Cost Analysis for Generator Production
Added on 2020-02-12
7 Pages1037 Words118 Views
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COSTING TECHNIQUES1
Table of Contents1.(a)...................................................................................................................................................31. (b)..................................................................................................................................................32. (a)..................................................................................................................................................32(b)....................................................................................................................................................32(c)....................................................................................................................................................42(d)....................................................................................................................................................53........................................................................................................................................................54........................................................................................................................................................5REFERENCES.....................................................................................................................................72
1.(a)Particulars Total Basis for apportionment Supervision salaries42000Number of employeesCanteen costs 1200Number of employeesFactory rates7000Floor areas in m2Insurance 930Number of insurance claims Machinery maintenance 2800Number of maintenance cards Energy supply7550Electricity in KWHFactory building maintenance875Factory floor area 1. (b)Particulars Total Basis forapportionment Fabricationdepartment Finishingdepartment Total Supervision salaries42000Number of employees280001400042000Canteen costs 1200Number of employees8004001200Factory rates7000Floor areas in m2500020007000Insurance 930Number of insuranceclaims 620310930Machinery maintenance 2800Number of maintenancecards 20008002800Energy supply7550Electricity in KWH604015107550Factory building maintenance875Factory floor area 625250875Total 4308519270623552. (a)What-If analysis may not be considered as an appropriate technique for risk evaluationbecause it is very expensive for the company to build a simulation model. Moreover, it is toodifficult also to interpret the results of the model and it requires excellent technical & analyticalskills (Sandborn, 2017). 2(b)Explanation of the activities: Car production unit can face risk due to the following activities:1.Failure in production line2.Machinery failure3.Incorrect manufacturing process4.Utility failure i.e. power shortage3
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