Ass2_(term3)

Question 1.

An itemized of an individual’s or and expected for some in the . With a budget, an individual is able to carefully look at how much they are taking in during a given period, and figure out the best way to divide it among a variety of categories. When making a , an individual will typically the of money to such as , car , or , and then make an educated estimation for how much money they will in other categories, such as groceries, clothing, or . By keeping of where one’s money goes, one may be less likely to , and more likely to their .

Question 2.

Controllable factors:

Past sales: One of the methods of estimating future sales of a product or service. Here sales forecasts are developed on the basis of past sales. There are three ways of estimating sales under this method.

Pricing of the product: No matter what type of product you sell, the price you charge your customers or clients will have a direct effect on the success of your business. Though pricing strategies can be complex, the basic rules of pricing are straightforward:

Competitors price for the similar product: In a nutshell, a competitive pricing strategy is a technique organizations use to entice customers to purchase goods from them instead of the competition. There are many aspects to consider when pricing a product.

Marketing strategies of the company: A that an into a cohesive whole. Ideally drawn from , it focuses on the ideal to maximum . The marketing strategy is set out in a .

Market share achieved by the company: A percentage of total in a captured by a , , or .

Uncontrollable factors:

Cost distribution:

DISTRIBUTION COST is any cost incurred to fill an order for a product or service. It includes all money spent on warehousing, delivering and/or shipping products and services to customers.

Cost of credit:

The cost of credit is the additional amount, over and above the amount borrowed, that the borrower has to pay. It includes , arrangement fees and any other charges. Some costs are mandatory, required by the lender as an integral part of the credit agreement. Other costs, such as those for , may be optional. The borrower chooses whether or not they are included as part of the agreement.

Question three

Cost of goods sold:

Sales=551,250

Goods=551,250/1.75

=315,000

Question Four

Question Five

Draw up a schedule showing cash receipts from sales in February.

Total Collect 116250

+GST 11625

......

11625

Total Collect 127875

Question Seven

Explain same essential similarities and differences between a manufacturing business and a trading business.

Differences:

Manufacturing businesses is usually defined as the use of machines, tools and hire labor and any other necessarily in order to produce goods for use or sale plus buy raw material. Meanwhile, the trading business is to buy the finished or completed items or products and result or trade those mentioned finished products to others. For example:

Aircraft

Household appliances

Or Automobiles

Similarities:

Both of those two businesses have the same propose as the following:

Administrative Expenses

Financial Expenses and

Marketing Expenses to run the business

Question Eight

Describe what is meant by the term “responsibility centre” and give at least one example of a cost centre, a revenue centre and a “profit centre”.

The responsibility centre is defined as a section of a business that plays a particular role to assign the responsibility for which the responsible person will be accountable. If can be organized by function or on the basis of product and location. As a generalization, the part of an organization under the control of a manager is termed a “responsibility center.” To aid performance evaluation it is first necessary to consider the specific character of each responsibility center. Some responsibility centers are cost centers and others are profit centers. However, the responsibility centre can be categoriesed by Cost Centre, Revenue Centre and Profit Centre.

Cost Centre: Administration Department

Revenue Centre: Marketing & Sells

Profit Centre: Executive body or decision making body.

Question Nine

A furniture factory which sells to the public has the following costs. Categories them into fixed or variable:

Casual labour hired on piecework (FIXED)

Supervisor’s salary(FIXED)

Depreciation on factory equipment(FIXED)

Direct materials (playwood)(VARIBLE)

Glues(VARIABLE)

Factory rent(FIXED)

Sales commissions(VARIABLE)

Shop electricity(FIXED)

Question Ten

Explain the variances.

Estimation was:/Budget

Labour hour = 1.27

Per hour rate= $ 27

Expense Total = $ 3429

Actual = $…

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