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Additional resources for ACCA F2 Management Accounting: F2 (Acca Key Study Text)
In an office, costs of materials consumed include the costs of stationery and replacement printer cartridges for the office laser printers. Material costs do not include the cost of longer-term assets (non-current assets) such as plant and equipment, or new trucks for the company’s fleet of delivery vehicles. Labour costs are the remuneration costs of all employees employed and paid by the entity. com for Q/As, Notes & Study Guides © EWP Chapter 2: Cost classification costs of any bonuses, pension contributions and other items that are paid in addition to basic wages and salaries.
If costs can be analysed as a fixed amount of cost per period plus a variable cost per unit, estimating what future costs should be, or what actual costs should have been, becomes fairly simple. Example The management accountant of a manufacturing company has estimated that production costs in a factory that manufactures Product Y are fixed costs of $250,000 per month plus variable costs of $3 per unit of Product Y output. The expected output next month is 120,000 units of Product Y. com for Q/As, Notes & Study Guides 45 Paper F2: Management Accounting Other cost behaviour patterns 2 Stepped fixed cost More unusual cost behaviour patterns Other cost behaviour patterns Some cost items are variable costs, fixed costs or mixed costs.
The time needed to produce an item of product is 4 minutes and labour is paid $15 per hour. If so, direct labour is a variable cost and the direct labour cost per unit produced is $1 (= $15 × 4/60). 10 per minute. If so, the cost of telephone calls lasting 6,000 minutes in total would be $600. Fixed costs Fixed costs are items of cost that remain the same in total during a time period, no matter how many units are produced, and regardless of the volume or scale of activity. Fixed costs are also called period costs, because they are fixed for a given period of time.
ACCA F2 Management Accounting: F2 (Acca Key Study Text) by Emile Woolf International