Question
Mukhya Kharchon ka Vivaran (Main Expenses)
| Vivaran (Particulars) | Rashi (Amount) |
|---|---|
| Cost of Materials | 1,20,000 |
| Wages for Direct labour | 1,00,000 |
| Factory overheads | 60,000 |
| Distribution expenses | 28,000 |
| Administration expenses | 67,200 |
| Selling expenses | 44,800 |
| Profit | 84,000 |
2. Work Order (Year 2003) ke Kharche
| Vivaran (Particulars) | Rashi (Amount) |
|---|---|
| Cost of Materials | 16,000 |
| Wages for labour | 10,000 |
Answer :
Word Count : 486
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Skip in 10
Managerial accounting plays an important role in analyzing expenses and supporting decision making in an organization. The given data shows different categories of main expenses such as cost of materials, direct labour wages, factory overheads, distribution expenses, administration expenses, selling expenses and profit. These expenses together help management understand the cost structure of production and selling activities. Proper classification of these expenses allows managers to plan budgets, control costs and improve efficiency. The cost of materials and direct labour wages are known as prime costs. In the given data, cost of materials is 1,20,000 and direct labour wages are 1,00,000. These are directly related to production and can be easily traced to products or work orders. Factory overheads of 60,000 represent indirect production costs such as factory rent, electricity, depreciation of machinery and maintenance. When prime cost and factory overheads are combined, they form the works cost or factory cost. Managers
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