ON tonaings —_exourting 27: ae ed ~ a ix OF Activity - Bases Cosh NE ee oe N + MoH Cateutated on activity boveor es N ‘ pe Aeteity Basect Costing Acticin based costing (ABD is a setativ ~ Accent development in _managerrent_accountin: ¢ N N Thactitionsl Appiosch Problems (POHR): Sa z ~N + oven ancl Unotu _costin Cstimaked role 4 m Paces of ABC: Compania identify the majot activities phat cause over head cots fo be — ineeuied. C)_laendpy Aetvites (Retoted on ritott) Gi) Group costs of aetivitit! into cost pool: - Gil lelentipy measun of ochurier (Tre cost divas) Gv) Relode costs > ducts Using The cose olives. 4 7 Majer Aehvities t f Units Ceost drives) 7 7 Processing pruichese ates Numba of purchote orden Handling maluiat and part / No.of mraleial requisitions. 3: Inspecting Incoming meluiat and pak | Nov of sve ipts J ) PIR —d a a 4 Setting Up _quipment No of Setups Coestain infrastuchs fam. 73 Mat hining operations Mo: of machine Aowus T o - Associoted Costs: (Related to manwacturing ) > —¢ - Costs assounted with the preceding major activities Hove fo oo with salaries and wage, depreciation on ¢ ——Speprnt and the Like. Bet anol Cont gf MBO —~Berupits: Fit, ABC 1s tet chen than Gadivonas caste Runt cose on ove eo fooonas Sears MEE — ay tad to imytovements in cost. contol: ] "hss wey” ee — Scanned with CamScannerMloneay. tt Accounting Date ax seitaonne GER a Gadiitiona ~ ——Eiritationt: dt eying aerate to 0 Daditionay © ——igtter. a oo eR = Bevel Managements = ABC Process: E—aa ABM Process : ee ——————__eEeE=E=—ED"=-—|,—_|—§— [ Zo wennpy 4 + fe% corn bination of tose thing, ; (ABM) CD Aerreity Based” casting + Process impsevernent (i) Value added analysis + /epsove extsfornu J + Reoluce costs. : Non- value added activities: ~ Producing Olefective _parcefucts. 2 Huatacmy 1D butte ‘up inventory. 7 3: Waiting time jo picettting 4. Time Fore iy rove “ pioduch feorn lace to place. t 5. Feanspotting workers to work sites. Scanned with CamScannerDate 28> Des= 20a Actiity: Based Costing. _Formuta Poot ta%e eee eats - aiden a vt PloducE Pesign NTO hog cont Pot a fl = —-—_ aaa nae |_zoxys 280 2G pachine depusition ee | Orting < 2xr4~_ 43 2x20 = Factory clepte etation oer? PSX 20= 30 5 iis tees PS x24 = 36 PIG @ 3,496 47, UO @ Pot: Ovethead cost pr box: Total MOH Unit of box pa unit t 2,996 UO 20/000 20j000 ($2 = ff 0-424 wa = Jo Scanned with CamScannerBeet mor a eee = 9 1,020,000 «255. | __—_ 1000 SSeS | De eee be WW) eS2 . assxy, = 8/0) eo A ree etn 255 Kets = FiSBSS Ui) C82 - GF 12710 20000 0535, ) Ww29 = I $2355. ReFeeD (0 1000 = - E267 oS Scanned with CamScannerpep (ppl 017 Cost “Etirmnioms at ea rabsont aot ore Cee ¥. D Tota coe ey TT eee wait) grees 0 Fizes_cst 8 map ot i? Toner Hea tpt 1% AD, oe groups: vat'able. Alon a least squat Ly Requestion method: ema een (test) Activ (C000) = » Pecunst variable ——> Independent e 8h:000 73050 55 72-4 + Yaniable cost? Tan, Tol cost $h 000 — 231000 38,000 —— vauable (05 saggy ay a — ER Jan — Totet_pixet cost —§—— s _——— canned with CamScannereee etry ety ——$§ = Bn0oo 4 ff 73 41080 + otal vauiable cot fox Jan = 23% 50%? Oe D 2HEIF. + Jott cost = Total fixed) t To bal varrable e. Gh000 = Total fixed cost + 28)6/% v = 61000 =' 28,617 = otel fexed cost Totel fixed cat = 32393. Scanned with CamScanner= Exampl Puestion t Tuadss Aeccountin. Ji Coost) Ke Tn _| £60 2000 rn _| 590 20,000 amr _| 660 24/000 660-655. 5 ; £90 3%000 | 680-655. 25 a 740 42,000 740-6552 8S June 610 22,000 | 610-655 = 1S Tuy S90 26,000_| sg0-6sS2 ~ 75 Pug SS0 26)000_| 550-666 Sep 620 Bno000 | 630-6552 “25 Ot (47) 25000 640- 655- Nov 750 ysoo | 150-665: 2F Dew a8 282000. 770- 6652 US 7360 420,000 Zz-O0 Means Jo ZY n = 7860 = 655 A _ Mens R= ER SS 2 sy Xi)" Oe) Oi) ——leerrove _|___CS000) 25.600 1 000 10001000 ——_!6000 \ 060 100) 225,000 (Sy000) 00b= Per unit vosinbie 8 ee 75121000000) ( 53,900, TT pe cae cot b= 0-774 _perunit_vevinble cosh. i | eae. =ses4ee-=-2: Fx atbx 655 2 at (0-974) (351000) 65S = BRR =a b ZY070 Eee eee 65s ——. OSS Peete tiect 655 = at 34oI0 A= 34010 - 6SC Az 33,435 Toral frixect care. Scanned with CamScanner——— a Question 727 Gators (OFS Poa High and low _methoot 40}000 AV000. 18,000 Hig low ci) Per_unit variable = A cose A activi 0 gi 0-33 0:23 X 401000 (ii) Total _vesiable cost (Tuly) = > (8,200 28) 000 ~ 13,200 Gi) Toted fixed cost CTuty). a Predict the: enecgy’ Cos dy Aetivity 2 26/000 Totat fixed cart = (700 Pa unit vesiable 2 0°33 Totas vaiable cost = O83 X26,000 = 8/580 To tol cost » Total pined oot 7 14,900" 7 8 580 23,3880g & ‘ cy CAMA) , Sales less variable — ses al to _contiibusion mais —~ Fie ameune—conbatbating Peed Fhe) ~~ oft Gre basa ge pam Te Find oul phe _bresle- even point. ‘we eet eae fete \\\ O uation Apptoach + eel + = Pantit “4 unit sot x Sates | [OME x elms a jee vera expense, "nits | 4 ome @_ Contribution = Mosgin A ppiosch : Total fixed txpenso J a Ano Pex_unit is alvvays given in question « Sales (ess: Vostioble expenses _Conteipution eraagin less: Fixel expenses Net _fncome » Gal ma_sy variable txpense nitekna t - A et Scanned with CamScanner: a in earaibnln mmesgins hoe 7 ~ beeak = eet pointe! ine - used foams gfe aan ee Bseak -even BH Contabution —rnasgin _satio + l —aleulele phe beak even point jn cates cloltass 1 adnen Phare wei ag ~lusing Phe conte bution’ magi sation cs asd ang i peunit—or|7 heoodl f 7 > Fisk Famnula: » Foe | : Cont bution “-rnasgin Ratio Sales 7 + Second _Fownuta: yy, Fixed expense = Bueak- even pant ao co Ratio Cin sales doltou ) Toco mea =a" 306. x 102 2 YO —> CM Ratio. | 5 Sale To_find contribution rnosgn _puoprt J then, 80) 000 = Sf 800,000 Sates. on rueKy __—<————TS Scanned with CamScanneru _ ee = Fiatin = bby mn en @ Put: Pe unit: Pa unit Comubution matin _puunit Sales ~ vavable expy, * gso - J D fat: Qontuibution ynasgin gatio = CM Pe unit Sales per unite = 9G 30 a SO Fixed expenses CM pe _unié 42, 000 30 Scanned with CamScanner. jealss =m peTiN TRIE 5 ABC reumericnt_( Frectitionet Beview Problern) pln: Activity Based cortieg ____— sis $35 OO Review Puoblem) t ~~ Aeactice Ar B ——— | | | Se Tama Perret esto Cost. Estimation Crapler - Y Methods. ~ Vesual fit Sean olinjuam -_leask sguae Hib § “Tow. Cost volume (Chapin OF) 1 Question Slick C80) Cgaaph tok) - 8-27 Fuestion. v UELT Scanned with CamScannerDate un & 2 Bit = heey Sites = vasione 4p = OE" Pr. 39,04. oO #110 se00 22,000 7207 O02 30p000 901006 © 16 Dj000 Yo 1000 15,000 OO eS Force 30,600 Sbvos ® ORES $6000 - 7? = S8.t0q 33/000 - $B7000= G Soles Revenue ES = 398/000 = O08 Ee 110/000 ee ——————— ae Betek ean Splur Revenue = Fixed expense CMR SS ee eee = $0,000 = 62,500 $n ERT O0 O38 a SS = Scanned with CamScanner“pp Pats anew = TELAT rd pen ‘ ojos commas EA = 901000 = FO —— ee "75 —— SH of soles sevenue: —ymk = 2 gales sono - | vosiable expense = 40)000 = O25 XX = 60,000 © fast i Break evr - To tet firret ozper fe sal gevenue cme 0,000 = 181000 cre 75:000 _ ome 30,000 cme = 0:18 1S Bueatovin = Fixeol eyrte Cm. 90/000 = Fi ged! orpense 01000 K O-/375= /5,000 — Fizeol Scanned with CamScanner