Classify each cost as either variable or fixed with respect to the number of units producedand sold. Also indicate whether each cost is either product cost or period cost. (Fill Xin the table given in the answer sheet).a)“ The variable cost per unit varies with output, whereas the fixed cost per unit inconstant". Do you agree? Justify your answers.b)Explain any 3 (THREE) differences between financial accounting and managementaccounting.c) Various cast associated with the operation of factories are given below:Electricity to run production cost,Rent on factory buildingCloth used to make drapes.Production supervisor salary.Wages of labourers assembling a product.Depreciation on air purification equipment used to make furniture.Factory janitorial salariesTomatoes used in canning fruits.Lubricants for production equipment.Sugar used in soft drink production.Property tax on the factory.Wages for workers painting cars.Depreciation on canteen equipment.Insurance on building used in baking bread for sale.Cost of brakes used in manufacturing automobile.12356.789.101112131415

Variable costs are those costs which varies with output. It must be noted here that variable cost…

a) Classify each cost as either variable or fixed with respect to the number of units produced and sold. Also indicate whether each cost is either product cost or period cost. (Fill X in the table given in the answer sheet). “ The variable cost per unit varies with output, whereas the fixed cost per unit in constant". Do you agree? Justify your answers. b) Explain any 3 (THREE) differences between financial accounting and management accounting. c)

a) Classify each cost as either variable or fixed with respect to the number of units produced and sold. Also indicate whether each cost is either product cost or period cost. (Fill X in the table given in the answer sheet). “ The variable cost per unit varies with output, whereas the fixed cost per unit in constant". Do you agree? Justify your answers. b) Explain any 3 (THREE) differences between financial accounting and management accounting. c)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Classify each cost as either variable or fixed with respect to the number of units produced
and sold. Also indicate whether each cost is either product cost or period cost. (Fill X
in the table given in the answer sheet).
a)
“ The variable cost per unit varies with output, whereas the fixed cost per unit in
constant". Do you agree? Justify your answers.
b)
Explain any 3 (THREE) differences between financial accounting and management
accounting.
c)

Various cast associated with the operation of factories are given below:
Electricity to run production cost,
Rent on factory building
Cloth used to make drapes.
Production supervisor salary.
Wages of labourers assembling a product.
Depreciation on air purification equipment used to make furniture.
Factory janitorial salaries
Tomatoes used in canning fruits.
Lubricants for production equipment.
Sugar used in soft drink production.
Property tax on the factory.
Wages for workers painting cars.
Depreciation on canteen equipment.
Insurance on building used in baking bread for sale.
Cost of brakes used in manufacturing automobile.
1
2
3
5
6.
7
8
9.
10
11
12
13
14
15

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