logging in or signing up cost accounting control rejaulmeister Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINT lite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: (To copy code, click on the text box) Embed: URL: Thumbnail: WordPress Embed Customize Embed The presentation is successfully added In Your Favorites. Views: 649 Category: Education License: All Rights Reserved Like it (0) Dislike it (0) Added: October 08, 2010 This Presentation is Public Favorites: 1 Presentation Description The basis of cost accounting has been lucidly explained in this presentation. I don't claim ownership of this ppt., this was actually prepared by our outstanding professor Jagannathan, Kudos to him Comments Posting comment... By: rejaulmeister (9 month(s) ago) Leave a comment on what you think about the presentation Saving..... Post Reply Close Saving..... Edit Comment Close By: bhaskaranunni (13 month(s) ago) thanx a lot for ur nice ppt........................... Saving..... Post Reply Close Saving..... Edit Comment Close By: mahrous (14 month(s) ago) plzzzzzzzzzzzzzzzzzzz i need this send me Saving..... Post Reply Close Saving..... Edit Comment Close By: lella.naresh (19 month(s) ago) plzzzzzzzzzzzzzzzzzzz i need this send me Saving..... Post Reply Close By: rejaulmeister (19 month(s) ago) plz send ur mailid at rejaulmeister@gmail.com. I will surely send it to you Saving..... Edit Comment Close Premium member Presentation Transcript Cost analysis and control : Cost analysis and control Slide 2: NEED FOR INFORMATION FOR USERS INTERNAL TO THE BUSINESS INFORMATION MORE LIKELY TO BE FORWARD LOOKING THAN FINANCIAL INFORMATION MORE LIKELY TO CONSIDER NON-FINANCIAL DATA ALSO. TIME DURATION FOR THE REQUIREMENT OF INFORMATION MAY NOT BE CONSISTENT DECISIONS : DECISIONS The Make or Buy Decision Just-In-Time Inventory Management Budgeting Variance Analysis Cost-Volume-Profit Analysis Activity Based Costing Enterprise Cost Management Slide 4: HISTORICALLY THE DISCIPLINE OF MANAGEMENT ACCOUNTING GREW BECAUSE OF THE NEED FOR COST OF THE PRODUCTS DATA MANAGEMENT ACCOUNTING HAS GROWN MUCH BEYOND COST DATA PLANNING AND COORDINATION FUNCTION OF MANAGEMENT – FOR EXAMPLE PORTER’S COMPETITIVE STRATEGY & ROLE OF MANAGEMENT ACCOUNTING Slide 5: GOAL CONGRUENCE AND MANAGEMENT ACCOUNTING….EXAMPLE THE ISSUE OF TRANSFER PRICING VALUATION DECISIONS - ASSETS & LIABILITIES -ALTERNATIVE STRATEGIC DECISIONS THE OPERATIONAL CONTROL SYSTEM : THE OPERATIONAL CONTROL SYSTEM This subsystem is designed to provide, accurate and timely feedback concerning the performance of managers and others relative to their planning and control of activities. Operational control is concerned with what activities should be performed and assessing how well they are performed. A good operational control information system provides information that helps managers engage in a program of continuous improvement of all aspects of the business. Slide 7: ACCOUNTING – MANAGEMENT, FINANCIAL, COST MANAGEMENT ACCOUNTING MEASURES, ANALYSES, AND REPORTS FINANCIAL AND NON-FINANCIAL INFORMATION THAT HELP MANAGERS TO TAKE DECISIONS TO FULFILL THE GOALS OF THE ORGANISATION. MANAGEMENT ACCOUNTING INFORMATION AND REPORTS DO NOT FOLLOW ANY SET OF RULES, EXTERNALLY DETERMINED OR DIRECTED. Slide 8: STRATEGIC DECISIONS AND MANAGEMENT ACCOUNTING VALUE CHAIN CONCEPT INTERNAL AND EXTERNAL SUPPLY CHAIN ANALYSIS COST REDUCTION AND QUALITY ASSURANCE RESOUCES ALLOCATION DIFFERENTIAL COSTING MECHANISMS MANAGEMENT ACCOUNTING PROFESSION Inventory Management : Inventory Management Variance Analysis : Variance Analysis Material Variances Labor Variances Factory Overhead Variances First unit of Syllabus : First unit of Syllabus Basic concepts of Cost Accounting, interface between Financial, Cost and Management Accounting. Cost concepts & classification, Cost drivers and cost behavior Cost Objects, Direct and Indirect costs, Cost Pools etc. Cost Concepts and Behaviors : Cost Concepts and Behaviors General Cost Terms Classifying Costs for Financial Statements Cost Classification for Predicating Cost Behaviors Cost Concepts Relevant to Decision-Making Thinking on the Margin: Fundamental Economic Decision-Making Unit Price of an Ice Cream Cone : Unit Price of an Ice Cream Cone General Cost Terms : General Cost Terms Manufacturing Costs Direct materials Direct labor Mfg. Overhead Non-manufacturing Costs Overhead Marketing Administrative Slide 15: Matching Concept: The costs incurred to generate particular revenue should be recognized as expenses in the same period that the revenue is recognized. Period costs: Those costs that are matched against revenues on a time period basis Product costs:Those costs that are matched against revenues on a product basis. Slide 16: Classifying Costs for Uptown Ice Cream Shop Product Cost Period Cost Slide 17: Cost Classification for Predicting Cost Behavior Volume index Def: The unit measure used to define “volume” Examples: Automobile – “miles” driven Generating plant – “kWh” produced Stamping machine – “parts” stamped Cost Behaviors:Fixed costs: : Remain constant over the relevant range; Variable costs:Increase or decrease proportionally according to the level of volume Mixed costs; Average unit costs Slide 18: Cost Classification of Owning and Operating a Passenger Car Slide 19: Differential (Incremental) Costs Def: Costs that represent the differences in total costs, which results from selecting one alternative instead of other. Opportunity Costs Def: The potential benefit that is given up as you seek an alternative course of action Example: When you decide to pursue a college degree, your opportunity cost would include the 4-year’s potential earnings foregone. Sunk Costs:Cost that has already been incurred by past actions;Not relevant to future decisions Slide 20: Marginal Costs Def: Added costs that result from increasing rates of outputs, usually by single unit Example: Cost of electricity—decreasing marginal rate Slide 21: Make or Buy Slide 22: COST OBJECTS: Cost accounting systems are structured to measure and assign costs to cost objects. A Cost object is therefore any item such as products, customers, departments, projects, activities and so on, for which costs are measured and assigned Cost accounting standard on “Classification of Costs” : Cost accounting standard on “Classification of Costs” CAS-1 issued by the ICWAI The objective of this standard is to prescribe classification of costs for ascertainment of cost of a product or service and preparation of cost statements on a consistent and uniform basis with a view to effect the comparability of the same of an enterprise with that of previous periods and other enterprises Mandatory from 1.4.2010 Slide 24: Cost Centre: Any unit in an enterprise…….. Cost Unit: It is a form of measurement of volume of production/services. Classification of Costs is logical way of arranging items of costs having regard to either their nature or their purpose. Basis: Nature of expense; traceability to cos object; functions/activities; behaviour of costs; management decisions; production process; time period. Nature of Expense: Material; Labour; Other expenses; Relation to Cost Centre: Direct ;Indirect Function/Activities: Production;Admn.;Selling; TRACEABILITY : TRACEABILITY The relationship of costs to cost objects can be exploited to help increase the accuracy of cost assignments. DIRECT AND INDIRECT COSTS. Costs are directly or indirectly associated with cost objects. Indirect costs are those costs that cannot be traced “easily and accurately” to a cost object. Direct costs are those costs that can be traced “easily and accurately” to a cost object. The term easily means in a cost effective way and the term accurately means that the costs are traced using a “causal” relationship. Slide 26: Thus Traceability is simply the ability to assign a cost directly to a cost object in an economically feasible way by means of a causal relationship. The more costs that can be traced to the object, the greater the accuracy of the cost assignments. Establishing traceability is therefore a key element in building accurate cost assignments. Slide 27: Another important point that needs to be emphasized is that a cost can be classified both as an indirect cost as well as a direct cost, depending upon the cost object which is the point of reference. For example, if the plant is the cost object, then the cost of heating and cooling the plant is a direct cost; however if the cost objects are products produced in the plant, then this utility cost is an indirect cost. Slide 28: Distorted cost assignments can produce erroneous decisions which can prove to be very costly. Example: The decision on whether to outsource a component, presently being produced in house, would depend on how accurately the costs of producing internally is obtained. If the cost of internal manufacture is overstated, the decision may erroneously be made in favour of outsourcing, whereas an accurate assessment of costs of internal manufacture may suggest the opposite, Slide 29: METHODS OF TRACING: Tracing costs can occur in two ways: 1. Direct tracing. 2. Driver tracing. Direct tracing: is the process of identifying and assigning costs to a cost object that are specifically and or physically associated with the cost object. Identifying such costs is most often accomplished by physical observation. Example: If the power department is the cost object, then the salary of the power department supervisor and the fuel used to produce power are examples of costs that are directly traceable by physical observation. Slide 30: Driver Tracing: Ideally all costs should be charged to cost objects using Direct Tracing. However, it is not often possible to physically observe the exact amount of resources being consumed by a cost object. The next best approach is to use “cause – and – effect” reasoning to identify factors called “Drivers” that can be observed and which measure a cost objects resource consumption. Drivers are factors that cause changes in resource usage, activity usage, costs and revenues. Slide 31: Driver tracing uses two types of drivers for tracing costs to cost objects: 1. Resource drivers, and 2. Activity drivers. Resource drivers measure the demands placed on resources by activities and are used to assign costs of resources to activities. Example: Consider the activity of maintaining equipment. This activity consumes resources such as parts, equipment, tools, labour, and energy (power to run the equipment and tools). Slide 32: Some of these resources such as equipment, tools, materials are directly traceable to the activity. Others such as power and labour may not be directly traceable to the activity. Thus unless power is metered, it may not be possible to physically observe how much power is used. Metering may not be practical. Thus a resource driver such as machine hours may be used to assign the cost of power. Example: If the cost of power is Rs. .50p per machine hour, and the activity, maintaining equipment uses 2000 machine hours, then Rs. 1000 of the power cost would be assigned to the activity. Slide 33: The total cost of the activity would be the sum of the directly traceable resource costs and the resource driver assigned costs. Activity Drivers: Once the total cost of maintaining equipment is determined, then the cost of this activity can be assigned to the cost objects that consume this activity by using activity drivers. Activity drivers are measures of the demand placed on activities by cost objects and are used to assign the cost of activities to cost objects. Slide 34: ASSIGNING INDIRECT COSTS: Indirect costs cannot be traced to cost objects as no causal relationship exists between the cost and the cost object. It can also mean that tracing is not economically feasible. Assignment of indirect costs to cost objects is called allocation, and is based on convenience or some assumed linkage. Slide 35: Example: The cost of the personnel dept in a concern manufacturing 5 products cannot be assigned to the products using either direct tracing or driver tracing, as no causal relationship exists between the products and the incurrence of the costs. It could therefore be assigned using some convenient linkage, like number of products manufactured or number of labour hours etc. Slide 36: Any such method of allocation used would at best be arbitrary, and would reduce the accuracy of the cost assignments. COST ASSIGNMENT SUMMARIZED. Direct Tracing is the most precise as costs are assigned using direct physical observation. Driver tracing follows direct tracing in terms of cost assignment accuracy, and relies on causal factors called drivers to assign costs. Slide 37: The precision of driver tracing depends on the quality of the causal relationship described by the driver. Allocation is the most simple of the assignment methods described but it is the least accurate and should be avoided wherever possible. EXAMPLES OF DIRECT AND INDIRECT COSTS : EXAMPLES OF DIRECT AND INDIRECT COSTS 1. ABC company, produces parts for the automotive industry, including doors, manifolds, and fuel tanks. Recently, the company switched from a traditional departmental assembly line system to a manufacturing cell in order to produce fuel tanks for sports utility vehicles. Suppose that the fuel tank manufacturing cell is a cost object. Assume that all or a portion of the following costs must be assigned to the cell. Slide 39: A. Salary of the cell supervisor B. Power to heat and cool the plant in which the cell is located. C. Heavy duty steel used to manufacture the fuel tanks. D. Maintenance for the cells equipment (provided by the maintenance dept). E. Labour used to align the steel in the stamping machine to produce the halves of the fuel tanks. F. Salary of industrial engineer( half whose time is dedicated to the cell). G. Cost of plant’s personnel office. Identify which cost assignment method would likely be used to assign the costs of each of the preceding activities to the fuel tank manufacturing cell: direct tracing, driver tracing or allocation. You do not have the permission to view this presentation. In order to view it, please contact the author of the presentation.
cost accounting control rejaulmeister Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINT lite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: (To copy code, click on the text box) Embed: URL: Thumbnail: WordPress Embed Customize Embed The presentation is successfully added In Your Favorites. Views: 649 Category: Education License: All Rights Reserved Like it (0) Dislike it (0) Added: October 08, 2010 This Presentation is Public Favorites: 1 Presentation Description The basis of cost accounting has been lucidly explained in this presentation. I don't claim ownership of this ppt., this was actually prepared by our outstanding professor Jagannathan, Kudos to him Comments Posting comment... By: rejaulmeister (9 month(s) ago) Leave a comment on what you think about the presentation Saving..... Post Reply Close Saving..... Edit Comment Close By: bhaskaranunni (13 month(s) ago) thanx a lot for ur nice ppt........................... Saving..... Post Reply Close Saving..... Edit Comment Close By: mahrous (14 month(s) ago) plzzzzzzzzzzzzzzzzzzz i need this send me Saving..... Post Reply Close Saving..... Edit Comment Close By: lella.naresh (19 month(s) ago) plzzzzzzzzzzzzzzzzzzz i need this send me Saving..... Post Reply Close By: rejaulmeister (19 month(s) ago) plz send ur mailid at rejaulmeister@gmail.com. I will surely send it to you Saving..... Edit Comment Close Premium member Presentation Transcript Cost analysis and control : Cost analysis and control Slide 2: NEED FOR INFORMATION FOR USERS INTERNAL TO THE BUSINESS INFORMATION MORE LIKELY TO BE FORWARD LOOKING THAN FINANCIAL INFORMATION MORE LIKELY TO CONSIDER NON-FINANCIAL DATA ALSO. TIME DURATION FOR THE REQUIREMENT OF INFORMATION MAY NOT BE CONSISTENT DECISIONS : DECISIONS The Make or Buy Decision Just-In-Time Inventory Management Budgeting Variance Analysis Cost-Volume-Profit Analysis Activity Based Costing Enterprise Cost Management Slide 4: HISTORICALLY THE DISCIPLINE OF MANAGEMENT ACCOUNTING GREW BECAUSE OF THE NEED FOR COST OF THE PRODUCTS DATA MANAGEMENT ACCOUNTING HAS GROWN MUCH BEYOND COST DATA PLANNING AND COORDINATION FUNCTION OF MANAGEMENT – FOR EXAMPLE PORTER’S COMPETITIVE STRATEGY & ROLE OF MANAGEMENT ACCOUNTING Slide 5: GOAL CONGRUENCE AND MANAGEMENT ACCOUNTING….EXAMPLE THE ISSUE OF TRANSFER PRICING VALUATION DECISIONS - ASSETS & LIABILITIES -ALTERNATIVE STRATEGIC DECISIONS THE OPERATIONAL CONTROL SYSTEM : THE OPERATIONAL CONTROL SYSTEM This subsystem is designed to provide, accurate and timely feedback concerning the performance of managers and others relative to their planning and control of activities. Operational control is concerned with what activities should be performed and assessing how well they are performed. A good operational control information system provides information that helps managers engage in a program of continuous improvement of all aspects of the business. Slide 7: ACCOUNTING – MANAGEMENT, FINANCIAL, COST MANAGEMENT ACCOUNTING MEASURES, ANALYSES, AND REPORTS FINANCIAL AND NON-FINANCIAL INFORMATION THAT HELP MANAGERS TO TAKE DECISIONS TO FULFILL THE GOALS OF THE ORGANISATION. MANAGEMENT ACCOUNTING INFORMATION AND REPORTS DO NOT FOLLOW ANY SET OF RULES, EXTERNALLY DETERMINED OR DIRECTED. Slide 8: STRATEGIC DECISIONS AND MANAGEMENT ACCOUNTING VALUE CHAIN CONCEPT INTERNAL AND EXTERNAL SUPPLY CHAIN ANALYSIS COST REDUCTION AND QUALITY ASSURANCE RESOUCES ALLOCATION DIFFERENTIAL COSTING MECHANISMS MANAGEMENT ACCOUNTING PROFESSION Inventory Management : Inventory Management Variance Analysis : Variance Analysis Material Variances Labor Variances Factory Overhead Variances First unit of Syllabus : First unit of Syllabus Basic concepts of Cost Accounting, interface between Financial, Cost and Management Accounting. Cost concepts & classification, Cost drivers and cost behavior Cost Objects, Direct and Indirect costs, Cost Pools etc. Cost Concepts and Behaviors : Cost Concepts and Behaviors General Cost Terms Classifying Costs for Financial Statements Cost Classification for Predicating Cost Behaviors Cost Concepts Relevant to Decision-Making Thinking on the Margin: Fundamental Economic Decision-Making Unit Price of an Ice Cream Cone : Unit Price of an Ice Cream Cone General Cost Terms : General Cost Terms Manufacturing Costs Direct materials Direct labor Mfg. Overhead Non-manufacturing Costs Overhead Marketing Administrative Slide 15: Matching Concept: The costs incurred to generate particular revenue should be recognized as expenses in the same period that the revenue is recognized. Period costs: Those costs that are matched against revenues on a time period basis Product costs:Those costs that are matched against revenues on a product basis. Slide 16: Classifying Costs for Uptown Ice Cream Shop Product Cost Period Cost Slide 17: Cost Classification for Predicting Cost Behavior Volume index Def: The unit measure used to define “volume” Examples: Automobile – “miles” driven Generating plant – “kWh” produced Stamping machine – “parts” stamped Cost Behaviors:Fixed costs: : Remain constant over the relevant range; Variable costs:Increase or decrease proportionally according to the level of volume Mixed costs; Average unit costs Slide 18: Cost Classification of Owning and Operating a Passenger Car Slide 19: Differential (Incremental) Costs Def: Costs that represent the differences in total costs, which results from selecting one alternative instead of other. Opportunity Costs Def: The potential benefit that is given up as you seek an alternative course of action Example: When you decide to pursue a college degree, your opportunity cost would include the 4-year’s potential earnings foregone. Sunk Costs:Cost that has already been incurred by past actions;Not relevant to future decisions Slide 20: Marginal Costs Def: Added costs that result from increasing rates of outputs, usually by single unit Example: Cost of electricity—decreasing marginal rate Slide 21: Make or Buy Slide 22: COST OBJECTS: Cost accounting systems are structured to measure and assign costs to cost objects. A Cost object is therefore any item such as products, customers, departments, projects, activities and so on, for which costs are measured and assigned Cost accounting standard on “Classification of Costs” : Cost accounting standard on “Classification of Costs” CAS-1 issued by the ICWAI The objective of this standard is to prescribe classification of costs for ascertainment of cost of a product or service and preparation of cost statements on a consistent and uniform basis with a view to effect the comparability of the same of an enterprise with that of previous periods and other enterprises Mandatory from 1.4.2010 Slide 24: Cost Centre: Any unit in an enterprise…….. Cost Unit: It is a form of measurement of volume of production/services. Classification of Costs is logical way of arranging items of costs having regard to either their nature or their purpose. Basis: Nature of expense; traceability to cos object; functions/activities; behaviour of costs; management decisions; production process; time period. Nature of Expense: Material; Labour; Other expenses; Relation to Cost Centre: Direct ;Indirect Function/Activities: Production;Admn.;Selling; TRACEABILITY : TRACEABILITY The relationship of costs to cost objects can be exploited to help increase the accuracy of cost assignments. DIRECT AND INDIRECT COSTS. Costs are directly or indirectly associated with cost objects. Indirect costs are those costs that cannot be traced “easily and accurately” to a cost object. Direct costs are those costs that can be traced “easily and accurately” to a cost object. The term easily means in a cost effective way and the term accurately means that the costs are traced using a “causal” relationship. Slide 26: Thus Traceability is simply the ability to assign a cost directly to a cost object in an economically feasible way by means of a causal relationship. The more costs that can be traced to the object, the greater the accuracy of the cost assignments. Establishing traceability is therefore a key element in building accurate cost assignments. Slide 27: Another important point that needs to be emphasized is that a cost can be classified both as an indirect cost as well as a direct cost, depending upon the cost object which is the point of reference. For example, if the plant is the cost object, then the cost of heating and cooling the plant is a direct cost; however if the cost objects are products produced in the plant, then this utility cost is an indirect cost. Slide 28: Distorted cost assignments can produce erroneous decisions which can prove to be very costly. Example: The decision on whether to outsource a component, presently being produced in house, would depend on how accurately the costs of producing internally is obtained. If the cost of internal manufacture is overstated, the decision may erroneously be made in favour of outsourcing, whereas an accurate assessment of costs of internal manufacture may suggest the opposite, Slide 29: METHODS OF TRACING: Tracing costs can occur in two ways: 1. Direct tracing. 2. Driver tracing. Direct tracing: is the process of identifying and assigning costs to a cost object that are specifically and or physically associated with the cost object. Identifying such costs is most often accomplished by physical observation. Example: If the power department is the cost object, then the salary of the power department supervisor and the fuel used to produce power are examples of costs that are directly traceable by physical observation. Slide 30: Driver Tracing: Ideally all costs should be charged to cost objects using Direct Tracing. However, it is not often possible to physically observe the exact amount of resources being consumed by a cost object. The next best approach is to use “cause – and – effect” reasoning to identify factors called “Drivers” that can be observed and which measure a cost objects resource consumption. Drivers are factors that cause changes in resource usage, activity usage, costs and revenues. Slide 31: Driver tracing uses two types of drivers for tracing costs to cost objects: 1. Resource drivers, and 2. Activity drivers. Resource drivers measure the demands placed on resources by activities and are used to assign costs of resources to activities. Example: Consider the activity of maintaining equipment. This activity consumes resources such as parts, equipment, tools, labour, and energy (power to run the equipment and tools). Slide 32: Some of these resources such as equipment, tools, materials are directly traceable to the activity. Others such as power and labour may not be directly traceable to the activity. Thus unless power is metered, it may not be possible to physically observe how much power is used. Metering may not be practical. Thus a resource driver such as machine hours may be used to assign the cost of power. Example: If the cost of power is Rs. .50p per machine hour, and the activity, maintaining equipment uses 2000 machine hours, then Rs. 1000 of the power cost would be assigned to the activity. Slide 33: The total cost of the activity would be the sum of the directly traceable resource costs and the resource driver assigned costs. Activity Drivers: Once the total cost of maintaining equipment is determined, then the cost of this activity can be assigned to the cost objects that consume this activity by using activity drivers. Activity drivers are measures of the demand placed on activities by cost objects and are used to assign the cost of activities to cost objects. Slide 34: ASSIGNING INDIRECT COSTS: Indirect costs cannot be traced to cost objects as no causal relationship exists between the cost and the cost object. It can also mean that tracing is not economically feasible. Assignment of indirect costs to cost objects is called allocation, and is based on convenience or some assumed linkage. Slide 35: Example: The cost of the personnel dept in a concern manufacturing 5 products cannot be assigned to the products using either direct tracing or driver tracing, as no causal relationship exists between the products and the incurrence of the costs. It could therefore be assigned using some convenient linkage, like number of products manufactured or number of labour hours etc. Slide 36: Any such method of allocation used would at best be arbitrary, and would reduce the accuracy of the cost assignments. COST ASSIGNMENT SUMMARIZED. Direct Tracing is the most precise as costs are assigned using direct physical observation. Driver tracing follows direct tracing in terms of cost assignment accuracy, and relies on causal factors called drivers to assign costs. Slide 37: The precision of driver tracing depends on the quality of the causal relationship described by the driver. Allocation is the most simple of the assignment methods described but it is the least accurate and should be avoided wherever possible. EXAMPLES OF DIRECT AND INDIRECT COSTS : EXAMPLES OF DIRECT AND INDIRECT COSTS 1. ABC company, produces parts for the automotive industry, including doors, manifolds, and fuel tanks. Recently, the company switched from a traditional departmental assembly line system to a manufacturing cell in order to produce fuel tanks for sports utility vehicles. Suppose that the fuel tank manufacturing cell is a cost object. Assume that all or a portion of the following costs must be assigned to the cell. Slide 39: A. Salary of the cell supervisor B. Power to heat and cool the plant in which the cell is located. C. Heavy duty steel used to manufacture the fuel tanks. D. Maintenance for the cells equipment (provided by the maintenance dept). E. Labour used to align the steel in the stamping machine to produce the halves of the fuel tanks. F. Salary of industrial engineer( half whose time is dedicated to the cell). G. Cost of plant’s personnel office. Identify which cost assignment method would likely be used to assign the costs of each of the preceding activities to the fuel tank manufacturing cell: direct tracing, driver tracing or allocation.