answersLogoWhite

0

more productions the firm will cost less price of per production

User Avatar

Wiki User

13y ago

What else can I help you with?

Related Questions

What is meant by allotment?

overhead allotment means the charging of overheads to cost units or cost centres.


What is meant by overhead allotment?

overhead allotment means the charging of overheads to cost units or cost centres.


What is meant by the terms under-absorption and over-absorption of fixed overheads how they arise and how they are calculated?

Over or Under AbsorptionNote that as long as planned level of activity and the actual level of activity is not the same there is always an Over or Under Absorption situationThis is because overhead absorption rate is set at the start of the period based upon an expected level of production and that during the period, the level of output and or overheads will be different from the planned overheads and or output.OVER-absorption occurs when the total overhead recovered or absorbed is GREATER than the actual level of overheads for the period.UNDER-absorption occurs when the total overheads recovered or absorbed is LESS than the actual overheads incurred in the period.


What are non production overheads?

Non production overheads are costs associated with the workings of a company. These costs do not go directly into making the item. For example, electricity or office space are non production overheads.


What is included in direct overheads and what is included in indirect overheads?

The items which are included in direct overheads are the ones which are directly related to production process like salaries of machine operators and buying raw materials. The ones that are included in indirect overheads do not relate to production like giving to charity among others.


What is the difference between variable overheads cost variance andfixed overheads cost variance?

Variable overhead cost variance is that variance which is in variable overheads costs between the standard cost and the actual variable cost WHILE fixed overheads cost variance is variance between standard fixed overhead cost and actual fixed overhead cost.


Are postage and stationery business overheads?

yes.


What is meant by primary liver cancer?

A primary cancer is one that starts in a particular organ, rather than spreading from elsewhere.


What are the advantage of cottage indutries?

Low overheads and diversity of products


Difference between marginal cost accounting statements and absorption cost accounting statement?

marginal costing considers only direct) materials,labour,expenses and variable factory overheads excluding fixed factory overheads but absorption considers (direct) materials ,labour,expenses,variable and fixed factory overheads.


How do you identify under and over absorption?

Over or Under AbsorptionNote that as long as planned level of activity and the actual level of activity is not the same there is always an Over or Under Absorption situationThis is because overhead absorption rate is set at the start of the period based upon an expected level of production and that during the period, the level of output and or overheads will be different from the planned overheads and or output.OVER-absorption occurs when the total overhead recovered or absorbed is GREATER than the actual level of overheads for the period.UNDER-absorption occurs when the total overheads recovered or absorbed is LESS than the actual overheads incurred in the period.


What are the three elements in a cost contlol system?

materials, labour and overheads