This costing method is applied to the following industries:
(a) Manufacturing industries
(b) Chemical industries
(c) Mining industries
(d) Public utility works i.e. Electricity generation and distribution, water supply, gas supply.
Wilfykil answered the question on April 15, 2019 at 11:41
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A company makes a single product with a sale price of Kshs. 10 and a marginal cost of Kshs. 6. Fixed costs are Kshs. 60,000...
(Solved)
A company makes a single product with a sale price of Kshs. 10 and a marginal cost of Kshs. 6. Fixed costs are Kshs. 60,000 p.a.
Calculate;
(a) Number of units to break even.
(b) Sales at break – even point.
(c) C/S Ratio
(d) What number of units will need to be sold to achieve a profit of Kshs. 20,000 p.a
(e) What level of sales will achieve a profit of Kshs. 20,000 p.a
(f) As (d) with a 40% tax rate
(g) Because of increasing costs the marginal costs is expected to rise to Kshs. 6.50 per unit and fixed costs to Kshs. 70,000 p.a . if the selling price cannot be increased what will be the number of units required to maintain a profit of Kshs. 20,000 p.a (ignore tax)
Date posted:
April 15, 2019
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Answers (1)
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A plant is operating at 60% capacity. The fixed costs are Kshs. 30,000, the variable costs are Kshs. 100,000 and the sales amount to Kshs....
(Solved)
A plant is operating at 60% capacity. The fixed costs are Kshs. 30,000, the variable costs are Kshs. 100,000 and the sales amount to Kshs. 150,000. Calculate the Break – Even point and find out the % of capacity at which the plant should operate to earn a profit of Kshs. 40,000.
Date posted:
April 15, 2019
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Answers (1)
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Company has fixed expenses of Kshs. 90,000 with sales at Kshs. 300,000 and a profit of Kshs. 60,000. Calculate the Profit – Volume ratio. If...
(Solved)
(a) Company has fixed expenses of Kshs. 90,000 with sales at Kshs. 300,000 and a profit of Kshs. 60,000. Calculate the Profit – Volume ratio. If in the next period, the company suffered a loss of Kshs. 30,000. Calculate the sales Volume.
(b) What is the margin of safety for a profit of Kshs. 60,000 in (a) above?
Date posted:
April 15, 2019
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Answers (1)
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The following information relates to production and sales of an article for January and February 2004.
(Solved)
The following information relates to production and sales of an article for January and February 2004.
(i) Break – even sales volume
(ii) Profit or loss at Kshs. 46,000 sales
(iii) Sales to earn a profit of Kshs. 5,000.
Date posted:
April 15, 2019
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Answers (1)
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The following figures of sales and profits for two periods are available in respect of a concern:
(Solved)
The following figures of sales and profits for two periods are available in respect of a concern:
You are required to find;
(i) P/V ratio
(ii) Fixed cost
(iii) Break – even point
(iv) Profit at an estimated sale of Kshs. 125,000
(v) Sales required to earn a profit of Kshs. 20,000
Date posted:
April 15, 2019
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Answers (1)
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(a) Fixed costs Kshs. 40,000 variable cost 60% on sales. Determine the break – even point.
(Solved)
(a) Fixed costs Kshs. 40,000 variable cost 60% on sales. Determine the break – even point.
(b) Find out new break - even point if;
(i) Fixed costs increase by Kshs. 10,000
(ii) Variable costs increase by 15% on sales
(iii) Sales price increases by 20%
(iv) Variable costs are reduced by 10%
Date posted:
April 15, 2019
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Answers (1)
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Explain the margin of safety
(Solved)
Explain the margin of safety
Date posted:
April 15, 2019
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Answers (1)
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Illustrate Target Profit Analysis
(Solved)
Illustrate Target Profit Analysis
Date posted:
April 15, 2019
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Illustrate Break – even computation
(Solved)
Illustrate Break – even computation
Date posted:
April 15, 2019
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List the significance of break – even analysis
(Solved)
List the significance of break – even analysis
Date posted:
April 15, 2019
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Define Price Setting and Quotations
(Solved)
Define Price Setting and Quotations
Date posted:
April 15, 2019
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Discuss manufacturing versus Non – Manufacturing Costs
(Solved)
Discuss manufacturing versus Non – Manufacturing Costs
Date posted:
April 15, 2019
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Answers (1)
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Discuss the 3 overheads in cost accounting
(Solved)
Discuss the 3 overheads in cost accounting
Date posted:
April 15, 2019
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Discuss the Analysis of Total Cost
(Solved)
Discuss the Analysis of Total Cost
Date posted:
April 15, 2019
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List and explain methods of Cost Classification
(Solved)
List and explain methods of Cost Classification
Date posted:
April 15, 2019
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The cost classification provides the detailed information regarding the various aspects of cost items. This information is used by the management for what purposes?
(Solved)
The cost classification provides the detailed information regarding the various aspects of cost items. This information is used by the management for what purposes?
Date posted:
April 15, 2019
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Answers (1)
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State and explain the main elements of cost
(Solved)
State and explain the main elements of cost
Date posted:
April 15, 2019
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Answers (1)
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What are the purposes of Cost Accounting?
(Solved)
What are the purposes of Cost Accounting?
Date posted:
April 15, 2019
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Answers (1)