for an order for 2‚500 units of GX1. The company only makes GX1 to order and currently has no other orders in process. The production requirements for GX1 are as follows: Materials: Three types of material are used in production: Amount Cost Resale Current used per unit price value price to buy Material A 12kg £2.50 £1.00 £2.75 Material B 4kg £7.00 £5.50 £8.50 Material C 6kg - £6.50 - Material A is used extensively throughout the company’s range of products
Premium Cost Costs Price
Case Study Inventory The Cost of Inventory The general principle for cost inclusion into inventory for US GAAP and IFRS is similar but not exactly the same. First let us look at US GAAP. The basis of accounting for inventories is “cost‚” which is explained in ASC 330-10-30 paragraph 1 as “the sum of the applicable expenditures and charges directly or indirectly incurred in bringing an article to its existing condition and location.” These costs are divided into two different categories‚ the
Premium Inventory Cost Costs
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
Premium Costs Cost accounting Activity-based costing
Peanuts and Cost Accounting A problem faced by a Restaurateur (Joe) as revealed by his Accountant-Efficiency Expert (Eff. Ex.) EFF. EX. Joe‚ you said you put in these peanuts because some people ask for them‚ but do you realize what this rack of peanuts is costing you? JOE It ain ’t gonna cost. ’Sgonna be a profit. Sure‚ I hadda pay $25 for a fancy rack to holda bags‚ but the peanuts cost 6 cents and I sell ’em for 10 cents. Figger I sell 50 bags a week to start. It ’ll take 12 ½ weeks to
Premium Cost Costs
other? (2 marks) (c) Interpret the following Income Elasticities of Demand (YED) values for the following and state if the good is normal or inferior; (3 marks total‚ 1.5 marks per part) YED= +0.7 YED= -3.4 (d) Interpret the following Cross-Price Elasticities of Demand (XED) and explain the relationship between these goods. (3 marks total‚ 1.5 marks per part) XED= + 0.75 XED= -2.5 Answer (a)Definition of income elasticity of demand is percentage change in quantity demanded‚divided
Premium Costs Economics of production Average cost
product costs are the direct materials‚ and manufacturing overhead that are involved in acquiring or making products. Products costs are assigned to an inventory account on the balance sheet and considered to be assets. When the goods are sold‚ the costs are released from inventory and are recognized as expenses in the income statement. Period costs are all the costs that are not included in product cost‚ such as advertising‚ executive salaries‚ and other nonmanufacturing costs. These costs are expenses
Premium Balance sheet Income statement Expense
20 CHAPTER 3 NEW ALTERNATE METHODS OF TRANSPORTATION PROBLEM 3.1 Introduction The transportation problem and cycle canceling methods are classical in optimization. The usual attributions are to the 1940’s and later. However‚ Tolsto (1930) was a pioneer in operations research and hence wrote a book on transportation planning which was published by the National Commissariat of Transportation of the Soviet Union‚ an article called Methods of ending the minimal total kilometrage in cargo-transportation
Premium Supply and demand Optimization Microeconomics
Cost Accounting Fundamentals Introduction to Cost Accounting Cost accounting is an internal reporting system for an organisation’s own management for decision making. It is the process of accounting for costs. It includes the accounting procedures relating to recording of all incomes and expenditures and the preparation of periodical statements and reports with the object of ascertaining and controlling costs. It is thus the formal mechanism by means of which cost of products or services are
Premium Management accounting Cost accounting
likely outcomes. c. Financial planning is necessary because financing and investing decisions interact and should not be made independently. True: It considers both the financing and investment decisions. d. Firms planning horizons rarely exceed 3 years a typical horizon for long-term panning is 5 years. e. Individual capital investment projects are not considered in a financial plan unless they are very large True. They are usually accumulated by category. f. Financial planning requires accurate
Premium Finance Investment Economics
Chapter 18 Questions 1)Define active solar heating‚ and explain how it works. Active solar heating is a system of putting the sun’s energy to use in which collectors absorb solar energy and pumps or fans distribute the collected heat. This functions in the manner that heat absorbed by a solar collector is transferred to a fluid inside the panel‚ which is then pumped to the heat exchanger‚ where the heat is transferred to water that will be stored in the hot water tank. 2)Define photovoltaic solar
Premium Solar energy Solar cell Natural gas