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features and procedures of job costingfeatures of job costingproduct is against the customers order and not on job stocks every job has its own
job costing this is a costing method that is applied when a job or cost unit is relatively of small size is undertaken to fit the customers
specific order costingthis is a broad costing system that is applicable where work jobs consist of separate jobs batches or contracts every job
determine opportunity costsa company has material b in stock that originally cost shs 5000 for the 1000 kshs in stores the material is missing over
opportunity costs are relevant costsopportunity cost introduces an additional concept that is not available like part of normal cost analysis in the
determine the incremental costa company currently makes a component that has the given unit cost structuredirect materialshs 100direct
incremental costs as relevant costsan incremental cost is specifically incurred with the following a course of action and ignorable if such action is
direct cost as a relevant costdirect costs may be directly chargeable to a cost center or a product they may be fixed costs or variable costs whereas
determine the single limiting factora company manufactures and sells three products as a b and c the unit cost and revenue structure for every
single limiting factorwhere a single limiting factor exists for the decision making sequence may be implemented given as-- compute the contribution
relevant costs and decision-makingthe relevance of costs will depend upon the purpose for that they are being utilized relevance is related to future
decision making cyclesteps in decision-making cycle are asa clearly define the objective that is to be the focus of the decision this is significant
factors affect decision makingthese decisions need consideration of factors as likea the level of market possible to be available in futureb the
decision makingnature of decision-makingdecision-making may fall into any type of the following categories as1 short run operational decisions2 short
limitations of cvp analysisthe make use of the basic cvp model is just only relevant to planning and decision-making in an activity range whether the
cvp and computer applicationsthe broad availability of personal computers encourages more managers to apply cost volume profit analysis computers can
changes in product mixa change in product mix in which individual products have different contribution will contain different contribution sales
cvp analysis in situations subject to changerevenue and cost will change and also sales volume because of a number of factors involvinga increased
profit analysis and cost volume or cvp analysiscvp analysis checks the relationship between profit activity level and the costcvp analysis assists in
assumptions of break-even analysis1 the break-even chart is fundamentally a static analysis commonly changes can merely be displayed by drawing a new
break-even analysisbreak-even point is the volume of sales at that there is no loss or break-even charts graphically show the relationship of cost to
determine cost per unit by using marginal and absorption costingthe given information was extracted from the book of a company for the year ended on
distinction between absorption and marginal costingthese are two approaches of arriving at the cost of production or total profit for a specified
absorption costing marginal cost and marginal costingabsorption costing is most often utilized for routine profit reporting and must be utilized for
comparison between marginal costing and absorption costingthere are accountants who favour all costing methodarguments in favour about absorption