Costing Methods

Running Head: COSTING METHOD 1
COSTING METHODS

Running Head: COSTING METHOD
Table of Contents
Question 1........................................................................................................................................3
Part 3............................................................................................................................................3
Part 4............................................................................................................................................3
Question 2........................................................................................................................................3
Part 2............................................................................................................................................3
Part 4............................................................................................................................................3
Question 3........................................................................................................................................4
PART 5........................................................................................................................................4
Question 4........................................................................................................................................5
Part 1............................................................................................................................................5
Question 5........................................................................................................................................5
Part 2............................................................................................................................................5
Part 4............................................................................................................................................5
References........................................................................................................................................6

Running Head: COSTING METHOD
Question 1
Part 3
At times there is a situation where the number of the faculties is less and it needs a balance in the
gap. In order to fill the gap the full time faculty is required to be hired by the Resort Island.
Hence the five major actions that must be taken by the Resort Island are presented below
(Langer, 2016).
 Make use of the part time teachers to avoid the additional costs
 The shifts of the teachers can be placed in alternate days of the week.
 The class size shall be reduced and the sections shall be combined to make use of the
limited hours (Weinstock, 2015).
 The hours of teaching can also be increased to give a lot of stuff at one go
 The substitute teachers can also be appointed as a source of the extra staff.
Part 4
The key driver of any college is the student and the fees paid by the student as it would
help them run the operations of the costing. The DVC really are unaware of the concept of the
linkages with costing and budgeting and hence their statement that the academic staff is the real
driver is wrong. This idea is also not in the alignment with the assumption made at the starting
(Miller, 2018).
Revenue Budget
Current student enrolment 15000
Add: projected increase 750
Total projected students 15750
Less: tuition fee scholarship 150
Tuition paying students 15600
Average class * Per semester 320
Total projected student fees 4992000
Less: Staff salary 120000
Tution revenue 4872000

Running Head: COSTING METHOD
Number of staff needed
Projected students 15750
Classes per student per semester 20
Projected student enrolment 315000
Average of the class of the
student 80
Classes to be taught during the
year 3937.5
Classes taught by professro 5
Need of Faculty 787.5
Question 2
Part 2
The flexible budgets are a budget that adjusts with respect to the changes in volume or
activity. It tends to be the more useful rather than the static budget. When analyzed the role of
the flexible budget with respect to the various kind of applications and the policies by the Good
Health Insurance Company. Henceforth, assembling the versatile adaptable flexible plan for the
respective would cover the overhead costs. For example, setting up a hundred life inclusion
applications will include considerably more overhead cost than taking care of a hundred vehicle
assurance applications (Wood, 2016).
Part 4
MEMORANDUM
TO: GOOD HEALTH MANAGEMENT
FROM: Chief Accountant
DATE: 14th May 2019
PURPOSE: Advantages of the standard costing system