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Cost Accounting Assignment 2
Cost Accounting Assignment 2
ASSIGNMENT COVER
REGION: HARARE
MARKER’S COMMENTS:
1c Statement of evaluation =
Finished goods= (4.25+2.5+1.1)5500=$43175
(1400× 4.25 + 700 × 2.5 + 560 × 1.1)= $8316
2ai) cost center is a department or function within an organization that does not directly add to
profit but still costs the organization money to operate. Cost centers only contribute to a
company's profitability indirectly.
2aii) the cost of revenue is the total cost incurred to obtain a sale and the cost of the goods or
services sold. Thus, the cost of revenue is more than the traditional cost of goods sold concept,
since it includes those specific selling and marketing activities associated with a sale.
$ $
Sales (15000 @10%) 150 000
less variable cost of sales
variable manufacturing cost (16500×6) 99 000
less closing cost (1 500×10) 47 143 -51 857
contribution margin 98 143
less variable selling admin -6 000
92 143
less fixed cost
fixed manufacturing cost 33 000
fixed selling and admin 7 500 -40 500
net profit 51 643
Lal, J., & Srivastava, S. (2013). Cost accounting. McGraw-Hill Education (India).