Here is the synopsis of our sample research paper on Cost Accounting at Premier Products. Have the paper e-mailed to you 24/7/365.
Essay / Research Paper Abstract
A 9 page paper assessing varying views of cost accounting in a manufacturing environment. As is so often the case, Premier Products is using an inadequate cost accounting system, one that makes its most profitable product appear to be the least beneficial. Premier’s management suspects that the system itself is the culprit, however. The paper answers 6 questions regarding a consultant’s findings and calculating true fixed and variable costs more accurately. Bibliography lists 1 source.
Page Count:
9 pages (~225 words per page)
File: CC6_KSacctPremTenn.rtf
Buy This Term Paper »
Unformatted sample text from the term paper:
Products, a manufacturer of tennis racquets, believes it is using a cost accounting system that returns erroneous results. To its credit, it realizes that its cost accounting system is
not all it should be, and it now seeks to determine the true costs of several of its products and to discover a more accurate method of accounting for the
costs of production. The purpose here is to assess costs from a different perspective. 1. If Premier maintains its rule about dropping products with a mark-on below 25%, which additional
products, if any, will it drop? After dropping Product A because of its failure to meet the 25% mark-on threshold value, all A
- B line production of 1,000 units of each product is assigned to Product B. This increases Bs share of variable costs and accounts for the removal of Product
As 6,000 hours of labor resulting in the loss of only 5,000 labor hours. (Product A requires 6 hours labor; Product B requires only 1 per unit.) Fixed
overhead remains the same, of course, for a new allocation rate per hour of $10.36. The increase primarily results from the fact that fixed costs do not change regardless
of how many products that Premier does or does not produce. That portion of fixed costs that Product A formerly carried is now spread across the other three products.
Thus costs of producing the remaining three products are: Product B Product C Product D Material $ 5.00 $10.00 $ 5.00 + Labor 5.00 15.00 10.00 +Allocated cost
10.36 31.08 20.72 Total unit cost $16.67 $56.08 $35.72 Selling price $38.50 $59.50 $49.00 Unit profit $18.14 $3.42 $13.28
...