Preview

Cost Accounting Tutorial Chapter 2 (Diploma)

Satisfactory Essays
Open Document
Open Document
388 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Cost Accounting Tutorial Chapter 2 (Diploma)
COMPREHENSIVE ILLUSTRATION

QUESTION 1

ABC Bhd uses material X which obtain from an outside supplier. Each delivery of material X consists of 30,000 kg at a cost of RM5 per kg. The cost of ordering is RM10 per order. The lead time for delivery can vary between 12 and 18 days and the rate of usage of material X also varies between 320 and 480 kg per day. Stockholding cost amount to 9% per annum of the average stockholding value.

Required: Calculate the following:

|Re-order level in kg | |
| | |
| | |
| | |
| | |
|Minimum stock level in kg | |
| | |
| | |
| | |
| | |
|maximum stock level in kg |
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Week 5 Wiley Plus Problems
    • 443 Words
    • 2 Pages

    Week 5 Wiley Plus Problems

    The standard cost of Product B manufactured by Mateo Company includes three units of direct materials at $5.00 per unit. During June, 28,000 units of direct materials are purchased at a cost of $4.70 per unit, and 28,000 units of direct materials are used to produce 9,000 units of Product B.…

    • 443 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Powerful Essays

    Friedlan 4e Accounting Chapter 3 Solution
    • 28380 Words
    • 341 Pages

    Friedlan 4e Accounting Chapter 3 Solution

    Adjusting entries are necessary in accrual accounting because recognition of revenues and expenses does not always correspond with cash flows. Some economic changes may occur that should be reflected under accrual accounting but that are not triggered by exchanges with external parties. As a result adjusting entries are needed to reflect these changes. Adjusting entries are not required in a cash accounting system because recording is triggered only by the exchange of cash, and so revenues and expenses always correspond with cash…

    • 28380 Words
    • 341 Pages
    Powerful Essays
    Read More
  • Good Essays

    Cost Accounting Cc2 Unit 2
    • 2988 Words
    • 12 Pages

    Cost Accounting Cc2 Unit 2

    Sales have increased over the years, but the rate of this increase is not steady. The highest sales point was in 2006. Cost of sales and expenses with the exception of other expenses have increased at a steady rate. Other operating expenses have fluctuated over the years; the lowest point was in the first year with the highest being in 2006. Finance cost seems to have reached a peak in 2006 and the fallen by 2008. Net Profit after Tax follows a similar pattern to sales. CC3 CONSOLIDATED BALANCE SHEET…

    • 2988 Words
    • 12 Pages
    Good Essays
    Read More
  • Powerful Essays

    Accounting AC114 unit 9 assignment

    • 1203 Words
    • 4 Pages

    Accounting AC114 unit 9 assignment

    errors that tend to happen when calculations are done manually. Ultimately, the goal of the entire…

    • 1203 Words
    • 4 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Assignment 2 – Acg11 Accounting for Business
    • 3150 Words
    • 13 Pages

    Assignment 2 – Acg11 Accounting for Business

    A. The owner of Computer World, Heath is confused about the depreciation expense for building in the income statement and the carrying amount in the balance sheet, and would like you to explain the following to him:…

    • 3150 Words
    • 13 Pages
    Powerful Essays
    Read More
  • Satisfactory Essays

    ACC 206 Week 5 Final Paper Cost Accounting
    • 673 Words
    • 3 Pages

    ACC 206 Week 5 Final Paper Cost Accounting

    Principles of Accounting II Cost Accounting Accounting is the accumulation and aggregation of info for decision makers including administrators, traders, authorities, loan providers, as well as the general public. Accounting systems impact behavior and administration and have effects across divisions, companies, and even nations. This report will provide the reader a knowledge regarding cost accounting. This report will talk about: Why is cost accounting so essential to the achievement of the company; what are the different ways of cost accounting and how are they utilized; how does an operating budget work in order to control a firms administration; what are the factors of a financial budget; how are financial budgets developed; what is variance analysis and the way its utilized. Cost accounting can be defined as the procedure of gathering, computing, assessing, interpreting as well as reporting cost info which is both helpful and related to the internal and external stakeholders of a business. Among the many advantages of cost accounting is that it converts data into info, knowledge and wisdom regarding a business entitys functions which is helpful for: gauging efficiency, decreasing or controlling expenses, deciding the charges or rates for services and goods, determining to approve, change or stop a plan or activity. One more advantage is that info on the costs programs as well as activities can be used as a foundation in order to approximate future expenses in organizing as well as analyzing budget requests. As soon as budgets are authorized as well as executed, cost info serves as a helpful comment on efficiency. In addition to that, costs might be compared to known or supposed advantages in order to identify value-added and non-value added actions.…

    • 673 Words
    • 3 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    Accounting Module 1, Act 5
    • 484 Words
    • 2 Pages

    Accounting Module 1, Act 5

    Bakerview’s strategy is to develop a core consumer base by segregating themselves from their competitors through industry niches which meet current societal demands and product differentiation. Bakerview has established its own niches in its industry to pursue the solitary of product differentiation. One of its niches is establishing Cowlix Natural Ice Cream which is their own featured brand name product. Crafting your own brand name product creates product differentiation by allowing themselves to articulate a product line to their customers which is segregated from their other products. This generates loyal customers and encourages customers to be exposed to their other goods because they have been satisfied with this certain line of products.…

    • 484 Words
    • 2 Pages
    Good Essays
    Read More
  • Good Essays

    Ac552 Cost Accounting Week 1 Homework
    • 788 Words
    • 4 Pages

    Ac552 Cost Accounting Week 1 Homework

    Please complete the below problems and submit your answers in the Week 1 Dropbox. See "Syllabus/Due Dates for Assignments & Exams" for due date information.…

    • 788 Words
    • 4 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    Unit 5 – Business Accounting – P1 and P2
    • 696 Words
    • 3 Pages

    Unit 5 – Business Accounting – P1 and P2

    Businesses such as Toyota find accounting being a very critical aspect of their business life. Accounting involves recordings of the financial transactions for the business. The importance of accounting is that great that even if a business has one of the best products in the world it could still be faced to fail for simple things such as not enough investment, too high costs to produce the products or even simply over spending on new products.…

    • 696 Words
    • 3 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    Business Accounting P1,P2
    • 1748 Words
    • 7 Pages

    Business Accounting P1,P2

    Financial records tell you how much income your business is generating and how it’s being spent on things like overheads and products etc. You can then create a profit and loss balance sheet, this is important so that your financial advisor can then tell you what is going good or what is going bad and from that he can direct you on what to do. If a business doesn’t keep it right with the bill then they cou8ld end up in trouble with the HM Revenue and customs (HMRC). If the business doesn’t record the cash transactions correctly then it cannot report its financial bills. The sales records will be updated regularly; this should give you a good idea on how the business is doing through sales, receiving payment, paying expenses and so on. The money going out seems to be going out faster than the money coming in then the owner or bookmaker should keep a close eye on the bank balance to ensure that they have sufficient funds for future transactions.…

    • 1748 Words
    • 7 Pages
    Good Essays
    Read More
  • Powerful Essays

    Managerial Accounting Chapt 2
    • 26583 Words
    • 107 Pages

    Managerial Accounting Chapt 2

    Managerial Accounting, 3e (Braun/Tietz) Chapter 2 Building Blocks of Managerial Accounting 1) Service companies must carry a large amount of inventory to meet consumer demand. Answer: FALSE Diff: 1 LO: 2-1 EOC: E2-1 AACSB: Reflective Thinking…

    • 26583 Words
    • 107 Pages
    Powerful Essays
    Read More
  • Good Essays

    Bsg-Online Game Summary
    • 1152 Words
    • 5 Pages

    Bsg-Online Game Summary

    * Purchase Capacity comes into picture if any of your rivals have sold off their capacities in previous years.…

    • 1152 Words
    • 5 Pages
    Good Essays
    Read More
  • Better Essays

    Intermediate Financial Accounting Kieso Chapter 19 Outline
    • 1407 Words
    • 6 Pages

    Intermediate Financial Accounting Kieso Chapter 19 Outline

    * Temporary difference- difference between tax basis of an asset or liability and its reported (carrying or book) amount in the financial statements, which will result in taxable amounts or deductible amounts in the future…

    • 1407 Words
    • 6 Pages
    Better Essays
    Read More
  • Satisfactory Essays

    Cost Accounting Questions
    • 306 Words
    • 2 Pages

    Cost Accounting Questions

    Below is a free essay on "Acct505 Midterm Exam" from Anti Essays, your source for free research papers, essays, and term paper examples.…

    • 306 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    Accounting - Chapter 1
    • 1205 Words
    • 5 Pages

    Accounting - Chapter 1

    Accounting is a system for gathering data about an entity’s economic activity, processing and organizing the data and in turn, communicating that information to people who want to use it to make decisions.…

    • 1205 Words
    • 5 Pages
    Good Essays
    Read More

Related Topics