can someone help me in solving this problem from cost management accounts material.
Illusration on page 3.17 -Agrocaps LTD from CVP analysis:
While computing cost per unit of 'B' produced using second shift ,The normal Fixed cost not considered why?
2 Replies
PSPSPS
(Practicing)
(1344 Points)
Replied 24 January 2013
Fixed Cost dosnt change with the Production volume. It Remains Fixed & is absorbed on the Defined/Stipulated Volume
dhanya
(audit assistant)
(45 Points)
Replied 24 January 2013
thank you. But sorry I dont get it. The fixes cost is rs.4/unit and there is no additional production.The normal production is done by second shift. Hence it is not absorbed earlier.
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