Here is the synopsis of our sample research paper on Accounting Questions; Overhead Costs and Transfer Costs. Have the paper e-mailed to you 24/7/365.
Essay / Research Paper Abstract
This 9 page paper answers questions on a case study provided by the student. The writer looks at how fixed overheads can be absorbed, based on either capacity or on projected production and how different factors may impact on how they are allocated for the transfer of goods within a company.
Page Count:
9 pages (~225 words per page)
File: TS14_TEohcque.rtf
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Unformatted sample text from the term paper:
the costs of production, These will consider the way in which the income will impact on the current levels. The order will need to be one that will produce increase
value for the company. This may occur in several ways. The income may create a profit for the company. This is a finite method of assessing the profit. In an
alternate calculation it may be that an additional order may reduce a loss, especially in the context of fixed overheads. It may also be that as many of the engines
already produced being transferred internally, that greater value will be created in reducing the unit price of each engine as a result of the ability to reduce the amount
of fixed costs attributable to each engine. We can consider this in the following way. However we will make an assumption that the maximum capacity if the factory is 4,000.
This is not specified, but we make this based on the fact that an order for the new engines would be for 2,000 which is half of the factories capacity.
We have a breakdown of the different engine costs, but not of the fixed costs, these are a total of 520,000
and as such will need to be divided by the number of units manufactured, indicating the way that each additional unit made up to the 4,000 will be marginally lower
as a result of the marginal costs remaining the same and the fixed costs reducing. If the order is turned down then
we can look at the situation of the company. Current engines Number of engines Total Cost Materials 125 3200 400000 Labour 50 3200 160000 Variable Overheads 50 3200
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