# Cost Accounting Analysis Essay examples

1756 Words Mar 29th, 2014 8 Pages
3.0 Variance Analysis
3.1 Flexible-Budget Variance Analysis
In Barnes Scuba Diving case, the main comparison for the flexible-budget variance analysis would be between the actual results and flexible budget. Static budget would not be useful for this comparison due to the different sales unit output which may result in a misleading and inaccurate result comparison.
With reference to the Flexible Budget Section attached in Annex X, Flexible-Budget Variance for Revenues was identified to be a favourable variance of \$50,400 due to the fact that there was an increase of 216 participants on top of the budgeted 1800 participants and also an additional increased in course fee of \$25 on top of the budgeted \$350(selling price per unit). This
Barnes does not need to bear responsibility to replace the logbook free of charge as it incurs additional cost. Since customers value the logbook, Barnes could have charge a nominal fee to replace the logbook to cover its cost, in which customer would not mind paying for if it was lost due to their carelessness. This could have prevented Barnes a cost of \$2657.60 (\$8.80X302) from replacing the logbook free of charge.

3.2.2.4 T-Shirt/Sweater
The unfavourable price (\$7863) and quantity (\$9075) variances of T-Shirt/Sweater were due to the increase cost of \$3 per unit from standard cost and increase quantity of 605 units for replacement of wrong T-Shirt sizes. Barnes could have control the increase cost per unit by sourcing for cheaper supplier instead of settling for T-Shirt R Us, who charges more per unit. Likewise, since Barnes was confident that the wrong T-Shirt sizes orders were not their responsibility and have evidence to prove, Barnes could have insist the supplier to bear responsibility of the wrong T-Shirt sizes and return the wrong order. Barnes would have prevented the additional cost of \$10890 (605 unitsX\$18) from incurring. Alternatively under the same situation, if Barnes could not get the supplier to be responsible for the wrong order, Barnes should not have given the extra T-shirts away to customers who wanted them. Barnes could have save the T-shirts for the next course intake for customers who may suit the

## Related Documents

• ###### ACCT 301 Final Exam Essay

What is the accounting equation? Suppose your company sold \$12,000 in merchandise to a customer for cash. How does this transaction impact the accounting equation? 2. (TCO 2) What are the four basic financial statements? Describe the balance sheet, and explain why it is important 3 What is the Sarbanes-Oxley Act? Do you think this act has more importance for the accounting profession or for investors? Why 4 What is horizontal analysis of financial statements? How does horizontal analysis differ from…

Words: 4347 - Pages: 18
• ###### Acct 346 Managerial Accounting Devry University Essay

Managerial Accounting Devry University http://www.accttutorials.com/downloads/acct-346-managerial-accounting-devry-university/ Click above Link to get this A Graded Material For More information visit our website: http://www.accttutorials.com ACCT 346 Managerial Accounting Devry University Week 1 Discussion 1 Ethics and Ethical Behaviour (graded) The Sarbanes-Oxley Act of 2002 (SOX) has emphasized the importance of ethical ehaviour and codes of conduct. Discuss the costs and benefits…

Words: 18296 - Pages: 74
• ###### Essay on Accounting Management Tools

What is management accounting? Management accounting or managerial accounting is the process of identifying, analyzing, recording and presenting financial information that is used for internally by the management for planning, decision making and control. In contrast to financial accounting, managerial accounting is concerned with providing helpful information and reports to internal users such as managers and entrepreneurs, so that they can control and plan the business activities. According to…

Words: 751 - Pages: 4
• ###### Essay on Acc 227 Complete Course

this tutorial visit here: http://mindsblow.us/question_des/ACC227COMPLETECOURSE/119 contact us at: help@mindblows.us ACC 227 COMPLETE COURSE ACC 227 Week 1 Checkpoint Cost Accounting Fundamentals Appendix BACC 227 Week 1 DQ 1 and DQ 2ACC 227 Week 2 Assignment Chapter 2 Video Case ACC 227 Week 2 Checkpoint CVP Analysis ACC 227 Week 3 Checkpoint Week Three Journal Questions Appendix C ACC 227 Week 3 DQ 1 and DQ 2 ACC 227 Week 4 Assignment Normal and Actual Costing ACC 227 Week 4 Checkpoint…

Words: 2604 - Pages: 11
• ###### Management Accounting And Practices Of Small And Medium Enterprises

considerable information about Management Accounting and the practices of Small and medium Enterprises, bringing out the interdependence and interrelation of one to the other. 2.2 Overview of Management Accounting Management accounting was first known as cost accounting. This origin was reflected in the earlier title for practitioners of cost or works accountants (Wilson and Chua, 1988). Accounting historians have long endorsed the view that cost accounting is a product of the industrial revolution…

Words: 3595 - Pages: 15
• ###### Key Issues in Cost Accounting Essay

Introduction and background Cost accounting is the process of accumulating, measuring, analyzing, interpreting and reporting of the information related to the cost. This type of process is useful and relevant for all internal and external stakeholders of the business entity. In the management accounting, the term cost accounting includes the works of establishing budget and actual cost of operations, processes, departments, analysis of the variances and profitability or social use of the funds…

Words: 3248 - Pages: 13
• ###### Essay on Acc 310 Entire Course Week 1 to 5 Cost Accounting I

5 Cost Accounting I Click Link Below To Buy: http://hwcampus.com/shop/acc-310/acc-310-entire-course-week-1-5-cost-accounting-i/ Or Visit www.hwcampus.com ACC 310 Complete Course Week 1- 5 / Cost Accounting I ACC 310 Week 1 DQ 1 Information for Decision Making and Cost Concepts and Behavior Information for Decision Making and Cost Concepts and Behavior. Complete Exercise 1-18 and 2-19. Remember to complete all parts of the problems and report the results of your analysis ACC…

Words: 897 - Pages: 4
• ###### Health Care Business Analysis Individual Paper

Business Analysis In creating a new operating budget a decision had to consider the type of budget that would best fit the needs of the hospital. Since there is several financial management practices involved with creating an operating budget, we must understand which practice will help us create a budget that is substantial for the needs of Patton Fuller Community Hospital. The Patton Fuller Community Hospital Nursing Statistics provided information including cost of nurse per hour, cost of nurse…

Words: 2023 - Pages: 9
• ###### Essay about Cost Accounting

Accounting is the collection and aggregation of information for decision makers including managers, investors, regulators, lenders, and the public. Accounting systems affect behavior and management and have affects across departments, organizations, and even countries. This paper will give the reader an understanding about cost accounting. This paper will discuss: Why is cost accounting so important to the success of the firm; what are the various methods of cost accounting and how are they used;…

Words: 1842 - Pages: 8
• ###### Almarai Information Essay

COURSE TITLE: Cost Accounting COURSE NUMBER: EBA 213 PREREQUISITES: EBA 101, EBA 102 CREDIT HOURS: 3 DEVELOPER: Professor Simon Saltz LAST UPDATE: December 1,2003 COURSE DESCRIPTION: Cost accounting focuses on cost determination for manufacturers, products and services. This includes the establishment and maintenance of job order and process cost systems, and the classification of costs as product or…

Words: 641 - Pages: 3