Nobody downloaded yet

Financial managerment - Essay Example

Comments (1) Cite this document
Direct material cost and direct labour cost are allocated to the products in a similar way in both types of costing methods. These cost elements are allocated to the products as per their production volume…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER97.5% of users find it useful
Financial managerment
Read TextPreview

Extract of sample "Financial managerment"

Download file to see previous pages Overhead Cost driver ?’000 Percentage Overheads cost Ouse Lendal Clifton Ouse Lendal Clifton Set up costs Number of production runs 350,000 30% 20% 50% 105,000 70,000 175,000 Machine related costs Number of machine hours 900,000 23% 18% 59% 211,765 158,823 529,412 Receiving costs Number of receipts 350,000 7% 10% 83% 25,000 35,000 290,000 Packing Number of deliveries 650,000 36% 14% 50% 234,000 91,000 325,000 Engineering Number of production runs 750,000 30% 20% 50% 225,000 150,000 375,000 800,765 504,823 1,694,412 Overheads Cost per Unit: Per unit Overhead cost = Overheads absorbed / Production volume Production volume (units) Overheads absorbed (?) Per Unit Overhead Cost (?) Ouse 9,000 800,765 89 Lendal 3,000 504,823 168 Clifton 1,500 1,694,412 1130 Cost Per Unit and Profit per Unit: Ouse Lendal Clifton Direct Material Cost per Unit (?) 30 40 15 Direct Labour Cost per Unit (?) 40 60 40 Overheads Cost per Unit (?) 89 168 1130 Total Per Unit Cost (?) 159 268 1185 Selling price per unit (?) 300 400 500 Total Direct Labour Cost (?) (159) (268) (1185) Profit per Unit (?) 141 132 (685) TASK 2: Traditional Full Costing: Full costing is defined as a method of costing of products in which all the manufacturing costs are included in the cost of the products being manufactured. The raw materials, direct labour involved in the production of the product and all fixed and variable products become the part of the items produced. Full costing is also termed as absorption costing. Activity Based Costing: Activity Based Costing is a costing method in which the consumption of resources are traced first and then charged to final products. However, the resources are not directly assigned to manufacturing products in this costing...
Direct material cost and direct labour cost are allocated to the products in a similar way in both types of costing methods. These cost elements are allocated to the products as per their production volume. Each of these elements is allocated to each unit of the product that is manufactured. However, the overheads are absorbed in both of these products differently. In full costing method, the traditional approach is adopted while allocating costs to the product units. The approach is simple in which the resources are assigned directly to the units produced. A single volume measure is usually selected on the basis of which all overhead costs are allocated to the products. Thus, this allocation may depend upon a volume measure which may not be suitable for the purpose. Consequently, allocation of overheads may not be suitable and may reflect unrealistic cost of the products. In Activity Based Costing methodology, the overhead costs are accumulated and assigned to the activities of the production and non-production departments. The costs of these departments are then allocated to the product units. ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Financial managerment Essay Example | Topics and Well Written Essays - 2500 words”, n.d.)
Financial managerment Essay Example | Topics and Well Written Essays - 2500 words. Retrieved from
(Financial Managerment Essay Example | Topics and Well Written Essays - 2500 Words)
Financial Managerment Essay Example | Topics and Well Written Essays - 2500 Words.
“Financial Managerment Essay Example | Topics and Well Written Essays - 2500 Words”, n.d.
  • Cited: 0 times
Comments (1)
Click to create a comment or rate a document
kshlerinkarli added comment 8 months ago
Student rated this paper as
I never thought 2500 words essay could be written in such a free manner. I loved the research of this essay. Will definitely use it for my own work!

CHECK THESE SAMPLES OF Financial managerment

Financial Upheavals. Financial crisis

...Financial Upheavals Financial crises are inevitable and seem to be a usual and reasonablyinvariant characteristic of such business cycle. The economic system of any country is subject to discrete business cycles that lie on the boom-depression continuum. The aftermaths of any such business cycle may vary from being modest to remorseless hinging upon its magnitude and continuance. History show that the American economy has moved through periods of boom, recession and recovery. The years 1837, 1893 and 1929 help retrace the occurrence of three major depressions in United States (Calomiris 2010). The downturns of 1857, 1873, and 1907 are also referred in the history books (Rothbard 2002). The America of...
10 Pages(2500 words)Essay


...? Financial Management Investment Appraisal Time 0 2 3 4 5 Sales ? 8,000,000 ?8,800,000?9,600,000 ?7,200,000 ?6,000,000 Variable costs ( ? 5,500,000) (?6,050,000) (?6,600,000) (?4,950,000) (?4,400,000) Contribution ?2,500,000 ?2,750,000 ?3,000,000 ?2,250,000 ?1,600,000 Relevant Fixed costs (?1,150,000) (?1,150,000) (?1,150,000) (?1,150,000) (?1,150,000) Capital Expenditure (?4,250,000) Scrap Value ?425,000 Working Capital (?900,000) (?450,000) ?1,350,000 Cash Flow (?5,150,000) ?900,000 ?1,600,000 ?1,850,000 ?1,100,000 ?2,225,000 Discount Factor @ 12% Cost of Capital 1.00 0.893 0.797 0.712 0.636 0.567 Present Value (?5,150,000) ?803,700 ?1,275,200 ?1,317,200 ?699,600 ?1,261,575 NPV ?207,275 NPV:-?5,150,000 + ?803,700 + ?1,275,200... ...
10 Pages(2500 words)Term Paper

Operation supply managerment

... Summary On February 1971, Schaeffer, the VP of operations at NAtional Cranberry Cooperative reviewed receiving plant No and was faced by problems which were'nt solved yet. The trucks and drivers were said to spend too much time on unloading the berries while the rate of employee absences and overtime costs are getting higher. Also, their berries that were graded as top quality (No. 3) and awarded a 50-cent premium per barrel, but when the said berries were used, it is found that only half of them deserved the premium. The receiving plant 1 of NCC processes both wet and dry berries involving 400 workers using machines during peak season. They sell the said berries in bulk and bags. 2. Analysis Below is the process flow for wet... Summary On...
4 Pages(1000 words)Research Paper

Marketing Managerment Project Paper

...? IN INDIA – A COMPLETE TURNAROUND It is amazing to see that marketing today has transformed from an essential function to almost an art. Marketing today can also be termed as a scientific art. It is combination of beauty of sensitivity and logic of science. In this paper we are going to analyse various functions of marketing such as customer segmentation, consumer behaviour pattern, cultural influences on buying decisions and acceptance of the product and most importantly how the product should go from strength to strength for more profit and market advantage. The case cites an example of Kellogg’s in Asia-Pacific region especially in India. This case is a classic example of concerted marketing efforts going haywire to produce... IN INDIA –...
7 Pages(1750 words)Research Paper

Operation Managerment

...Running Head: OPERATION MANAGEMENT Analyze the s Expectations for Current Employer of s Expectations for Current Employer Transforms in the structure of the market, within institutes, in technology and in competitive demands are all affecting on the steadiness of aptitudes unavoidable by employers. Lucratively dealing with a business involves fussy management flairs in addition to awareness of major business processes. Clients expect that current employer should comprehend and foresee the upcoming challenges and get ready to attract, preserve and stimulate brilliant human resources to deliver customer fulfillment. Firms rely on their customers and hence should realize present and future purchaser wants, should meet customer... Head:...
2 Pages(500 words)Essay

Research propsal - Operation Managerment (TQM)

...Running Head: UK Supermarket Wars - TQM Strategies UK Supermarket Wars - TQM Strategies of the of the Abstract This paper explores the application and significance of total quality management (TQM) strategies to supermarkets in the United Kingdom. The examination of the operating characteristics of supermarkets is essential in developing the competencies that are essential to build market positions and gain market share. In examining the strategies that are being utilized by the industry's leaders, this paper evaluates the direction of the industry, current levels of competition and the competitive advantages that are needed in the industry today. The recent vertical and horizontal expansions of these companies are seen... Head: UK...
17 Pages(4250 words)Essay

The managerment of breathlessness in patients with COPD

...The Management of Breathlessness in Patients with COPD Introduction Chronic obstructive pulmonary disease or COPD is a devastating medical illness which causes a great degree of human suffering (Sharma, 2006). It is not only a major health issue but also a significant source of economic (Sullivan et al, 2000) and social burden (Fromer and Cooper, 2008). The condition is frequently under diagnosed contributing to increased mortality and morbidity. It cannot be cured; however, appropriate and timely treatment can reduce symptoms, increase the quality of life and decrease mortality and morbidity (GOLD, 2008). One of the most frightening and debilitating symptom of COPD is breathlessness which is progressive. The crux of treatment... Management...
12 Pages(3000 words)Essay


...leasing to address the problem of financial crisis. The International Finance Corporation has incorporated the African Leasing Facility (ALF), and the Senegal Agency for providing training to the small and medium size enterprises in the Sub Saharan Africa11. Steps should also be taken to spread the awareness among people about the benefits of the different financial instruments. This would not only help them to access finance but also reduce the risk of frauds and manipulations. Campaigns should be arranged in order to reach the owners of small businesses, government official, administrators and other parties who would be interested. The idea is to spread the awareness among the small businesses owners...
6 Pages(1500 words)Essay


...Financial of Introduction The fundamental principles and rules by which commercial entities prepare and keep financial records are referred to as accounting methods. The major accounting methods used in businesses include the accrual and the cash basis. Among the factors affecting the choice of the accounting methods to use are sales volume, a business’ legal form, tax requirements, and its credit policies (Palmer et al., 1999). Accounting and record-keeping is not only required by the taxing and regulatory authorities but also by firms’ managers and owners for decision making and financial position analyses. Businesses should therefore choose the most suitable accounting method. This...
1 Pages(250 words)Essay

Operations Managerment

...Operations Management: quality control and inspection Introduction Operations management entails the entire design and management process of products, services and supply chins. It factors the acquisition, development, and utilization of the available resources to meet the wants of clients in terms of goods and services. Thus, to achieve this goal it essential to factor the issue of quality control and inspection as it reflects in the operations process. Quality is an integral part in establishing the success of the product in meeting the client expectations. The clients expect to receive products and services that are worth the cost the pay. Therefore, this necessitates the need to achieve the expected quality of products... Management:...
5 Pages(1250 words)Coursework
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Financial managerment for FREE!

Contact Us