Advantages of integrated cost accounting system
(i). There is no duplication of efforts as compared to an interlocking system where there are
separate records for cost accounting and financial accounting.
(ii). It is cheaper to set up and operate since no additional department personnel and books
have to be availed.
(iii). There will not be any need for a profit reconciliation statement.
(iv). The cost control objective/function will be carried out throughout the entire organization.
(v). Requires that all the staff be conversant with cost accounting.
marto answered the question on February 19, 2019 at 12:31
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Date posted: February 15, 2019. Answers (1)
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Date posted: February 15, 2019. Answers (1)
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Date posted: February 15, 2019. Answers (1)
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Date posted: February 15, 2019. Answers (1)
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Date posted: February 15, 2019. Answers (1)
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Explain the meaning of the following terms in the context of cost accounting:
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Date posted: February 15, 2019. Answers (1)
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and Wye. As a newly appointed cost accountant of Gemini Ltd.,...(Solved)
Gemini Ltd. Manufactures a product branded "Bora” that uses two inputs of raw materials; Exe
and Wye. As a newly appointed cost accountant of Gemini Ltd., you have obtained the following
information:
1. Annual demand for the finished product is 64,000 units.
2. Each unit of "Bora" requires 3 kgs and I kg of material Exe and Wye respectively.
3. The production loss for material Exe is 5% of input.
4. It is not planned to change the stockholding of the finished product for the financial period
ahead, reduction of 6,000 kgs in the stock of material Exe is planned.
5. The ordering and holding costs are as follows:
6. A safety stock of 580 kgs of material Wye is held.
7. On average lead time is 2 weeks.
Assume 50 weeks in a year
Required;-
(i) Quantity of material Exe to be purchased.
(ii) Economic order quantity for materials Wye.
(iii) Re-order level for material Wye.
(iv) Annual ordering cost of material Wye.
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Date posted: February 15, 2019. Answers (1)
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Lengo Ltd. manufactures three products: A. B and C. There has been a proposal to change the current convectional product costing system to an activity based costing (ABC) system.
The following information relates to the month of September 2012.
Date posted: February 15, 2019. Answers (1)
- Amdany Ltd. uses a part branded "Maxi" whose demand tends to be constant at an annual rate of 4.4
million units. The cost per unit for...(Solved)
Amdany Ltd. uses a part branded 'Maxi' whose demand tends to be constant at an annual rate of 4.4
million units. The cost per unit for this part is Sh.220 and the cost of placing an order is Sh.550.
Amdany Ltd. estimates that the annual inventory carrying cost of the part expressed as a percentage of
cost of average inventory is 20%.
Required:
i) Compute the economic order quantity (EOQ).
ii) Compute the annual number of orders.
iii) Calculate the reorder point. Assume that lead time is 11 days and the company works for 330
days in a year.
Date posted: February 15, 2019. Answers (1)
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service to...(Solved)
Copytech Ltd. sells and services photocopying machines. The company's sales department sells
the photocopying machines and consumables while the service department provides an after sale
service to customers.
Currently, Copytech Ltd. uses a single overhead absorption rate to charge overheads based on total
sales revenue from copy charges. However, the service manager has proposed to change to activity
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Date posted: February 15, 2019. Answers (1)
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Distinguish between 'cost allocation and 'cost absorption
Date posted: February 15, 2019. Answers (1)
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rate of 20% of the time saved. During the first...(Solved)
Jumbo Ltd. operates an incentive scheme where bonus hours are credited to the employees at the
rate of 20% of the time saved. During the first week of the month of May 2014, the following data
was recorded in relation to Mary Masumbi, a casual employee of Jambo Ltd.:
Additional information:
1. Bonus computations are based on accepted output.
2. The normal working hours in a week are 45 hours.
3. Overtime is paid at one and a half times the normal hourly rate.
4. The basic rate of pay is Sh.50 per hour.
Required:
Showing clearly the amounts earned for bonus and overtime, compute the total pay for Mary
Masumbi.
Date posted: February 15, 2019. Answers (1)