Reference no: EM132590548

Question 1. Please explain the characteristics of the relevant cost and give two examples of the irrelevant cost.

Question 2. "The Traditional budget enables better cost control within firms", discuss the previous statement with giving two examples of the main alternative budgets systems that you learn this year.

Question 3. London Manufacturing Limited developed the following standard costs for direct material and direct labour for one of their major products, the 40 litres heavy-duty plastic container. Each container requires the following:

Types of Cost        Standard quantity          Standard price

Direct labour                    0.2 hours            £18 per hour

During March, London Manufacturing Limited produced and sold 5,000 containers using 1,300 direct labour hours at an average wage of £17 per hour.

Required:

Calculate the Direct Labour Rate and Direct Labour efficiency variances.

Question 4. External considerations in performance management can have an impact on how the organization performs and the steps to be taken to improve performance.

Required:

Explain the need to allow for external considerations in performance management.