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chiranjeev

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Active 5 years ago
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  • April 18, 2016 at 6:58 am #310896
    mysterychiranjeev
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    I got 46 marks in first attempt really feeling v.sad about it. After graduation in 2012 it was my first exam to attempt.

    January 29, 2016 at 12:41 pm #298464
    mysterychiranjeev
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    Hi I would like to ask one thing in ABC method,

    What if we are provided with the ‘revenue’ and ‘cost of products sold’ in items, how we have to tackle such situations?

    For Example:-

    Items Soft Drinks Fresh Produce Packaged food
    Revenues 425,800 756,250 443,280
    Cost of product sold 262,500 467,500 270,000
    Cost of empty bottles returned 6,800 0 0
    No. of purchase orders placed 315 285 210
    No. of deliveries received 420 570 525
    Hours of shelf stocking time 250 1,425 1,050
    Number of product sold 63,000 285,000 105,000

    Activity Total Cost Cost-Allocation Basis
    Bottle returns 6,800 Direct tracing to soft-drink line
    Ordering 81,000 810 Purchases orders
    Delivery 106,050 1,515 Deliveries
    Shelf-stocking 55,875 2725 hours of shelf stocking time
    Customer 135,900 453,000 items sold
    Support

    Total 385,625

    How we will calculate costing on traditional basis and ABC basis and also we have to calculate operating income and the operating income as percentage of revenues for each product line?

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