Revision Needed Flashcards
Classing costs into Fixed; Semi; Variable:
Diminishing balance depreciation
Fixed
Classing costs into Fixed; Semi; Variable:
Production line employees with a basic wage plus bonus linked to output
Semi variable
Classing costs into Fixed; Semi; Variable:
Accountants fees
Fixed
I put variable
Classing costs into Direct or Indirect (Material, Labour, Expense):
Stationary for office
Indirect materials.
I put expense but it seems anything with a physical presence is always ‘material’
Classing costs into Direct or Indirect (Material, Labour, Expense):
Fuel for delivery van
Indirect materials
It seems anything physical is always ‘material’ never ‘expense’
Classing costs into Prime; Production Overhead; Admin; Selling Distribution:
Supervisors salaries
Production overhead.
I think anything to do with production that is not materials.
When drawing up inventory records
FIFO
List each receipt in each column of the balance.
Total the ‘Quantity’ and ‘Total cost’ columns but NOT the ‘unit cost’ col.
AVCO
Total the ‘Qty’ and ‘TC’ cols; then calculate and insert AV cost between.
Only bring down the 3 figs from this ‘bottom’ line.
So sh’d have max 2 lines in balance part.. 1. b/d and 2. new entry/new AV
When drawing up inventory records for FIFO but allowed one line.
For the balance …Just do the workings as normal on paper with the individual lines and get the 2 totals ….then just enter the 2 totals.
For a goods issue … same as normal FIFO .. but after getting the totals and eliminating the workings then calculate the per unit cost as the £total / Qty
Inventory valuation method(s) acceptable for tax purposes?
FIFO and AVCO
Same as the ones acceptable for IAS 2, Inventories.
Osborne workbook methods of labour costs 3.9
The gross pay calc is gross pay + proportion of time saved
bonus system
Osborne workbook methods of labour costs 3.9
The employer has to set time allowances for work done
Piecework and bonus system
