Explain the differences in the four methods of costing

Assignment Help Cost Accounting
Reference no: EM13486383

Exam Standard Question-

Unfair Pack  produces one product, the hamper. For the coming year the budgeted estimated sales are 10,000 units.  The firm currently uses full cost plus pricing to determine the selling price, the markup is 10%.  The budgeted costs for the coming year are as follows;

 

Costs

£ Per Unit

£ Cost for the year

Direct labour & materials

5

 

Variable Manufacturing overhead

3

 

Fixed Manufacturing overhead*

 

20,000

Variable sales & marketing

3

 

Fixed sales & marketing*

 

70,000

* All budgeted fixed costs are recovered on a per unit basis 

 

a) Required

i. Using the firm's current method of pricing calculate the selling price for one unit.

ii. Calculate the % markup required to maintain the selling price you have calculated in a.i if the firm uses;

                        - Manufacturing cost plus pricing

                        - Marginal cost plus pricing

                        - Marginal manufacturing cost plus pricing

iii. Explain the differences in the four methods of costing you have used in (a.i) and (a.ii) and in which situation you would use them.

 

b) Identify and explain the advantages and disadvantages of using cost plus pricing.

 

 

 

 

 

 

Reference no: EM13486383

Questions Cloud

Explain why is the backpack helpful : A woman who is late in her pregnancy often leans backwards slightly when getting out of chairs and even while walking. Why is the backpack helpful
Calculate the total angular momentum of our moon : Calculate the total angular momentum of our Moon relative to the center of the Earth. You may assume that the Moon is a uniform sphere
What is the magnitude of the force absorbed by the athlete : When a rifle is fired, the person firing the rifle absorbs the recoil. Consider an Olympic biathlete firing a competition rifle. What is the magnitude of the force absorbed by the athlete
Calculate the optimum production plan : Calculate the optimum production plan the firm should follow next year given the above constraints.
Explain the differences in the four methods of costing : Explain the differences in the four methods of costing you have used in (a.i) and (a.ii) and in which situation you would use them.
What is its activity after given days : A patient with thyroid problems has radioactive iodine (123I53) deposited in his thyroid gland. If the 123I53 has an initial activity of 2.5 MBq, what is its activity after 24 days
Compute the total momentum of system : A point mass of 1kg collides elastically with a stationary point mass of 5 kg. calculate total momentum of system and kinetic energy of centre of mass
Calculate the half-life of this material : After 2.02 days, the activity of a sample of an unknown type radioactive material has decreased to 82.2% of the initial activity. What is the half-life of this material
How many moles of oxygen are present : Suppose 12.5 g of oxygen (O2, 32.0 g/mol) is heated at constant atmospheric pressure from 19.0°C to 100°C. How many moles of oxygen are present

Reviews

Write a Review

 

Cost Accounting Questions & Answers

  Measure the income of a business enterprise

Describe the factors to be considered in determining when revenue should be recognized in measuring the income of a business enterprise and describe the accounting alternatives that Bonanza Trading Stamps, Inc. could consider for the recognition o..

  Determine the provided expressions

Determine the provided expressions using the a, b, and c from your birth date.

  Looker hats is planning to sell 600 and produce felt hats

looker hats is planning to sell 600 and produce felt hats 700 during june. each hat requires 12 yard of felt and 14

  Evaluate the cost of the ending inventory

Evaluate the cost of the ending inventory of three methods

  Determine contribution margin per unit for each type of vase

Factoring resource constraints into product mix decisions Rose Incorporated manufactures two types of vases, small and large. The following per-unit data are available. Small Vase Large Vase Sale price $60 $100 Variable costs $35 $60 Machine hours re..

  Which one of the following reflects the controllable margin

Which one of the following reflects the controllable margin for the year - Safety Seats Co. recorded operating data for its shoe division for the year.

  Dicks sporting goods makes customized uniforms the great

dicks sporting goods makes customized uniforms. the great northwest league has provided to buy 80 basketball jerseys

  Questionlangrova inc has the subsequent amounts included

questionlangrova inc. has the subsequent amounts included inits general ledger at december 31 2010.organization costs

  Prepare the statement of changes in net position

Prepare the Statement of Changes in Net Position of the Flood Control Commission for the month ended October 31, 2011 and prepare the Statement of Budgetary Resources of the Flood Control Commission for the month ended October 31, 2011.

  Question related to strategies for managing risk

Strategies for managing risk - Evaluate what is a strategy for managing risk and what are some potential future risks?

  What is the fixed contract price for cccs project

SDH uses the cost recovery method under IFRS to recognize revenue and what would be the journal entry made in 2008 to record revenue?

  What bid should you present to your boss

Calculate the total bid if you base your calculations on the standard cost sheet assuming a cost plus 15% government contract and calculate the total bid if you base your calculations on the September 15, 2005, invoice assuming a cost plus 15% gover..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd