Subject:
AccountancyAuthor:
nemo75Created:
1 year agoAnswer:
Operating cost. it is the cost incurred in conducting a business activity. operating costs refer to the cost of undertaken which do not manufacturer any product but which provide services.
Explanation:
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Author:
titanfcj2
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14Answer:
The cost sheet of POR Ltd. Provides the following data : Cost per unit Raw materials Rs. 50 Direct Labor 20 Overheads (including depreciation of Rs.10) 40 Total cost 110 Profits 20 Selling price 130 1) a) Average raw material in stock is for one month. b) Average materials in work in progress is for half month. c) Credit allowed by suppliers; one month; d) credit allowed to debtors; one month. e) Average time lag in payment of wages; 10 days; f) average time lag in payment of overheads 30 days 2) 25% of the sales are on cash basis. 3) Cash balance expected to be Rs.1,00,000 4) Finished goods lie in the warehouse for one month. You are required to prepare a statement of the working capital needed to finance a level of the activity of 54,000 units of output. Production is carried on evenly throughout the year and wages and overheads accrue similarly. Debtors are to be valued at cost.
Explanation:
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Author:
brett413
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5