Question 1:
Briefly explain the following costs terms:
- Variable costs and fixed costs
- Semi- variable costs and semi-fixed costs
- Past costs and future costs.
Best Resort Ltd grows pineapples. The budget for March 2010 is as follows:
Rs
Direct materials 12,000
Direct Labour 15,000
(i) Describe what is meant by the revaluation method of depreciation. Give two examples to illustrate your answer.
(ii) Give two limitations of this method of depreciation.