MAC1501 ASSIGNMENT 2 2021.

MAC1501 ASSIGNMENT 2 2021. Introduction To Management Accounting. Wages are hourly or daily payment for work done during the working day. Wages may vary depending on the hours and performance Salaries are a fixed payment upon the agreement by both employee and employer Question 4 4.2. Job costing (also called job-order costing) is most appropriate where goods are made according to customer specifications (e.g. where a tender had been accepted). It is also suited for contexts where goods are produced in batches. Therefore, a "job" can consist of a single product, a batch of similar products or a special order. With process costing, production costs are assigned to processes or departments rather than individual jobs. Process costing is used when identical goods are mass produced on a continuous basis and for a long time. A manufacturer of fast-moving consumer goods such as canned foods and blankets, is likely to apply a process costing system. This study source was downloaded by from CourseH on :39:52 GMT -05:00 This study resource was shared via CourseH Question 5 5.1 Clearly defined management objectives Realistic, understandable and attainable goals and objectives Abilility to predict Clearly defined and communicated responsibility 5.2.1 is to seek wealth , creating opportunities for the company and to findthe funds to finance the investements made for wealth Liquidity Considering the quick ratio, the liquidity level of both companies decreased over the years. The quick ration of Rain decreased from 2.7 in 2017 to recent 2.4 in 2019. Also the quick ratio of Snow decreased from 1.7 in 2015 to 1 in 2019. These changes indicate that the ability of the company to meet its short term obligations has decreased. Profitability The gross profit margin of Snow had decreased from 42% in 2015 to 35% in 2019. Gross profit margin is the percentage of your company's revenue that converts to gross profit. It is a key measure of profitability for a business. Therefore, declines in margin generally occur because of shrinking revenue relative to sales volume or higher COGS. Gross profit margin of Rain has increased from 30% in 2015 to 34% in 2019. An Increase your sales volume without increasing your cost of goods sold per unit or lowering your selling price or An increase in sales that is accompanied by a reduction in cost of goods sold per unit results to a higher gross profit margin.