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Preparation and Analysis of Cost Report for Next Plc

   

Added on  2023-04-21

15 Pages1100 Words223 Views
Management accounting (TASK 2)

Next Plc

Introduction
Next Plc is a UK multinational clothing, footwear and home products retailer
organizations which is operating in international market through 700 stores.
This presentation depicts about the preparation and analysis of its cost report.
Moreover, various key performance indicators will be determined to measure
its performance and take decisions for bringing improvements. In end, report
will discuss on various ways to reduce cost, enhance value and quality.

2.1 Preparation of cost report and its analysis
Cost report refers to the cost of different components than Next Plc will incur in its
production process. It can be analysed through comparing actual cost with the set
budgeted targets, given below:
Particulars Budgeted cost Actual cost Variance (F/A)
Material 15000 15200 -200 (A)
Labour 13500 12400 1100 (F)
Overhead 5200 5400 200 (A)
Total variable
cost
33700 33000 700 (F)
Fixed overheads 7000 8000 1000 (A)
Total costs 40700 41000 300 (A)

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