• Cost Behaviour
    Question: Explain why it’s 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...
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  • P1: Explain how an organisation can cost a product and determine its price at any activity level.
    You may wish to choose a business you already have knowledge of from trips or your part-time employer. For a product 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...
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  • Methods of Cost Variability
    Illustration From the following month-wise information in respect of semi-variable costs of a firm, segregate the cost into fixed and variable elements: Months2009 | Production (Units) | Semi Variable Cost (Rs.) | January | 200 | 2,000 | February | 150 | 1,750 | March | 250 | 2,250...
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  • Analysis Budget
    The budgeted annual costs for a company, at a production level of 1,000 units, are as follows: Direct costs £20 per unit Variable costs £ 3 per unit Semi-variable costs (variable portion) £ 2 per unit Semi-variable costs (fixed portion) £2,000 per annum Fixed costs £5,000 per...
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  • Case 17-1 - Exhibit 1
    year and made certain 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...
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  • Cost of the Airline Industry
    aircraft) for engine and maintenance, the lesse is alleviated for any unanticipated repairs or routine maintenance costs that occur during the lease period. thus making it a semi fixed cost as it takes in to consideration on ocularly maintenance cost in the lease period . Variable cost A cost of...
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  • Costing Practices
    classified into following categories: 1. Cost behavior basis (a) Fixed Cost (b) Variable cost (c) Semi-variable cost 2. Cost inventory basis (a) Product cost and (b) Period cost ACCOUNTANCY 113 MODULE - 6B Elementary Cost Accounting Basic Cost Concepts 3. Cost Relation to Cost Centre basis (a...
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  • Cost Descriptions
    , semi-variable, total, direct, indirect, sunk and historical. An example of each term will be given along with the description. At the conclusion of this paper the HR manager will have a clear understanding of the budget decisions being made by the company. Cost Descriptions One of the most...
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  • Air Fare
    succesful growth of LCCs. Moreover, passenger willingness of travelling through low-cost airlines have and will influence the growth of LCCs. Semi-parallel and parallel routes operated by LCCs Perhaps more remarkable than the airline impact of airline deregulation, has been the role of the airports. One...
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  • Managerial accounting
    packaging will consequently decrease Semi-variable cost  An expense which contains both a fixed cost component and a variable cost component. The fixed cost element shall be a part of the cost that needs to be paid irrespective of the level of activity achieved by the entity. On the other hand...
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  • Cost & Revenue
    the production line changes which fluctuates costs. Semi-variable costs: These costs have both fixed and variable elements meaning that some costs will stay the same but others will fluctuate. A good example of this is delivery lorry costs; the tax and insurance are fixed costs but the fuel and...
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  • Budgetary Control
    expenses to be incurred in a budget period to achieve the production target. The budget includes the cost of indirect materials; indirect labour and indirect works expenses the budget may be classified into fixed cost, variable cost and semi-variable cost. It can be broken into departmental overhead...
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  • Examiners Report
    ($) Utilities cost ($) 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 tested...
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  • Budgetting
    output is based on variable costs only, the fixed costs being regarded as time based and linked to the accounting period. The main types of cost behaviour which you will be expected to apply in preparing flexed budgets are: • • • • variable costs fixed costs step costs semi-variable costs variable...
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  • Time Value of Money
    that we first need to discuss what the differences are between fixed costs, variable costs, and semi-variable (mixed) costs are. Based on the different types of costs, we can then review what current costs does Claire’s have that fits into each category. Then we will be better able to discuss...
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  • Explain How an Organisation Can Cost a Product and Determine Its Price at Any Activity Level
    building. If a company has to pay £10,000 each month to cover the cost of the lease but does not manufacture anything during the month, the lease payment is still due in full. Other fixed costs are depreciation, insurance, interest, salaries, and wages. Semi- variable cost is costs that have both...
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  • Cost Accounting System
    . SEMI-VARIABLE COSTsemi variable cost is one that contains both variable and fixed cost elements. It is also known as mixed cost . A cost for an individual or company that consists of a fixed base cost and another cost that changes from time period to time period. The relationship between...
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  • P1 - Management Accounts
    costs that do change with output. For example; Materials and labour. Sales Output * Sales Semi-variable costs: There is an element of both fixed and variable costs in this cost. For example; Electricity and water – Fixed: Standing charges. Variable: How much electricity/water you use...
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  • my studies
    to accomplish the task. III. Mixed costs are the costs that contain both variable and fixed cost elements or components. In other words mixed cost is partly fixed and partly variable in relation to the output. And sometimes is called semi-variable cost. And the followings are the examples of...
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  • HEALTH AND SOCIAL CARE MANAGEMENT
    the cost of goods or services. It also the quantity of supply used in replacement of goods or services. The income used can be financed or money’s value, Semi Variable Semi Fixed Cost Cost: Cost is an amount that has to be paid or given up in order to get something Cost Unit: The unit cost is the...
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