The solutions are as follows: See table 3 for inside informations. When using the revised cost accounting system, the company allocated the overhead cost based on machine hours. Making a cost pool for having and material handling costs by ciphering the figure of minutess consumed for every merchandise.
As mentioned by Peggy Alford, this gives an thought why rivals are cutting monetary values on pumps. The net net income would be the same as the net net income of the last month.
Here, presuming that the measures of the productions and the gross revenues, stock list, selling monetary values stay the same, and the monetary values of stuff, labor, managing remains the same.
In the criterion cost accounting there is no attempt made to track the operating expense costs to the merchandises.
Strategic deductions of the fiscal analysis Harmonizing to Bhimani et Laextremely competition concern environment requires a comprehensive costs understanding, and a proper costing scheme is indispensable to ease determination doing.
The bottom line will be affected in instance the consequences demoing in the ABC method are considered and the merchandising monetary values are adjusted.
Destin Brass Products Co. Case Study or any similar topic only for you Order now Merchandise costs as per the ABC information From the given information in the instance survey, there is a connexion between the merchandises costs and the costs incurred by the activities related to the productions of each merchandise line.
Creating a cost pool for receiving and material handling costs by calculating the number of transactions consumed for every product. Strategic implications of the financial analysis According to Bhimani et lahighly competition business environment requires a comprehensive costs understanding, and a proper costing strategy is essential to facilitate decision making.
Comparing the ABC with the criterion and the revised unit costs In this comparing, it will look the cost of each merchandise under the three types of bing computation methods and the ground why they are different. But, in malice of the importance of the fiscal and accounting information that the bing method will supply, the direction vision should be supported by the information non merely dictated by the accounting information.
In the standard cost accounting there is no effort made to track the overhead costs to Destin brass products co essay products. Making a cost pool for technology costs by ciphering how much technology is consumed by each merchandise.
The staying operating expenses are allocated on the footing of machine hours. Comparing the ABC with the criterion and the revised unit costs In this comparing, it will look the cost of each merchandise under the three types of bing computation methods and the ground why they are different.
This indicates that the inaccurate costing allotment can take to either over or under pricing. The bottom line will be affected in instance the consequences demoing in the ABC method are considered and the merchandising monetary values are adjusted. The bottom line will be affected in case the results showing in the ABC method are considered and the selling prices are adjusted.
The fiscal analysis After measuring the current fiscal state of affairs of Destin Brass, The analysis hereby will join forces to reply the direction inquiries, and illustrations of the below solutions had been used by concern and it proved to hold an influence of determination devising procedure sing the company scheme.
Since flow controller production use most of the transactions, the costs assigned to flow controllers are higher under ABC than they are under the traditional cost accounting system. Destin Brass Products Co. So whether the company uses direct labor dollars or machine hours, the overhead costs allocated to flow controllers are relatively low since they consume less of this cost basis.
Finance and accounting, as mentioned by Ambler are the necessities and footing to the short and long being of any type of companies. Table 1 had shown the ABC costs computations for the three merchandises. Table 1 had shown the ABC costs computations for the three merchandises.Read this essay on Destin Brass Products Co.
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Destin Brass Products Co.
has been established and grown to produce valves (24% of the company revenue), pumps (55% of the company revenue), and flow controllers (21% of the company revenue). Destin Brass Products Co. case. Essay by mofojoe, University, Bachelor's, A+, March download word file, 3 pages, Downloaded times.
Keywords 3/5(5). Destin Brass Products Co. 1. The estimated total product costs per unit for valves, pumps and flow controllers areand respectively, as.Download