AnimPax Inc. is a small company that creates computer generated animations for films and television. Much of the company’s work consists of short commercials for Television but the company also does realistic computer animations for special effect in movies. The young founders of the company have increasingly concerned with the economics of the business particularly since many competitors have sprung up recently in the local area. To help understand the company’s cost structure and ABC system has been designed. Three major activities are carried out in the company animation concept. Animation production and contract administration. The animation concept activity is carried out at the contract proposal stage when the company bids on projects. This is an intensive activity that involves individuals from all parts of the company in creating storyboards and prototype stills to be shown to the prospective client after the client has accepted a project the animation goes into production and contract administration begins technical staff do almost all of the work involved in animation production, whereas administrative staff are largely responsible for contract administration the activity cost pools and their activity measures and rates are listed below:
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
AnimPax Inc. is a small company that creates computer generated animations for films and television. Much of the company’s work consists of short commercials for Television but the company also does realistic computer animations for special effect in movies.
The young founders of the company have increasingly concerned with the economics of the business particularly since many competitors have sprung up recently in the local area. To help understand the company’s cost structure and ABC system has been designed. Three major activities are carried out in the company animation concept. Animation production and contract administration. The animation concept activity is carried out at the contract proposal stage when the company bids on projects. This is an intensive activity that involves individuals from all parts of the company in creating storyboards and prototype stills to be shown to the prospective client after the client has accepted a project the animation goes into production and contract administration begins technical staff do almost all of the work involved in animation production, whereas administrative staff are largely responsible for contract administration the activity cost pools and their activity measures and rates are listed below:
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