Calicut University Bcom BBA 4th Sem Cost Accounting Important 2 mark Questions part 2

Summary

This transcript covers a variety of topics related to production and economic development. It starts by discussing the role of banks in economic growth, the importance of timekeeping in large enterprises, and methods of tracking worker hours. The discussion includes concepts like idle time, machine hour rates, and the costs of production. A focus is placed on budget control and cost analysis, emphasizing how businesses manage their resources to determine the cost of production and sales. The transcript offers insights into financial and operational management within large organizations.

Takeaways

• 😀 The role of banks in the economic development of a country is vital for growth and stability.
• 😀 Large enterprises typically have a separate time-keeping department under the supervision of a timekeeper.
• 😀 Timekeeping departments record the time spent by workers on various jobs.
• 😀 The method of time booking used in daily timekeeping can affect efficiency in production.
• 😀 Idle time refers to the difference between the total time a worker is at the factory and the time spent on actual work.
• 😀 Idle time is a key factor in understanding inefficiencies in a factory or production environment.
• 😀 Machine hour rate represents the cost of operating a machine per hour, essential for calculating total production costs.
• 😀 The machine hour rate helps to determine the cost per unit of output in manufacturing.
• 😀 The statement of cost of goods manufactured and sold is crucial for assessing production efficiency and profitability.
• 😀 Budgeting is a vital tool for controlling costs and ensuring financial planning in production.

Q & A

What role do banks play in the economic development of a country?

Banks play a critical role in the economic development of a country by facilitating the flow of money, providing loans for business expansion, supporting investments, and fostering entrepreneurship. They also help manage savings and provide financial services that contribute to overall economic stability.

What is meant by 'foreign' in the context of the script?

The term 'foreign' in the script seems to be a placeholder or possibly refers to an unrelated or external factor mentioned during the talk. Its context is unclear without further elaboration.

What is the purpose of a time-keeping department in large enterprises?

The time-keeping department in large enterprises is responsible for recording the time spent by workers on various jobs. This ensures that labor costs are properly accounted for and helps in accurate job costing.

What is the significance of idle time in the workplace?

Idle time refers to the difference between the time a worker spends in the factory and the time actually spent working on a specific job. It is an important metric for identifying inefficiencies and understanding labor costs in production.

How is idle time calculated?

Idle time is calculated by subtracting the actual time spent working on a job from the total time the worker spends in the factory. It helps in identifying periods when workers are not productive.

What does the machine hour rate refer to?

The machine hour rate refers to the cost of running and operating a machine per hour. It is essential for calculating the cost of production, particularly in settings that rely heavily on machinery.

Why is the machine hour rate important for businesses?

The machine hour rate is crucial for businesses because it helps in determining the cost of operating machinery, which is then factored into the overall production cost. This allows businesses to price their products accurately and efficiently manage production expenses.

What is meant by the 'statement of cost of goods manufactured and sold'?

The statement of cost of goods manufactured and sold is a financial document that outlines the total cost incurred in producing and selling goods during a given period. It helps businesses track production costs and set appropriate pricing for their products.

What is the purpose of a budget in a business context?

In a business context, a budget is used for control purposes. It helps in planning and managing financial resources by setting limits on spending, forecasting revenue, and ensuring that the business operates within its financial constraints.

What are the key disadvantages of idle time mentioned in the transcript?

The key disadvantage of idle time is that it represents unproductive periods in the workplace, leading to inefficiencies and higher labor costs. It can affect overall productivity and profitability if not managed properly.