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Operating Income
1. Operating Income is derived from two sources, Rental Income from businesses operating in the warehouse complex and Interest Income of the project operating account (when in positive balance)
Operating Expenses
1. Advertising is calculated as a percentage of Gross Rental Revenue.
2. Council Rates are calculated as a percentage of the value of the land used in the project. The amount paid for Rates is expected to increase by the inflation rate each year after the initial year of the investment.
3. Light & power (for security lighting and airconditions plant) is a fixed amount per annum projected to increase by the inflation rate each year after the initial year of the investment. Tenants pay for their own power usage.
4. Telephone costs for the administration office are determined from the following;
how do I apportion
What does the cost principle mean for a company's income statement?
MARGINAL COSTING IS PREFERRED TO ABSORPTION COSTING IN DECISION MAKING WHY
The activity driver for the shipping activity is the number of orders shipped. Product A uses 20 orders and Product B uses 60 orders. Calculate the consumption ratios for each prod
developing leval
critically explain cost accounting as 1. a service activity 2. a descriptive/analytical discipline 3. an information system
what is cost accounting
Accounting for Labour costs We will contain an overview of accounting for labour costs as: a) Gross Earnings It is illustrated as item A that appears like a credit i
CONTRIBUTION : It is the variation between the marginal cost of sales and sales and it contributes towards fixed profit and expenses. It is differ from the profit which is the net
The sales revenue line demonstrates the amount of sales earned throughout the different level of activities. It can be observed that between zero and somewhere between activity B a
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