Introduction to Capacity utilisation cost audit program
The Cost-Auditor will see, inter alia:
(a) That the idle ability in any production shop or of transport make easy for distribution is not excessive;
(b) That production volume and entire machine time utilised are commensurate. In other words, the machine hours use comprises provided the optimum outturn.
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Each decision making includes the future and business decision making is no exception. Though the only single thing specific about the future is that we cannot be ensure what will take place.
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After decided on the point at which revenue is recognised, we can now twist to the subject of the recognition of expenses. The relevant convention in accounting is intended to give guidance regarding the recognition of expenses.
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