Reasons for popularity of contract manufacturing in recent times.

What is standard cost?



Contract manufacturing is the use of external suppliers for the finished products,components or service instead of producing or providing them in house.

Reasons for popularity of contract manufacturing in recent times are;

    • Contracting out manufacturing free capital that can then be invested in core activities such as market research, marketing and sales 
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    Management accounting revision question on zero based budgeting based on ACCA & DRURY

    Management accounting revision question on zero based budgeting based on ACCA & DRURY

    You are the management account of group of companies and your managing director has asked you to explore the possibilities of introducing a zero based system experimentally in one of the operating companies in place of its existing orthodox system.
    REQUIRED:

    1. Explain how zero-base budgeting would work within the company chosen
    2. What advantages it might offer over the existing system?
    3. What problems might be faced in introducing a zero-base budgeting scheme?
    4. The future you would look for in selecting the operating company for the introduction in order to obtain the most beneficial result from the experiment.
    5. read more

  • Straight line depreciation – meaning

    how to calculate depreciation according to ias 16

    Straight-line depreciation is the method of depreciation where the depreciable amount is charged in an equal amount to each reporting period over the expected useful life of an asset.

    The depreciation charge for the year is calculated by the following formula

     = cost of asset less expected residual value/expected useful life (years) read more

    What is meant by change in accounting estimate?

    What is meant by change in accounting estimate?

    A change in accounting estimates is an adjustment of the carrying amount of an asset or liability, or related expenses, resulting from reassessing the expected future benefits and obligations associated with the asset or liability. read more