When solving problems, you must clearly explain all the steps you are doing, and why are you making those steps.
· Show all your workings, a numeric answer is not enough.
· You should submit a document in Word format.
· You should submit a document in Excel format showing all calculations.
Formalities:
· Use one page per answer.
· Cover, Table of Contents, References and Appendix are excluded of the total wordcount.
· Font: Arial 12,5 pts.
· Text alignment: Justified.
It assesses the following learning outcomes:
· Understand the three basic types of manufacturing.
· Identify direct and indirect costs
· Prepare a schedule of costs of finished goods
· Distribute overheads into a product cost.
· What drives the overhead cost
· Differentiate between Job order, Process costing
· Apply cost volume profit analysis in business, understand economies of scale.
Assignment:
Questions
1. 1.- Explain direct production cost versus indirect production const, give a numerical example. (5 points)
2. 2.- Explain variable production cost versus fixed production costs, give a numerical example. (5 points)
3. 3.- Explain period cost versus product cost, give a numerical example. (5 points)
4. 4.- What does break even mean? (5 points)