What do you mean by controllable costs? Give an example. What is a purchase requisition? To whom
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Question:
What do you mean by controllable costs? Give an example.
- What is a purchase requisition? To whom it is submitted?
- What are the objectives of Cost Accounting?
- Name any four techniques of inventory control.
- Define the term material control.
- What are variable overheads? Give two examples.
- Name the methods of labor turnover.
- Define Overheads.
- Briefly state the differences between Cost Accounting and Financial Accounting.
- (8 points each)
Problem 1
From the following particulars prepare a statement of Cost and Profit.
Raw materials consumed
80,000
Direct wages
50,000
Machine hours worked
10,000 hours
Machine hour rate
2 per hour
Office overheads
20% on works costs
Selling overheads
2 per unit sold
Units produced
10,000 units
Units sold
9,000 units at 25 per unit
Problem 2
Following information is available with respect to a particular type of labor
- Monthly salary basic pay 2,000
- House rent allowance 400 per month
- Leave salary earned 3,500
- Number of working hours in a month 200 hours
Calculate the cost of labor per day of 8 hours.
Problem 3
- ABE Company Ltd. Gives the following details about the material X. Monthly consumption 200 units, average cost per order 40. Average price per unit 20, Holding cost 24% per year.
Determine EOQ
- From the following particulars calculate:
- Reorder level
- Minimum level
Maximum consumption 150 units per day
Minimum consumption 50 units per day
Reorder period 25-30 days
Related Book For
Cost Management Accounting and Control
ISBN: 978-0324559675
6th Edition
Authors: Don R. Hansen, Maryanne M. Mowen, Liming Guan
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