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+--- Thread: Several questions on cost (/thread-several-questions-on-cost)
Several questions on cost - Muhammad Adnan Arshad - 07-24-2006
I am in sever trouble. I am the student of ACCA part-1 and has
some quiries about the 1.2, which are as follows.
Please tell me about them in detail, i raised these quiries on the forum but no
one has answered.
Quiries are,
1- What is comparative cost information?
2- What is Analytical Cost Information?
3- What is the point of difference between them?
4- Management of an organization may use predetermined standards and budgets for the measuring and controlling of Departmental as well as Functional Activities, please explain the basis of their usage for the measuring and controlling.
5- What is meant by the departmental targets and who is responsible for their establishment?
6- Cost plus reasonable profit = Invoice Price. Please tell me whether the market forces effect both of these or any one of them.
- Muhammad Adnan Arshad - 07-28-2006
is there no single person to reply this post?
- Abdur.Rehman - 07-29-2006
1),2)and 3). Comparison is the lower level of analysis. we first compare and then analyse. So comparative cost information means, the information that help us compare the cost of different products or other financial management perspectives. Then we may manipulate the comparative cost information to get analytical cost information, that will comprise ratios and variance analysis and this is the point of difference between them.
4)The basis for predetermined rate are based on the nature of expenditure. For example depreciation of building is allocated to all departments on floor area basis, canteen cost on number of employee basis etc.
5)Departmental targets means targets given to departments, for example target production of 50000 units given to production department and target sale of 45000 units given to marketing department. Respective managers are responsible.
6)market forces affect both
Cost...Labour rates are affected by the market, raw material is purchased from market etc...
reasonable profit....we have to see wut price our compatitors are charging. we may then give a lesser price and get less profit in the beginning etc..
- john2play - 08-01-2006
there no single person to reply this post
sorrrrrrrrrrrrrrrrrrrrrrrrrrrrrry
- Zikria Yamin - 08-01-2006
I am very thankful to Dear Seniors who helped me out
Thanks
- Abdur.Rehman - 08-02-2006
u r welcome
Just one thing to say, as i have said it many times
v being in firms dont get much time to come online frequently, but whenever i come online i try to log on to this forum and contribute positively.
so, plz dont get annoyed if any question is answered with a delay..
regards...
- Zikria Yamin - 08-02-2006
Thanks.
Seniors are great.