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Explain the cost According to controllability:
Controllable cost: this is a cost which can be inclined by the action of a specified member of an undertaking. The organization is divided into departments or responsibility centres each managed by a head. These costs of a particular department or centre are guided by the person in charge of the department. The costs which can be controlled by a specified member who is generally an important link in the management are the controllable costs. The head of a cost centre or a department has control over variables costs only which include prime cost and other variable overheads. So the controllable costs are the variable costs.
Uncontrollable cost: it is a cost which cannot be inclined by the action of a specified member of an undertaking. Uncontrollable is generally the fixed cost, the control of which does not lie within the providence of a member of a member of an undertaking. The change in the fixed cost is a matter to be decided at the top level of the management depending upon the policy of the undertaking
Schedule of Non-discretionary Data: and tables, in a form that is readable and readily understood. This worksheet is to be used to identify/capture the various non-discretionar
PERMANENT ABANDONMENT OF PREMISES A company may find it more profitable to concentrate its output in some factories by closing down others. The decision, in this instance, is
Disadvantages of the cost accounting: 1. It is unnecessary: it is argued that maintenance of the cost records is not necessary and involves duplication of work. It is based o
Cost-Volume-Profit assumptions The main assumptions required in C-V-P analysis are: 1) The relationship holds merely within the appropriate range. The relevant range is a ba
Explain decision unit - zero base budgeting Decision units: an organization is divided among decision units. The manager of the decision unit justifies the relative budget
how much is this service?
The president expects sales to increase by 12% next year. By how much should net operating income increase? Sales $2,000,000 Variable expenses 1,000
Batch size of one Set up time is the amount of time needed to adjust tools and to retool for various product. Long set ups a change over time make the production of batches wit
costs/per unit labor ... $ 4 materials ...5 fixed cost... $ 12 determine the break even point in units if the seeling price is $ 19 determine the break even point in sales at
Procedure of material acquisition A stores record is maintained into which the quantity and value of materials received is entered. Issues of materials to production are made b
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