Definition and explanation of mixed or semi variable cost: A mixed cost is one that contains both variable and fixed cost elements. Mixed cost is also known as semi variable cost. Examples of mixed costs include electricity and telephone bills. A portion of these expenses are usually consists line rent. Line rent normally is fixed for each month. Variable portion consists units consumed or calls made. The relationship between mixed cost and level of activity can be expressed by the following equation
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historical cost accounting still widely and continuously to be used by most companies in their accounting. Conversely‚ reporting current cost in accounting are recommended rather than historical cost as it is the fair value reported in the current year would be beneficial to the firm and the shareholders of the company. 2.0 Historical Cost Accounting and Benefits of Current Cost 2.1 Introduction to Historical Cost‚ Disadvantages and Advantages of Historical Cost The historical cost accounting is
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COST ANALYSIS Prepared by: Nebuchadnezzar Rabaya OBJECTIVES To provide a basic understanding of the nature of cost analysis. To give highlights on the importance of cost analysis on any venture. To present a clear overview on various types of costs. Cost Definition: an amount that has to be paid or spent to buy or obtain something. Analysis Definition: is the process of breaking a complex topic or substance into smaller parts to gain a better understanding of it. What is cost analysis
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Multiple Choice Questions 16. Which terms would make the following sentence true? Manufacturing companies that benefit the most from activity-based costing are those where overhead costs are a _________ percentage of total product cost and where there is ___________ diversity among the various products that they produce. A) low‚ little B) low‚ considerable C) high‚ little D) high‚ considerable 17. Would factory security and assembly
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have a sound knowledge of cost behaviour ie fixed costs‚ variable costs‚ semi-variable costs and sunk costs. Answer: Understanding cost behaviour helps manager in anticipation of changes in cost when there is a change in their activities like production‚ sales‚ inventory pile up etc. It provides good assistance in planning‚ cost management and decision making. A number of behaviour patterns exist ranging from fixed to variable and from linear to curvilinear. Many cost predictions techniques are
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St a t em en t An a lysis a n d Cost Redu ct ion P r ogr a m AT TATA MOTORS LIMITED‚ PUNE Submitted To Pune University In Partial Fulfillment of the Requirement of Master of Business Administration Submitted By Mr. Chetan G. Aher M.B.A Under the Guidance of Prof. Mr. Mahesh Halale THROUGH THE DIRECTOR OF Visahwakarma Institute of Management 2005 - 2007 www.final-yearproject.com | www.finalyearthesis.com The Financial Statement Analysis and Cost Reduction Program. Acknowledgement
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Chapter 1 Basic Cost Concepts Learning Objectives • To understand the meaning of different costing terms to understand different costing methods • To have a basic idea of different costing techniques • To understand the meaning of cost sheet In order to determine and take a dispassionate view about what lies beneath the surface of accounting figures‚ a financial analyst has to make use of different management accounting techniques. Cost techniques have a precedence over the other
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people(tourists) away from their usual habitat‚ the activities of people away from their usual habitat will normally give rise to an industry and the activities of both the people and the industry may or will have impact on the host community. 2.0 DISADVANTAGES OF TOURISM 2.1 THREATHEN INDIGENOUS IDENTITY Tourism gives positive impacts to a country but the impacts arise when tourism brings about changes in value systems and behaviour‚ thereby threatens indigenous identity. Furthermore‚ changes often
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use of a single burden rate. Burden costs of the testing rooms as well as other costs such as admin were grouped into a single cost pool and then divided by the total labor dollars. This resulted to a single burden rate of 145% of direct labor dollars (cost driver). This method is not appropriate for Seligram because the information on the case present that direct labor hours and machine hours vary by product line and activity. In addition‚ the burden cost of the main and test room also significantly
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manufacturing cost categories. LO2 Distinguish between product costs and period costs and give examples of each. including calculation of the cost of goods sold. LO4 Prepare a schedule of cost of goods manufactured. LO5 Understand the differences between variable costs and fixed costs. LO6 Understand the differences between direct and indirect costs. LO7 Define and give examples of cost classifications used in making decisions: differential costs‚ opportunity costs‚ and sunk costs. LO8
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