Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
First in First Out or FIFO
FIFO method is based upon the assumption such stock purchased first is issued first. Prices of stock purchased first are employed to determine the value or cost of inventory issued. Closing stocks are carried on the latest costs.
Advantages
1. This is a realistic system: as oldest items are generally issued first out.
2. Unrealized losses or profits do not happen
3. This is easy to calculate whether prices of materials don't fluctuate
4. Such closing stocks values reflect the latest costs hence tend to reflect the recent market values.
5. This is acceptable to many tax authorities and is consistent also along with accounting practices as like IAS/IFRS.
Disadvantages
1. It includes tedious calculations whether the price of materials fluctuate from time to time
2. The product costs, based upon the oldest material prices, lag behind recent conditions especially into inflationary markets.
3. Comparison about one job along with another may be difficult whether materials are issued on various prices.
Disadvantages of Standard Costing 1. The system of standard costing is very expensive to install : A lot of money is spent in studying output requirements in terms of materia
Question: Timothy Ltd uses a flexible budget for overhead costs. The company expects to produce 40,000 units of the product it manufactures. Each unit requires 0.40 direct labo
Typical Causes of Material Variances Price Variances a) Paying lower or higher prices than planned. b) Losing or gaining quantity discounts via buying in large
using relevant examples discuss the meaning and scope of cost accounting
Rayya Co. purchases and installs a machine on January 1, 2013, at a total cost of $105,000. Straight-line depreciation is taken each year for four years assuming a seven-year life
This is defined as an actual amount paid or incurred, as opposed to estimated cost or standard cost. In contracting, actual costs amount includes direct labor, direct material, and
Smith Corp. has determined that its contribution margin, (P - MC)/P, is 40%. A recent market research study found the following relationship between adverting outlays and sales rev
WORKED EXAMPLES OF EXPECTED CASH COLLECTIONS PATTERNS
As controller for Edmonton Cosmetic Hospital, you are looking into the possibility of utilizing Activity- Based-Costing to assign overhead costs to patient surgeries. As a first st
1. A fellow student says to you: "The statement of cash flows is the easiest of the basic financial statements to prepare because you know the answer before you start. You compa
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!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd