AIOU SOLVED ASSIGNMENT 2 CODE 462 COST ACCOUNTING
Aiou solved assignment 2 for course code 462 cost accounting for B.Com students for autumn semester 2015 and spring 2016. Cost accounting has great scope which also discussed the budget. The master budget is a summary of company’s plans that sets specific targets for sales, production, distribution and financing activities. It generally culminates in a cash budget, a budgeted and a budgeted balance sheet. In short, this budget represents a comprehensive expression of management’s plans for future and how these plans are to be accomplished.
It usually consists of a number of separate but interdependent budgets. One budget may be necessary before the other can be initiated. More one budget estimate affects other budget estimates because the figures of one budget are usually used in the preparation of other budget. This is the reason why these budgets are called interdependent budgets.
The operational budget comprises sales, production direct material cost, direct labor costs, overhead, administrative and cost of goods manufactured. Some industries use these categories differently. For example, while a manufacturer has a production budget for making goods, a department store has a merchandising budget to buy from its suppliers. Each of these categories has its own budget, with sales being the most important component.
Students of B.Com whose are getting Bachelor degree from Open University can find there solved assignment # 2 for the subject code 462 cost accounting.