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creditors turnover ratio or payables turnover ratiomeaning this ratio establishes a relation ship between net credit purchases and average trade
determine the profitability ratios in relation to investmenta return on capital employed return on investmentb return on equity or return on equity
explain profitability ratios in relation to salesa gross profit ratiob net profit ratioc operating ratiod operating profit ratioe expenses
profitability ratiosthe primary objective of a business under taking is to earn profits profit earning is considered necessary for the survival of
explain standard costing according to backer and jacobsenaccording to backer and jacobsen standard cost is the amount the firm to measure the
what is standard costingstandard cost is a predetermined cost it is a determination in advance of production of what should be the cost when standard
characteristics of standard costing 1 flow of information in a standard costing system cost information flows in a straight forward manner as
describe the nature of standard costingthe system of standard costs standard costing is a management technique of using predetermined costs standard
what is scientific standards and variance analysisthe important steps of standard costing as described above may be summarized as follows1
state direct material cost standard the determination of direct material cost standard would involvea determination of quantity standards andb
explain direct labor cost standardthe setting up of standard labor cost for each product would requirea the determination of budgeted fixed overhead
explain the types of standardsthe following is the brief description of various types of standards1 basic standards these are the standards which are
advantages of standard costing1 measuring efficiency standard costing is a yardstick for measuring efficiency the comparison of actual costs with
disadvantages of standard costing1 difficulty in setting standards setting of standards in practice extremely difficult and complicated task first it
state the steps for standard costing systemstandard costing system involves the following steps1 setting-up of standards for each element of cost
difference between budgetary control and standard costingbudgetary controlthe budgets are prepared for the concern as a wholethe budgets are fixed on
normal 0 false false false en-in x-none x-none microsoftinternetexplorer4
what are the resons to use variance analysis variance analysis should be a continuous process for following reasons1 labor rates salary levels etc
prerequisites of a sound variances analysis systema variance analysis system would be good enough in controlling costs and evaluation performances if
classification and computation of variances the computation and analysis of variances is the main aim of standard costing the variance is the
what is direct material cost variance it can be defined as the difference between the standard costs of direct material specified and the actual cost
define materials cost variancematerial cost variance mcv is the difference between the standard cost of material specified and the actual cost of
state material price variancedifference among standard price and the actual price of the material is the material price variance this variance arises
material usage variancedifference among standard quantity of material and actual quantity used is the material usage variance this variance arises
state budgetary controla budget is a quantitative expression of a plan of action relating to the forthcoming budget period it represents a written