Costing and Pricing
ACKNOWLEDGEMENT In this assignment, we would like to take an opportunity to send our appreciation to the college due to a proper syllabus and good environment have been provided. Next, we would like to thank our Costing and Pricing lecturer, Mr.Balan for his generous help. We believe that we cannot create an excellent assignment without his advice and help. At the same time, we would like to express our thanks to those who helped us to carry this assignment successfully. Thank you very much. Finally, we would also like to say thank you to our family. We are appreciating for their supports in doing this assignment.
Table of Content
No.
Content
Page
1
Introduction
1-2
2
Internal control procedure for Morgan’s Fishing Excursion
3-4
3
Discuss the resort problem
5-6
4
Feasibility study for a medium-priced restaurant
7-14
5
Conclusion
15
6
References
16
Introduction
The process of setting prices within the business enterprise involves two steps. The first involves determining the cost swhich will be used as the base for setting the price and the second step is the actual setting of the price. The procedures used by the business enterprise employs to determine the costs that will be used in setting the selling price of a product before actual production takes place and hence the actual costs of production are known are known as costing. Derived from the management accounting procedures used by the enterprise, costing procedures are based on a estimated, normal, or standard volume of output or capacity utilization and can range from determining estimated enterprise average direct costs to determining the normal or standard average total costs which consists of normal average direct costs, average shop expenses, and average enterprise expenses, with average shop and enterprise expenses together being the enterprise 's average overhead costs. The relevance of normal or standard capacity utilization in costing is that it enables the price
Table of Content
No.
Content
Page
1
Introduction
1-2
2
Internal control procedure for Morgan’s Fishing Excursion
3-4
3
Discuss the resort problem
5-6
4
Feasibility study for a medium-priced restaurant
7-14
5
Conclusion
15
6
References
16
Introduction
The process of setting prices within the business enterprise involves two steps. The first involves determining the cost swhich will be used as the base for setting the price and the second step is the actual setting of the price. The procedures used by the business enterprise employs to determine the costs that will be used in setting the selling price of a product before actual production takes place and hence the actual costs of production are known are known as costing. Derived from the management accounting procedures used by the enterprise, costing procedures are based on a estimated, normal, or standard volume of output or capacity utilization and can range from determining estimated enterprise average direct costs to determining the normal or standard average total costs which consists of normal average direct costs, average shop expenses, and average enterprise expenses, with average shop and enterprise expenses together being the enterprise 's average overhead costs. The relevance of normal or standard capacity utilization in costing is that it enables the price
References: http://www.cliffsnotes.com/more-subjects/accounting/accounting-principles-i/principles-of-accounting/internal-control http://kfknowledgebank.kaplan.co.uk/KFKB/Wiki%20Pages/Internal%20control%20systems.aspx#Arithmetic_x0020_and_x0020_accounting_0_1_10_7_0_0_0_0_0_0_0_0_0_0_0_0 http://cas.umkc.edu/econ/economics/faculty/lee/intro-pke/ch5.pdf