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Sales of Cool-Man air conditioners have increase steadily during the past five years:Year Sales1 4502 4953 5184 5635 5846 ?The sales manager had predicted, before the business started, that year 1's sales would be 410 air conditioners. Using exponential smoothing with a weight of = 0.30, develop forecasts for years 2 through 6
Stock turnover ratio Meaning: this ratio establishes a relation ship between costs of goods sold and average inventory. Objective: the objective of component of this r
How costs behave as the level of activity/volume changes. Why an understanding of cost behaviour is important ? Types Variable e.g. petrol, direct materials Fixed e.g.
Explain the concepts of costs. A cost accountant is mainly concerned with the following cost concepts. 1. Concept of objectives: it is this concept that gives direction to
given a scenario when iddle capacity is less than the special order.in this case should we accept or reject the order
Assigning Costs and Assets After identifying its value chain, a firm must assign operating activity and assets to value activities. Operating costs must be assigned to the act
Attributes of good information 1) Information is anything that is communicated and is sometimes said to be processed data. It is data processed in such a way as to be of meaning
State Material price variance Difference among standard price and the actual price of the material is the material price variance. This variance arises because of various facto
After going through this section, you must be capable to: Know the concept and characteristics of working capital; Identify with the difference among net working capital
companyXYZusesthe job oder costing system.
Economies or Diseconomies of Scale The costs of a value activity are often subject to economies or diseconomies of scale. Economies of scale occur from the capability to perfo
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