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query frm cost

CA Paras jain (Audit Senior Assistant) (1544 Points)

10 September 2009

is it necessary to show fixed cost and variable cost saprately under diffrent heads in operating costing topic??

cnt we write all the xpenses simultaneously to arrive at total cost??

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14 Replies

(Guest)

yes it is necessary to kw the fixed and variable component of the cost...

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Swati (ARTICLE) (29 Points)
Replied 10 September 2009

yes we can calculate total cost directly but dats not preferred presentation. so its good to segregate costs.

Ashish M (Chartered Accountant) (2731 Points)
Replied 10 September 2009

THOUGH THE COMPILATIONS GIVE THE ANSWERS MERGING FIXED AND VARIABLE COSTS UNDER SAME HEAD WITHOUT SEGREGATING..........BUT AS SAID BY MOHAN AND SWATI, IT MAKES IT A GOOD PRESENTATION AND GOOD IMPRESSION ON THE EXAMINER THAT U UNDERSTAND DIFFERENTIATING THE TWO.................

CA Paras jain (Audit Senior Assistant) (1544 Points)
Replied 10 September 2009

bt in some of the questions all the costs are given in merged form

so hw can we diffrentiate that which is fixed or which one is variable

(Guest)

YUP...........IT IS NECESSARY FOR FETCHING GOOD MARKS.............!!!!!!!!

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Ashish M (Chartered Accountant) (2731 Points)
Replied 10 September 2009

Originally posted by :ρaraÑ•
"	bt in some of the questions all the costs are given in merged form so hw can we diffrentiate that which is fixed or which one is variable	"

u can find the way to differentiat the two in the question only. It is to be understood that If they are given in merged form, it first need tobe differentiated on some basis,...........

(Guest)

Apart from having impression for examineers, knowledge of fixed and variable cost component will be useful in future when u will solve problems on MArginal Costing, Standard Costing,etc..Though, the sums have combined both the costs together there will be certain hints in the problem itself which will help u to break the two costs,,,it depends upon case to case basis..read the theory try to understand how the answers been arrived...with pratice m certain u will be able to break the cost easily...Best of Luck

CA Ram (student) (369 Points)
Replied 11 September 2009

its actually in your interest to segregate to find out correct ans, well presentation matters, but u kw operating costing n all, theres so much scope to make silly mistakes....so be careful and dont go for short cuts....

CA Paras jain (Audit Senior Assistant) (1544 Points)
Replied 11 September 2009

thnx evryone..

it ws nice to hv ur suggestions

krati (atricle) (22 Points)
Replied 11 September 2009

Hi...

I wanna kno if registratns 4 sanjay aggarwal sir ca final classes are closed...

also suggest dat in case if i do not take(get) his batch, how can i manage myself???

Plzzz post reply on my id: krati.creation18 @ gmail.com

Thnx in advance!!!

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Pratik Agarwal (Aricle Assistant) (25 Points)
Replied 11 September 2009

what is the difference between marginal and absorbtion costing

CA. CS. CMA. J. RAJGANESH (Triplet Finance Professional) (383 Points)
Replied 11 September 2009

YES....

CA Harish Suwalka (Chartered Accountant ( Bhilwara )) (4125 Points)
Replied 11 September 2009

thanx To daga sir !

CA SHABIR (CA) (336 Points)
Replied 11 September 2009

Yes this can be done, but only when we are interested in knowing overall profitability of the entity. But we use costing techniques only to anlyse, what, why and wher went wrong or right. That is why we use this path. Showing seprately fixed and variable cost aims us to know what operatons have contributed towards entity's growth and try to fix price of a unit in such a way so that fixed costs plus desired RoR can be achieved.

Thanks