Cost And Management Accountıng

Yanıt Açıklaması: Peanut butter costing is the name given to a costing system that broadly averages or spreads the cost of resources uniformly to cost objects.

Yanıt Açıklaması: The advantages of CVP analysis for business managers are as follows (ICSI, 2017: 326): It determines the lowest amount of production that will prevent the business to make a loss. It determines the unit cost and the working capital needed in various amounts of production. It evaluates the implemented managerial policies by comparing the planned and the actual breakeven point. It helps to choose the most profitable production types and helps to generate product mix. It determines the lowest sale price of production. It determines the necessary activity volume to achieve profit targets. It determines the effects of the products, their selling prices, their costs and the changes in demand on profit. It determines the activity volume that will meet the new investments. It helps the decisions on products to be produced, investments to be made and the sales prices of the products. It determines the sales price that will meet the rise in activity volume.

Yanıt Açıklaması: It should be Weighted Average Cost

Yanıt Açıklaması: The Use of Cost Information in the Decisions of Outsourcing: Businesses are able to reduce their costs and gain competitive advantage via meeting their activities which are not in their professional field over other businesses specialized in this field. Production businesses can get subcontractors to carry on some services which are out of their production field. In addition to services such as cleaning, security, automation, technical unit, catering service or staff transportation, production businesses may prefer outsourcing in marketing and advertising services

Yanıt Açıklaması: If the standards are set solely or primarily by the management only, they are called the authoritative standards.

Yanıt Açıklaması: Ending inventories budget provides an important input for the preparation of both pro forma balance sheet and cost of goods sold budget.

Yanıt Açıklaması: Contribution (Margin) is the difference between the unit sales price and the unit variable cost.

Yanıt Açıklaması: Budget is a quantitative expression of the managements’ plans for a specific period of time, either in physical or financial terms or both. Capital budgeting is the process of evaluating the feasibility of a project, using some indicators such as rate of return, the time needed to pay back, etc. A master budget is the combination of operational and financial budgets covering all aspects of company’s operations for a period of time. The master budget is made of two separate series of schedules and budgets; operating budgets and financial budgets. As also understood from the information the statements in the options I and IV are correct, so the correct answer is C. The statements in the option II is not correct because of the fact that capital budgeting is the process of evaluating the feasibility of a project, using some indicators such as rate of return, the time needed to pay back, etc. The statement in the option II is not correct, either because of the fact that a master budget is the combination of operational and financial budgets covering all aspects of company’s operations for a period of time.

Yanıt Açıklaması: Non-programmed (Nonroutine) Decisions: Non-programmed decisions are special decisions that will affect the profitability of businesses in future periods. This type of decisions are often unacceptable and can not be taken as a reference. Non-programmed decisions can be taken by toplevel managers. Purchasing additional machinery to increase the capacity of the business or changing the location of the business can be given as an example for non-programmed decisions.

Yanıt Açıklaması: Master budget; is the comprehensive set of schedules and budgets that covers all phases of the company’s operations and describes the company’s overall financial plans for the following period.

Yanıt Açıklaması: Cost-Volume-Profit analysis is the study of the effects on future profit of changes in fixed cost, variable cost, sales price, quantity as a whole

Yanıt Açıklaması: With the kaizen budgets, expectations on continuous improvement are incorporated with the budgeting process. The required amounts of resources are adjusted every time according to the desired levels of efficiency and productivity. Kaizen budgeting approach is much more effective when combined with activity-based budgeting technique. However, it should not be confused with traditional cost-cutting methods, in which the level of productive activities is decreased in cases of diminishing profits, decreasing sales, etc. Kaizen budgeting is related to performing the same activities with higher efficiency and higher quality. Managers may apply kaizen in both internal and external improvements. By decreasing the waste rates or increasing the capacity utilization rates internal improvements can be reached. On the other hand, many companies are arranging with their suppliers on providing improved quality with cheaper prices; so, they are decreasing their costs while increasing the quality by external improvements. As also understood from the information given, all of the statements in the options about the kaizen budgeting are correct, so the answer is E.

Yanıt Açıklaması: Equivalent unit is a derived measure of output that reflects the number of completed units that could be produced with the same quantity of input consumed for both finished goods and workin-process inventories.

Yanıt Açıklaması: Expected Profit = Expected Revenue – Expected Expenditure = 14.000 - 11.000 = 3.000 Net Economic Earning = Expected Profit – Opportunity Cost = 3.000 - 1.200 = 1.800 TL

Yanıt Açıklaması: A good decision should have the following qualities: Effective Efficient Practicable Made on time

Yanıt Açıklaması: Product-cost cross-subsidization is the term used to define the situation in which over-costing in one or more products results in under-costing in other products.

Yanıt Açıklaması: Labor Costs related to Legal or/and Contractual Enforcement or Discretionary Reasons are: Week and Holiday Pays Overtime Premium Night/Shift Premium Social Welfare Contributions Health Payments Holiday Pay Allowances Education and Training Payments Severance Payments Social Security Premiums Unemployment Insurance Premiums

Yanıt Açıklaması: It determines the lowest sale price of production

Yanıt Açıklaması: Static (Fixed) budgets; are the budgets, in which the predetermined sales levels are used in preparing the budgets. In other words, the static budget remains unchanged irrespective of the actual level of activity. This kind of budget does not consider a possible difference between the actual and budgeted production volumes. Therefore, any deviation from the budget may result because of the difference between either the actual and budgeted volume or different-than-standard unit costs/prices. It mainly aims to coordinate sectional activities to attain company objectives.

Yanıt Açıklaması: In actual costing method, product cost is calculated at year-end by using the cost data that incurred during the year.