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!
MOTIVES FOR HOLDING INVENTORIES
If production and delivery of goods were instantaneous, there would be no need for inventories. However in reality, the manufacturing and purchasing processes do not function quickly enough to avoid the need for having inventories. Hence inventories must be maintained so that he or she does not turn to another source of supply. In turn, production operations cannot flow smoothly without having inventories of direct materials, work-in-progress, supplies, etc. In other words inventories must be viewed as cushions:
(1) To absorb planning faults and unforeseen fluctuations in demand and supply. (i.e. preventive motive).(2) To facilitate smooth production and marketing operations.Note: The fundamental questions to which answers are required are:a. How much should the company order (when stocks are re-ordered)?b. When should the company reorder?c. How much should the company produce, and when (if internal production is involved).
Accordingly regardless of their complexity, all inventory planning models focus on the twin problem of size and timing.
Illustration of Standard error of estimate The production manager of XYZ Company is concerned about the apparent fluctuation in efficiency and wants to determine how labour cos
INTERPRATATION OF VARIANCE Controllability, Materiality and Trend are the interpretation of variance. The point of comparing flexed budget and real figures is to see what corre
Explain product cost Product costs are those costs which are associated with and directly identifiable with the product. In other words, which are assigned to the product are p
Determine the Profitability ratios in relation to investment a) Return on capital employed/ return on investment b) Return on equity or return on equity share holders' funds
Management Accounting An accounting discipline concerned with the use of financial information. It used to relevant information by managers and other decision makers inside a s
useroffinancialstatement
The standard cost of chemical mixture ~ PQ’ is as follows: 40% of material P @ Rs. 400 per kg. 60% of material Q @ Rs. 600 per kg. A standard loss of 10% is normally anticipated in
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.
These loans are given by the Banker for short periods for an exact activity like financing for a civil contract work. As the customer receives payment, the transaction will be repa
State the Working capital turnover ratio Meaning: this ratio establishes a relation ship among net sales and working capital. Working capital turnover ratio shows the vel
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