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  • Accounting Seligram Case

    Transféré par

    Nadia Iqbal
    706 vues2 pages
    The document compares cost methods for 5 components - ICA, ICB, Capacitor, Amplifier, Diode - using the existing system, accounting manager's method, and consultants' method. The existing system lumps all costs together, while the accounting manager separates costs into direct labor, 2 burden pools, and total. The consultants' method further breaks down costs into main/mechanical test rooms and separates direct labor, room costs, and total. The analysis found the consultants' method provides the most detailed and accurate cost breakdown by separating costs into test rooms and categories like administrative instead of lumping all costs together. This detailed approach gives a better understanding of actual costs than other methods.

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    Case analysis of Seligram

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    The document compares cost methods for 5 components - ICA, ICB, Capacitor, Amplifier, Diode - using the existing system, accounting manager's method, and consultants' method. The existing system lumps all costs together, while the accounting manager separates costs into direct labor, 2 burden pools, and total. The consultants' method further breaks down costs into main/mechanical test rooms and separates direct labor, room costs, and total. The analysis found the consultants' method provides the most detailed and accurate cost breakdown by separating costs into test rooms and categories like administrative instead of lumping all costs together. This detailed approach gives a better understanding of actual costs than other methods.

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    © All Rights Reserved
    Téléchargez comme DOCX, PDF, TXT ou lisez en ligne sur Scribd
    Signaler comme contenu inapproprié
    706 vues2 pages

    Accounting Seligram Case

    Transféré par

    Nadia Iqbal
    The document compares cost methods for 5 components - ICA, ICB, Capacitor, Amplifier, Diode - using the existing system, accounting manager's method, and consultants' method. The existing system lumps all costs together, while the accounting manager separates costs into direct labor, 2 burden pools, and total. The consultants' method further breaks down costs into main/mechanical test rooms and separates direct labor, room costs, and total. The analysis found the consultants' method provides the most detailed and accurate cost breakdown by separating costs into test rooms and categories like administrative instead of lumping all costs together. This detailed approach gives a better understanding of actual costs than other methods.

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    © All Rights Reserved
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    Signaler comme contenu inapproprié
    sur 2

    Dear Mr.

    Carte,
    We evaluated and compared the cost methods of the 5 components according to
    the existing system, the account managers method and the consultants method to
    Direct Labour

    Burden

    Total for existing system

    ICA

    917 1.45*917+917

    $2,247

    ICB

    2,051 1.45*2051+2051

    $5,025

    Capacitor

    1,094 1.45*1094+1094

    2680

    Amplifier

    525 525*1.45+525

    1286

    Diode

    519 1.45*519+519

    1272
    $12,510

    decide which cost system will be beneficial to the company and which one should
    be implemented in the future. The analysis of the cost breakdown for each system
    is given below. We think that the consultants method provides a better and detailed
    breakdown of costs by dividing the costs into each test room separately and the
    admin, engineering and technical costs separately. This system gives us an accurate
    analysis and accounts for the different costs rather than adding them all together
    and dividing them all by the machine hour rate.
    Existing System Cost Method

    Accounting Manager Cost Method


    Direct Labour

    Burden Pool 1

    Burden Pool 2

    Total For Account Managers System

    ICA

    917

    183.4

    1480

    2580.4

    ICB

    2,051

    410.2

    3200

    5,661

    Capacitor

    1,094

    218.8

    600

    1,913

    Amplifier

    525

    105

    400

    1030

    Diode

    519

    103.8

    960

    1582.8

    Total

    5106

    1021.2

    6640

    12767.2

    Consultant Cost Method


    Direct Labour

    Main Test Room

    Mech.Test Room

    Total for Rooms

    Total For Consultant System

    ICA

    917

    535.5

    1130

    1848.9

    2765.9

    ICB

    2,051

    882

    2938

    4230.2

    6,281

    Capacitor

    1,094

    189

    508.5

    916.3

    2,010

    Amplifier

    525

    252

    113

    470

    995

    Diode

    519

    441

    565

    1109.8

    1628.8

    8575.2

    13681.2

    Total

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