We have come across thousands of UK scholars who used to believe that cost accounting is the most difficult subject to learn. Unlike financial and management accounting, in this subject the anxiety of students goes through the roof due to complex principles and confusing theories like direct cost, fixed, indirect cost and variable cost. If you feel that you will take forever but still can’t find the contribution margin in a question, then need not to worry. Rather than digging deep into complex tools get in touch with us and get the most trusted cost accounting assignment help.
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When it comes to the basic level of knowledge of terms and concepts of cost accounting, students do fine and somehow manage to finish their homework. However, things get out of control as the module progresses and they have to outdo themselves and write about the most complex and advanced topics. If you feel that with your current grade situation you can’t earn the required credits to pass the final exam then don’t wait anymore. Rather than wasting your time and repeating the module, get in touch with us for the expert solution.
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Briefly discuss the residual value and executory costs. Define the relevance of these terms for lease or selling decisions.
Nau (2012) presented an empirical study about the residual value and reaffirmed that even after an asset has been fully depreciated its residual value still has relevance. The value can be defined as an estimated worth that might be viewed variedly from different perspectives. To calculate the residual value, the difference between the cost of capital and the profits can be identified. However, when it comes to leasing, the residual value may also be related to both past performances and future estimates. On the other hand, the executory cost implies all kinds of ongoing costs such as utilities, maintenance that are not incurred in the lease agreement. To briefly discuss the residual value and executory costs, an example of leasing a car can be taken. For further analysis Read More….
To analyze the concepts and procedures of cost accounting, you might require to begin your papers with a scoring definition. Believe it or not an impressive intro can lead you towards merit grade scores. So here we have offered some of the most requested definitions that you can utilize to kick-start your academic writing journey. If interested in getting more help, you can always connect with our experts online.
Indirect costs are allocated costs, whereas the costs which can be traced back to the actual production are known as the direct costs. For instance, the cost of raw material or labour can be used as an example of direct cost, moreover, the changing overhead costs of supervision are considered as the indirect cost.
With the level of production, there are two types of costs associated, fixed and variable cost. The fixed costs, as the name suggests remain fixed and do not change with the level of production, whereas the variable costs change. For example, the lease amount for a building used in the manufacturing of a product is fixed cost, whereas the cost of material used in the production is a variable cost.
In job costing, the analysis of cost is based on the type of job, material required and any overhead cost. Thus, it is assumed that job costing implies that every job is different. For instance, a plumber or carpenter cannot charge the same amount to every customer. As they are calculating their services based on the job costing method. On the other hand, processing cost analysis is used where the production process is partially completed at one facility and then moved elsewhere for further production.
Sometimes a future decision is taken on the basis of past experiences. In terms of cost accounting, a sunk cost is the theory which implies that an amount is spent and can’t be recovered in any case. For instance, if a production company has spent an amount of renting a facility, it is referred to as sunk cost.
As a result of some changes in the production activity, the difference in product cost can be defined as incremental cost. For instance, if a company produces 10 units for £3000 and decides to produce 3 more units then the overhead production cost of the 3 extra unit can be considered as an incremental cost. On the other hand, opportunity cost is a fundamental aspect that most business organizations are practising to make profitable decisions. In its simplest definition, it is the value of the forgone benefit. Calculating the profit value of not taking a road is a good practice to make profitable decisions.
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