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The absorbed overhead is part of the production cost of the cost units and therefore it is debited to the work-in-progress control account together with the direct materials, direct labour and any direct expenses incurred, to give the total production cost for the period. The credit entry is the production overhead control account which will have been debited with the actual overhead incuured. Any balance on the production overhead control account is the transfer to the income statement as under or over-absorbed overhead.
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What are the treatment of over and under absorption overhead?
it can be treated 3 different Way as follows 1. carry forward next year of over and under absorption overhead 2. it is transfer to costing P\ L 3. adjusted supplementary rate on output------ in this method supplementary rate adj on sale unit , transfer to P\L DR and closing stock ,for determine future rate.
What is the difference between full costing and full absorption costing?
The two terms are different names for the same costing technique. Full cost refers to the principle that all overheads, fixed and variable, should be treated as product costs and be absorbed, or allocated, to cost objects. Cost objects can be various items but typically are units of product or service. This principle is distinct from variable costing in which fixed costs are considered to be period costs rather than product costs, and as such are not allocated to products. Product costs are used to value stocks of unsold products and cost of production so the selection of basis, full cost or variable cost, will affect the profit of individual products and influence management decisions.
State the arguments for using marginal costing approach in routine accounting?
- The Marginal costing technique is appropriate for decision making as it highlights those costs (and revenues) which will change as a result of the decision under review being put into effect. - As fixed costs are mostly overheads, and, under marginal costing these are all treated as period costs and charged into the income statement therefore marginal costing avoids arbitrary allocation of overheads to units of output. - Reporting profit on a marginal costing basis will be more closely relates to changes in sales volume and are less affected by changes in inventory levels. - An understanding of the behavior of costs and the implications of contribution is vital for accountants and managers as the use of marginal costing for decision making is universal.
Is accounting is a necessity while auditing is a luxury for a business enterprise?
accountancy is necessity. it may be treated as a necessity because of the following reason. it helps us to know if the firm is suffering from loss or profit, any small firm can get take the help of a person having knowledge of accountancy and does not have to pay large amount it helps us to know the real position of the business auditing as luxury whereas to get our accounts audited we have to pay good amount of money to auditor . only those firm whose transaction are in large amount can bear the cost of auditing it is also a waste of time for small business because it involves at alot of time more over employees efficiency are decreased because even for small things they are called and questioned about those things azmat(9852419025)
How is bad debt treated in the preparation of cash budget?
Bad debt from creditors is not included in cash outflow of a cash budget. It is treated at a receipt that has not been collected.
What conditions are treated by bone re-absorption inhibitors?
Bisphosponates acts directly to inhibit bone reabsorption
What are the differences between climbing ropes that are dry-treated and non-dry treated, and how do these differences impact their performance and durability when used for climbing?
Dry-treated climbing ropes are coated with a water-repellent substance that helps prevent absorption of water, making them more resistant to moisture and less likely to freeze in cold conditions. This can improve their performance and durability in wet or icy environments, as they maintain their strength and flexibility. Non-dry treated ropes, on the other hand, are more susceptible to water absorption, which can weaken the fibers and reduce their lifespan. Overall, dry-treated ropes are better suited for challenging outdoor conditions, while non-dry treated ropes may be more cost-effective for indoor or dry climbing environments.
What conditions are treated with atractylodes?
uses include restoring deficient digestion associated with poor absorption, malnutrition, anorexia, metabolic acidosis, hypoglycemia, and rheumatism. It has also been used to treat tumors
Where does the shower water go in a septic tank system?
In a septic tank system, the shower water goes into the septic tank where it is treated and filtered before being released into the drain field for further absorption into the ground.
How can wood be treated for outdoor use to ensure its durability and longevity?
Wood can be treated for outdoor use by applying a protective finish, such as a sealant or stain, that helps prevent moisture absorption and UV damage. Additionally, pressure-treated wood can be used, which involves treating the wood with chemicals to resist decay and insect damage. Regular maintenance, such as reapplying finishes and keeping the wood clean, can also help prolong its durability and longevity outdoors.
What are the treatment of over and under absorption overhead?
it can be treated 3 different Way as follows 1. carry forward next year of over and under absorption overhead 2. it is transfer to costing P\ L 3. adjusted supplementary rate on output------ in this method supplementary rate adj on sale unit , transfer to P\L DR and closing stock ,for determine future rate.
When can I stain pressure treated wood for the best results?
For the best results, it is recommended to wait at least 6 months after pressure treating wood before staining it. This allows the wood to fully dry and acclimate, ensuring better absorption and adhesion of the stain.
How does Fray Escobar treat the Indians?
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What is the difference between full costing and full absorption costing?
The two terms are different names for the same costing technique. Full cost refers to the principle that all overheads, fixed and variable, should be treated as product costs and be absorbed, or allocated, to cost objects. Cost objects can be various items but typically are units of product or service. This principle is distinct from variable costing in which fixed costs are considered to be period costs rather than product costs, and as such are not allocated to products. Product costs are used to value stocks of unsold products and cost of production so the selection of basis, full cost or variable cost, will affect the profit of individual products and influence management decisions.
How are princes treated?
a princess is treated very well but a king/queen is treated better
State the arguments for using marginal costing approach in routine accounting?
- The Marginal costing technique is appropriate for decision making as it highlights those costs (and revenues) which will change as a result of the decision under review being put into effect. - As fixed costs are mostly overheads, and, under marginal costing these are all treated as period costs and charged into the income statement therefore marginal costing avoids arbitrary allocation of overheads to units of output. - Reporting profit on a marginal costing basis will be more closely relates to changes in sales volume and are less affected by changes in inventory levels. - An understanding of the behavior of costs and the implications of contribution is vital for accountants and managers as the use of marginal costing for decision making is universal.
How are sheep treated?
they are not treated
