This company is involved in the supply of gas for homes, offices, industries and other institutions.
The product chosen is home warming gas. This gas involves various activities like filling those with returnable containers, supervision (inspection) and transportation.
The cost drivers to apportioned to this activities identified are canteen expenses, repairs & maintenance and rent & rates. I have assumed these costs to be 150,000, 250,000 and 500,000 for canteen expenses, repairs & maintenance and rent & rates respectively. This apportionment will be done based on number of employees, book value of assets for each department floor service area for filling those with returnable containers, supervision (inspection) and transportation consecutively.
The other assumption is that the number of employees for each activity are 200, 5 and 15 while floor area is 50m3 ,5m3 and 15m3 for filling those with returnable containers, supervision (inspection) and transportation. The book values of assets is assumed to be 1,200,000, 80,000 and 920,000 filling those with returnable containers, supervision (inspection) and transportation respectively
From the results large costs is associated with filling which is 629,870 out of 900,000. This means it is the most important activity that needs to be monitored by the management.
References
Drury C; (2000); Management and cost Accounting; ,business press Thomson Learning,
Wald J (2000) Biggs’s Cost accounting.; The English Language Book Society and MacDonald and Evans Ltd London & Plymouth
The Term Paper on Relationship Between Evaluation and Supervision
Evaluation and supervision are the core processes in determining standards and maintaining quality in education. The assumption is they enhance teacher’s performance and boost the learners’ achievements. Evaluation is a function of policy while supervision administrative tools. This paper is focussing on the definitions, types, purposes, roles, differences and similarities of these two key ...
