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direct materials budgetthis budget implies the estimated quantities and costs of every the raw materials and components desired for the output demand
sales budgetit provides volume of sales and sales mix of the recent operations the sales forecast is initially prepared and upon completion the sales
organization of budgetary controlbudgetary control ideally includes the given steps as 1 the creation of budget centres2 the introduction of
limitations of budgeting 1 too mush reliance may reason resistance or inflexibility to change2 difficult to set levels of attainment it may result
objectives of budgetary planning 1 coordinationthe budgetary process needs that visible detailed budgets are developed to cover every activity
budgetary planning and controlbudgeting refers to the process of quantifying the plans of an organization such as to enable it get its objectives in
advantages and disadvantages of uniform costingadvantages 1 it enables costs to be compared simply2 it makes it easier to computerize the accounting
requirements of uniform costing1 uniform costing systems must process the given features as2 cost reports and statements should be organized and laid
uniform costingit is a general system utilizing agreed concepts standard and principles accounting practices adopted via different entities in the
constant gross margin ratethis method assumes that every product contributes an equal percentage of gross profit for every shilling of sales it works
physical measure and net realizable valuephysical measureunitjoint costs are assigned to the joint products according to the ratio of physical
methods required to allocate joint costs1 physicalunit measure2 constant gross margin rate3 net realizable
allocation of joint costswhereas two or more products of relatively high value emerge simultaneously from a single process they are named as joint
shrinkage - production processthis refers to a disappearance or loss of material inputs utilized throughout the production process it happens mainly
accounting treatment of spoilage costs1 normal spoilage costs these costs are assigned to the good output utilizing two approaches asi omission
process lossesmost manufacturing processes result in several portion of the raw materials utilized not being transformed into a reliable half
example of process cost reportlet suppose that the beginning work in progress in a company in the month of november was 1000 units that were 100
process cost reportthis is a commonly employed statement that traces the flow of units produced and costs incurred in the production process the
calculate cost or equivalent units the given work in progress account concerns to the blending department of a company a soft-drinks company for the
first in first out or fifo method - work in progressthis method considers merely those costs incurred throughout the recent period equivalent
weighted average method - work in progresswhile this method is employed all costs of production are considered in assigning costs to inventory the
methods of work in progressthe two main methods used for purposes of valuing the opening work in progress1 weighted average method2 fifo or first in
find out the cost per unit material a is added at the start of a production process overheads and labor are added continuously throughout the
determine equivalent units of the productlet assume there are 4000 units of a product in ending inventory out of that 60 percent are fully complete
valuation of work in progress the concept of equivalent unitsit is a notional quantity of completed goods in the production process this is a