Difference between financial accounting and cost accouning

Reference no: EM132698079

PART A

Answer all the Questions:

1. Define Cost Accounting? Explain its Objectives and Classifications in detail?
2. Explain the difference between Financial Accounting and Cost Accouning.
3. Define the term cost driver and explain the role of this item in the computation of an overhead application rate.
4. The following information has been obtained from the records of AJ Corporation Ltd for the period from January 1 to June 30, 2013. Prepare a Cost Sheet.

PARTICULARS	1. 1.2013 $	30.6.2013 $
Cost of Raw Materials	10,000	7,500
Cost of Work in Progress	5,000	6,000
Cost of Stocks of finished Goods	25,000	22,500
Transactions during six months are :
Purchase of Raw Materials	225,000
Wages Paid	110,000
Factory-Overheads	40,500
Administration Overheads	25,000
Selling and Distribution Overhead	10,000
Sales	1,000,000

Prepare a Cost Sheet

5. Protest Industries produces only one product. The following revenues and cost have been estimated for the forthcoming month:
• Selling price, $ 217 per unit (SP)
• Variable cost, $ 178 per unit (VC)
• Fixed Cost, $ 79,000

The managers of the firm wish to know the following:
1. Calculate contribution margin per unit
2. Calculate contribution margin ratio.
3. BEP in units
4. Calculate BEP in sales.

6. AJ Inc. provides the following data for June 2009 when 12,000 Units are manufactured:
Standard Material Cost (Per Unit)
5.20 kg @ $ 9.25/kg
Actual Material Cost (Per Unit)
5.85 kg @ $ 12.8/kg
Standard Labor cost (Per Unit)
4.5 hrs @ $ 13/hr
Actual Labor cost (Per Unit)
4.30 hrs @ $ 14.2 /hr

Calculate:
a. Direct Material Price Variance
b. Direct Material Quantity/Usage Variance
c. Total Material Cost Variance
d. Direct Labor Rate Variance
e. Direct Labor Efficiency Variance
f. Total Labor Cost Variance

Reference no: EM132698079

Questions Cloud

Which statements is incorrect concerning initial measurement : Which statements is incorrect concerning initial measurement of an investment property? The investment property shall be measured initially at fair value.

Differences between a partnership and a corporation : Describe the major differences between a partnership and a corporation

What change will bond price experience : What change (in percentage terms) will this bond's price experience if market interest rates change as anticipated?

Which an entity shall measure a noncurrent asset : Which an entity shall measure a noncurrent asset or disposal group classified as held for sale at? Fair value less cost of disposal

Difference between financial accounting and cost accouning : Define Cost Accounting? Explain its Objectives and Classifications in detail and Explain the difference between Financial Accounting and Cost Accouning

Explain the concept of gap management : Explain the Concept of Gap Management

What is the bank dollar interest-sensitive gap : Sparkle Savings Association has interest-sensitive assets of $400 million, interest-sensitive liabilities of $315 million, and total assets of $500 million.

Calculate the yield to the lender assuming the loan : Calculate the yield to the lender assuming the loan is held to the end of the term (assume a loan amount of $100, ignore the millions).

What is the bond promised yield to maturity : You own a bond with an annual coupon rate of 5% maturing in two years and priced at 85%. Suppose that there is a 23% chance that at maturity

User Account

All Pages