MALİYET VE YÖNETİM MUHASEBESİ - Deneme Sınavı - 10

Direct material costs are the costs of the material used in the product which can be easily traced.

Indirect costs are the costs that are related to the product but cannot be traced easily and also there may be some costs that are not included product, but they are consumed for the production purposes.

Determination of production is not among the expenses for raw materials and supplies can be traced within a four-step approach.

Materials Request Slip is used for drawing materials from the warehouse.

Cost of the (a) raw material should be calculated as follows: Material cost + insurance + custom fee. 12.000 + 1.500 + 1.000 = 14.500 TL

According to FIFO cost of the used material is: (25 x 15 TL) + (15 x 15 TL) + (40 x 15 TL) + (5 x 20 TL) = 1.300 TL

According to FIFO, cost of the material at the warehouse should be calculated as follows: (10 x 20 TL) + (20 x 25 TL) = 700 TL

The daily usage of raw material is 350 kg. With the lead time taken into calculation (3 days), the total amount will be 1.050 kg (350x3). Safety stock is predetermined as 60 kg. So, when lead time and safety stock is considered 1.050 kg + 60 kg = 1.110 kg The company should reorder raw material when the material on hand decreases to 1.110 kg.

ABC system classifies and ranks the inventories according to their respective costs or usages.

In VED analysis, companies classify their materials according to their “absence” costs.

Cost allocation is the process of assigning costs in a cost pool to the appropriate cost objects with the help of representatives.

Controlling the consumption of user departments to support services is not one of the objectives of cost allocation.

The task of the Engineering and Production Control Department is to support all engineering activities in other departments.

The ability of the enterprises to produce the products or services that constitute the main activities is called capacity.

Practical capacity is the amount that an entity can generate if the normal operating disruptions are considered.

Budgeted fees are charged from departments for each hour of the actual use of the central facility with a single rate method.

Administration department deal with the revenue of operating departments?

Accounting deals with the the direct costs of other departments.

The direct allocation method (often called the direct method) is the most widely used method of allocating support department costs. This method allocates each support department’s costs directly to the operating departments.

In this method, the cost of service departments will be allocated to other service and operating departments depending on whether they provide services or not. In the method, first of all, the support departments should be ranked in the order that the step-down allocation will continue.