PRINCIPLES OF COST CONTROL 1.1 Introduction Cost is important to all industry. Costs can be divided into two general classes; absolute costs and relative costs. Absolute cost measures the loss in value of assets. Relative cost involves a comparison between the chosen course of action and the course of action that was rejected. This cost of the alternative action - the action not taken - is often called the "opportunity cost". The accountant is primarily concerned with the absolute cost. However‚
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------------------------------------------------- ASSIGNMENT ON COST CONTROL AND COST REDUCTION ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- -------------------------------------------------
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INTERNATIONAL B-SCHOOL SUBJECT: FINANCIAL & COST ACCOUNTING Total Marks: 80 N.B.: 1)Allquestionsarecompulsory 2) All questions carry equal marks. Q1) ABC Ltd. Produces room coolers. The company is considering whether it should continue to manufacture air circulating fans itself or purchase them from outside. Its annual requirement is 25000 units. An outsider vendor is prepared to supply fans for Rs 285 each. In addition‚ ABC Ltd will have to incur costs of Rs 1.50 per unit for freight and Rs 10‚000
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5 / ¼.5= .67%/ 22%= 3.05 Ch 22 #7 1. Key Question A firm has fixed costs of $60 and variable costs as indicated in the table on the following page. Complete the table and check your calculations by referring to question 4 at the end of Chapter 23. 1. Graph total fixed cost‚ total variable cost‚ and total cost. Explain how the law of diminishing returns influences the shapes of the variable-cost and total-cost curves Graph AFC‚ AVC‚ ATC‚ and MC. Explain the derivation and shape of each
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Many people wonder if Shakespeare is still relevant in the 21st century. Think about this: the issues Shakespeare wrote about were issues that many people have to face in their lifetime and have remained unchanged. His themes are also timeless themes which means they will never go out of date they will be relevant forever. Shakespeare‚ therefore‚ is still very relevant and should be continued to be taught in high school. Shakespeare’s themes in his play are timeless‚ themes such as love‚ friendship
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feed it them. Everyone is bored with their day-to-day activities and interactions so popular stories like Romeo and Juliet are still relevant to give them something to imagine‚ desire and complain about. Ordinary people don’t change‚ so they have the same mindset they had when Romeo and Juliet was first popular. Romeo and Juliet is relevant‚ and continues to be relevant‚ because people simply keep reading it. People keep reading it because they breathe and live for drama. In scene 5‚ act 1‚ Juliet says
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ARE UNIONS STILL RELEVANT IN THE UNITE STATES? 1 Are Unions Still Relevant in the Unite States? Labor Relations Elsa M. Delgado Palm Beach State College Are Unions Still Relevant? 2 Labor Unions‚ which formed to represent the workforce when needed‚ its rights to be discuss with the organizations management. Unions bring matters
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Illustration of Relevant Costs for Decision-Making 1) Adams calculates costs under three alternative policies: (1) negotiate with the Barbary States; (2) wage war against the Barbary States; and (3) do nothing. Under the first two scenarios‚ his cost calculation represents projected cash outflows for the U.S. government. The “do nothing” scenario‚ however‚ includes some “costs” that would require no cash outlay by either the government or its citizens. What is the relevance of this third cost calculation
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following data have been recorded for recently completed Job 501 on its job cost sheet. Direct materials cost was $3‚067. A total of 30 direct labor-hours and 104 machine-hours were worked on the job. The direct labor wage rate is $12 per labor-hour. The company applies manufacturing overhead on the basis of machinehours. The predetermined overhead rate is $11 per machine-hour. The total cost for the job on its job cost sheet would be: A. $4‚571 B. $3‚757 C. $3‚090 D. $3‚427 Applied manufacturing
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Cost Control and Cost Reduction A business enterprise must survive‚ grow‚ and prosper. Cost Control and Cost Reduction are activities necessary for ensuring that these objectives are fulfilled. With the liberalization of the Indian Economy and Globalization‚ there is now a cut throat competition from various concerns of the world. As a result there is now a race to secure a place for survival. This has increased the importance of cost control and Cost Reduction. Cost Control “Cost control
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