other non–cash expenses. The company maintains on hand one month's worth of supplies.



10. The company must maintain a minimum cash balance of $15,000. Borrowing can make up shortfalls. For simplicity, assume that the bank will only lend (and accept repayments) in $1,000 increments. Ignore interest on the loan in your calculations, but minimize the amount borrowed and pay off any loans as soon as possible.



11. Cash on hand

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Activity Based Costing ( Abc ) Assigns Processing Overhead...

Activity Based Costing ( Abc ) Assigns Processing Overhead...

Introduction

Activity based costing (ABC) assigns processing overhead costs to products in a far more rational manner than the traditional methodology of simply allocating costs based on machine time. Activity based charging first assigns costs to the actions that will be the source of the overhead. After that it assigns the cost on those activities and then the merchandise that demand the actions.

The Activity Based mostly Costing, known as ABC in Accounting also, is a new way towards a far more thorough and good allocation of costs. It alters the original way of allocating costs that was based through enough time the machines are in work or within an operation. The lean Structured Costing, on the other side, is dependent on each ... Show more content on Helpwriting.net ...biggest organizations. These give a chance to survey the advances that have happened in the ABC implementation status of organizations over a late 5–year period. For the ABC clients, some relative data is given on the way of the ABC frameworks being used, their planners, the utilization to which they have been put and the levels of achievement and significance that members credit to them. For the non–clients, the purposes behind their absence of commitment to ABC are investigated.

Organizations have diminished their reliance on conventional accounting frameworks by creating activity based cost administration frameworks. At first, administrators saw the ABC approach as a more precise method for computing item costs. However, ABC has risen as a massively helpful manual for administration activity that can decipher specifically into higher benefits. In addition, the ABC methodology is extensively relevant over the range of organization capacities and not simply in the plant.

Steps of ABC Accounting

There are eight basic steps of the ABC method.

1. outline the scope

2. recognize activities

3. construct the process

4. acquire data

5. recognize which kind of ABC to work with

6. construct the model

7. evaluate the model

8. Take action

Advantages of ABC Costing

Advances Business Techniques:

Activity Base Accounting system implements the indirect cost that is dependent on a product's cost driver, or the factor that create

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Activity Based Costing – Glaser Health Products Case

Activity Based Costing – Glaser Health Products Case

Introduction

Glaser Health Products manufactures medical items for the health care industry. Production involves machining, assembly and painting. Finished units are then packed and shipped. The financial controller is interested to introduce an activity–based costing (ABC) system to allocate (or distribute) indirect costs to products. Indirect costs, as distinct from direct costs, cannot be unambiguously linked to specific products. The controller would like to calculate product costs based on ABC for planning and control, not inventory valuation.

Under an ABC system, the allocation of costs to products is achieved through at least four analytical steps. Firstly, costs are grouped into activity levels. Secondly, cost drivers are ... Show more content on Helpwriting.net ...Cost Drivers by Activity Level by Division

Cost drivers can be identified for each activity or cost category based on observation, discussions with management, simulations and statistical studies. The key is to determine the behavior of indirect costs with respect to activity or resource usage in each activity center (Leslie, 2009). These efforts have identified the eight cost drivers shown in Table 3.

Direct labor assembly costs are, by their nature, directly traceable to individual products. Therefore the relevant cost driver for this cost is the number of Direct Assembly Labor Hours. The other 21 cost categories are indirect costs.

At the unit activity level, electricity assembly costs are likely to vary with Direct Labor Hours, Assembly. Similarly, the three machining costs grouped at the unit–activity level are likely to vary with by the number of Direct Labor Hours, Machining.

Secondly, at the batch activity level, paint cost is likely to vary mainly with the Number of Batches Processed. Painting activity is the only batch activity at Glaser.

Thirdly, at the product activity level, the two Operations costs are likely to vary mainly with the Number of Units Produced and the three Sales costs are also likely to vary mainly with the Number of Units Produced.

Finally, at the facility–level, the five Operations costs are likely to vary mainly with the

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Action Research Proposition 3

Action Research Proposition 3

Action research is a strategy I can use to inquire and gather information of how to conduct and interpret my own research for educational and building improvement purposes. Proposition 1: Teachers are committed to students and their learning.

Indicator 1f: Teachers model ethic behavior and civic responsibility and address a student's character development.

After reading Craig Mertler's (2013) book, Action Research: Improving Schools and Empowering Educators, I learned there are four basic steps in the process of action research: identify the area of focus and determine what the problem is, collect data to answer the question, analyze and interpret data, develop a plan of action.

Next year I would like to use the process of action research ... Show more content on Helpwriting.net ...I wondered if it would work with sixth graders and what the effects of using Class Dojo to manage student behaviors would be. Students are encouraged to persist with building their own individual points, while also building teamwork skills to earn overall group points. I invited parents to log into the program to also track their student's behavior throughout the day, receive or send instant messages, and photos from the classroom. As a quantitative method in the research, I designed a survey to ask students to name the "positive behaviors" we should have in our classroom and the "needs work behaviors" we could have. I used their results to set up the behaviors to track in our classes. The qualitative method looks at the evidence, which is the data collected from each student and the class as a whole group. The data can be broken down into daily, weekly, monthly or all time points collected. My plan is to compare the positive and needs work behavior data from first and second semester to investigate how affective Class Dojo is in encourage positive student

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Action Research Project Financial Management Essay

Action Research Project Financial Management Essay

Action Research Project–Financial Oversite of Operations Synopsis of this paper contends with action research, and looks into processes and starts with genuine reflection coordinated toward recognizing a point or themes deserving of a implementing change within an organization. Considering the interconnected relationships and culture in our organizations and the value placed on producing more and carrying more responsibility, no action merits doing unless it guarantees to make the focal part of an managers or organizational production more effective and fulfilling striving to enrich the environments that work. Therefore, selecting a center, to begin to expand of the interworking of a project to bring this change about, is crucially essential. Selecting a center starts with key participants that will be critical to the success of an action research project or activity analysts inquiring usually by stakeholders of some issue that needs attention for this ultimate implementation of change.

Further, we need to recognize the qualities, convictions, and hypothetical viewpoints from real life experiences related to the issues that are being identified as needing change with the participants involved in their core interest. For instance, if a stakeholder is worried about the expanding products or equal consideration for cultural diversity, it will be useful for them to start by illuminating which approach–through action research can be qualitative or quantitative in nature.

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How To Write A Creative Nonfiction Essay

Title: Unlock Your Creativity with Our Expert Nonfiction Essay Writing Services

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Action Research Literature Review

Action Research Literature Review

Executive Summary



Action Research believes that "Human organizations can only be understood as whole entities" (Baskerville, 1999) and that social processes are best to be studied when change is introduced to observe the effects of these. Furthermore, It makes use of a cyclical approach in order for an initial holistic understanding of a social setting. The action research literature has strongly challenged the character of positivism. It is believed that this type of research is derived from a different ontological basis; it tends to a humanistic social practice rather than a traditional natural science.



Lewin started with the term ‘action research'. His approach to the process is composed of a circle of planning, action and ... Show more content on Helpwriting.net ...Interpretivism beliefs that the world is socially constructed and subjective, that the observer is part of the what is observed and that science is driven by human interest. Furthermore, interpretivism, like action research, tries to understand what actually is happening by looking at the totality of each situation.



Positivism is a "research philosophy that involves working with the observable social reality. The emphasis is on highly structured methodology to facilitate replication, and the end product can be law–like generalisations similar to those produced by the physical and natural scientists" (Saunders, 2003). The basic beliefs are that the world can be seen as an external and objective object where the observer remains independent. The action research literature has strongly challenged the character of ‘positivist' research (Waterman et al, 2001; Hart, 1996; Susman and Evered, 1978).



These can be summarised as follows:



§ The impossibility of achieving the assumption of objectivity in research findings and outcomes as well as the ability to control a limited number of research variables.

§ A critique of the notion of researchers attaining a detached/value free/neutral position and a recognition of the existence of oppressive ideologies and vested interests;

§ A questioning of a ‘scientific' approach and the features of generalisability,

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Action Research Is Way Of Learning Things With Different...

Action Research Is Way Of Learning Things With Different...

Action Research is way of learning things with different types of means. Some learn new things by doing it (O 'Brian, 1998). It could be through collaborative inquiry, participatory research, action learning or through contextual action (O'Brian, 2001). Basically, Action Research involves group of people working towards the same goals. For example, the company X created a group of 5 people to figure out the problem the company is facing such as to figure out ways that caused poor performance. In this case, they should identify what the major problem is, take steps to gather data and information, analyze them and work together to come with the best solution. Once they come up with the plan, they use that to see if their efforts are good enough to solve the issues. In this case, management decides whether it's successful or not. If they are unsatisfied, they can ask the group to try again (O'Brian, 2001). In Action research, the researcher and the client work together in order to meet or achieve the targeted goals (Padak, 2015). There are different stages associated with this research such as identifying questions what are the major issues that need immediate care, collecting data and information from various sources so that one can understand what the real problem is. The real problem can only be found if you do immense research, analyze all the data and information and share the results with others in the research team (Padak, 2015). Action Research is a name that covers a

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How To Write A Critical Thinking Paper

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Action Research Is Not Only Collect Data Essay

Action Research Is Not Only Collect Data Essay

The purpose of action research is not only collect data but to aim for useful data that can be used to change the lives around us. According to Esterberg, "action researchers see knowledge as power" (pg. 137) thus meaning if individuals can see the inequality around them and are educated on it then they can use the "power" to change society and promote equality.

2. Describe the three varieties of action research.

The three varieties of action research include participatory action research (PAR), feminism action research, and evaluation research. Participatory action research focuses on "the active participation of those being researched" (pg. 137). Meaning, there is a focus on equal participation between the researcher and the people being observed. Feminist action research is the promotion for change. There is an "emphasize on political action and critique of model of research that emphasize on hierarchal relationship between he researcher and those being researched" (pg. 139). Evaluation research is the evaluation of a program or policy. This type of researchers focus on collaborating on field notes and collecting interviews from areas they are observing.

3. What does Esterberg mean when she states that action research is focused on "democratizing" the research process?

When Esterberg states that action research is focused on "democratizing" the research process she is stating that the research is for everyone. Traditionally the researcher owns the work and data they

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Action Research in Od

Action Research in Od

ACTION RESEARCH & ORG. MIRRORING IN OD



Action research is a reflective process of progressive problem solving led by individuals working with others in teams or as part of a "community of practice" to improve the way they address issues and solve problems. Action research can also be undertaken by larger organizations or institutions, assisted or guided by professional researchers, with the aim of improving their strategies, practices, and knowledge of the environments within which they practice. Kurt lewin described action research as "a comparative research on the conditions and effects of various forms of social action and research leading to social action" that uses "a spiral of steps, each of which is composed of a circle of ... Show more content on Helpwriting.net ...Data are again gathered from the client system so that progress can be determined and necessary adjustments in learning activities can be made. Minor adjustments of this nature can be made in learning activities via Feedback Loop B (see Figure)



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.Major adjustments and reevaluations would return the OD project to the first, or planning, stage for basic changes in the program. The action–research model shown in Figure 1 closely follows Lewin 's repetitive cycle of planning, action, and measuring results. It also illustrates other aspects of Lewin 's general model of change. As indicated in the diagram, the planning stage is a period of unfreezing, or problem awareness. The action stage is a period of changing, that is, trying out new forms of behavior in an effort to understand and cope with the system 's problems. (There is inevitable overlap between the stages, since the boundaries are not clear–cut and cannot be in a continuous process). The results stage is a period of refreezing, in which new behaviors are tried out on the job and, if successful and reinforcing, become a part of the system 's repertoire of problem–solving behavior.Action research is problem centered, client centered, and action oriented. It involves the client system in a diagnostic, active–learning, problem–finding, and problem–solving process. Data are not simply returned in the form of a written report but

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