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MARGINAL COSTING Vs DIRECT COSTING
Direct costing is the method where only direct costs are measured while calculating the cost of the product. Indirect costs are met in opposition to the total margin (excess of selling price over direct costs) specified by all the products taken together. A DIRECT COST is a cost that can be known readily with a a function, department, a unit of product or some other relevant unit. A direct cost therefore may be fixed or variable. Although most of the direct costs are variable costs, all direct costs cannot be direct.
Distinguish between, (i) short-run variable costs & long-run variable costs, and give an example of each one; (ii) the marginal cost & the average cost of production
Economic Order Quantity This constitutes the quantity purchased of either raw materials or stocks which is considered most optimum. It is the quantity such minimizes both ord
Match each of the six following terms with the phrase that most closely describes it. Each answer may be used only once. _____ 1. Direct costs _____ 2. Fixed costs _____ 3
traditional budgeting systems are incremental in nature and tend to focus on cost centres..explain the weakness of the incremental budgeting system and explain ways of adressing th
1. Prepare a cash flow forecast for the proposal to launch SafeCus in 2010 for a three-year period from 1 January 2010 using the data in the body of the Case Study and discount at
Place a prepared slide of Paratuecium under the microscope and focus it under low power (5x x 5x) and observe the following: i) It has a cigar-shaped or slipper-shaped body
A company constructs a building for its own use. Construction began on January 1 and ended on December 30. The expenditures for construction were as follows: January 1, $550,000; M
Why is it important for financial statements and other external reports to be based on generally accepted accounting principles?
Assume new instruments for a firm cost $18,000 with an additional installation fee of $2,000, both of which are depreciable. Finish the depreciation schedule shown below using the
Define cost behavior and Describe types of costs.
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