can someone help me in solving this problem from cost management accounts material.
Illusration on page 3.17 -Agrocaps LTD from CVP analysis:
While computing cost per unit of 'B' produced using second shift ,The normal Fixed cost not considered why?
dhanya (audit assistant) (45 Points)
24 January 2013can someone help me in solving this problem from cost management accounts material.
Illusration on page 3.17 -Agrocaps LTD from CVP analysis:
While computing cost per unit of 'B' produced using second shift ,The normal Fixed cost not considered why?
PSPSPS
(Practicing)
(1344 Points)
Replied 24 January 2013
Fixed Cost dosnt change with the Production volume. It Remains Fixed & is absorbed on the Defined/Stipulated Volume
dhanya
(audit assistant)
(45 Points)
Replied 24 January 2013
thank you. But sorry I dont get it. The fixes cost is rs.4/unit and there is no additional production.The normal production is done by second shift. Hence it is not absorbed earlier.
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