garikaib

/Garikai Dzoma

About Garikai Dzoma

He holds an Honours in Accountancy degree from the University of Zimbabwe. He is passionate about technology and its practical application in today's world.

August 2018

Absorption Costing: Statement of Profit or Loss Example

By |2018-08-11T09:14:41+00:00August 11th, 2018|Cambridge AS A Level Accounting, Notes, ZIMSEC A Level Accounting|

Cambrige AS and A Level Accounting Notes (9706)/ ZIMSEC  Advanced Accounting Level Notes: Absorption Costing: Statement of Profit or Loss Example

  • We have already looked at the format of a Statement of Profit or Loss under Absorption Costing here
  • It is now time to look at an example

Example Question

Oakwood Manufacturing Ltd started in business on 1 January 20×8 […]

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Absorption costing:Statement of Profit or Loss

By |2018-08-11T09:14:49+00:00August 11th, 2018|Cambridge AS A Level Accounting, Notes, ZIMSEC A Level Accounting|

Cambrige AS and A Level Accounting Notes (9706)/ ZIMSEC  Advanced Accounting Level Notes: Absorption costing:Statement of Profit or Loss

  • Profit is the overriding aim of most businesses and for this reason management accountants do also prepare income statements (also known as statement of profit or loss)
  • Although similar in spirit to the Income Statement prepared by Financial Accountants it […]
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Absorption Costing: Over and Under-absorption

By |2018-08-10T11:35:49+00:00August 10th, 2018|Cambridge AS A Level Accounting, Notes, ZIMSEC A Level Accounting|

Cambrige AS and A Level Accounting Notes (9706)/ ZIMSEC  Advanced Accounting Level Notes: Over and Under-absorption

  • As has been said before overhead absorption rates are calculated in advance
  • The formula for getting an overhead absorption rate is:
  • \text{OAR=}\dfrac{\text{Budgeted Production Overhead}}{\text{Budgeted Level of Activity}}
  • The budgeted level of activity can be units,labour hours, machine hours etc
  • It is […]
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Absorption of Overheads: Solution to Reapportionment of service costs question

By |2018-08-10T09:30:50+00:00August 10th, 2018|Cambridge AS A Level Accounting, Notes, ZIMSEC A Level Accounting|

Cambrige AS and A Level Accounting Notes (9706)/ ZIMSEC  Advanced Accounting Level Notes: Reapportionment of service costs where there is interwork

  • This is a solution to the question found here
  • First we will use the repeated distribution method to redistribute service costs
  • Lastly we will use the algebraic method to reapportion costs
  • We have already looked at why […]
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Absorption of Overheads: Reapportionment of service costs where there is interwork

By |2018-08-10T09:30:41+00:00August 10th, 2018|Cambridge AS A Level Accounting, Notes, ZIMSEC A Level Accounting|

Cambrige AS and A Level Accounting Notes (9706)/ ZIMSEC  Advanced Accounting Level Notes: Reapportionment of service costs where there is interwork

  • We have already looked at the need for reapportioning the portion of overheads that would have been allocated and apportioned to service cost centres
  • We also looked a simple example where there was no inter work among departments […]
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Absorption of Overheads: Reapportionment of service costs with no interwork

By |2018-08-08T12:10:46+00:00August 8th, 2018|Cambridge AS A Level Accounting, Notes, ZIMSEC A Level Accounting|

Cambrige AS and A Level Accounting Notes (9706)/ ZIMSEC  Advanced Accounting Level Notes: Reapportionment of service costs no interwork

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Absorption of Overheads: Overhead Analysis Sheet Example

By |2018-08-08T11:03:50+00:00August 8th, 2018|Cambridge AS A Level Accounting, Notes, ZIMSEC A Level Accounting|

Cambrige AS and A Level Accounting Notes (9706)/ ZIMSEC  Advanced Accounting Level Notes: Absorption of Overheads: Overhead Analysis Sheet Example

  • In this example we will look at how you can use an overhead analysis sheet to allocate and apportion overhead costs
  • It is important to note that while the format shown below is the most popular
  • It is entirely […]
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Absorption of Overheads: More than one department and more than one product example

By |2018-08-08T11:02:30+00:00August 8th, 2018|Cambridge AS A Level Accounting, Notes, ZIMSEC A Level Accounting|

Cambrige AS and A Level Accounting Notes (9706)/ ZIMSEC  Advanced Accounting Level Notes: Absorption of Overheads: More than one department and more than one department worked example

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Absorption of Overheads: More than one product one department worked example

By |2018-08-08T08:52:29+00:00August 7th, 2018|Cambridge AS A Level Accounting, Notes, ZIMSEC A Level Accounting|

Cambrige AS and A Level Accounting Notes (9706)/ ZIMSEC  Advanced Accounting Level Notes: Absorption of Overheads: More than one product one department worked example

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Absorption of Overheads: One Product Worked Example

By |2018-08-07T10:13:09+00:00August 7th, 2018|Cambridge AS A Level Accounting, Notes, ZIMSEC A Level Accounting|

Cambrige AS and A Level Accounting Notes (9706)/ ZIMSEC  Advanced Accounting Level Notes: Absorption of Overheads: One Product Worked Example

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