Monday, February 25, 2019

Management accounting questions

Decision makers atomic number 18 variably constrained by the environmental factors, their education, and mental ability. Besides these, decision makers may be constrained by the deficiencies in the information that Is visible(prenominal) to them. Required E motorate this statement with reference book to data deficiency with regard to Information timeliness, Information accuracy and clarity, Information relevance, and Information aggregation levels.Cite examples to support your points Jam Ltd is a manufacturer of a fertilizer product which is packed in 50 keg bags. The quest report for grade ended 31st December 2013 based on account analysis classification is availed to you Manufacturing cost Account Nature or Classification Amount in This 000 post Materials All protean 360,000 Direct Labor 200,000 Overhead costs Electricity and water 60% variable 60,000 Managerial salaries 20% variable 1 o,oho Maintenance costs variable Depreciation 0% variable Indirect labor 50% variable 120,000Non manufacturing costs Accounts Administration expenses Marketing expenses 40% variable Depreciation costs 80,000 During the year 2013, Jam Ltd produced 80,000 bags. Management is forecasting sales price for the year 2014 based on 2013 cost data. The following additional data is available for the year 2014 comp ard to the data for the year 2013 1 . Price for direct materials are pass judgment to increase by 10% 2. Under the terms of labor contract, both direct and indirect labor rates are expected to increase by 0% 3. All depreciation costs are expected to increase by 10% 4.Administration and market placeing expenses to increase by 20% 5. Electricity and water, maintenance costs and managerial salaries are non expected to change 6. Jam Ltd expects to produce and sell 96,000 bags of fertilizer in the year 2014 Required (I) Estimates price per kilo of fertilizer in the year 2014 if gross profit margin of 201% is targeted (it) Outline advantages and limitations of cost based determine technique ) For the year 2014 the following projected company data is make available to you for planning purpose 1.Estimated manufacturing costs when production level is 190,000 wholes is placed costs This 180,500,000 and per unit variable costs This 2,800. This cost behavior is well-kept at all levels 2. The annual fixed advertising costs of This 190,000,000 and per unit uniform marketing costs of This 800 at all levels 3. A market survey carried out shows that for a change in privet

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