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Determine Cost pool and Cost drivers
Cost pool: it is another name given to a cost centre and, therefore an activity cost centre may also be termed as an activity cost pool.
Cost drivers: the causes for incurrence of overhead cost are known as cost driver. A cost driver is factor the change of which results in a consequential change in the total cost of a related object. If its lewd change it brings a comspanding change in the lewd of total cost of the related cost
Decision Making Some managers appear to have an intuitive sense of good decision making. The reality is that good decision making is hardly ever done by intuition. Consist
#labour costing techniques
Algebraic method of the break even point The break even point can be computed by the following method: a) Units of sales volume . b) Budget total or in terms of money va
Painter Ltd, which manufactures and sells a single product, is currently producing and selling 102,000 units per month, which represents 85% of its full capacity. Total monthly cos
Prepare cash budget?
Engineering method These methods are based on the use of engineering analysis of technological relationship between inputs and outputs e.g. method studies and time and motion s
accepted#Regarding the Overhead costs, these are allocated based on Direct Labor;
Accounts Payable Turnover Ratio is a short-term liquidity measure which is used to calculate the rate at which a company pays off its suppliers. Accounts payable turnover ratio is
advantage and disadvantage of incremental budget
Customer oriented or perceived value pricing There is an increasing trend to price the product on the basis of the customer's perception of its value. This method takes into ac
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