2 nyo MANAGEMENT ACCOUNTING —IL Cestt accounting ) SESSION =P. Manac | v y ee y ¢ Planing Shnel hovel Deuineon Coe st Ss Y seourtairrnantt a (ert kena) raed Cu Meotluls = lo eae / VO M a becdudle ta-g2ts Bgaie upline: suit aoe Cok, volume, @ Prepit) Lagiens:|, 23 Meduce -E Test numbrL Example cPlpecak 100 Barak Even Pow: - ~ oO vanalte Cost Ipucket 40 carl do pos (22) Helps in << CONTRIBUTION #2 1) BeE-Plunits) = FO. ALcowe . (22) Coutfunat fixedcost"& Hen Re ate ncteaberles it .E. 2 conte BE ne) a7 7) BEER a cf Salus (unit) to Lann ik > FO + TP To 2arn 260 PE, 4) Salus (anit) deg pope reste 20450 Ue Ce 35] Scanned with CamScannereve Anelpsis coe g Conbribute co) Je. Lornbubulien py os Hee Sa ae eon ty) => Heigham His beltin, in ——— “To improve the abeve natio , Ch) Trouase SP Cd Reduce Vo © A Lek (In Bs Crores) Aceush colts 1000 ; Br sales (boo) fuer if sale clecline be 40°, the company work dle A pall £@ RIE]ank » eT cp alls goo Unils CE Tneine a dow & To5funik.- wher Hs cornpang elle 20000 unis , 2amés a paogik f FA luni orp Hr Mos salu of ornparg Jn % vohan te company tlle S000 wns , Sp= Zs punt . Margen & C MoS, paaeieen z2Aso > ) —> Sales 4" eroo anlls = 7 gooox If = 120000 ] bo00° Loss ined = 5X 6000 =40 000 => Cals poooo unl = & ‘n0000 KIS = 300009 ppore e : oS Profit Ar = 20000X Y= Foq0o . 2257000 > Actual sales = (5000 X15 = Boo VC + Fe = 160000 & 20000 V0 + Fe = 220000 | Soivery, VEZ » FOS [20000 « = 145000., jpo000+ §X19000 = Scanned with CamScannerSf > 1S satu — VE~FE= pepe vefa > i) At e000 ) oes Lex eooo — 000% J = — P00 YK Chu 10 >, 10000 = $000 ay: Fe = 120000 . At 20000 220000 = 200004 +Y . Be (es) = FC (ee) Fey spf cfu l20000 = [&0000 se XIE inom At (5009, Achial zabs = 15000 XIg= 225000 Bie salu = \ecore) : . 4s000 ( BE CHART. y BECu) Scanned with CamScannero>! SEsstom=22 yal! ) case NumeER ~T Gerri voxialole eee Panty fined 4 potty varualte . ) tandlane telephone bills * A component called Aenlal number ef calls made MIN SP: E 300 /unit . Coles fpunevar: F1g Lakhs - coment unuls seth * 6000. unils > 6e/, Total ost = FC + VEXxX 300000 + 60x 6000 + 1 #0900 =, @40000 Ctoxvooet 2200) . cunent popes lel 4b = qe. Nebd fo be aintiuned NV Atun Acduection , now SP = Q40 No op ents ao Salas 2404 - Alew cost : ote 70xY Cat ey) 4th 70% a o Nw 7: adoy 7 ares At wy = #00? > T = 9,40 ,000 - Gp se), for %,b0,000 =" > ooo = 7eG00° Imo y = Ae IT04 = 14yoo00 4 gar -S® weal uns , ~ hawel of desentd wpraliin BA: uy. Scanned with CamScannerSRE WRITING = F niong aales — (gogooa Ex ore B00 Ex SalesQuant B00 « At eD/% = 0000 Lhe 4 Salts : R000 X240 = (9, ve go00x Fo - 72,009 oe (5;60000) all oo Contribution: C3000, re ees be C2000, es/ e000 i tov/. 1oa0e Prefete 9, 40,00, Naw sp/u : 300x 0. = 240k . gabe ah ri Geek. thon 7 Cpacs aut Lat quaay Ay Component of aug Calis: aot Peg ve: (70%) oe Lalu 18, 00,000 ere costs: Fe 2 (490000) Ve (eoxbooe): 360000 eee ee ove: (129000 Desired prgt sr Fe : 3000007 IJox — 4¢0000 — 40000 > x= 84 crooee an p20 Peat e0oson Ces Sve 1 -20,000 In raed » a dot 4 we 4 Compenents (around 5) ve Fe 7 perfec Linke ry loxbooo 1, 20,000 compertunt an . = 60,000 eee ae ee Vu = bo+10 = Fo/u- fo = 3000004 [20000 = 420000 Scanned with CamScannerCraaph er SEHAVIOUR OF costs cok ye “gue Fe qd =Smxte Breanpown: > Total sve a> No og unis M> Ve/u Component co Fe component (oclded dneduded an suc Mint case NuMBER - TL AT z Preak even cots? & - aT: Selo: M Wie = [eb re Re? Sols M M- sere (ve) (hse): ve 4 2° c Cc i FC, At broakovtn sales, Sala = cast =@ | Pept eM Faalng en : Sales: M Sts SeLn: (ve): Cogom) (o.608) Cole 26% > lw Cowbyibubén: 0: AOM WO Lise) — b0 Cre) + (0-408) @-408) c x 22 Prott. 9-40 (M—R) Scanned with CamScanner a———— % v pee 700000: , gales = 1500000 faut hall YO coumnd half gear : FC) = 450009 - Fez = {0000 s,., Sy = 1570000 ; 3, - Cue tFg = ™ 1300000 — 450000-VC = 00000 VC, = 47,50,000. Crrtinusd rr L Estes sovn) Prove = 0-40 (- 8) v v Cs astio Mos _ | Pastit = MoS xk cls nation “The penbiibubien gprratil by Mos salts ds prapit <7 (SIRS SOLN st, nd 4G :) I deal 2! aly pretual Basakoren : wehaG oy wshiele 4 ice emmy OTe a LEB se) (15) (3:0) \" (ves) oa) gt, Cowbitechon 1S 3-0 los 4:00 he uD) ee us (4) fe = (ns) bs 0 MoS :vickual soli BE salur= 21-1¢= 3). TB FU thee valued stant 5 Powel wih qs rte Scanned with CamScannera Mite fr MoS * Profit = MoS x C/s vetio to = MoS xX OS D> mos = BL. Ato, DEC ms meratsr ha 18 L + MoS = atl. -. pokual sas 6L a od one ome . ay Sols for ? fall year td i wie Ww At a tr sales> (vo pg vata = 1°" [yr oy Changes Ti —> 40 I}, << Sates (oo ion Change tn 7 <4 by 2 — Cyc) (be) (129) Chang oo als ie 48, —conbyibution f° oa aay fete (ee) C20) (30 (Maybe tha! ee the Pope 10 se 24 haem Fv vsti) ~ Scanned with CamScannerin paola c]e retin = change a PIE Charge ain soles « a a ew? wwecsaweay (bs lejesttion set pa Chapt, eo , SS Ratis' Capital . Vesteafising Bip (ensure She Apesuse _ come ee Seat “ML (p]é who) . Die vatio « outsidin's fund Company ours fad i 5 fete Joos! > vey nish aituchen 5 ne (5100 > cast of oat poset eey £100,000 Fund fp be raued (open 13 cavity 1esvE: Pividendlpectatien ef Dept: Loar @io/. o EeIT: 50,000 50,000 er Give Be 50000 (tranas 3) (12000) rece C190) arf PAT 22000 See s oe (Dividend) 0 (10 008) 22000 eee oU) Scanned with CamScannerTateaut i a tax deduchibte expenditure by Tax shied /ebthr a interest Dividend x not tax deductibe, on tie ofiirand . Hence Trterest werks out bo be a Cheaper financial sption . But Conditions for Hiss to happen > cow should be ahaa ; B We i tatkeig atout al mpiny wat pays olividend , as ih ub not a mandalry exprnditare « LEVERAGES Salus ): Speralttng Cor) = Cerdribucbion. ive) meee EIT. Lenbibulien Fox a. company dike TATA ele, ol would be crc) very Ady ee PY . EBIT For a manag ocho ups FE rou be very Bag (tat) Wise, ey float die info thot Viey Per “el @ Lower Cast => conbibutin ; ved. ol oroulld be very datae. . OL moaswus FE burden & ee Rak 2) Financial Cec) = Err ee PBT FU manus Into biden K frnendol sist, 3) Covnlyened Leverage (CL) = 0LXFL Scanned with CamScannerMIND CASE NUMBER TT i: p itd a ud ‘ cert B00 _ on Heo 2. 83 OL Ealt 15D 300 ear IS Le ae els FLO ppp 10 corr 300 100 yc cork 308 Lg ooo ei Per loo G tc a riskier proposition than P (Thue 4 no absolute concert) MINI case NuMBER OL Subing Stkigy selling Shatigy one oY Fl 1A 2x4 Gull Le 3600 64¢0 10080 Sal 1g00 4320 ép0 &) — (1e00) (5400) (1208) (ve) Cav) (3600) 4g) eee cevbt le00 logo 2880 Coty 400 yoo 1,20 Since demand data uk nob owailatte le Cannel” cabo te retwus » Lence tn tuts cate we hawe fo Lath pdsk wsbimation The cart in which the Broke qparsity can be achived ensily tis Lass resets. spe RISK-RETURN TRADE DEF “4 Vea Bee ss-z or . page Cle —* 28-59), (as 26-47 /, = 0.2857 Scanned with CamScannerPee eee ese cece qs ratio 6 Aig, BEL) 2s ‘Lower . Whenets ae So £000 ese eet 28000 gan te” es oat a Co-ed de butt Enuam paitbar | Tnshruchei: _> nt a. Paper mat archi ancurs beeklk 6 H st) ET Uo, Up masks; (9 manacts (Berke, andouts, rst, lpleps cn it ae) > dust “oe dau tha ansurie om tea bore provided — winks 4h the came page fer mapenee —a Pencils 4 trasers Ae allewed > Shou the wrerchangs distin Aly « > Past masking ablovred | Solve questions (o Chapter m0 % anal Modute -Ir Decisen making « ‘ a | _— le ove eS _ ned. Tn alt tin. about castes we wore qrnetig wat 20: 10.2% saragerert 2 — But ue Aide any decisen Dag. TH medal deals with Maklag dictidons . We ge fv a. difgounk clasificattion of cost. f Scanned with CamScannerCost CLASSIFICATION ( Managencent doctsien makina a S ET Relat Trrelvent we a: cose Cesk RELevanT cost: Future Cost 5 Deaton maki Adup 4 fhe Magedtude affect. by Hu deusunm made , option! opten 2 cost A _ t Cty) Tent apeted tos decision made > Fuutwo cob, Not’ woe ophin me yt Nok a futue ces 5 Tt iva vk that us Jncusscd eur osbice D hawe wo contvat 5 Ck os to youl in makug decisons wg eran F a OPPORTUNITY Cost: The prefit, Thatt Z forge b4 Aled “4 ophen ab called ebppertenity cmt DIFFERENTIAL Cos: Concept Pf; ‘A? Coat) IRRELEVANT COST: SUNK COST : Ober! ophind Total Rurcre 150 (00 = Tokal ust (130) (@o) (42) Paget —~ ye jo. Te > "ihe 2 Hema Q he 1 ad Scanned with CamScannerMINI CASE NO: IL Potnts 40 be noted: > Discounted patce ad butk orttr —> No depreat ovdin > Cosk par batch same iuspacteve af batoh Ai%e = 262500 _ 35 DincerMatisial cost PMC) DMC/medel = "1500 £ Direct Labowe cost (pbc) PH /medal = 200009. 49 Y500 peica DEC /medal = 1s Ca oo oe Gey Bppkein | -Ryeck opusn 2 Accept Speial order oO _ Addo 9 5Q0 Regus Pred eo 6 600 009 © TAle capack ioe peek “Toted capacity 4000 0.08) CONTRIBUTION FROM 200 SPECIAL ORDER Cos : rend 7 100. = 250 7000 (vd) + BMEDL. zs00x TS = =(\, 7.522) i Bateh cost 25% 00 2(_ spo ) Combibution + - 5D, 000 _ CONTRIBUTION FROM 1000 MEDALS FROM REGULAR PRODUCTION : 1,60,000 Salis. tooo x1Ss® = tora 1S = (15000) (vc) pu gor pak eat oxo = (10008) tendvibakin $s000 Scanned with CamScannerOpposkuenity dost (65000 ) 1 | Opportunity quand 50,000 nich eppottenity oct Cisvo0) Hence the special oda should be sgedeh ‘ T. Cc + 2300¥2 AiO Sy Di: woorx 3 4900 >» T 20000 _ 3 Internal mens dail s xiet, Ataice. 1 an) plen wroulll be 12 As 2go ovdina Bi 2500 cs 2300 Dp: (600 4 intuunal erdiss need to be catuced , ten gp00 x37 ‘ sould be mueded. we stant proving ou A (208 ) Scanned with CamScanner 4A ‘ 200X3 600 ’ y in Byer o ad 6400 c D —EE_ Js00 Revised plan vrould be SERVES Hours BeTI5 xy , 3100 C > 2 300% 2 4yooo fetirnal D> 2 [b00xX3 4eoo Tatar D> 2500%3 00 eee Opportinicy Lost » Cowyi that t would Rave earned ow i the Lest orders . Comapuultig Bppo tant host + A. 200 X200 —> 40000 B: |425°% 41 60 —> 193500 aa Pees 233500 ——> Tru has to be rccavered firwe a Trternal D wens 833900 _ 333-4o /ordu » 2s00 e50 > ve/wder 1183-4O forder —> cost tat sbawtd be ALC . Paswser $0 ophon Bi - Hence atteast (1e3-4o Raw fo be queoleal Mi wine nas | dn inorder fo recover he cess + LL Th ET dipt can gett at 1224 dnordur to gue te business Mand aro make profits (122 TUEEMON TE0H cars) Scanned with CamScanner“TRANSFER PRICING A “ei ' costing aapect Other cupect Cras ds what we Fa 7 (tect) dad oe heey Fue Toxahen (. H) sreugy “ry stage tau © past 4 is couse) Maskitorg sus Hence the abeve cone js a WIN-WIN Attuatien Gone CONGRUENCE. — Technial dar {uy | LT dept would. rake profit 5 Manu dept would cubroure af Lewerk voc £ “ent mngint” would’ aoled ty j issues » | MINI CASE NOT: ¢ Make sy bug decison — ing He OUTSOURCING DEciIsioN: — Rceptuat frameerk) Any cost based decisten is computed bared on a eu Hie me 2 ity deta, te eu aps Hence Hu pratt i called Short Lum decisis’ CoLuTiON: y LDdecide + prdus infowe . Annual Fo: Suptrutior Phoow ss00x 2 — = 6000 Totest ‘ Yeeece x ty. = loodo } - Depreciation > 100/000 =10000 Pranwolised oe ee cuset vad ° Ty vamertel onal FC e000 Scanned with CamScannerP vefu s DM -4 DP Dil 2 vo 3 vite - jt Hug make % uni. 2 Tok est = Fe + 2b000,, (Takoure) 14 total cost [in Care of oudrouscing) = [le qx + 26000 = 11% : > 2x=s 26000 = 12000 Unilr. 1, DPTIONS BASED ON DEMAND Demand unil) DEcisION = [3000 adipose > 13000 Trrboute =< 13000 t Oa wo” BEETS an _ abete- ts creating baw din He (nftorttas session, thon Wortd Procite chapheh TH) econ: : 24 dima fa fst crospang erin He OS Chperteenty po bout oe ficed caste. Hence Reg ge ev © ir > bm q aagumnent : Recegwan > Endusbis 23> Demand lee 2 Oxcteeene leg Crave -01) At dit bp Lemp {ms vs Coulkie + Buk this posto Aappen dur to graeme costtrg pilose flag Tn his first tom ca 200%, Obama brougat down int rats 4o almost 0 Level fo US Umpanis that dda ouFfource gobs Rr nein fo protect gobs me US Scanned with CamScanner> Daspite all [hese aHempr , he Wwilldnt corbwb 4, me Phenomenon . 4 > We oat the beneicioruts 4 all Ihe above ablempts. The ee Rijeayee oh Wey Trclan hos ruen up. The sore aiacatien an app an b India 4- oun goie rat get outZored Uganda, ethiopia TH Lan be ‘preseity a usin we become cost Conse « > One perso seduction = OM pou addihen +0 pres tn cost ma fo Cathe flows , > ME chauchication (pated on pehavitur)) : Fc, VC, SVE > COST CLASSIELLATION © Totak cost Zz ey ee fs N Coie ati), wrrking nbfeahes, ! clink cous axe beatidos VaR ABLE cosTs unis 4 Offre seca else MINI CASE NUMCER- [read Be-| 4eR2 befrre serdon-7 | tree & tempany dulls mere d more, tty fave to provide & 4 ‘ £ ovy. tity ce Untenowt © Addceunk Thats why aAlu@ lef. capa 'f > Minimum pate i Price @ whe tha axiating qpacteen ¢ & eotheg) Prrfiee can be mauntadred ver a eve Scanned with camScanner- tng cP = bs00000 ane 13,5700 existing als 15,00, 000 griating pogie (159 90°) Lessing Total st __ 12/5?) 00 : Total Cost (13,57,002) ‘ . ¥ La Dine) cos Tndaieck cost (overhead ) Sv1000 L \ Ny & 1350000—5U 3000) ae Et y= Bae, }usooo zo0sv0 171500. 4). 100% \3eoo UA 15000 unis 4 JotaL Costs Demulie pemuhe + &prt : d Des gore Jee pink st 0 F00 84666 T ——>_ \s000 > i e- FON Sooo |, 30 2000 . s SvoH 4100 19.0500 : Mile aa Moved SI] h Add. dep vos: i [350000 ~ JhHteSeT . Vv This dipprentral cast Ras to be rerowered Additional cost fom the adelittval 1500 une.” Le iaaaae = . unt os Looe 12866F 2 gg. ae. Seaeata : 1sD0 SA minim pre 85-78 hauls be erated fer Hee Seas spo Unik! sexpert oreler » Bud , re cas (ust) pre At alow 65.78 inovda to adel fo u ie Ld. prpils dale ext. f Scanned with CamScannerMassages ion" He above case \ ‘ a ¥) Panctical neatsag » Tacha preduce fen Fades On, Pa at "Hfaow auras! price ar Dubat Aue to the above Costing pailesep he - A gel bridges ane built by LAT comshru ctising eid ny Fad quay thin prs at fereyincoundion any muck fewer Huan te prices tat” quoted tn Trdée. Dt ks because othe fost Hat, Tn dome raorkuts, ‘hay oN hye Fe teow He fioved costs » Pak bn fovcinn mendh, Hey nerd #9 recover erty fi diffnuntzil caste ineasned , 3) When a cost ia fired 5 Je concepilaly fxd nahn Pauluinmey «thane one mangenod Cangas 4) Compare He fetal wis , total weniee behwern > yt A rake Atcinons Drewes a Det dt heme ah reality . Dov beemporents Lake Sunk cose, tunity, cells ek . But-giver allentsn to dij Kaul . Mint Case Nomoge' - Cooncepe of Fe Juni dewrt make ary dense) Ne Ue bothined ato He total Fixed cesty rather. At avvant Luel 4 Ppowtion , Total fo = 2000D%4 = g0000, Whe shut deun , FL accowwy = (4si000) <— 33000 <= 42000 Huds ahewned ee boss ae) AevOd * duh shutdeww aloo Scanned with CamScanner woote time sn Calculate Ao, glut deen Cost incuaredae SP/u 20 aa (ve/«) cis) Chu 7 Fy we opretr@ a uni , conbibubsn = 74 . Fe | "= 80000 |" +. Prodtt = fx—@0000, Equating with .( Asvo00) J = er000 = —Gsvoo Jn = 35000 > «= 5000 unk , Unavoidebie Fred loc; Fo thats incurred wen lf the Fe (aovo0) “>, Avoidable Unaveidable (Bon) (41000) Conupts from thu Case + / > Fefu Concept 43 aseless > then i, wutdoum, LLL incr less date to " Unavoidabe Fe / co > tKiibenw ge eMpomnt Dike Uaavrvidabt : : $ ' \ Fae we . BE chat 7 i ir. ~ Vs ie Poptern - > BEC) Bela) Scanned with camScanner- Cl , 4 } «A the Te hike (ue) be 1) Ta saatihy thine is op @ \ we) be cate {He foot tee we afort fo cukxounce decors from Vanden 0 we produce fase nas Cay you dent cubsouncy discounts from wonders, gous fort) . x) peyond a podat » Te uses dine, 0 capeclty aegrnsatatiy 2) 2 BF point autumn } > lets Orta. Cornpanin dheut Prank © a point wture the gap bebwern fia Te & salu as the highest 5 Acadimit bE chant Vs Pretctical BE thark Ve Cunvilinwr be chart Meaningful vs Menningbiss . ——>——_ Portions Pe QuI24 . \ub> —- WESSENTEH = MopuLe TE COST ASCERTAINMENT Accrtaining te cm of prductten COST ASCERTAINMEN T ada et | YoU, orbs Gone ca! YF a ot 4 a v. Ubewed ow ob besten f) batehus) muuthiple: basin rt ee be a Yo taaee “6 el Abo . Bat" oes, “9s Scanned with CamScanneraw PE > Awe coting CAckivity Based Costing ) Te Us not Aeporate costing muttied . Te ic a technique that aids Cotk astictainmunt ahr all the above Approaches TREATMENT OF OVERHEADS 7 Tntuir way Cz, pr) » Supwcer wad ( Wee costrig ) Cost CLASSIFICATION : (Baced em elements of corhicg) Ce ptene Tnaucack cot COverheads) ! y_N Femi : a wok Dia ine m Offic Mane Mek preck nck vel tine epee’ 7) Conon) been) hem cas nen oe aa eron/ rand v8) Ape) ison) cost of a hak quibtans he pees © CobS w mantic re CoS a a our materials, vile, fined got Toventoy cape 3 ange MIN) CASE: Ainotee tad Arete Pie bb i a Fowl, efou, SPOUT - we ned rept (v7. We stank wath ald ‘ NY ie total Los map satrat bing price eiernated cost Abeek- Scanned with CamScannerse 3 2001 -? te meen (ee COST BASED PRICiNg zooe —9 YOO wv [aneze®) Yoon : . Cost cee p Finandal accountirg Vs CRUE Companys facet the Ondy meant | exclusively f, aes public @ Large! Ceeveel "dette € Primary boy exttrnal tats) air” (RESStON=8) Fer rolf ce 9 5 pe uicle Tob] balch ute vost sheets batch 0 : ' . Unethen Mini case Cote Porn ——> Ye produced ‘hy Kk + opening Tov of FeriGrorwds — svo Leg tn Roc) 5 (4) Cons —> (Goods sold —» a D xe [yguo- [60800 > Rows malinad ronsrned (153000) ~» kan preduad. 1 tp soy Facing dots > Cornsumally , CLiks Muts, bolts) )530S0 Scanned with CamScannerFactory 6te4ts Comumed = Open + Purchase — | choving eae bo be valued al rg cos Etb20e Yue = 1618 235° 163000 ACTIVITY BASED COSTING: CABC) Mink Cast? a TRADITIONAL COSTING SYSTEM , Cat funit A 6 a i 6 prveck meacteruod g ! (2 lo Divert Labour s HS POH (fn 8 © eS. 2-46 7 __ owwhead cotfurit! 2.5 32.25 33 Comal Polat s Zoooxs + ¢o00 + puch bef ' Larour hows = Yooox32 4 3000XUS 4 ph00x SO = $8 50 bows tbo 60 eo Production Overhead (Po) = 49usr | Potfky = AMNEP 2 IF. ¥O BE 5d ‘i . Trptsct auemptn: Preductain ora aikedty + Commptitey driven ' a 4 dine Labour fowr . eed asa wens meer apprrach . — ie: Scanned with CamScannertesserae ma ‘) pag cottfunil > duper Oppo, ae w ‘ ln b ‘ ¢ tut A ple cae ¢ (2 6 iat) bm DL iS POW A HE 3 4s fe NE 3.24 alb. 2.60 L43 ote SC Cesk] unit 25.08 28-47 30, (b, w pate Yoorxy + L000 xb +1b00xXS = 3¢800 MHC =F gato ‘ MiC Jig = WUC zy 4 32600 =f Uv Tote of = ieooxte shioast pote! = 3h 200 eperatiins « Ec = 34150 - Ec} 34150 el-0e i Froo = Te LD Tobe ra of batts = lots +4 IS= 80 batehus SC = 3]200, Cephateh = 91200 - oko. Bo A. [OHO X10 baketus B: pou cs our ts 22.0 1600 4000 ull 3000 is he Tuts = 46 Scanned with CamScanner_ oo) Explanatory wuz up tn support of analyets ‘ Ty? podtraclan condittens are met, a cormpany howd mmancledoray resort 0 ARC method a A company bhould mmanuipercturee multyple predasets [erie B) tach evrtuad J governed by & clifprene pararncke . | 2 Costung Bb vend much relevant un IT sectors ( ot firs also) | A mnafine chunk of cule should centitute evehoad costs | > Tracktue euuhead boils clown do yepir recordl maininane mye pe (ot rou ret hue) > Legging Here taken pox uk ee cotag sett i Cost DRIVERS 3 Resource 4 Ackevify cask a . a rraannpacionr indusbey, Aetvity + Mle operation DieseL lo Litfry a OPERATED 2Ohrs ues " th , aoabhset ee D 200 thos | Rs goj lev ere “ Cesket, diisel = Res ooo > ee 2 : cost Mn ber ie ee wi ee aC hrs Ahrs B ce > No sep of dlory wousting thi cowie 2, ee a lke Cocaal a albuaktere and antes Urhith ub oo pusowrce Ost diverd whats the on Cost river tn Hat cperatesn Scanned with CamScannerg\nle* (COBREWT — Process cosTING — Cnauly eae Praess Casting ys > 4 ‘ ' ; Trkirprocess prnfth ie ce Pt . (rang ab col hy ta the preceess Ce) Tranfer ogtin olay ; nf) (eg) at ; Shi clebatobte, “ ii : | =o vt oie, 5 t A Y S se 5 Process toses — When tute oe 4 Kea Hee povton owt “tec eae Gi ath rn coy) Ueda) — (essed (wy Wl. Miniease 142 ZNDAS 02 allows oo 2 aay valuation rmuftieds an Padi: Fipo 4 Neghd everege . TENTER PROCESS PROFIT. tet hey Prinweple ene gg iain ert ae doug pon a tons fr toa i NO an vy aaa ; toisnal procexes « fw band dw te individual proeeeees re poyermirg. MINI CASE NUMBER->. : FifO meted + valuotum, Prspane *Prowss A” account - fl Scanned with CamScannerProcess A Account Cast INCURRED REALIZATION Details Unils | Rs Debacels Units | Ba, tod tpeving Sovendery evo 4000 Normal Low 800 3200 (200 me) — Matemals 9200 3bev0 Aenermaltess(2) 490 [256o|. : 1 bo Saal 1b74O Tes eB “noo [seo] Wages Pou . S340, | closes goo [a4 to000 5410 ‘ fovv0 = 6STI0, —_ ; TS bompabd Computation { Equcivalenk units a. dian | | Equive lint unils Sopect als Output mactynaal comvotna ‘ | . . T - Busi By wees 00 feng Sew | i | reo “New Inv | | ’ 10000 4 ing Ee | 0 oO 40 420 | certs Toh &0o ape | _ Dek Cornpfsttd chro | too | too 10° 100 A rrtoapond | | ; ol Ne (2) #00 | | : | A yoo too} too | gt Clots Tow Goo (o0 | Foo | ap. ot | (0000 8420) <= #400 Scanned with CamScannerConwasion vot > IbTYO* GIAO - py 3 8370 + RYt B38 = Re ee Ost] ay unite : Valuation : opening Trav. i 3 Yooo = Bysso, Tran > foo xrt Pp 320x3 + AL a Yoox + g20x3 = 2560. Casing Soi? | WOK + $30x3 = FU10.,, > ally, om cobeliliig Eqyurils 7 “Terriake them lef cont anil iit ol pote) Sine mag ie Compt Wonce g computing unity, we ate binging See Airits tothe same hase — whe Abnermal Lesser re not acalised at oenap value ?* When a Lose & normal, bt at nace pactune Heneé tlt Cost Aneporelia vathe cost “f pretuct Bud for sabnermad loses , it way cern due bo nan -vteue Almermal seasons: Henes ik 3 tacaltd 4 a Abnormal bo afe =) T [opin [ume [ee] pee un |e | P(A) ae 400 |\2560 ek Cash yoo | (60? bos 9b 4oo | 25b0 Apo Scanned with CamScannerSuppose gals rrvenue & Yoooo , r Sales ‘Feooo Cost (bbe) 16340 —> Bud tas wk th actual rcaliiaton , Ac (ate) We need to aceount for Ac Net realsatin : 14380 Hence the AC didnt Cmpact” 5% 660 which i the product cook, Bud we AL didnt 4 ae eh We accounted ~ (separately . thus Betisf pnd the’ Reem ciney prineples : = LD Tavaatabty cott-ey duct - Tnnpact qi N Tn . ff fondec te { pe : . NL fq ane plugged ce as 0 Ad fhe stoikion af By vot an wt Ore ae Pup! Ag the ier Levs( at 8400) 40 flat it Can invest He motunial cost / eg pivalent nik P3200 1s deducted fom matinal cost L nol erretusen a becouse sonap Plainly trantale to + matirlal tontint® and Of ne value. Pence it ds ancluded fore. (99 a) v CLES COSTING 2 tof valuation * sugested Folu>2— SSOMERID® — _ Weighted ownage MIN! case NUMBER —) | Hat—4800 | bes - 32-00 process “P’ ACeouNT , O-buo 1 ' : - + ¢ Y & Detect, at Xe | details Unt : Hering 1, coe | 500 in 00 | Normal Less tooo =: 1900 | Materials lasdo 1862008 Biprermat Loss 400 | bebenn 1 1¥2000, Tramefaned # Is2a0 [zeworo] | | | | pe | OWAbeads | ne) da Ect i aeooll | 1 | j2oooe | 344ero, mec C sere ~~ Scanned with CamScannera + Computation aqpslvatend wack Vio ’ seers | [ee ge ils ‘ | | etend | cemedion cay” Trpak Detar Deda Mer eee | | y. Ey uss / [Ey ind 5 | | (00° | L8200~ | OV 0 \oo| 400 | 22000 | Cest pe equivelink tankt (Com patetiny ¢ > ae taatniacak +4600 #182007 999 _ pyro ag ust 14000 Cowension Cost: 3200+ b4o0 + 12000 +19b409 we dr00-+ b4oo + 12000 FIONN, : [genre = Rto]eq unt ie Catpar eg unite = Rs 20, ee Scanned with CamScannerhl, valuahon - Tranepn i 8200 x 20 = 3b4 000 : Mnormal (ous > 4oox20 = &000 Closing Tn verdes Gooxto + 900KI0 = 6O00, : peaggerg ewe numburs tr Procer P account) For FIFO: obvenkup of Opemang Tov Lak nat sequined . 0 the entire Lott gs Avansfersed cto next pres 7 F carmpletion of opemesa will ts veg much prded , Ty WAM > Breakup a vsentiad Urordir to bnous matutel cost 7 competion *{ +4 Lov de nok neoded a6 Poe Open Tew bos i 4 : Fuen if tHe deflle are Wien (a Lxae, they Be rmanalfd the method which Parked fer, OPERATIONS ORSERVICE SECTOR COSTING * rnagbet be srdurndant, Mini CASE NUMBER-T , Se); 6 4h: csrnputatcon of tet Caluslotion otal Poaagee Hon Tzeng een por ord P46 and back to P 260 KE Jox XO 4 aod Pto K and hack? P 2POX2% 10K x08 Meee Loud rp box5 x50 ee 4,900,000 Total passer er per mandte = 250K2x10 t 70 tooxs Total Wn tvawelled mene a = 4200 bm. Scanned with CamScannercest in cursed pur monde Collation R Catach) pels Depuciation 3500000X 9.25 [| > 12417 Drivow S 5! 000 send uae (ety 112008 _ 2000 Chirk Sa ee ; a pate Neo0o fy Is00 Diesel ust . 300% 6 Yo . a eee 24 ooo/|> 2.000 eee 3000 Publicart ott {°. (4300x500) /200 23250 Pepsi see oe : od 259207 Tork Coste 67 259267 atipop ee \o1694 csi Mi Nia Net Rw oo 33 6166 tex en! 71398 —_—— Cee Aus 359 - 400 09° : Total ae ast is charge pespasserger bur krm Capp) >t fe Fane te be change pin pestenger cs > pe tpha = soo xls w W ws for tp to R = 4ooxtlb yor : 0 — docal tp Copp = pox Scanned with CamScannerRE Min) CASE NUMBER -aL Shast with compudation Room PAYS. compedations dogs . singe yom LOOX TX 3vy A0/.+ looxsxz0xs0/, 2 6400 pouble | Box7Tx30x607, +H 3o0¥5¥30K 20, 51U0 | Tripte 20K7x 20x bof + DOK 5 XBOX 207, oe total BS 4bLO Covwrentiies cot “asp! in pens of danger Pypaiveleet” Mirah orm days = 2e4od + I: OX sIYot AX 3120 = ussd. rove dais Reem allindant wages tem puta tion Stumm Winta Total fen Poirot trees [oo x7x30X4 x > Z wh I yes oy do): Hapsteug 4 front ZDEyoo XC Yo+20) X Foret cst = bbUsv0. Pte (2) = uv200 tollRw = '€ 31000 (Needs to be waned) . ee are) > $31000 oo, csp lied 415d ’ peae vr /dog = [x20 + 30 Tp meng it Co, e i‘ Phe ecpecaaale is veg aipgialt task 1 Tore ebged sucord : Scanned with CamScannerI, > Occupary rat. suncirutmation >> pum pees So vey re Compl Oceupenng pott eruushoaton =, De an As ut would horse hour, Ruder ; Ralts Dour dus to yh occupang yale . Sepenatt ete day > a ar fg mara cana for Chive case ch Kolko) . ng k goint Preduck . 15-122 (SESSIONS combact costrrg & I0K proe® 2 = @ . ae as (simu oly prrduced Products * A & cput up point : Poire @ which “Hu product zest n> Teunk Cost: Cot tnevvued urhitle produces A, Bic ; (Cost osurtoinment issue * Heer yocnt ace t ty the prrduetsAy BC. LE Le dome on some 6" pectoral Bots ) ayy fond fue rede Decided by Hu Loman 7 the UB a ia oeessed 7 nytt eda amane. Mey may be fe dl on Bot ok Ha Aplit p Hh« de i decaion OP) We pret fast . Saat digats pr oleumstreem a : re a CRfeate mini case roT)> excl fect £feond wo (ff Scanned with CamScanner1) PeopucT : Think Hasd Limiteol ( THLD EXAWE bm paev y Wy 40 appertien the jemt cask 2 — c€o; Stetirrends Ans! conslditing year end eee duced figs As bv00 IND AS-2 B: 400 Trventrry valuahon : Ci 30004. Sprecwerd (cost ,Mutpre) , ce ‘4 i. Die] (De dea abso Lex ri neces ony ae : compute thie valet of swartor inorder Cow neuer) : Aor Aight valuation . Ul Go j-th cod needs fo be nam (The kendo Aa tink Rinna ai needed ar xan) i Enorducto avail (niurance . ) Renuunration of faceetteis : AGC costing on BM student pemunviliorr , in respect 4 one BM fon theg cee ty student, ii axe the ALsOUNce « actevily cert drivers © Cast. ed fm sein 12% Read -Hhroufe Conbrack Costing write up aff 7 \ ) CONTRACT COSTING: ( Hong team constuction : C Cast Repor ti Jnup ASW. ite ed Financial RepStandaods IND, MINI case NUMBER: | Conrancts : Yo . contra He | Contacte Cethoat [ouster | (04 L£7) : 7 W084 dourg wating x . ante beot'g tertyactor Scanned with CamScannercontract A account Cpvielge contra plate 5 TINVENTORY - UNcURRED - SIMILAR TD PROCESS COSTING , PAL STATEMERT , SpLuTion + (pom — coin plat : contract ‘A’ Account ieee = 49 a Ss a Deadlies | | Deans [Rs ; Mecteals 6pgo00 (Clasig vase of Tow {40,000 Addibroval matoual |yonrone clang eka % Plank | 30,000, nde Pode | cen ee ¢ | | Plant sued (Yering) | T5°°P | valueog WE 13,00/000 taper | 75) 000 Cos 4 we | 0,000 ie | Tad et: 26,000 eens “Retinal Pg | 3,30,000 > BF 14,20,000 7 “TEsanet > Vi ean hen plant inl edreay dgeous (726099 Ain tha costing Atalrenenk Cer) fu Ha “vata peepee rh Parton ASK in Whe Lefties Pon oe Work Certified Wap ef He > ool Work Unewbitied si Seas af wk UC > thew is no Conept ah Rodale twin conker as he forded oven to Conbactte | Hea worked: core pletir: Scanned with CamScannera notional People . Opels the name as.the ontrack & . A the At Be rnuch tuneadairty ¢ TF 2 bedantion ee ( [300,000 » }0/40,000)) Peleg ah eae of ‘tieddy) bk aside fr an + Ths 1 veg mnuek > ly a small een ee Aecopntzed a PEL account . What happens bo el aan ak > Indie above contract, | : y n= Leper y ys 2 gs, comm pteca eee eu. Falls in the 50-9077, Alab treatment pope Tncrmphite cena (The unwl rule) , 7 : ‘ lo peceenedt [work centificd Prepit = = x Nobfonal profit Cash Aece [work certify = 2 x 339000 x _10,49000 13/00,000 = ie 7h,000 . : fea chop He rational pregit: (3/30) 3) (000) Areattd as Pople an tab afe. The remainiy Cty Shean os treated as “RESERVE CREATED” ye) | tue Lees & ~ Dutead of writing Notional prope C33% Heme ane Unhoduced > 1,760 Uo Pegt be asym Coe U% Ruvure oeaksal , Scanned with CamScanner> Nodional profit’ what dow He hae ackuale, d OP he, Value 4 wo > cook + NP Mt 6 00 800 ~ AA rattl {00 000 Wa 225000 Pant Tesnad 75000 Exp 75000 Ind ep 25000 Ca toe et) (40000) Ct: Valu 30000 my ¥ SF Coke we Cake WUC. ( (0,340,000 — 60,000) -$0,000 = 4, 70, 000. Noise gle = (3,99000 ' : Cokep Me = (49,7900) Notional Prafit > $,30,000 ( Gro trough He Randout or pea) Scanned with CamScanner7 . > Essen Ment Cae numb Te, aw? 45] we Conbact ab (Yea) . 44 = jolzsee, pukeuils Rs Details Rs Malouls (1s-c00 Pleont (Choseing) 2,2 5,000, wages (20000 (mia reducing dep) Canton 30000 ve 30000 otha exp WIP Dav Plod Ceperg) — « 57001000 veg We 138 0900 c 4 wue \s000 Loss [656000 Poutacn (1) ye Ut) Details Ro Petals (cr) Rs Crshe lolzsve. Unsure beLonce lolegvo, (012500 2 ——— to (2500 Resuwe — Fro Urvidngen (Ho tdeng 5 ate rectuos of wr) Bans fom Balance shock » Pr) - Progress Parprren - 4 latin alan fh. wip. The ( ui lol2seo Can alo lethuwn in Mability aide 95" ndvone. nye cmbradae” Buk we wate Like Hach Be ett foe fm Scanned with CamScannerBS Lrasilitx Rs Loss (65000) Crnbud Ale Details R olp wir Vv WC 1350000 ae mises) (36500 13bS000 peent (oppinntg) Peso00 Mackoutd }oso000 wages 400000 Expursis 90000 O thn Exports js000 P. earceganyed 511375 { ead 919375 J jer. ATs StS bat Cag ger asses Ras Rond Wit Inv 225000. Vop we \2s0000 Cok wwe (i 13,65,000 (e/P) 1012599) 352500 hg year’) Deka Rs Phasnde (sind) [b8+50 Wie Dew Vobwe AS00000 c nywuc 15000 gsrt50% 5H aE ar hnptegiiy Ml Scanned with CamScanner= Contracter acount ( Year 2) Quel B 7 . a 337 Sdv0 eng teow ee sats _ 2562500 eF _ 337500 | 33715000 ie fou, ia venback Ae, we Kane notional propel Y Conbrack Lomeptchion = 4500200 dep 6500000 Pepe mpd = Aix wet * a P Ualork extepeed. o 20180 x tip (uro09e Us,00, 209 " y =| 5 K1Aets * bys sain Cond of goat 7 Liapivters Re fea \ ie canoe Plant (dbsing) Pete . wiel Lay) Vet we YS, 00,009 Cc: qwve ys1so70 (le) Castse09) ( esseut (514375) ee 660625 oe Scanned with CamScanneriCall Contr Ale (Year 3) —> Rast {th Plt eee, pubis RS Details Re. Obenrta wie Plant (hosing) [26563 Vv 4 WC Y§ 00,000 Cop we 15000 Covdactte 6.000)p00 (Gunes) C181) cay Tpamns toms Flank Lepening) 1b t50 Medals 400000 Werges 150000 sacpunses 45000 Cantey Oru expences 2yooo , Actual Profile 193188 > BF oe b126563 maciceeee Contrast [eC (ears) hekails RB Detarls bs sos oe Bolonce gasoe® ~ 60,00,000 - - (sales) Case Bis? 60,00,000 ee Scanned with CamScannerpls extract Lend f year?) Pande ti tuts Rs Assels Re Papit Is sigs Phat (26563 VISUAUSATION Etal cast You | Year 2 Yeu 3 Total . Matezal 6s000 1oSov00 400000 26,25,000 wages § 20000 4o0000 * +150000 2 2,10, 000 ae ep 30000 40000 75000 1,45,000 Ota exp 30000 S000 24000 1p24,000 , a Dagens Sen00 56250 ArieT t, 730437 §3,12,49F Conbad pre 6 0,00/000 satal wot — (9392437) ee een on te Total Profit 6,07, 563 dH StreulP HITPPEN, Yeu 3 YO a Yeah 2 eden $3 Cosues) orate te pgit Pespite adept a comwalwt 7 CS rt Module am. Brush up yor enbus Harry Sly fre qe i el Scanned with CamScannerGT auube (ESTER Modus -E. ( Hesetows — 1g, s v1, ) Cost RECORD MAINTENANCE & PROFIT REPORTING Maintinanee Hp Pasi eapertig cask records Absorphen Vs Matcgual a oS ® Corbina npetig | Sposalt Mai ntucnad . marae ete rnc @ (oO > rip CSE Fenanviol et evs i nuainterence) : epics onthes freemen SO) reee @ Requires reconcilahin ¥ No qyuttiim of Ppp gmt vetoucilintien . cost d Fingnual records NON- INTEGRATED SYSTEM OF ACCOUNTING . Wages paid Rs 20 !) Wages dy. 20 —> No Un accouunting Tis Te lath cy 20 Cprretim arises while accounts ob coke afte 45 nat yet opuntd) . Heree to afc Cosh, we Chin a duusten ale qerk As B.cesunt for the Cosh - Wogts Dr 20 Dusthrn Or 20 2) Rass nett purchare (Coudit tuws) Rs od . Ru dy 100 Crudt toy oe der (oo , Scanned with CamScanner> Bt patountsd 04 Ror de 199° a1 Puslbr O¢ fou. Bur ut un Hee tisen! Conk badgin Cobre Cee) fe. beled of Pullen afe C event Gouge thar dn tanarclind to be suprier) (ate bedir. A re costing phibozop bey j Hla ane only § Cos 4 oe 1) Disack mnt 2) Pinect wage ; Pureel Kar 4) Monu. oH. 5) CADH ( offer tdendn Overberd) . fn gor toed b)sclig, dishibteban Flow a Manu qo : Raw material vy WLP v Fieushed goods + Cots vy Cotkeg tals NY Sales . > Orlin Owertmd Mey is beet Account + — ij : " aa propitl dest eee Scanned with CamScannerMeni Case noi) CO Non inbegnattd edit rad He typ bin) (Rye pouxcel sheet fev selntiew) : > NPacent > Products account Raw mat (fir mactinance —> MOH ia predcclirn —> WIP: weak * “MOH is Casyed welucton | [how dpeat (00, But eee a7 to prdudicn | > Me fede OF ds charged fo Warp acc. OAOHU oor + finished qo Cos afc is tncumd vale SPOH . > Production Overhead Absorbed How > Daal wag te ellete aft Sine elcailatsnea’ (bir stele = Undwuabso rbed vverhecd Jurndss chaaged 4 () endursacovered + Ge?) > Overssorbed Lene eT owshoad — (649) > Undursbsoroed SDOK ClEF) , > Salis cost of salen = a > Wet undsrabserbed orelad => To k oars oe t cob tle > Pret oa per cost yeuerds [ObSS- —> Trtal Pelance — Eslablrsls onitfmeteal ace ale ad RECONCILIATION: MINI CASE N02) PLL ps per MANAC +} tt pnp tym 2) (Frocesiosn ng SHEET A> bY MAnAc- 2 —> 2) 4 ppt Fi Then we need to vrepconeile a Scanned with CamScannera ) Pryit as por ofinanctal sevords 5 +1,10,000 Prog oe per cost vewords So x (raerto Excel sheet) iter kout thal fe neck erase. Proate as pe Crst records Detect bs Total cost Lou rosforeg ORO (0/ Hortamt 4 eat of matnsals wrnwumed [000000 OOH toprute J mae soooce (ister Prime cosT [s00000 so00 ooo (| Foustory ovedtoad es oat C "i aif) Bad | Lav ai wir O° | fie das Yow of wie (79000) | WORKS COST pPateces } 430009 | tffce + Rdumin evertensls agecec 143000 ( 19/- werkt) COST OF PRODUCTION Lpaiee 21230008 (Hee >4es) Add opening Taw of FO 0 Bate \ (23000) >] 1230x109}. Lows lesa Taw of FO Eeveesy ( m Cost oF Goons SOLD Ldap. 2000000 5 selling LDEést OH tEPeee 200000 Cost oF SALES arenes PRorit 200009 op Fao SALES 2500000 ed >} 21230 pu faa 039) sold 2000 — Cai Scanned with CamScannerProp it ar por pirrneall nocovds + . 14 Vi Alalemont jist Details Rs Debac Vs Markentects toniumed — Jo 00000 ny ee Wagqus. 100.000 I Clnsing Taw fou As000G frrtthed pad 130000 1 O&A op 260000 vip y0000 SLD OW 10000 Croodwill wrillin 200000 off Tedout on copia 20000 prop it [ire | 9120000 g 120000 - yo) RSESSTONEH Ay — RIEcoNICILIATION EXERCISE. , ny two ie pong numbers 7 the dui tvencs auses dueto 1) Grovd wilt aon liga wn 2+) Tnlowt Chasigus : Acervding to Coaltig pbalaseriy cosblug Livas ave owls by sa 3) Df an MOH 100000 — Aspow = 7000? > over abeorbed 2A val neue wv yal! Auda ndanl ph Avy ovr bltorbah [muary Y Aundiprs cove d oon ts Mafinit sty contend do lost record 4 nd vent act Scanned with CamScanneret ieee i en 4) OfOH 260000 — 143000 = 64000 | 67000 4s Undsratsorbed OH Moding toa’ proget diffenteal s) SOOH [@0000 - 200000 = — 2000, Owwiabsorbed overhead . 6) Fa wwe valet + 180000 Ve |22000. (24000) © RECONCILIATION EXERUS E ° my veeerd OL Go Feces pow er z nh g can be Add [~ : pared Less enterch Cpestaric) | Fee as per XCAl Aeterd sf: F, 2 Leaic } tottus prebtems — RevonciLiATio nN STATEMENT, a Progit Oo pe fproneal pocerds _ |svo0o , Add Croedui || amorte. 200000 Int 20000 OO undwrcoveed su etOce 21000 : hes 23000 — Moe over pocorred : 50000 Mees Spon ern rcemnred —§ a Fa Lundewaluued tr 0° cost eure ERP 41000) . + 300000 Fa @ Propet os pen Cost revertls ¢ 5 12 B0ce ~ Scanned with CamScannerMINI CASE NO DD Che) - Poet Reconciliation STATEMENT AS oN 31-03 -2066 Profit as por financial rocords C4 16000) Adds Fo undvuscowred: 6000 Lavoe tax : 120000 |26000 *x Only puspese i des: A OH eutrrecentred : 4000 Soeear Depreeittibn gurekargel [0000 thie Trtaust ow lrvethnent: 20000 ny cs thas “Frander Ke , 2800 eee Steves adpustrnent 2 2000 Geooo) Pecone tox Profit a4 por ck cords: (328000) 4 | INTEGRATED ACCOUNTING SYSTEM: a be nt | fs te at pop mite a Nomed rf CLE a/c A 10 Urould rant etry actncin Mecerdad ia | Mint ease no:2. Upy 4) [Reger ts sxad fer robuhir]) | 2alup2 (ESSTONE TSI C cewtd:--) | Depreacation tts are allyibuted to MOH - —> Mol Ay 7 dep povcin Cy. Paspaich Rent: As abreatty paid, 13 Gr fo MOH- | 4 ident Topcon et! | ee sitel] Scanned with CamScanner Ww 2 tan yd Co C4 costing 4pe dia sealtyrmine Han V8), gant gphins Lollous Noms even theugh 4b Cnvelves Aan cea patton _> Because Companis ore Ausaifud that tec cost data may become pulle oh they follow an tndeqateal sgstenn . “d > pence AR Bar organization , ture are 2 diepao fru ts ft maintain Oobk A a ee etaeaeed even though tty kewow thal the irdgeattarnettood ds Aupinar ABSCRTION Vs MARGINAL COSTING? REPORTING, Ceeeerd most empartant topte uk MANAC-2. ofr © puny CASE pope 4” module -Z) . = Trwveretory andy tote ys dene #0 that salis + the Cok inward can be comparable : > We howe produced 2000 Wh in Tand 4 costhas buen Uncwsed (60000) ; = Buk sales posta fo \eroainste (1/8170) , Hone we au Elovng unix frem b0000 , te arrive @ CoOs. a We ust tha tenolre! cd eusrReads atthe end ee atthe nk rye qs . Masguiat costing 27 CP analyte « Salis cver cowl” (Ho) fle a Cee eee contribulien @® LRAERE Ques « [Seis-ve preda J [ Grom cour — ve getnot] SEstIOns : Nw ase The profit fiquous seen cif ferent ancl. absorption a 4 mrargenal costing 2 ‘ 7. Scanned with CamScanner% 2) Why dn both Hie mevitha ye Pak oe pe anenee one aera “Abou He prope as pe mg yd 3) Which veivece af pape as Aetpuor and ws 9 A) Propet as pr Ac — Prpit oo pa Me =) ANSWERS + ) Pregit fequetes Are dibfurent aie “the treatment a) freed prod OH in Prarerdary valuation condor ( absorp plow Comtiig - BW cnr fol of Isv00 Ad jushrnert Fou |Sb00 , ee GB) > go0xp90 ————— oF 2p 30000 tee neared "+ Cost boobed ts Less - Prgit mare | Feb: 24000 : 1 6000 3t50 (5250) —pFee «1:50 2¢500 Zn Fal, Focal Preda on hovkid c peso whith ® chard atarnat the actual Ureunned veut 0 ? Past is mort 2) Tr bot the mont, fhe inventory ts grate — Scanned with CamScanner