Economics, Accounting & Business: Post your doubts here!

[redapple20]

Rula diya WaleedUQ mjhko kuch samj nhi arha

 

[WaleedUQ]

acha tum subha uth kay dekhlena mien araam se sab post kardunga theek hai ?

 

[redapple20]

I wont have tym subha. Its ok thanku! best of luck

 

[WaleedUQ]

redapple20
*+

 

[redapple20]

Ye samaj agya thanx

 

[redapple20]

Ok then bye evry1 savour the moments in whch u r free from da regrets of wat u did wrong in da ppr!

 

[redapple20]

Chalo khair hai mitti pao!

 

[WaleedUQ]

Im online here..

 

[WaleedUQ]

Why do we produce budgets?

Budget helps to aid the planning of actual operations by forcing managers to consider how the conditions might change and what steps should be taken now and by encouraging managers to consider problems before they arise. It also helps co-ordinate the activities of the organization by compelling managers to examine relationships between their own operation and those of other departments. Other essentials of budget include:

• To control resources
• To communicate plans to various responsibility center managers.
• To motivate managers to strive to achieve budget goals.
• To evaluate the performance of managers
• To provide visibility into the company's performance

The flexible budget is a performance evaluation tool. It cannot be prepared before the end of the period. A flexible budget adjusts the static budget for the actual level of output. The flexible budget asks the question: “If I had known at the beginning of the period what my output volume (units produced or units sold) would be, what would my budget have looked like?” The motivation for the flexible budget is to compare apples to apples. If the factory actually produced 10,000 units, then management should compare actual factory costs for 10,000 units to what the factory should have spent to make 10,000 units, not to what the factory should have spent to make 9,000 units or 11,000 units or any other production level.

The flexible budget variance is the difference between any line-item in the flexible budget and the corresponding line-item from the statement of actual results.

The following steps are used to prepare a flexible budget:

1. Determine the budgeted variable cost per unit of output. Also determine the budgeted sales price per unit of output, if the entity to which the budget applies generates revenue (e.g., the retailer or the hospital).

2. Determine the budgeted level of fixed costs.

3. Determine the actual volume of output achieved (e.g., units produced for a factory, units sold for a retailer, patient days for a hospital).

4. Build the flexible budget based on the budgeted cost information from steps 1 and 2, and the actual volume of output from step 3.

Flexible budgets are prepared at the end of the period, when actual output is known




Standard Costing Advantages
Standard costing is a management control technique for every activity. It is not only useful for cost control purposes but is also helpful in production planning and policy formulation. It allows management by exception. In the light of various objectives of this system, some of the advantages of this tool are given below:

1. Efficiency measurement-- The comparison of actual costs with standard costs enables the management to evaluate performance of various cost centers. In the absence of standard costing system, actual costs of different period may be compared to measure efficiency. It is not proper to compare costs of different period because circumstance of both the periods may be different. Still, a decision about base period can be made with which actual performance can be compared.
2. Finding of variance-- The performance variances are determined by comparing actual costs with standard costs. Management is able to spot out the place of inefficiencies. It can fix responsibility for deviation in performance. It is possible to take corrective measures at the earliest. A regular check on various expenditures is also ensured by standard cost system.
3. Management by exception-- The targets of different individuals are fixed if the performance is according to predetermined standards. In this case, there is nothing to worry. The attention of the management is drawn only when actual performance is less than the budgeted performance. Management by exception means that everybody is given a target to be achieved and management need not supervise each and everything. The responsibilities are fixed and every body tries to achieve his/her targets.
4. Cost control-- Every costing system aims at cost control and cost reduction. The standards are being constantly analyzed and an effort is made to improve efficiency. Whenever a variance occurs, the reasons are studied and immediate corrective measures are undertaken. The action taken in spotting weak points enables cost control system.
5. Right decisions-- It enables and provides useful information to the management in taking important decisions. For example, the problem created by inflating, rising prices. It can also be used to provide incentive plans for employees etc.
6. Eliminating inefficiencies-- The setting of standards for different elements of cost requires a detailed study of different aspects. The standards are set differently for manufacturing, administrative and selling expenses. Improved methods are used for setting these standards. The determination of manufacturing expenses will require time and motion study for labor and effective material control devices for materials. Similar studies will be needed for finding other expenses. All these studies will make it possible to eliminate inefficiencies at different steps.

Limitations of Standard Costing

1. It cannot be used in those organizations where non-standard products are produced. If the production is undertaken according to the customer specifications, then each job will involve different amount of expenditures.
2. The process of setting standard is a difficult task, as it requires technical skills. The time and motion study is required to be undertaken for this purpose. These studies require a lot of time and money.
3. There are no inset circumstances to be considered for fixing standards. The conditions under which standards are fixed do not remain static. With the change in circumstances, if the standards are not revised the same become impracticable.
4. The fixing of responsibility is not an easy task. The variances are to be classified into controllable and uncontrollable variances. Standard costing is applicable only for controllable variances.

 

[youzair]

Manesh borda i dont have paper today but tomorrow nyways thanks!

 

[wwfrohitKILLER]

LANGUAGE PLEASE!

Chillout have a chill pill

 

[youzair]

GOOD LUCK​

Manesh | WaleedUQ | redapple20 | Echelon94 | Saiyan | wajiman | MnMz | Saad Ghori | mimiswift | reina81 | Anusuya | and all others​

for your COLORING paper ​

 

[youzair]

aby bharwe tameez se baat!
show some respect to your father

Chorna waleed q kutto k mu lag k apna mud aur mu kharaaab kar rhaa hai..
ye gali k kuttay har jaga bhonktay hai!
Tu tau samjhdar hai chor faaltu mei us ki waja se apni zabaaan gandi kar rha hai!

Good Luck broda!

 

[redapple20]

btw who cuts your dick re? chup kar re.
chutye crying for silly stuff!!
respect your mum soo much kya? Epic mc you're one man. dont cry now.

Listen would you please stop using this language? Please?! Im requesting say wateva u like from da day afta tommz.
but i need this thread til bizz gets over! :/

 

[redapple20]

Why do we produce budgets?

Budget helps to aid the planning of actual operations by forcing managers to consider how the conditions might change and what steps should be taken now and by encouraging managers to consider problems before they arise. It also helps co-ordinate the activities of the organization by compelling managers to examine relationships between their own operation and those of other departments. Other essentials of budget include:

• To control resources
• To communicate plans to various responsibility center managers.
• To motivate managers to strive to achieve budget goals.
• To evaluate the performance of managers
• To provide visibility into the company's performance
  [/
  
  The flexible budget is a performance evaluation tool. It cannot be prepared before the end of the period. A flexible budget adjusts the static budget for the actual level of output. The flexible budget asks the question: “If I had known at the beginning of the period what my output volume (units produced or units sold) would be, what would my budget have looked like?” The motivation for the flexible budget is to compare apples to apples. If the factory actually produced 10,000 units, then management should compare actual factory costs for 10,000 units to what the factory should have spent to make 10,000 units, not to what the factory should have spent to make 9,000 units or 11,000 units or any other production level.
  
  The flexible budget variance is the difference between any line-item in the flexible budget and the corresponding line-item from the statement of actual results.
  
  The following steps are used to prepare a flexible budget:
  
  1. Determine the budgeted variable cost per unit of output. Also determine the budgeted sales price per unit of output, if the entity to which the budget applies generates revenue (e.g., the retailer or the hospital).
  
  2. Determine the budgeted level of fixed costs.
  
  3. Determine the actual volume of output achieved (e.g., units produced for a factory, units sold for a retailer, patient days for a hospital).
  
  4. Build the flexible budget based on the budgeted cost information from steps 1 and 2, and the actual volume of output from step 3.
  
  Flexible budgets are prepared at the end of the period, when actual output is known
  
  
  
  
  Standard Costing Advantages
  Standard costing is a management control technique for every activity. It is not only useful for cost control purposes but is also helpful in production planning and policy formulation. It allows management by exception. In the light of various objectives of this system, some of the advantages of this tool are given below:
  1. Efficiency measurement-- The comparison of actual costs with standard costs enables the management to evaluate performance of various cost centers. In the absence of standard costing system, actual costs of different period may be compared to measure efficiency. It is not proper to compare costs of different period because circumstance of both the periods may be different. Still, a decision about base period can be made with which actual performance can be compared.
  2. Finding of variance-- The performance variances are determined by comparing actual costs with standard costs. Management is able to spot out the place of inefficiencies. It can fix responsibility for deviation in performance. It is possible to take corrective measures at the earliest. A regular check on various expenditures is also ensured by standard cost system.
  3. Management by exception-- The targets of different individuals are fixed if the performance is according to predetermined standards. In this case, there is nothing to worry. The attention of the management is drawn only when actual performance is less than the budgeted performance. Management by exception means that everybody is given a target to be achieved and management need not supervise each and everything. The responsibilities are fixed and every body tries to achieve his/her targets.
  4. Cost control-- Every costing system aims at cost control and cost reduction. The standards are being constantly analyzed and an effort is made to improve efficiency. Whenever a variance occurs, the reasons are studied and immediate corrective measures are undertaken. The action taken in spotting weak points enables cost control system.
  5. Right decisions-- It enables and provides useful information to the management in taking important decisions. For example, the problem created by inflating, rising prices. It can also be used to provide incentive plans for employees etc.
  6. Eliminating inefficiencies-- The setting of standards for different elements of cost requires a detailed study of different aspects. The standards are set differently for manufacturing, administrative and selling expenses. Improved methods are used for setting these standards. The determination of manufacturing expenses will require time and motion study for labor and effective material control devices for materials. Similar studies will be needed for finding other expenses. All these studies will make it possible to eliminate inefficiencies at different steps.
  
  Limitations of Standard Costing
  1. It cannot be used in those organizations where non-standard products are produced. If the production is undertaken according to the customer specifications, then each job will involve different amount of expenditures.
  2. The process of setting standard is a difficult task, as it requires technical skills. The time and motion study is required to be undertaken for this purpose. These studies require a lot of time and money.
  3. There are no inset circumstances to be considered for fixing standards. The conditions under which standards are fixed do not remain static. With the change in circumstances, if the standards are not revised the same become impracticable.
  4. The fixing of responsibility is not an easy task. The variances are to be classified into controllable and uncontrollable variances. Standard costing is applicable only for controllable variances.

youuuu are an asset WaleedUQ wat eva wud have done agar tum nhi hote! maay u get a stars in awwwl ur subjects and a lot of happiness and evrything u want as long as it is good fr u!

 

[youzair]

Listen would you please stop using this language? Please?! Im requesting say wateva u like from da day afta tommz.
but i need this thread til bizz gets over! :/

uri baba gussha

 

[redapple20]

uri baba gussha

i thought i was requesting!

 

[youzair]

i thought i was requesting!

haha esay logo k liye req hai..
sharefo k liye gusa

 

[zarasattar]

1) did not understand this question
2) no.11 we take profit after tax not after dividend as we are not given preffered stock as well as its dividend and divide it by nof shares in issue that is 150/0.5=300 and you 0.23333*100= 23.33%
no.21: its B reason budgets tell us the profits and expenses that might occur and business can create provisions and plans on how to manage them
no.25: C, as we are given budgeted data, we will divide variable cost on budgeted production and get per unit cost, next take 10% of the sales and divide it by 5000 units you will get per unit cost add it in the variable cost and viola per unit cost calculated.
no.28: its C,

first calculate depreciation 160 - 20/4 = 35,000
yearly inflow, 64 - 14 = 50
yearly profit, 50 - 35 = 15
average profit = 15*4/4 = 15
average investment = 160 + 20 (residual value)/2 = 90

Arr = average profit/average investment *100
15/90*100 = 16.667%

3) pls provide that paper

feelin sleepy good night all and best of luck

dude? which paper did you just do? it's not june 11.

 

[Saiyan]

WaleedUQ, Echelon94, wajiman, MnMz can you please look at the specimen paper 2010 Q 30. Guys I can't get the answer B. I find you people are efficient to do this so please help.

redapple20 well she can also try this and even get the correct answer.