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Determine the performance of the production department

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Reference no: EM132540900

KPN Ltd. has 20 plants in its production department. The budget for the department based on 50,000 units of production for a month is Rs. 150000 out of which a sum of Rs. 50000 is fixed. During the last month, the total units produced by all the 20 plants were 44800 and the costs incurred were Rs. 166300. The cost of purchasing the product from market would have been Rs. 8 per unit .

Question 1: Evaluate the performance of the Production department on the basis of Cost Centre and Profit Centre.

Reference no: EM132540900

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