ACC 311 COST ACCOUNTING FINAL PROJECT 2
ACC 311 Final Project II Guidelines and Rubric Overview Cost accounting is used for two main purposes. The first purpose is to determine the actual costs of products, projects, processes, or services so an organization can report correct and accurate informa...
The SRS Educational Presses had an excellent performance in 2017. Overall, they did a
good job, while increasing their gross profit. When determining the gross margin ratio you have
to consider the following equation. Revenue minus the cost of goods sold, after calculating that
you then divide by revenue. This equation will provide the gross margin ratio. An example
would be: (8,000 - 3,890) = 4,,000 = .514 * 100 = 51.4%. Anything over 30% in a
business aspect would consider this gross profit ratio good. With that being said, I truly believe
that SRS should continue to have in-house press production. The manufacturing overhead that
was allocated was $2,080 while the manufacturing overhead used $1,950. So, the difference
between the two is $130, which would be overallocated. Being overallocated means the company
didn’t budget manufacturing overhead correctly. The good thing is that the overallocated wasn’t
a big difference. Sometimes being overallocated is not that bad, as long as you stay close to $0.
If the SRS focused more on better budgeting the manufacturing overhead, it would help bring
down the costs of goods sold.
Shoe companies and car dealerships would be two products that would benefit from job
costing. When talking about job costing these are seen as job orders that are well maintained and
are custom made. When discussing shoe companies, all consumers have different types of taste
in shoes. When creating job orders for the consumer, by knowing exactly what their wants and
needs are will help boost sales. An example would be, if the consumers are looking for shoes
that are more comfortable and meant for running in rough traine. Looking in the inventory trying
to find what would best match the consumers needs and wants would complete the job order and
potentially make a sale. The same thing applies with car dealerships. For example, if a consumer
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