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Calculation of absorption costing fixed overhead variances. A company uses absorption costing for both internal and external reporting purposes.
Accounting entries for a standard costing system. Bronte Ltd manufactures a single product, a laminated kitchen unit with a standard cost of £80 made
What is a variable cost? If the activity level increases, what happens to the total cost incurred? Give three examples of a variable cost
Explain the concept of the relevant range. How does a company"s relevant range differ from the steps found in a step cost?
If 500 returns are filed? Why does the cost per return differ at each of the three volume levels?
Prepare a scatter graph of Usonic"s electricity costs for the year. Plot the total electricity cost on the y-axis
What is the difference between absorption and variable costing? Illustrate with the help of an example.
Calculate the breakeven point for the two plants and for the company as whole. Assume a) a constant sales mix and b) variable sales mix.
Calculate the overhead absorption rates for the Cutting and the Tooling departments. State the bases used and why.
Calculate the Total sales variance, Sales volume variance, Sales price variance.
What are basic, ideal and currently attainable standards? Which type of standards are usually adopted?
Explain how variable overhead efficiency and expenditure variances are computed. What are the possible causes of these variances?
For many corporations such as utility companies, a major portion of the cost of production is fixed in the short run.
Analysis of costs by behaviour for decision-making. The Northshire Hospital Trust operates two types of specialist X-ray scanning machines,
Relevant costs and cost behaviour. Distinguish between 'opportunity cost' and 'out of pocket cost'
A break-even chart must be interpreted in the light of the limitations of its underlying assumptions
State the purposes of each of the three charts in (a) above. Outline the limitations of break-even analysis.
Break-even chart with in fixed costs. Identify and discuss briefly five assumptions underlying cost-volume-profit analysis.
Non-graphical CVP analysis and calculation of margin of safety. Z Ltd manufactures and sells three products with the following selling prices
Calculation of break-even points based on different sales mix assumptions and a-product - abandonment decision
Calculation of break-even points and limiting factor decision-making. You are employed as an accounting technician by Smith, Williams and Jones
Prepare a recommended monthly sales schedule in units which will maximize the profitability of Winter plc's bed department.
Decision-making and non-graphical CVP analysis. Fosterjohn Press Ltd is considering launching a new monthly magazine at a selling price of £1 per copy
Explain how absorption costing can encourage managers to engage in behavior that is harmful to the organization.
The fixed production overhead absorption rate is £ 4 per units. What is the profit under absorption costing?