Flexible budget for a product as prepare by Anchor Ltd, is given below: Sales – unit 10,000 15,000 20.000 Rs. Rs. Rs. Sales 800,000 1.200,000 1.600,000 Manufacturing cost: Variable 300,000 200,000 500,000 450,000 200.000 650,000 600,000 Fixed 200,000 Total manufacturing cost Marketing and other expenses: Variable 800,000 200,000 300,000 400,000 Fixed Total Marketing and other expense Operating income / (loss) 160,000 360.000 (60.000) 160,000 460,000 90,000 160.000 560,000 240,000
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
![Flexible budget for a product as prepare by Anchor Ltd, is given below:
Sales – unit
10,000
15,000
20,000
Rs.
Rs.
Rs.
Sales
800,000
1.200.000
1.600,000
Manufacturing cost:
Variable
300,000
200,000
500,000
450,000
200,000
650,000
600,000
200,000
800,000
Fixed
Total manufacturing cost
Marketing and other expenses:
Variable
300,000
160,000
460,000
200,000
400,000
Fixed
Total Marketing and other expense
Operating income / (loss)
160,000
360,000
(60,000)
160,000
560,000
240,000
90,000
Additional information:
• The budget of 20,000 units will be used for allocating the fixed manufacturing cost to units of product.
• At the end of first six months, 12,000 units have been completed and 6,000 units have been sold @ Rs.80 per unit.
• All fixed costs are budgeted and incurred uniformly throughout the year and all costs incurred, coincide with budget.
• The over or under applied fixed manufacturing cost is deferred unit the end of the year.
(Note: Don't write Comma (,) Full stop () and any Rs. Signs in Answer just write in number (i.e. 10000, but not Rs.10,000))
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