Administration (MVR) Production Packing (MVR) (MVR) Overheads 6500 5120.7 1201.28 Administration Usage 240.256 961.024 -1201.28 Labour Hours 2250 750 Total Overheads 8990.256 6831.724 Overheads Absorbtion Rate 1.997834667 4.554482667 (Based on Labour Hours) Per Hour Per Hour Overheads Absorbtion Rate 2.996752 2.277241333 (Based on Number of Units) Per Unit Per Unit

Q: disadvantages of double declinig method

A: Double declining balance method is a method which is used to record depreciation on assets. Under…

Q: Describe how the FIFO method is different from the weighted-average method.

A: FIFO and weighted average method are the accounting tool for the inventory valuation. Under FIFO,…

Q: Define acid-test ratio.

A: Ratio analysis: The analysis of a company using the financial ratios and comparing its trends and…

Q: Over absorption overhead occurs when ?

A: Over absorption :- Over Absorption means the actual Expenditure incurred lower then expected. For…

Q: what are the possible causes of favourable Material usage variance

A: Introduction:- Standard costs are estimates of the actual costs in a company’s production process…

Q: What are the Nonmanufacturing costs?

A: Cost: The amount paid to purchase the asset, install it, and put it into operations, is referred to…

Q: When is slicing and dicing a suitable OLAP tool? Give an example.

A: Here Is The Answer

Q: Explain the difference between the variable and absorption costing methods.

A: Under Variable Costing method, only variable costs are considered which includes only variable cost…

Q: What are the advantages of the scattergraph method over the high-low method? Thehigh-low method over…

A: Introduction: Cost accounting is beneficial since it can demonstrate where a corporation spends…

Q: what are the possible causes of adverse Material usage variance

A: The variation in material consumption is determined as the difference between the quantity of actual…

Q: What are the arguments for and against "backflush" costing?

A: Arguments for and against Backflush costing: Backflush costing system is that the method of…

Q: Difference between weak and semi strong from efficiency.

A: Efficient Market Hypothesis(EMH) states that the price of the share will reflect the information and…

Q: How efficient is an High-low method technique?

A: Using high low method, different types of costs can be separated.

Q: What is the difference between a linear and a nonlinear cost function? Give an example of each type…

A: Cost Function:Cost function represents the basic change comes in the total cost due to the change in…

Q: What are input flexibility options and output flexibility options?

A: The question is based on the concept of production process. The managers can use variation in Input…

Q: How does the acid-test ratio differ from the current ratio?How are they similar?

A: Difference: The acid-test ratio and the current ratio are both measures of the short-term debt…

Q: Describe the Cost of Elimination.

A: Costing System - A costing system is created to keep track of the costs incurred as a result of the…

Q: What is the primary disadvantage of basing the costplus pricing formula on absorption cost?

A: Definition: Cost plus-pricing approach: The pricing approach used by the companies to set the target…

Q: Define the Sortino ratio and explain its advantage

A: Ratio analysis is referred to as the quantitative method for gaining an insight with relate to the…

Q: Define absorption costing.

A: Absorption costing refers to managerial accounting cost method for expending each costs associated…

Q: What the strategy of types of internal failuer cost?

A: Internal failure costs are those costs that are caused by products or services not conforming to…

Q: Describe the effects of using direct and indirect material.

A: Direct materials are required directly in the production process like wood required to make…

Q: Give an example of a Sensitivity Analysis performed for Mutually Exclusive Alternatives?

A: Mutually exclusive alternatives are those alternatives out of which only one can be selected at a…

Q: Explain the relationship between the conventionaL PW criterion and the B/C ratio?

A: The relationship between the cost of the project and benefits earned from the project is measured by…

Q: What is the relationship between the B/C ratio and the PW criterion?

A: The question is based on the concept of benefit to cost ratio analysis and present worth criteria…

Q: Why would an external user like absorption costing?

A: Absorption costing is used for calculating per unit cost based on all costs including fixed overhead…

Q: Why is it important to establish appropriate cost pools?

A: Activity cost pools are used in activity based costing which attempts to absorb overheads in a more…

Q: Define the term dual rate method.

A: Dual-rate method refers to the method of assigning costs that uses two cost functions.

Q: What are the three viewpoints of product life cycle? How do they differ?

A: Product life cycle (PLC) is that the cycle through which each product goes through from introduction…

Q: What are three common problems with push production?

A: Push production:   A push-based manufacturing approach also referred to as make-to-stock where the…