need project report on all

18.00.00001337 M14 e 20 34 30 15 36 5 36.000 124 10 20 30 30,000 0.00 55.000 Toored the beeld stated below at different levels of output more of any of A B Coro) Total Fixed Cost(in) 8,43,000 12,50.000 16,00,000 Patio Face can be interchangeably used among the Products. her ability in the Assembly Department is made to 2.20.000 hours for the production period. A local Firm has offered make any quantity of any of the products on a contract basis at the following rates: Product 95 100 D B 101 Sub Contract Price luni Red Advise the Management on how many units of each Product are to be manufactured or sub-contracted to fulfill maximum Market Demand. What would be the corresponding Profits? What is the minimum number of units to be produced to achieve Break-Even Point? What would you advise as the best Strategy to maximize profits, if Assembly Labour is not a limiting factor and if there is no compulsion to fulfill Market Demand? (Only relevant figures need to be discussed. A detailed profitability Statement is not required). B) 95 CC) 101 D() 100 42 46 40 15 20 24 Solution: 1. Contribution Analysis Particulars ACC) Sub-Contractor's Price p.u. (Buying Cost) 85 Own Variable Cost of Production (Making Cost) 40 (a) Material (D) Labour Cost - Assembly Department 15 Machine Department 18 (6) Vanable Overheads 6 Sub - Total of Variable Cost 79 3. Savings p.u. made (1-2) 6 4. Preference / Decision Make 15 5. Assembly Hours required p.u. (in hours) = 1.50 10 36 6 20 30 8 98 8 2. 94 1 Make 20 = 2.00 10 103 (2) Buy 15 = 1.50 10 Make 20 = 2.00 10 4 0.50 NA 1 6. Savings per Hour if made = (6) 2. Rank for Production I III NA II 9.137 calculating the cost of the given Housing Relevant irrelevant Irrelevant Irrelevant Relevant Solutions S.NO Item Food and Hotel Expenses 3.750 Material : 550 kg * 7 580/kg Material Z: 550 kg * 650 per kg 39 Engineer's Salary 47.500 fu Engineer's Free Time Cost 60/150 * 47.500 Design Cost 30.000 Desige Cost 750.000 Type of Cost Historical / Sunk (already incurred) Historical (already purchased) Out-of-Pocket / Incremental Specific/ Discretionary | Avoidable Committed (anyhow to be incurred) Historical / Sunk (already incurred) Opportunity Cost (Loss of Revenue) Relevant Irrelevant Irrelevant Relevant 10.6 Padhuka's - Students' Handbook on Strategic Cost Management & Perform 10.3.3 Relevance of Other Costs Nature of Cost Variable Overheads Fixed Overheads Depreciation Relevant Cost Irrelevant if already incurred. Relevant, only if such costs are to be incurred in future. Relevant, only under specific situations described in Question above. Irrelevant, as it is an apportionment of Historical Cost. However, fall in Asset Disposal Value due to delay in disposal, becomes relevant. Irrelevant if already incurred or apportioned. Relevant if they are to be incurred specifically for any contract / work. (Incremental Costs upto the point of transfer + Opportunity Costs) are relevant Other Department Costs Intra-Company Transfer Price Charges for services 10.3.4 Pitfalls in Relevant Cost Analysis 1. All Variable Costs are relevant: Variable Costs already incurred in the past are historical and irrelevant. Even among future Variable Costs, those which will not differ under different alternatives are irrelevant. For example, a Company wishes to replace its manual operations with mechanization. If the same material is used, the Direct Material Cost, even if variable, will be irrelevant 2. All Fixed Costs are Irrelevant: Fixed Costs are irrelevant when they are general in nature and do not differ by reference to the alternatives under evaluation. There are situations where Fixed Costs become relevant. [See question above.] Coot Classification Opportunity ws. Relevance of Labour Cost 10.3.2 Workers already Available Workers to be engaged / appointed specifically General Rule, ie. Labour Cost in respect of future contracts Excessive Labour Force, and - Company has no retrenchment policy, or Reduction in Idle Time Cost of Labour Labour in short supply, i.e. yielding Contribution in a different department . Labour Cost is Labour Cost is Committed Cost, Variable Cost + Opportunity Out of Pocket Costs, i.e. Wages Variable Cost and hence irrelevant. Cost (Contribution foregone) of new workers is relevant. hence relevant is relevant. Note: If acceptance of special contract necessitates replacement / transfer of workers, i.e. existing jobs carried out with new workers, and existing workers are transferred to the special contract, the Wages of New Workers is relevant for the special contract 18.00.00001337 M14 e 20 34 30 15 36 5 36.000 124 10 20 30 30,000 0.00 55.000 Toored the beeld stated below at different levels of output more of any of A B Coro) Total Fixed Cost(in) 8,43,000 12,50.000 16,00,000 Patio Face can be interchangeably used among the Products. her ability in the Assembly Department is made to 2.20.000 hours for the production period. A local Firm has offered make any quantity of any of the products on a contract basis at the following rates: Product 95 100 D B 101 Sub Contract Price luni Red Advise the Management on how many units of each Product are to be manufactured or sub-contracted to fulfill maximum Market Demand. What would be the corresponding Profits? What is the minimum number of units to be produced to achieve Break-Even Point? What would you advise as the best Strategy to maximize profits, if Assembly Labour is not a limiting factor and if there is no compulsion to fulfill Market Demand? (Only relevant figures need to be discussed. A detailed profitability Statement is not required). B) 95 CC) 101 D() 100 42 46 40 15 20 24 Solution: 1. Contribution Analysis Particulars ACC) Sub-Contractor's Price p.u. (Buying Cost) 85 Own Variable Cost of Production (Making Cost) 40 (a) Material (D) Labour Cost - Assembly Department 15 Machine Department 18 (6) Vanable Overheads 6 Sub - Total of Variable Cost 79 3. Savings p.u. made (1-2) 6 4. Preference / Decision Make 15 5. Assembly Hours required p.u. (in hours) = 1.50 10 36 6 20 30 8 98 8 2. 94 1 Make 20 = 2.00 10 103 (2) Buy 15 = 1.50 10 Make 20 = 2.00 10 4 0.50 NA 1 6. Savings per Hour if made = (6) 2. Rank for Production I III NA II 9.137 calculating the cost of the given Housing Relevant irrelevant Irrelevant Irrelevant Relevant Solutions S.NO Item Food and Hotel Expenses 3.750 Material : 550 kg * 7 580/kg Material Z: 550 kg * 650 per kg 39 Engineer's Salary 47.500 fu Engineer's Free Time Cost 60/150 * 47.500 Design Cost 30.000 Desige Cost 750.000 Type of Cost Historical / Sunk (already incurred) Historical (already purchased) Out-of-Pocket / Incremental Specific/ Discretionary | Avoidable Committed (anyhow to be incurred) Historical / Sunk (already incurred) Opportunity Cost (Loss of Revenue) Relevant Irrelevant Irrelevant Relevant 10.6 Padhuka's - Students' Handbook on Strategic Cost Management & Perform 10.3.3 Relevance of Other Costs Nature of Cost Variable Overheads Fixed Overheads Depreciation Relevant Cost Irrelevant if already incurred. Relevant, only if such costs are to be incurred in future. Relevant, only under specific situations described in Question above. Irrelevant, as it is an apportionment of Historical Cost. However, fall in Asset Disposal Value due to delay in disposal, becomes relevant. Irrelevant if already incurred or apportioned. Relevant if they are to be incurred specifically for any contract / work. (Incremental Costs upto the point of transfer + Opportunity Costs) are relevant Other Department Costs Intra-Company Transfer Price Charges for services 10.3.4 Pitfalls in Relevant Cost Analysis 1. All Variable Costs are relevant: Variable Costs already incurred in the past are historical and irrelevant. Even among future Variable Costs, those which will not differ under different alternatives are irrelevant. For example, a Company wishes to replace its manual operations with mechanization. If the same material is used, the Direct Material Cost, even if variable, will be irrelevant 2. All Fixed Costs are Irrelevant: Fixed Costs are irrelevant when they are general in nature and do not differ by reference to the alternatives under evaluation. There are situations where Fixed Costs become relevant. [See question above.] Coot Classification Opportunity ws. Relevance of Labour Cost 10.3.2 Workers already Available Workers to be engaged / appointed specifically General Rule, ie. Labour Cost in respect of future contracts Excessive Labour Force, and - Company has no retrenchment policy, or Reduction in Idle Time Cost of Labour Labour in short supply, i.e. yielding Contribution in a different department . Labour Cost is Labour Cost is Committed Cost, Variable Cost + Opportunity Out of Pocket Costs, i.e. Wages Variable Cost and hence irrelevant. Cost (Contribution foregone) of new workers is relevant. hence relevant is relevant. Note: If acceptance of special contract necessitates replacement / transfer of workers, i.e. existing jobs carried out with new workers, and existing workers are transferred to the special contract, the Wages of New Workers is relevant for the special contract