a) What is the relationship between costing, management accounting, and financial accounting.( 3 marks)
b) Distinguish between cost apportionment and cost allocation. (2 marks)
c) The aim of just in time system is to produce the required items of high quality at the time they are required. Outline any five characteristics of just in time to the environment. (5 marks)
d) What is the economic order quantity when demand is 25% per working day,ordering cost are 150 pounds per order, the item cost three pounds each and carring costs are 12% per year. ( 5 marks)
e) Define the terms as used in costing:
i. Cost drivers
ii. Cost pools
iii. Profit center
iv. Break- even point
v. Limiting factor(5 marks)
f) Two products x and y are made using similar equipments and methods. The data for the last period are:
X Y
Units produced 6000 8000
Labor hours per unit 1 2
Machine hour per unit 4 2
Set-ups in period 15 45
Orders handled in the period 12 60
Overheads for the period pound
Relating to production set-ups 179000
Relating to order handling 30000
Relating to machine capacity 55000
Required:
Calculate the overheads to be absorbed per unit of each product based on;
a) Conventional absorption costing using a labor hour absorption rate. (5 marks)
b) An ABC approach using suitable cost drivers.( 5 marks)
For a custom-written paper on the above topic, place your order now!
What We Offer
• On-time delivery guarantee
• PhD-level professionals
• Automatic plagiarism check
• 100% money-back guarantee
• 100% Privacy and Confidentiality
• High Quality custom-written papers
