07-29-2006, 04:16 AM
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..
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..
