• Cost Behaviour
important for most senior managers to have a sound knowledge of cost behaviour ie fixed costs, variable costs, semi-variable costs and sunk costs. Answer: Understanding cost behaviour helps manager in anticipation of changes in cost when there is a change in their activities like production, sales...
• Methods of Cost Variability
Methods of Cost Variability The Methods * The Comparison Method * High and Low Point or Range Method * The Equation Method * The Average Method * The Graphic Method (Scatter diagram) * The Method of Least Squares * The Analytical Method or Degree of Variability Method ...
• Cost of the Airline Industry
Fixed costs Fixed costs are costs that do not change whatever the level of output is. This means, however the output is, the cost will not be changed. If airplanes are to be made then a manufacturing factory is required. The land, the factory building and the machinery need to be bought by mortgage...
• Costing Practices
MODULE - 6B Elementary Cost Accounting Basic Cost Concepts Notes 28 BASIC COST CONCEPTS In the previous lesson you have learnt about cost accounting. If you decide to manufacture say electronic digital meter, you will need raw material, labour and incur other incidental expenses to manufacture...
• P1: Explain how an organisation can cost a product and determine its price at any activity level.
of your choice: 1. Clearly explain the main cost elements and the nature of those costs – define and give relevant examples of variable, fixed, semi-variable, direct and indirect costs 2. Suggest the weekly production level and a breakdown of costs for one product from your chosen business. Then...
• Case 17-1 - Exhibit 1
adjustments, shown in Exhibit 1 (attached). He explained them in the following paragraphs taken from his report: Most semi-variable costs contain a significant portion of common costs. For example, the accountant performs many common services in order to maintain the corporate structure (e.g. preparing...
• Analysis Budget
and the actual figures, are called the variances. Favorable variances occur when actual costs are lower than budget or actual income is higher than budget. Adverse variances are the opposite: actual costs are higher or income is lower than budget. The following comparison shows the budget and...
• Cost Descriptions
Cost Descriptions Paper Introduction The goal of this paper is to help the HR Manager of a company understand current company budget decisions by having a clear understanding of the terms used to describe costs. This paper will discuss various terms used to describe costs such as fixed, variable, semi-variable...
• Managerial accounting
﻿Fixed cost: A fixed cost is a cost that does not change over the short-term, even if a business experiences changes in its sales volume or other activity levels. This type of cost tends to instead be associated with a period of time, such as a rent payment in exchange for a month of occupancy, or...
• Budgetting
In this chapter we examine: • • • • • • different methods of budgeting: incremental budgeting, zero based budgeting and programme based budgeting cost behaviour in relation to activity using marginal costing and absorption costing for budgets fixed budgets and flexed budgets Activity Based Budgeting...
• Air Fare
1.1 Aim of this research The aim of this research is to gain further insights in the competition effects of the presence of LCCs on the same, semi-parallel and parallel routes on the pricing of direct routes. This pricing analysis is needed to examine the effects of market competition by LCCs. ...
• Cost & Revenue
Business costs: Most Businesses aim to make as large of a profit as possible. Now we know that Profit is the amount made by the company (revenue) minus the total costs which include operational costs as well. If the costs are greater than the revenue then a loss is made, so it’s important a business...
• Budgetary Control
system of communication and reporting between the various levels of management. 8. Budget centres should be established for cost control and all budgets should be related to cost centres. 9. There should be a budget manual to indicate charter of programme. It contains all the details regarding the plan...
• Examiners Report
Management cost (\$) Utilities cost (\$) 35000 75000 31000 40000 80000 34000 45000 80000 37000 50000 85000 40000 What cost behavioural types are indicated by the above data? A B C D Management Fixed Fixed Stepped-fixed Stepped-fixed Utilities Semi-variable Variable Semi-variable Variable This question...
• Explain How an Organisation Can Cost a Product and Determine Its Price at Any Activity Level
Explain how an organisation can cost a product and determine its price at any activity level The main costs and elements that a business needs to consider, taking into account the nature of these costs as well are: * Expense of buying vehicles or maintaining it * Mortgage * Business Rates ...
• my studies
PROBLEM: Distinguish between fixed cost, variable cost and mixed cost and state at least four examples and explain them SOLUTION: I. Fixed cost is defined as the cost that does not change in proportion to volume changes. In other words fixed costs are those cost which do not change with the level...