[anu1234]

I have got a doubt in the same question. Component 2 section. In arriving at cost per unit they have multiplied .25 *5 * (100/98) I understand they are taking into account of waste. But why multiply the wasted material. I dont get the logic

[anu1234]

If i pay my taxes for the year it should only appear as an expense right

[anu1234]

Thanks a ton Mike

[anu1234]

so it should be valued at nrv right

[anu1234]

Is there any major differences in reporting rules of single fs and group fs

[anu1234]

Okay.

Regarding EV, I saw a limitation that its a long term average. What does that mean

[anu1234]

Thanks Ken

[anu1234]

Yeah Mike. Thank you

[anu1234]

okay so how does unit cost fall in growth stage.. i dont get that idea

[anu1234]

Also is lifecycle costing like an internal tool ? or is it actually used instead of say target costing or abc costing

[anu1234]

We have to adjust for under or over absorption in the absorption costing profit statement. I dont understand why they have to include Absorbed OH in the Cost of Sales again even after they have adjusted for Under absorption. Its effectively double counting right ?

[anu1234]

I have watched them sir.

[anu1234]

Also in a question of finiding absorption costing profit, they have included absorbed oh as an item in the COS and again adjusted under absorption.. why is it so

[anu1234]

What if Variable OH is given for may be a 1000 units and Fixed OH of 1000 units is also given ?

[anu1234]

Okay Mike Thanks

[anu1234]

How do you decide if a subsidiary is material to group ? For account balances and transactions we use benchmarks. What about subsidiary as a whole ?

[anu1234]

Sorry i didnt pay heed to the word credited.. Thanks Mike

[anu1234]

For asset held at cost, impairment will be charged to P/L right ? I didnt undertsand #1

[anu1234]

Thank you.

Another query :

Agree the balance as per bank statement to original year end bank statement.. So there are two bank statements ??

Agree teh reconciliations as per cash book to original year end cash book..

I dont understand this mention of Original year end ???

[anu1234]

Okay. so as in instead of creating a provision this year for say bad debt , they do it next year thus increasing current years provision due to understatement

[anu1234]

Another query , when an asset is disposed off , what change happen to dep policy. i saw it as an audit risk , that the dep policy might not have changed

[anu1234]

I understand it now. I should have subtracted it to arrive at COGS. Sorry to post this without thinking with patience. Thanks

[anu1234]

i understand that to find cogs = selling price / 1.5 is right.

i saw somewhere an application 50 / 150 or 150/50 to find it.. i am confused now

[anu1234]

i mean if there is a mark up of 50% how to convert sales to cost of goods sold ?

[anu1234]

Sorry yeah. I now realise it. So is there any way to convert sales to cost of goods sold ?

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