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Case 4.64 Choice of Cost

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Issue:

Miscellaneous

 

Written by:

Joseph J

 

Date added:

August 13, 2015

 

Level:

University

 

Grade:

A

 

No of pages / words:

8 / 2176

 

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8439 times

 

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Essay content:

This labor-based charge is added to the materials cost to calculate the total job cost. TBU works for internal customers only and not allowed to seek outside work. Management is concerned that the current costing system is causing other business units to send it work that does not use TBU's strengths to the company's overall advantage...
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We accomplish this by the following process: · Explain the steps to compute job costing under the current standard costing system (Functional-Based Costing system - FBC) · Provide a recommendation for another cost accounting system that recognizes additional differences among jobs (Activity Based Costing ? ABC) · Compute and explain the steps for job costing under the newly recommended costing system (Activity Based Costing ? ABC) · Explain differences in decision making at TBU · Identify TBY's internal customers that might be influenced by use of the alternative cost system...
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General issues of this essay:
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