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CVP Analysis revision question (NBAA November 2016)

Midundo kabambe a manufacturer of electronic equipment, decided to analyze the profitability of new portable compact disc (CD) player. On CD player line, the company incurred TZS.2,520,000,000 of fixed cost per month while obtaining total revenue  of TZS.6000,000,000 from selling 20,000 units. The variable cost was TZS 120,000 per unit
Recently a new machine used in production of CD player … Read the rest

Benefits of Distance Education and Learning from Home

Usefulness and the problems associated with master budget.

A master budget is projected financial plan. It displays the consolidation of the functional budgets to present the overall impact of the projected operational activities on the profitability  of the organization as whole. It is a statement showing the estimation of revenue, costs and profit (loss) for the organization during the budget period.

The following

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Variance analysis – meaning

Variance analysis is the process of computing the amount of and isolating the cause of variance between actual cost or revenue and standard cost and revenue.

Variance analysis involves the computation of individual variance and determination of causes of each variance.  

The purpose of variance analysis is to enable management to improve operations, increase … Read the rest

7 limitations of standard costing

7 limitations of standard costing.

Standard costing is a managerial control technique that facilitates a comparison of standard cost and revenue with actual results to obtain variance that is used to stimulate improved performance.  

The following are limitation of standard costing:

  • The standard costing system assumes that performance to standard is acceptable. Today’s business environment is more focused on continuous improvement
  • Standard costing was
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Cash budget and zero budgeting revision question (NBAA, B5, NOV 2018)

Mama Kadogoo likes baking and has decided to start her own business in Goba. She has developed a delicious Low Calories Cake and has created two varieties: Vanilla Cream and Chocolate Sweet.   Mama Kadogoo hopes to commence production in January 2019 and has conducted some market research to assess the interest in, and demand for her products.  She has TZS.5,000,000 … Read the rest