PRIME COST section of manufacturing account

MANUFACTURING OVERHEADS section of manufacturing account

Income statement layout of manufacturing business

What is work in progress?

How is inventory recorded in the balance sheet of a manufacturing business?

What is transfer price?

Why do you have to adjust for unrealised profit?

How do we calculate provision for unrealised profit?

How is provision for unrealised profit treated in the balance sheet?

How is provision for unrealised profit treated in the income statement?

How do you calculate marginal cost per unit?

Define variable costs

Define fixed costs

Define semi-variable costs

What is contribution and how is it calculated?

How do you calculate the number of units to be sold to break even?

How do you calculate the revenue at break even point?

What is margin of safety?

How do you calculate margin of safety?

How do you calculate units needed to be sold to reach target profit?

In what situations can you apply marginal costing?

What are make or buy decisions?

Steps in producing an optimum production plan

What is absorption costing?

Steps in calculating overhead absorption rate (OAR)

How to calculate OAR

What is a cost unit?

What is a cost centre?

What is activity based costing?

What are cost drivers?

What are cost pools?

Advantages of ABC