Академический Документы
Профессиональный Документы
Культура Документы
Accounting Study
Accountant
Rate [Rs/kg]
10 40 30
Cost [Rs]
5,000 20,000 15,000 40,000
Rate [Rs/kg]
10 40 30
Cost [Rs]
3,500 24,000 16,500 44,000
Search Search
Since the actual production (10 units) and the standard production (10 units) are the same, the data can be straight away used for comparing and evaluating variances. This data gives us the idea that there is variance in material cost. The actual cost incurred is Rs. 44,000 as against a standard of Rs. 40,000. This is erroneous because the data does not take into consideration the revision in standard that has been made. Had the revision been considered, the materials X, Y and Z as per the standard should have been 300 kgs, 600 kgs and 600 kgs respectively of a total material of 1,500 kgs. The above data with the revised standard would be: Basic Accounting Process Consignment Accounting Bank Reconciliation Statement Partnership Accounts Final Accounts
Rate [Rs/kg]
10 40 30
Cost [Rs]
3,000 24,000 18,000 45,000
Rate [Rs/kg]
10 40 30
Cost [Rs]
3,500 24,000 16,500 44,000
On considering the revised standards we can see that the production was actually carried on with efficiency with regard to mixing the materials. The cost incurred being Rs. 1,000 less (Rs. 45,000 - Rs 44,000) than the standard cost.
Business reporting
www.Amadeus.com/BigData
CS Final
New Travel Whitepaper Unlocks Secrets Big Data Holds For Travel
Search
Search
? Copyright Krishbhavara. All rights reserved ? Site optimized for Internet Explorer 5.5 and above