i need short answers for each question Shape Fin 1 Arang Qac

i need short answers for each question.

Shape Fin +:-1 Arang. Q.ack- shape Outine- Replace Sye- Shape Etfects asnapt seledt Click to add title Activity-based Costing is one of the cost accounting strategies. Discuss the ABC system and the main differences between the traditional costing and the ABC systems. A cost estimating relationship (CER) describes the cost as a functiorn . Discuss the major financial statements .Talk about its structure, . Discuss three of the cost estimating techniques you have learned and of design variables. What are the basic steps in developing a CER? features and use? talk about its use and results. te Theme. EnglishSJ TOSHIBA F2 F5 F8 F9 F10 F11 F12 PRTSC SYSRO F6 PAUSE BREAK BACK SPAC HOME 7 [E

Solution

SOLUTION A:- under activity based costing a firm first identifies its activities and then allocates indirects costs associated with such products.

SOLUTION B:-1. select the dependent  variable{Y} dependent variable or response variable for which cost is to predicted.

2.select the cost drivers/ independent variables :it means any factor that causes any change in the total cost with the change in the those factors.

3. data need to be collected showcasing the relationships between the dependent and independent variables.

4.after that data is plotted on the graph

5.that relatoinships is chosen that predicts the best dependent variables.

6.reliability of the cost function is checked.

SOLUTION C:-major financial statements includes the following:-

1.balance sheet:it shows the postion of assets and liabilities as at the end of the financial year.

2. income statement:it shows the position of profitability for a defined period.

3.cash flow statement:it shows the outflow/inflow of cash in operating ,financing and investing activities of a firm .

4. statement of shareholders equity:this statement shows the changes in shareholder equity account.

BASIS	ACTIVITY BASED COSTING	TRADITIONAL COSTING
process	it considers important factors before assigning cost to different products therefore it is a complicated and time consuming process.	comparatively much easy because the main focus is to assign the average overheads rate to the products.
USED WHEN	when the organisation demands greater accuracy because calculations are more precise and accurate.	limited availability of time , accuracy doesnt get effected due to production.
how cost is assigned	based on the products usage of the activities.	using a pre determined overhead rate.