We use cookies to give you the best experience possible. By continuing we’ll assume you’re on board with our cookie policy

Tyler Hames: Managerial Accounting Problem Statement Essay Sample

The whole doc is available only for registered users OPEN DOC
  • Pages:
  • Word count: 280
  • Category: jobs

Get Full Essay

Get access to this section to get all help you need with your essay and educational issues.

Get Access

Tyler Hames: Managerial Accounting Problem Statement Essay Sample

Axis Systems specializes in servers for work-group, e-commerce and ERP applications. The company’s original job costing system has two direct cost categories: direct materials and direct labor. Overhead is allocated to jobs at the single rate of $22 per direct labor hour. The CFO recently spear headed the allocation issue of jobs and came up with an ABC system to compare to the traditional accounting system. Axis System has been awarded two new contracts that will be produced as Job A and Job B. Which Accounting System should Axis use in order to best price their products?

Axis has two options for its accounting system. The first one is the traditional way, which is allocated by direct materials and direct labor and an MOH of $22. Shown by Exhibit 2. The traditional method best allocates smaller jobs, where it’s not as accurate allocating larger jobs. The second option is activity based costing, which is demonstrated in Exhibit 1. The advantage to the ABC system is shown in Job 1, which best allocates larger jobs and not as accurate allocating smaller jobs. Our third option, is to outsource one of the two jobs or both jobs but to this decision will be made when the CFO has decided to stick with either the traditional method of accounting or the ABC system of accounting.

I recommend that Axis Systems take option 2, which is the best way to allocate their jobs. Although job 2 may be more expensive in the ABC system, Axis has the option to outsource job 2 and allocate less materials and direct labor to produce. This will help Axis’s bottom line later.

We can write a custom essay

According to Your Specific Requirements

Order an essay

You May Also Find These Documents Helpful

My Place in a Flattening World: How...

            It is true; the world is going to be flattened. Not that it will be squished between two Jupiter-sized asteroids but it will be made flat in terms of social hierarchy, communication, technology etc. This means that not only is the globe shrinking in terms of travel time and speed of communication the world will also become flatter in terms of moving products and...

The Agony of Job

Job’s response to his trials is that of manful acceptance of God’s will and fidelity to his beliefs. This is best described in his statement after he hears that his livestock, his house and his children have been destroyed; “Naked I came forth from my mother’s womb and naked I shall go back again. The Lord gave and the Lord has taken away; blessed be...

Determining Pay through Job Evaluation Analysis

            The researcher interviewed the head of the human resources department of the company and the following are what she stated: Type of Job Evaluation System Used at Our Place of Employment The company employs the “Point Factor Analysis” as a system for job evaluation (N. White, Personal Communication, June 6, 2009). Although this manner of evaluating jobs is old, it is still the one...

Reasons Why People Find Jobs

It is very amazing to hear some of the reasons that make people look for jobs. Sometimes you just wonder if they meant a job per say or they were categorically implying work. This is a very controversial phenomenon in our contemporary society today and it is both taking the same chronological trends in developed as well as underdeveloped countries. Literally, a major cross-section of...

Job Redesign and Workplace Rewards Assessment

Introduction According to Slocum (2004, p.50) the goal of any human resource department is to ensure employee satisfaction and the overall improvement of the employee output. The current human resource theories assert that an organization should get the maximum from an employee while at the same the employee should be satisfied in the workplace.  Satisfied employees have been found to be more production than unsatisfied...

Get Access To The Full Essay
Materials Daily
100,000+ Subjects
2000+ Topics
Free Plagiarism
All Materials
are Cataloged Well

Sorry, but copying text is forbidden on this website. If you need this or any other sample, we can send it to you via email.

By clicking "SEND", you agree to our terms of service and privacy policy. We'll occasionally send you account related and promo emails.
Sorry, but only registered users have full access

How about getting this access

Become a member

Your Answer Is Very Helpful For Us
Thank You A Lot!


Emma Taylor


Hi there!
Would you like to get such a paper?
How about getting a customized one?

Couldn't Find What You Looking For?

Get access to our huge knowledge base which is continuously updated

Next Update Will Be About:
14 : 59 : 59
Become a Member