Over or under provision of what is taken to profit and loss account as profit or
loss at the time of termination or sale of Assets?
Tell me what does the investment of personal assets by the owner will do?
2. A budgeted profit statement of a company working at 75% capacity is provided to you 2 below, Sales 9,000 units at Rs. 32 Rs. 2,88,000 Less: Direct materials Rs. 54,000 Direct wages 72,000 Production overhead: fixed 42,000 variable 18,000 1,86,000 Gross profit 1,02,000 Less: Administration, selling and distribution costs: fixed 36,000 varying with sales volume 27,000 63,000 Net profit 39,000 You are required to: (a) Calculate the breakeven point in units and in value. (b) It has been estimated that: (i) if the selling price per unit were reduced to Rs. 28, the increased demand would utilise 90% of the company's capacity without any additional advertising expenditure, and (ii) to attract sufficient demand to utilise full capacity would require a 15% reduction in the current selling price and a Rs. 5,000 special advertising campaign. You are required to present a statement showing the effect of the two alternatives compared with the original budget and to advise management which of the three possible plans ought to be adopted, i.e., the original budget plan or (i) above or (ii) above. (c) An independent market research study shows that by spending Rs. 15,000 on a special advertising campaign, the company could operate at full capacity and maintain the selling price at Rs. 32 per unit. You are required to: (i) Advise management whether this proposal should be adopted.
Why do you prepare a P/L Appropriation a/c?
Can anybody tell me the steps involved in Budgeting / Forecasting generally..?. Hints would be appreciated highly.
Can any body missuses the pass book of a saving account in a bank in India? I mean in case some body steal a pass book, can the account be stolen too?
4 Answers State Bank Of India SBI,
what is the difference between derivatives and swaps
9 Answers Capital IQ, FactSet Systems,
Goods lost in accident what entry should be made?
why don't we take cash and bank accounts into realisation a/c
Hi, Mobile manufacturing given a mobile phone as a gift to their employee. What journal entry we need to pass in company point of view.
what is Profit & Loss Account?
how to geting finished goods cost with included it's all BOM and all production order cost in sap?
what is the method deposit of wct in Delhi