The following data have been collected by you, as a Cost Auditor of a company:
| Particulars | 1999–2000 | 2000–2001 | 2001–2002 |
|
Installed capacity (lakh tones) Production (lakh tones) Cost/MT of the product (Rs.) |
2.5 2.4 1,000 |
2.5 2.3 1,077 |
2.5 1.25 1,660 |
The poor capacity utilization in 2001–02 was due to abnormal power–cut. The escalation in costs were 5% in 2000–02 and 7% over 2000–01 in 2001–02.
| (i) | Calculate the abnormal cost due to power–cut |
| (ii) |
How would you treat these abnormal costs? |
| please help in this sum |
CAclubindia
