Cost Control Accounts
- Introduction to Contract Costing
- Contract Costing
- Process of Contract Account
- Contract Costing Concept
- Work Certified
- Work Uncertified
- Progress Payments
- Retention Money
- Cost Plus Contract
- Contract Account
- Accounting for Material
- Accounting for Tax Deducted at Source by the Contractee
- Accounting for Plant Used in a Contract
- Treatment of Profit on Incomplete Contracts
- Contract Profit and Balance Sheet Entries
Introduction to Marginal Costing
- Introduction to Marginal Costing
- Advantages of Marginal Costing
- Disadvantages of Marginal Costing
- Application of Marginal Costing
- Marginal Cost
- Profit/Volume (P/V) Ratio
- Margin of Safety (Mos)
- Break-even Point
- Contribution Margin Technique
- Break-even Chart
- Profit Volume Graph
- Cost Volume Profit Analysis
Introduction to Standard Costing
Some Emerging Concepts of Cost Accounting
A factory engaged in producing 'Plastic Buckets' in working to 40% capacity and produces 10,000 buckets p.a.
The present cost break-up for one bucket is as under:
|Labour Cost||(Rs.) 3|
|Overheads||(Rs.) 5( 60% Fixed Cost)|
|Selling Price||(Rs.) 20 Per Bucket|
If it is decided to work the factory at 50% capacity, the selling price falls by 3%. At 90% capacity, the selling price falls by 5% accompanied by the similar fall in the prices of materials. You are required to calculate the profit at 50% and 90% capacity and also calculate the BEP for the same capacity productions.
A cost structure of a Company is expressed by the following equation :
T = Rs. 30,000 + 0.70X
T =Total Cost
X =Sales Value.
(a) Break-even Point Sales in Rupees.
(b) Profit on the present Sales of 1,200 units @ Rs. 100 per unit.
(c) Margin of Safety in :
(i) Rupee Value, (ii) Units, (iii) As a Percentage of Sales.
The Sales Turnover and Total Cost of M/s. ABC Ltd. are as under :
|Year||Sales(Rs.)||Total Cost (Rs.)|
You are required to calculate:
(a) Profit Volume Ratio, (b) Fixed Cost, (c) Break-even Point, (d) Sales to earn a Profit of Rs. 45,000.