2i)
Writing off bad debts.
(ii) Recording of issues.
(iii) To record sale of fixed assets on credit.
(iv) To record purchase of fixed assets on credit.
(v) Correction of errors.
(vi) Recording of opening entries.
(vii) Recording of closing entries.
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Questions 4
A unit cost is the total expenditure incurred by a company to produce, store and sell one unit of a particular product or service. Unit costs include all fixed costs, or overhead costs, and all variable costs, or direct material and labor costs. Determining the unit cost is a quick way to check if a company is producing a product efficiently.
Relevant cost is a managerial accounting term that describes avoidable costs that are incurred when making business decisions. The concept of relevant cost is used to eliminate unnecessary data that could complicate the decision-making process. As an example, relevant cost is used to determine whether to sell or keep a business unit.
A profit center is a branch or division of a company that is accounted for on a standalone basis for profit calculation. A profit center is responsible for generating its own results and earnings. As such, its managers have decision-making authority related to product pricing and operating expenses. Profit centersin determining which units are the most and least profitable within an organization.
Definition: A conversion cost is the amount incurred during the transformation of raw materials inventory into finished goods. In other words, this is the amount of direct labor and overhead costs that are required to turn raw materials into an actual product.
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(6a)
forensic accounting is the specialty practice area of accounting that describes engagements that result from actual or anticipated disputes or litigation.
(6b)
(i)Meet with the client:-It is helpful to meet with the client to obtain an understanding of the important facts,players and issues at hand.
(ii)Perform a conflict check:-
A conflict check should be carried out as soon as the relevant parties are established.
(iii)Perform an initial investigation:-
It is often useful to carry out a preliminary investigation prior to the
development of a detailed plan of action.
This will allow subsequent
planning to be based upon a more complete understanding of the issues.
(iv)Develop an Action Plan:-
This plan will take into account the knowledge gained by meeting with the client and carrying out the initial investigation and will set out the objectives to be achieved and the
methodology to be utilized to accomplish them
(v)Obtain the relevant evidence:-
Depending on the nature of the case this may involve locating documents, economic information, assets, a person or company, another expert or proof of the occurrence of an event.
(vi)Perform the analysis:-
The actual analysis performed will be dependent upon the nature of the assignment and may involve
calculating economic damages,
summarizing a large number of transactions, etc
(vii)Prepare the report:-
Often a report will be prepared which may include sections on the nature of the assignment, scope of the investigation, approach utilized, limitations of scope and findings and/or opinions.
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