Best Grade Valued Based Controlling MBA Assignment
2 views 0 purchase
Course
1585 (BUSINESS)
Institution
FOM Hochschule Für Oekonomie Und Management
This assignment covers various cost accounting methods for pricing strategy, cost allocation, and profitability assessment. It includes the plant-wide rate method based on different factors, such as machine hours and direct labor costs, as well as activity-based costing and life-cycle costing. The ...
List of Tables
Table 1: Production cost per unit based on machine hours……………………………….2
Table 2: Final selling price per unit based on machine hours……………………………3
Table 3: Production cost per unit based on direct labor costs……………………………3
Table 4: Final selling price per unit based on direct labor costs…………………………..3
Table 5: Production cost per unit based on direct labor hours…………………………….4
Table 6: Final selling price per unit based on direct labor hours…………………………4
Table 7: Overhead allocation using different allocation rates…………………………….4
Table 8: Final selling price per unit based on different cost center’s allocation rates……5
Table 9: Allocation of variable overhead cost based on ABC costing method…………..5
Table 10: Production cost per unit based on ABC costing method……………………...5
Table 11: Final selling price per unit based on ABC costing method…………………….6
Table 12: Summary Assessment with percentiles………………………………………10
, iii
List of Abbreviations
ABC Activity-Based Costing
CEO Chief Executive Officer
EBIDTA Earnings Before Interest, Depreciation, and Taxes
EBIT Earnings Before Interest and Taxes
EBT Earnings Before Taxes
FIFO First-in-First-out
LCC Life cycle costing
R&D Research & Development
, iv
Table of Content
List of Tables .................................................................................................................... ii
List of Abbreviations ....................................................................................................... iii
1. Introduction .................................................................................................................. 1
1.1. Tasks ...................................................................................................................... 1
1.2. Pricing strategy ...................................................................................................... 2
1.3. Cost centers ............................................................................................................ 2
2. Findings: Different cost allocation methods................................................................. 2
2.1. Plant-wide rate method based on machine hours ................................................... 2
2.2. Plant-wide rate method based on direct labor costs ............................................... 3
2.3. Plant-wide rate method based on direct labor hours .............................................. 3
2.4. Using different allocation rates from cost centers ................................................. 4
2.5. Activity-Based costing (ABC) ............................................................................... 5
3. A look into the future: Life-cycle costing method ....................................................... 6
4. Equivalent units of production ..................................................................................... 6
5. Full-costing vs. Variable costing .................................................................................. 7
6. Profitability margin assessment .................................................................................... 8
7. Break-even-point analysis ............................................................................................ 9
8. Probabilistic cost and external risk analysis with Monte Carlo Simulation@Risk ...... 9
9. Conclusion .................................................................................................................. 10
References ...................................................................................................................... 12
Appendix ........................................................................................................................ 13
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller jospisfil. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $6.96. You're not tied to anything after your purchase.
