Random But In Order Flashcards
(53 cards)
A cost is describe as staying the same over a certain activity range and then increasing but remaining stable over a revised activity range in the short term.
Stepped fixed cost
Procedures for material
- Raise a purchase order
- Checks GRN
- Update the stores ledger account for purchase
- Raise store requisition note
Business objectives
Corporate objectives relate to the organisation as a whole
It is possible for a division of an organisation to have its own specific objectives
What would be the effects on the EOQ and the total annual holding cost of a decrease in the cost of ordering a batch of raw material?
EOQ lower
Total annual holding cost lower
Which department would normally be responsible for completing a standard purchase requisition for goods in a service organisation?
B) the department that requires the goods.
A) the buying (purchasing) department - manufacturing.
C) the goods inwards department
D) the accounting department staff
[Both for product manufacturing]
Double entry,
COMPLETION OF PRODUCTION
Dr Finished good
Cr WIP
Double entry,
Absorption of production
Dr WIP
Cr POH
Double entry,
Direct labour cost being charged to production
Dr WIP
Cr wages control
Double entry,
Production has been completed
Dr Finished goods
Cr WIP
Accounts in
Integrated accounting system
Interlocking accounting system
Integrated,
Receivable control
WIP control
Interlocking,
Cost ledger control
Financial ledger control
Double entry,
Over-absorbed of production overhead
Dr Production overhead
Cr Income statement
Double entry,
Under-absorbed of overhead
Dr Income statement
Cr Production overhead
When GOODS ARE SOLD, what double-entry would be made to record the TRANSFER OF COSTS?
Dr Cost of sales acc
Cr Finished goods acc
Why is marginal costing better for decision making than absorption costing?
It separates relevant variable costs from irrelevant fixed cost
Opportunity cost
The benefit lost by taking up one business opportunity in favour of another.
Relevant cost for decision making
Opportunity
Incremental
Differential
Current
Raven Co is considering a new investment and is following the steps of the decision making and control cycle.
Which step of the cycle follows immediately after detailed evaluation?
Authorisation
How do public sector capital budgeting decisions differ from private sectors ones?
They take into account social cost and social benefits
Payback period
Initial outlay - disposal
———————————
Cash inflow
Payback period
Profit figure - Depreciation
After profit - kena tmbh depreciation
Before no need
NPV
Kalau soalan ada state IRR ambil percentage IRR
NPV become 0, ignore NPV value
IRR=NPV=0
Maximise profit
Cari contribution per hour
Take the highest one
Sales Revenue at Breakeven Point
Contribution/c/s ratio = FC/c/s ratio
Payback period
Expected cash inflows + depreciation / scrap value
