Finance

Question 1
Mini project topic : induction to Management Accounting.
You are the person in charge of the precaution accounting department of a manufacturing company.
You are required to teach your junior staff on the essentials of the management accounting in the future(a) areas : (Note: you need to create an illustration to elaborate the following matters).
(A) Explain how cost can be classified by their carriage ;with particular reference to the effects both on summation and on whole costs.
Your report should:
i. Say why its necessary to classify costs by their behavior and
ii. Be illustrated by sketch graphs within the body of the report.
Answer
diva Company is a manufacturing company which manufactures shoes.The format to calculate the total production costs of producing a single product is given up as below .




Direct Material(+) leather(+) pigment(+) rubber(+) plasticsDirect expenses(+) royaltiesPrime cost(+) manufacturing overheadsSalaryFactory manager salaryDepreciation of plant and machineryFactory powerManufacturing cost(+)Administratioin overheadOffice salariesDepreciation of emplacement equipmentSelling and distribution overheadTravellingAdvertisingWarehouse rent and ratesTotal cost| RMXXXXXXXXXXXXXXXXXXXXXXXXXX| RMXXXXXXXXXXXXXXXXXXXXXXX|
Diva Company has enter the costs of a particular department making a single product for two consecutive periods. The information is given as below. |
Production units embodys:Direct materialDirect labourProduction overheadAdministrative overheadSelling and distribution overhead| completion 112000RM3600060000640002100027000| Period 29000RM2700045000580002100024000|

Required :
A. Analysis the costs according to their behavior
B. position the total fixed cost and the variable cost per unit for the product.
| Period 1| Period 2| Behavior|
Cost per unitDirect materialDirect labourProduction overheadsAdministrative overheadsSelling and distribution overheads| RM3.005.005.33210002.25|...If you want to get a full essay, rules of order it on our website: Orderessay



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