MANAGEMENT ACCOUNTING PROJECT

Apportionment and allocation direct and

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Overhead–classification,collection, apportionment and allocation. Direct and indirect depreciation, method of depreciation to be used, research and development 14
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expenditure,methodofallocation/appotionment of service department cost to production department, capacity cost etc. Reporting. Periodically of reports. Levels for whom the repors are to be sent. Cost statements. Ratios –cost as well as financial. Supplementary data. Nature and extent of information to be accumulated Inter-firm comparison requires that all relevant and detailed cost information should be collected regarding business firm. No definite list of information can be suggested for collection. However, the following are the usual information which are applicable to all industries and therefore can be collected for the inter-firm comparison: Information regarding cost and cost structure. Labour efficiency and labour utilisation. Machine efficiency and machine utilisation. Raw materials consumed wastage and stores-keeping. 15
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Return on capital employed. Liquidity and liquid resources. Reserve and appropriation of profits. Debtors and creditors. Methods of production and technical aspects. Inventory and inventory systems. R esponsibility for collection, coordination and presentation of information In some countries separate organisations have been established for collecting and presenting information. in India inter-firm comparison information is collected by various trade associations, chambers of commerce, the national productivity council, research and statistics division of several commerce and trade journals and periodicals and newspapers. M ethod of collection and presentation of information Information for the purpose of inter-firm comparison is usually supplied by business enterprises to organisation regularly. Information can be collected by field workers also. After the information is collected, it is properly compiled and arranged and finally a consolidated report is prepared for the benefit of business firms. For the information to be purposeful, it is essential that participating firms should agree about the meaning of various terms used in ratios and accounting information 16
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The printing industry in UK has played a leading role in the establishment of uniform costing system this industry was first to introduce the uniform costing system.This was a welcome step for introduction of inter-firm comparison in the printing industry. The industry awas divided into various groups each having its own ratios based on differents characteristic of the firms. The division is based on the following characteristics: Nature of activities carried in the printing industry, eg, genral printers , book printers,. newspapers houses,and Size determined bu number of employees.
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