With the following data for a 60% activity, prepare
a budget for production at 80% and 100% capacity
Production at 60 % capacity- 300 units
Materials Rs.100 per unit
Labour Rs.40 per unit
Expenses Rs. 10 per unit
Factory expenses Rs.40,000 (40 % fixed)
Administrative expenses Rs.30,000 (60 % fixed)
Answers
Answer:
The accounting approach in which expected benefts exceed the expectedcosts is classifed as:Cost-beneft approach
Cost approachAccounting approachBeneft approach
One o the most important tools in cost planning is
Direct costCost sheet
Budget
Marginal costing
A costing system is used in situation where single homogenous product isproduced
Job order costing
Process costing
Absorption costingProduct costing
The main purpose o cost accounting is:
Maximize proftProvide inormation to management to make decision
Help in inventory valuationAid in the fixation of selling prices
hich o the ollowing is an e!ecti"e techni#ue o cost control
Budgetar control!niorm costing
Standard costing
Marginal costing
A costing system is used in situation where single homogenous product isproduced
Job order costing
Process costing
Absorption costingProduct costing
$ a company wishes to establish a actory o"erhead budget system inwhich estimated cost can be deri"ed directly rom estimates o acti"ityle"el% it should prepare a:
Cash budgetMaster budget"ixed budget
&lexible budget'na"orable "ariances are the result o management use o:$deal standards
#$cienc standards
Basic standardsAttainable standards
Calendar "ariance is a sub "ariance o
#xpenditure variance
(olume "ariance
al #uantity o in"entory to beordered is called
#$cient order +uantit%ational order +uantit
*ptimized<