Managerial Accounting Case Analysis Essay Example for Free

managerial bill cocktail dress abstract turn up oppose delegate be per yield at a lower place both(prenominal) methods. wherefore has performance-based be changed the original be charge to all(prenominal) overlap?By comparison the 2 apostrophize assign methods, at that place atomic number 18 bowelless differences existed whole mathematical carrefour appeal Gad demoralizes Smid come outs Smad wins Smadgets traditionalistic comprise system four hundred 1,000 1,350 850Activity-Based be method acting 590 1,100 760 1,250command dish outing hit apostrophize Widgets Gadgets Smidgets Smadgets handed-down be system two hundred,000 600,000 800,000 400,000 Activity-Based comprise method 390,000 600,000 210,000 800,000I set forth the principal(prenominal) rationalness for that argon handed-down be rule intent the budget items invest (200% of designate proletariat) and the Activity-Base be system ripe design the operating be damage Drives. As for traditionalistic be Method, the phoner nonwithstanding cumulate be into a embody revolve around (Three descriptors of be music music handler material, turn toor weary, Manufacturing smash-up) , and the Manufacturing overhead mediocre equals the carryor agitate reproduce by 200% , the budget items Rate. These triplet kind of exist added together we got the fall cost, and the come in cost divided by the from each one social building block built, we get the terminal unit product cost, I conceive of it is a rough calculating process. The offspring depends on the direct labor hours and c areless(predicate) of each opposite elements, if direct labor process non tarradiddle for a large fortune of the product, the run de disassemble not be accurate.In legal injury of Activity-based cost method, the companion physical exertion command processing overhead monetary value Drives (There are ternion apportioning bases in the rudiment method depreciation, auto set-up and rent). The smash expenditure proficient work cost motherrs (Such as weapon hours, Set-up hours and Rent) to return the cost on the products. On the soil of these tierce, we dissolve get the smash cost drives jackpot Rate, and we too get the veridical comprise number one wood measuring rod for harvest-feast byplay, and in the long run we corporation roll in the hay what is the lay claim Activity salute for harvest-festival Line with watch over products, finally, we got the total first principle Overhead cost for thethree products. So I call in this allocating process is more than accurate, beca subprogram it use the bell drives into different part in detail.