(1) The cost varience report is a listing of allowable expenses compared with the actual expenses incurred. (2) The actual unit cost is the cost of producing a single products or unit measure of output or service. The budget unit cost is a plan or forecast, of a single unit measure of output or service. The conclusion is that the cost of goods and services is more expensive. (3) The cost variable report can assist you to select the right cost by giving you the list of all the expenses and allowing you to choose which expenses to cut that may be less important. e.g the cost varience report may have electricity bill, goods and office refreshments. The list may help you decide which cost should be cut, in this case it would most likely be the office refreshments. 1.2
(1) the company is currently running at a loss R3000.00 loss. (2) Cash paid for operations costs
(3) The business runs a lot on operations so it needs a lot of financing on that department. (4) Inventory is the raw material and products held in stock by a company in anticipation of future sales. (5) The difference between the cash flow statement and the income statement is that, the profit in the income statement is not the same as cash. Some of the items contributing to the profit have not yet been turned to cash and cannot be used to pay short-term debt. The cash-flow statement indicates whether the company is could pay all its debts for the year. It shows whether the company has enough cash flowing in to cover the required outflow. 1.3
(1) –Cash paid for inventory
- Cash paid for other operations
-Cash paid for insurance
-Cash paid for selling
(2) – Postpone spending. Spending is postponed to some date in the future when the need to cut costs is not as urgent. - Plug leaks. One of the tasks of the first-line managers is to find out where expenses are leaking through the controls, and then plug them up.
Product or service, that is, the product being...