'Relevant cost' presentation slideshows

Relevant Costs for Decision Making

Relevant Costs for Decision Making. Chapter Thirteen. Learning Objectives. After studying this chapter, you should be able to:. Distinguish between relevant and irrelevant costs in decision making. 2. Prepare analyses for various decision situations.

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Relevant Costs for Decision Making

Relevant Costs for Decision Making. Chapter Thirteen. Cost Concepts for Decision Making. A relevant cost is a cost that differs between alternatives. 1. 2. Identifying Relevant Costs.

1.38k views • 80 slides

Decision-Making with A Strategic Emphasis

Chapter Eleven. Decision-Making with A Strategic Emphasis. Relevant Cost Analysis. A relevant cost is a future cost that differs between the decision alternatives Both characteristics must be present for a cost to be relevant

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Chapter 11

Lecture 20. Chapter 11. Decision Making and Relevant Information. Readings Chapter 11,Cost Accounting, Managerial Emphasis, 14 th edition by Horengren Chapter 13, Managerial Accounting 12 th edition by Garrison, Noreen, Brewer. Learning Objectives.

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Relevant Cost Decisions

Relevant Cost Decisions. DECISION MAKING IN THE SHORT TERM. Decisions. A decision model is a formal method of making a choice, often involving both quantitative and qualitative analyses A relevant cost is a cost that differs between alternatives. Five-Step Decision-Making Process.

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Decision Making with Relevant Costs and a Strategic Emphasis

Decision Making with Relevant Costs and a Strategic Emphasis. Chapter Nine. Learning Objectives. Define the decision-making process and identify the types of cost information relevant for decision making Use relevant and strategic cost analysis to make special-order decisions

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Chapter 14 Cost of Capital

Chapter 14 Cost of Capital. 14.2 Estimating the Weights. 14.3 Estimating the Costs of Capital. 14.4 Assembling the Pieces. 14.1 The Marginal Cost of Capital Schedule. Chapter 14 Outline. Step 1: Calculate the proportions of capital Step 2: Estimate the costs of capital

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Economics 111.3 Winter 14

Economics 111.3 Winter 14. January 8 th , 2014 Lecture 1 Ch. 1 & Appendix. What Economics Is. Economics is the study of how human beings coordinate their wants and desires, given the decision-making mechanisms, social customs, and political realities of the society. Microeconomics

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Chapter 22

Chapter 22. Part one. CHAPTER 22. COST - VOLUME - PROFIT. Accounting Principles, Eighth Edition. Preview of Chapter. To manage any business, you must understand: How costs respond to changes in sales volume and The effect of costs and revenues on profit

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A machine manufactures 10000 units of a part at a total cost of Rs. 21 out of which Rs. 18 is variable.

www.answersheets.in info.answersheets@gmail.com info@answersheets.in 91 95030-94040 Cost and Management Accounting Total marks - 100 Section - A - Attempt any ten questions. Each question is 4 marks. (10 × 4 = 40) Q1) a) Define period cost. b) Explain the meaning of cost accounting. c) Distinguish between direct and indirect cost. d) Explain Contribution. e) How does cost volume, profit analysis is helpful in cost control. f) How margin of safety can be improved? g) What do you mean by relevant cost? h) State the cost data required for determining the profitability of various products. i) Explain various conditions of Depression. j) What is out of pocket cost? k) What are the limitations of standard costing? l) Distinguished between standard cost and estimated cost. m) Briefly explain labour variance. n) Explain the need for reconciliation between budgeted profit and actual profit. o) Prepare the Performa for cost sheet. Section – B – Attempt any 6 questions. Each question is 10 marks (10 × 6 = 60) Q2) what is meant by classification of overheads and why it should be attempted? Q3) Cost volume profit analysis is mainly used in guiding decisions yet to be made. Explain the statement by giving examples. Q4) Explain the meaning and uses of P/V ratio. Q5) The sales turnover and profit during two year were as follows. Year Sales Profit 2005 150000 20000 2006 170000 25000 you are required to calculate (a) Fixed cost (b) Breakeven point Q6) A machine manufactures 10000 units of a part at a total cost of Rs. 21 out of which Rs. 18 is variable. This part is readily available in market at Rs. 19 per unit. If the part is purchased from market then the machine can be utilized to manufacture a component in same quantity contributing Rs. 2 per component or it can be hired at Rs. 21000. Recommend which alternative is profitable. Q7) How product profitability can be ascertained with the technique of marginal costing? Q8) Explain various cost concepts in decision making. Q9) Distinguish between relevant and irrelevant cost. Q10) Explain briefly the significance of standard costing as a technique of cost control. Q11) Given that the cost standards for material consumption are 40Kg at Rs.10 per Kg. Compute the variances when actual are 48 Kg at Rs. 12 per Kg. Q12) Prepare cost sheet with the help of imaginary figures. Q13) What are the main advantages of preparing cost sheet? www.answersheets.in info.answersheets@gmail.com info@answersheets.in 91 95030-94040

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Briefly explain labour variance.

www.answersheets.in info.answersheets@gmail.com info@answersheets.in 91 95030-94040 Cost and Management Accounting Total marks - 100 Section - A - Attempt any ten questions. Each question is 4 marks. (10 × 4 = 40) Q1) a) Define period cost. b) Explain the meaning of cost accounting. c) Distinguish between direct and indirect cost. d) Explain Contribution. e) How does cost volume, profit analysis is helpful in cost control. f) How margin of safety can be improved? g) What do you mean by relevant cost? h) State the cost data required for determining the profitability of various products. i) Explain various conditions of Depression. j) What is out of pocket cost? k) What are the limitations of standard costing? l) Distinguished between standard cost and estimated cost. m) Briefly explain labour variance. n) Explain the need for reconciliation between budgeted profit and actual profit. o) Prepare the Performa for cost sheet. Section – B – Attempt any 6 questions. Each question is 10 marks (10 × 6 = 60) Q2) what is meant by classification of overheads and why it should be attempted? Q3) Cost volume profit analysis is mainly used in guiding decisions yet to be made. Explain the statement by giving examples. Q4) Explain the meaning and uses of P/V ratio. Q5) The sales turnover and profit during two year were as follows. Year Sales Profit 2005 150000 20000 2006 170000 25000 you are required to calculate (a) Fixed cost (b) Breakeven point Q6) A machine manufactures 10000 units of a part at a total cost of Rs. 21 out of which Rs. 18 is variable. This part is readily available in market at Rs. 19 per unit. If the part is purchased from market then the machine can be utilized to manufacture a component in same quantity contributing Rs. 2 per component or it can be hired at Rs. 21000. Recommend which alternative is profitable. Q7) How product profitability can be ascertained with the technique of marginal costing? Q8) Explain various cost concepts in decision making. Q9) Distinguish between relevant and irrelevant cost. Q10) Explain briefly the significance of standard costing as a technique of cost control. Q11) Given that the cost standards for material consumption are 40Kg at Rs.10 per Kg. Compute the variances when actual are 48 Kg at Rs. 12 per Kg. Q12) Prepare cost sheet with the help of imaginary figures. Q13) What are the main advantages of preparing cost sheet? www.answersheets.in info.answersheets@gmail.com info@answersheets.in 91 95030-94040

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Cost volume profit analysis is mainly used in guiding decisions yet to be made. Explain the statement by giving examples

www.answersheets.in info.answersheets@gmail.com info@answersheets.in 91 95030-94040 Cost and Management Accounting Total marks - 100 Section - A - Attempt any ten questions. Each question is 4 marks. (10 × 4 = 40) Q1) a) Define period cost. b) Explain the meaning of cost accounting. c) Distinguish between direct and indirect cost. d) Explain Contribution. e) How does cost volume, profit analysis is helpful in cost control. f) How margin of safety can be improved? g) What do you mean by relevant cost? h) State the cost data required for determining the profitability of various products. i) Explain various conditions of Depression. j) What is out of pocket cost? k) What are the limitations of standard costing? l) Distinguished between standard cost and estimated cost. m) Briefly explain labour variance. n) Explain the need for reconciliation between budgeted profit and actual profit. o) Prepare the Performa for cost sheet. Section – B – Attempt any 6 questions. Each question is 10 marks (10 × 6 = 60) Q2) what is meant by classification of overheads and why it should be attempted? Q3) Cost volume profit analysis is mainly used in guiding decisions yet to be made. Explain the statement by giving examples. Q4) Explain the meaning and uses of P/V ratio. Q5) The sales turnover and profit during two year were as follows. Year Sales Profit 2005 150000 20000 2006 170000 25000 you are required to calculate (a) Fixed cost (b) Breakeven point Q6) A machine manufactures 10000 units of a part at a total cost of Rs. 21 out of which Rs. 18 is variable. This part is readily available in market at Rs. 19 per unit. If the part is purchased from market then the machine can be utilized to manufacture a component in same quantity contributing Rs. 2 per component or it can be hired at Rs. 21000. Recommend which alternative is profitable. Q7) How product profitability can be ascertained with the technique of marginal costing? Q8) Explain various cost concepts in decision making. Q9) Distinguish between relevant and irrelevant cost. Q10) Explain briefly the significance of standard costing as a technique of cost control. Q11) Given that the cost standards for material consumption are 40Kg at Rs.10 per Kg. Compute the variances when actual are 48 Kg at Rs. 12 per Kg. Q12) Prepare cost sheet with the help of imaginary figures. Q13) What are the main advantages of preparing cost sheet? www.answersheets.in info.answersheets@gmail.com info@answersheets.in 91 95030-94040

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Define period cost.

www.answersheets.in info.answersheets@gmail.com info@answersheets.in 91 95030-94040 Cost and Management Accounting Total marks - 100 Section - A - Attempt any ten questions. Each question is 4 marks. (10 × 4 = 40) Q1) a) Define period cost. b) Explain the meaning of cost accounting. c) Distinguish between direct and indirect cost. d) Explain Contribution. e) How does cost volume, profit analysis is helpful in cost control. f) How margin of safety can be improved? g) What do you mean by relevant cost? h) State the cost data required for determining the profitability of various products. i) Explain various conditions of Depression. j) What is out of pocket cost? k) What are the limitations of standard costing? l) Distinguished between standard cost and estimated cost. m) Briefly explain labour variance. n) Explain the need for reconciliation between budgeted profit and actual profit. o) Prepare the Performa for cost sheet. Section – B – Attempt any 6 questions. Each question is 10 marks (10 × 6 = 60) Q2) what is meant by classification of overheads and why it should be attempted? Q3) Cost volume profit analysis is mainly used in guiding decisions yet to be made. Explain the statement by giving examples. Q4) Explain the meaning and uses of P/V ratio. Q5) The sales turnover and profit during two year were as follows. Year Sales Profit 2005 150000 20000 2006 170000 25000 you are required to calculate (a) Fixed cost (b) Breakeven point Q6) A machine manufactures 10000 units of a part at a total cost of Rs. 21 out of which Rs. 18 is variable. This part is readily available in market at Rs. 19 per unit. If the part is purchased from market then the machine can be utilized to manufacture a component in same quantity contributing Rs. 2 per component or it can be hired at Rs. 21000. Recommend which alternative is profitable. Q7) How product profitability can be ascertained with the technique of marginal costing? Q8) Explain various cost concepts in decision making. Q9) Distinguish between relevant and irrelevant cost. Q10) Explain briefly the significance of standard costing as a technique of cost control. Q11) Given that the cost standards for material consumption are 40Kg at Rs.10 per Kg. Compute the variances when actual are 48 Kg at Rs. 12 per Kg. Q12) Prepare cost sheet with the help of imaginary figures. Q13) What are the main advantages of preparing cost sheet? www.answersheets.in info.answersheets@gmail.com info@answersheets.in 91 95030-94040

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Distinguish between direct and indirect cost.

www.answersheets.in info.answersheets@gmail.com info@answersheets.in 91 95030-94040 Cost and Management Accounting Total marks - 100 Section - A - Attempt any ten questions. Each question is 4 marks. (10 × 4 = 40) Q1) a) Define period cost. b) Explain the meaning of cost accounting. c) Distinguish between direct and indirect cost. d) Explain Contribution. e) How does cost volume, profit analysis is helpful in cost control. f) How margin of safety can be improved? g) What do you mean by relevant cost? h) State the cost data required for determining the profitability of various products. i) Explain various conditions of Depression. j) What is out of pocket cost? k) What are the limitations of standard costing? l) Distinguished between standard cost and estimated cost. m) Briefly explain labour variance. n) Explain the need for reconciliation between budgeted profit and actual profit. o) Prepare the Performa for cost sheet. Section – B – Attempt any 6 questions. Each question is 10 marks (10 × 6 = 60) Q2) what is meant by classification of overheads and why it should be attempted? Q3) Cost volume profit analysis is mainly used in guiding decisions yet to be made. Explain the statement by giving examples. Q4) Explain the meaning and uses of P/V ratio. Q5) The sales turnover and profit during two year were as follows. Year Sales Profit 2005 150000 20000 2006 170000 25000 you are required to calculate (a) Fixed cost (b) Breakeven point Q6) A machine manufactures 10000 units of a part at a total cost of Rs. 21 out of which Rs. 18 is variable. This part is readily available in market at Rs. 19 per unit. If the part is purchased from market then the machine can be utilized to manufacture a component in same quantity contributing Rs. 2 per component or it can be hired at Rs. 21000. Recommend which alternative is profitable. Q7) How product profitability can be ascertained with the technique of marginal costing? Q8) Explain various cost concepts in decision making. Q9) Distinguish between relevant and irrelevant cost. Q10) Explain briefly the significance of standard costing as a technique of cost control. Q11) Given that the cost standards for material consumption are 40Kg at Rs.10 per Kg. Compute the variances when actual are 48 Kg at Rs. 12 per Kg. Q12) Prepare cost sheet with the help of imaginary figures. Q13) What are the main advantages of preparing cost sheet? www.answersheets.in info.answersheets@gmail.com info@answersheets.in 91 95030-94040

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Distinguish between relevant and irrelevant cost.

www.answersheets.in info.answersheets@gmail.com info@answersheets.in 91 95030-94040 Cost and Management Accounting Total marks - 100 Section - A - Attempt any ten questions. Each question is 4 marks. (10 × 4 = 40) Q1) a) Define period cost. b) Explain the meaning of cost accounting. c) Distinguish between direct and indirect cost. d) Explain Contribution. e) How does cost volume, profit analysis is helpful in cost control. f) How margin of safety can be improved? g) What do you mean by relevant cost? h) State the cost data required for determining the profitability of various products. i) Explain various conditions of Depression. j) What is out of pocket cost? k) What are the limitations of standard costing? l) Distinguished between standard cost and estimated cost. m) Briefly explain labour variance. n) Explain the need for reconciliation between budgeted profit and actual profit. o) Prepare the Performa for cost sheet. Section – B – Attempt any 6 questions. Each question is 10 marks (10 × 6 = 60) Q2) what is meant by classification of overheads and why it should be attempted? Q3) Cost volume profit analysis is mainly used in guiding decisions yet to be made. Explain the statement by giving examples. Q4) Explain the meaning and uses of P/V ratio. Q5) The sales turnover and profit during two year were as follows. Year Sales Profit 2005 150000 20000 2006 170000 25000 you are required to calculate (a) Fixed cost (b) Breakeven point Q6) A machine manufactures 10000 units of a part at a total cost of Rs. 21 out of which Rs. 18 is variable. This part is readily available in market at Rs. 19 per unit. If the part is purchased from market then the machine can be utilized to manufacture a component in same quantity contributing Rs. 2 per component or it can be hired at Rs. 21000. Recommend which alternative is profitable. Q7) How product profitability can be ascertained with the technique of marginal costing? Q8) Explain various cost concepts in decision making. Q9) Distinguish between relevant and irrelevant cost. Q10) Explain briefly the significance of standard costing as a technique of cost control. Q11) Given that the cost standards for material consumption are 40Kg at Rs.10 per Kg. Compute the variances when actual are 48 Kg at Rs. 12 per Kg. Q12) Prepare cost sheet with the help of imaginary figures. Q13) What are the main advantages of preparing cost sheet? www.answersheets.in info.answersheets@gmail.com info@answersheets.in 91 95030-94040

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Distinguished between standard cost and estimated cost

www.answersheets.in info.answersheets@gmail.com info@answersheets.in 91 95030-94040 Cost and Management Accounting Total marks - 100 Section - A - Attempt any ten questions. Each question is 4 marks. (10 × 4 = 40) Q1) a) Define period cost. b) Explain the meaning of cost accounting. c) Distinguish between direct and indirect cost. d) Explain Contribution. e) How does cost volume, profit analysis is helpful in cost control. f) How margin of safety can be improved? g) What do you mean by relevant cost? h) State the cost data required for determining the profitability of various products. i) Explain various conditions of Depression. j) What is out of pocket cost? k) What are the limitations of standard costing? l) Distinguished between standard cost and estimated cost. m) Briefly explain labour variance. n) Explain the need for reconciliation between budgeted profit and actual profit. o) Prepare the Performa for cost sheet. Section – B – Attempt any 6 questions. Each question is 10 marks (10 × 6 = 60) Q2) what is meant by classification of overheads and why it should be attempted? Q3) Cost volume profit analysis is mainly used in guiding decisions yet to be made. Explain the statement by giving examples. Q4) Explain the meaning and uses of P/V ratio. Q5) The sales turnover and profit during two year were as follows. Year Sales Profit 2005 150000 20000 2006 170000 25000 you are required to calculate (a) Fixed cost (b) Breakeven point Q6) A machine manufactures 10000 units of a part at a total cost of Rs. 21 out of which Rs. 18 is variable. This part is readily available in market at Rs. 19 per unit. If the part is purchased from market then the machine can be utilized to manufacture a component in same quantity contributing Rs. 2 per component or it can be hired at Rs. 21000. Recommend which alternative is profitable. Q7) How product profitability can be ascertained with the technique of marginal costing? Q8) Explain various cost concepts in decision making. Q9) Distinguish between relevant and irrelevant cost. Q10) Explain briefly the significance of standard costing as a technique of cost control. Q11) Given that the cost standards for material consumption are 40Kg at Rs.10 per Kg. Compute the variances when actual are 48 Kg at Rs. 12 per Kg. Q12) Prepare cost sheet with the help of imaginary figures. Q13) What are the main advantages of preparing cost sheet? www.answersheets.in info.answersheets@gmail.com info@answersheets.in 91 95030-94040

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Economic Order quantity

Economic Order quantity. opgave 21-15 Tijn van der Zant. How to calculate EOQ. EOQ = ?(2DP/C) Where: D = Demand in units for a period P = Relevant ordering costs per purchase order C = Relevant carrying costs of 1 unit in stock for the same period used in D. Problem: Keep-Kool company.

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Relevant Costs for Decision Making

Relevant Costs for Decision Making. Topic Nine. Cost Concepts for Decision Making. A relevant cost is a cost that differs between alternatives. 1. 2. Identifying Relevant Costs.

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Replacement Decision

Replacement Decision. A company may have been producing products in an old machine and equipment. Management may be interested to produce products replacing these old machine and equipments by new ones.

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