(i). Accuracy of the results and reliability. Based on past experiences, it is possible to assess how
the estimated costs using the function compared with the actual costs, and thus the accuracy
of the function.
(ii). Assumption of the method. Some assumptions may not be realistic in practice for a
particular organization.
(iii). How expensive a method is to implement. Some methods may require an organization to
purchase particular software or employ certain persons with specialiazed skills. This may be
expensive.
marto answered the question on February 26, 2019 at 09:37
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What are the features of process costing.
(Solved)
What are the features of process costing.
Date posted:
February 26, 2019
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Answers (1)
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Give the functions of budgets.
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Give the functions of budgets.
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February 26, 2019
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List the ways to improve cash management.
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February 26, 2019
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What are the causes of difference in cost and financial accounts
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February 26, 2019
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Give the causes of stock discrepancies.
Date posted:
February 26, 2019
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Give the factors considered in selecting overhead absorption rate
Date posted:
February 26, 2019
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Give the disadvantages of overstocking:
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Give the disadvantages of overstocking:
Date posted:
February 26, 2019
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Distinguish between the following Incremental costs and Marginal costs,cost centres and object centres,job costing system and process costing system,relevant cost and relevant range,
(Solved)
Distinguish between the following Incremental costs and Marginal costs,cost centres and object centres,job costing system and process costing system,relevant cost and relevant range,
Date posted:
February 26, 2019
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Answers (1)
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Give the assumptions of break-even analysis.
(Solved)
Give the assumptions of break-even analysis.
Date posted:
February 26, 2019
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Answers (1)
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Give the classification of costs.
(Solved)
Give the classification of costs.
Date posted:
February 26, 2019
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Answers (1)
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Give the assumption of the economic order quantity (EOQ) model.
(Solved)
Give the assumption of the economic order quantity (EOQ) model.
Date posted:
February 26, 2019
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Answers (1)
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Explain the term target costing.
(Solved)
Explain the term target costing.
Date posted:
February 26, 2019
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Answers (1)
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BS Limited manufactures a single standard product and operates a system of standard costing using a
fixed budget. As the company's assistant cost accountant, you are...
(Solved)
BS Limited manufactures a single standard product and operates a system of standard costing using a
fixed budget. As the company's assistant cost accountant, you are responsible for preparing the
monthly operating statements. Details from the budget, the standard product costs and actual results
for the month ended 31 May 2003 are given below:
Required:
The operating statement for the month of May, 2004 showing:
(a) The budgeted profit.
(b) Variances for direct materials, direct wages, overheads and sales.
(c) The actual profit.
Date posted:
February 26, 2019
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Answers (1)
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Ufundi Furniture Ltd. Manufactures a wide range of home furniture. Recently the company added
to its range a side board. The standard cost specification for each...
(Solved)
Ufundi Furniture Ltd. Manufactures a wide range of home furniture. Recently the company added
to its range a side board. The standard cost specification for each side board is given below:
The abnormal idle hours were 400 and the hours worked were recorded as 4,800 hours.
Required:
i) Material price variances (for both materials).
ii) Material usage variance (for both materials)
iii) Labour rate of pay variance.
iv) Labour efficiency variance.
v) Idle time variance.
(c) Suggest possible causes of the material variances.
Date posted:
February 26, 2019
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Answers (1)
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State the advantages of using standard costs in the manufacturing industry.
(Solved)
State the advantages of using standard costs in the manufacturing industry.
Date posted:
February 26, 2019
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Answers (1)
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The standard mix of a product branded Max is as follows:
(Solved)
The standard mix of a product branded Max is as follows:
Required:
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ii) Material mix variance.
iii) Material yield variance.
Date posted:
February 26, 2019
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Answers (1)
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Highlight four disadvantages of standards costing.
(Solved)
Highlight four disadvantages of standards costing.
Date posted:
February 26, 2019
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Answers (1)
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Briefly explain four applications of standard costing.
(Solved)
Briefly explain four applications of standard costing.
Date posted:
February 26, 2019
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Answers (1)
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Kuuda Limited manufactures one standard product. Currently, it is operating at a normal level of
activity of 70% with an output of 6,300 units, although the...
(Solved)
Kuuda Limited manufactures one standard product. Currently, it is operating at a normal level of
activity of 70% with an output of 6,300 units, although the sales director believes that a realistic
forecast for the next budget period would be at a level of activity of 50%.
Required:
(i). Prepare a flexible budget based on a 50% level of activity.
(ii). State three problems which may arise from such a change in the level of activity.
Date posted:
February 26, 2019
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Answers (1)
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State the objectives of budgetary planning and control systems.
(Solved)
State the objectives of budgetary planning and control systems.
Date posted:
February 26, 2019
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Answers (1)