Question 4 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. F'actory janitorial salarics 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 bakıng bread for sale. Cost of brakes used in manufacturing automobile. 6. 8 10 11 12 13 14 15 Required: 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)

Question 4 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. F'actory janitorial salarics 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 bakıng bread for sale. Cost of brakes used in manufacturing automobile. 6. 8 10 11 12 13 14 15 Required: 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)

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter9: Cost Accounting For Service Businesses, The Balanced Scorecard, And Quality Costs

Section: Chapter Questions

Problem 5Q: What factors would you consider in deciding whether to use direct labor dollars or direct labor...

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which of the following is a product cost for a manufacturing company : a- insurance on the corporate headquarters building b- property taxes on a factory c- depreciation on a salesperson vehicle d- the salary of a sales manager
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What factors would you consider in deciding whether to use direct labor dollars or direct labor hours in charging overhead to jobs in a service firm?
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Problem 1Classify the following as to Fixed, Variable or Mixed Cost1. Factory Rent2. Wages of workers paid based on units produced3. Cost Accountant Salary4. Depreciation based on output5. Salary of Factory supervisor6. Basic Salary plus sales commission of salesman7. Paper in manufacturing of books8. Factory Insurance9. Monthly Depreciation of Building10. Bottle used in packaging