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· Here are the questions, I'm really stuck on where to go. Any help would be much appreciated.
The company has two buildings including associated land. One building and its land has been dedicated to the fabrication portion of the manufacturing process and the other building/ land plays multiple roles. The other building is the location for the executive offices, the accounting department, the assembly portion of the manufacturing process, and a service organization that maintains and repairs production equipment for both fabrication and assembly. The first building/ land costs $10,000 and the second building/ land is also $10,000. Both buildings were purchased at the same time and have the same life expectancy.
The breakout of square feet in the second building is 30% for the executive offices, 30% for the Accountants, 30% for the assembly function, and 10% for the service function.
· There are 3 machines in the first building supporting fabrication. The costs are distributed as follows: 80% of the time is dedicated to producing the product and 20% represents the time used for machine maintenance. There are two machines in the second building that also have 80% for product build and 20% maintenance.
· The direct labor personnel dedicate 75% of their time to actually building the product, 20% for improvement projects, and 5% to community service. Indirect personnel (including the service organization) support the manufacturing process 80% of the time, 15% is dedicated to improvement projects, and 5% of their time to community service. Finally, the sales and administration organizations dedicates 70% of their time to their prime responsibilities, spend 25% of the time on improvement projects , and 5% on community service,
· There are a total of 10 notes of which the first one will become due during the current year. The 10 notes are of equal value.
· The Bonds included in this problem have a remaining life of 8 years before they are due. The interest has already been accrued for the current period.
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What is arbitrary allocation in cost accounting?
allocate cost arbitrarily
What is the accounting principle that requires accounting information to be based on actual cost and require assets and services to be recorded initially at the cash or cash equivalent amount?
Cost principal
What is abnormal loss in cost accounting?
Abnormal loss is an unexpected loss in financial assets in business activities.
What are the basic issues related to accounting for intangible assets?
Some of the basic issues related to accounting for intangible assets are non-monetary assets which are not seeable. This generates time and effort to classify separate asset. Legal intangibles and Competitive intangible are customers' information, rights, and cost within the organization. It is also recorded as organization's cost.
Why should accumulated depreciation be treated as expense?
It is treated as expense because it uses to allocate the related assets cost portion to profit and loss account due to usage of fixed assets for revenue generation in fiscal year.
What is arbitrary allocation in cost accounting?
allocate cost arbitrarily
What is the accounting principle that requires accounting information to be based on actual cost and require assets and services to be recorded initially at the cash or cash equivalent amount?
Cost principal
What is depreciation of fixed assets?
Depreciation is the method of allocation of part of cost to all fiscal years to which fixed asset is used for revenue generation to income statement
What is the different between cost accounting and financial accounting?
the question am asking have not been answered .because financial accounting and cost accounting is not the same nor even having the same answer .
What is abnormal loss in cost accounting?
Abnormal loss is an unexpected loss in financial assets in business activities.
What are the basic issues related to accounting for intangible assets?
Some of the basic issues related to accounting for intangible assets are non-monetary assets which are not seeable. This generates time and effort to classify separate asset. Legal intangibles and Competitive intangible are customers' information, rights, and cost within the organization. It is also recorded as organization's cost.
Why should accumulated depreciation be treated as expense?
It is treated as expense because it uses to allocate the related assets cost portion to profit and loss account due to usage of fixed assets for revenue generation in fiscal year.
What course is more difficult management accounting or cost accounting?
I am not sure which is more difficult, that is why I am asking you this question!
Why current assets are not depreciated?
current assets are not depreciated because depreciation process is use to allocate long term asset cost to specific fiscal year in which it used if fixed assets also fully used in one fiscal year then there is no need of depreciation as well.
What is the foundemental concepts of accountincy?
The basic concepts of accounting include: Cost, Money Measurement, Entity, Assets Liabilities, etc.
Is depreciation on an income statement?
Yes depreciation is part of income statement which is used to allocate the portion of cost of fixed assets to fiscal year in which that fixed asset is used.
Differentiate between cost accounting and financial accounting?
Cost accounting is usually involved with management accounting. Financial accounting tends to deal with the past and presents information like statements for public and private use. Management.the question am asking have not been answered .because financial accounting and cost accounting is not the same nor even having the same answer .
