Financial Decision Making

FINANCIAL DECISION
MAKING

Table of Contents
MAIN BODY...................................................................................................................................2
Q1. Costing.................................................................................................................................2
Q2. Budgeting.............................................................................................................................4
Q3. Investment appraisal.............................................................................................................5
Q4. Sources of finance and management of working capital......................................................7
REFERENCES................................................................................................................................9

MAIN BODY
Q1. Costing
A
Variable manufacturing cost per unit
Total variable manufacturing cost per unit
Raw material 16
Direct labor 12
Total variable manufacturing cost per unit 28.00
Budgeted fixed manufacturing overhead rate per unit
Budgeted fixed manufacturing overhead
Manufacturing overhead 75000
Budgeted production 6000
Budgeted fixed manufacturing overhead 12.5
Total manufacturing cost per unit
Total manufacturing cost
Total variable cost 28.00
Fixed manufacturing overhead 11.90
Total manufacturing cost 39.90
B
Total variable cost per unit
Total variable cost per unit
Raw material 16
Direct labor 12
Fixed manufacturing 11.90
Total 39.90
Total cost per unit
Total cost per unit