Graded Discussion Board
Cost and Management Accounting (MGT402)
This is to inform that Graded Discussion Board (GDB) No. 01 will be opened on November 30, 2013 for discussion and last date for posting your discussion will be December 04, 2013.
Topic/Area for Discussion
This Graded Discussion Board will cover first 14 lessons.
dekha ab phir koi kh rha ha k fifo ha ar koi kh rha ha k fifo ni ha.ap sb sy request ha ap log apny concept k according is ko solve krien.confusion creat na krien.phely assignment b asy he confusion ke waja sy gult hui ha.m ny apni mind k according FIFO he choos kr k rat he post kr dia tha takay phir confuse na ho jaon.
GHULAM ABBAS pa g ap gdb ko gor sy read kro us ke requirement ko dekho phir ap ko smj ay ge k hm FIFO q use kr rhy hn
I already written case study answering itself....it is similar that instructor ask question 2+2=4, what is your answer with logical facts? So in case study there is No need of additional comments. But I don't agree that FIFO method would be favorable for company in this case. You are studying managerial issues and outcomes, everything must be different from other students to produce innovations with solid logical comments. Instructors would observe internal innovations with reading your rationale arguments.
the best Costing method for low cost of goods manufactured and sold is. FIFO because it result in low costs the things we first purchase are the ones to be first sold so in preparing a product only the first items will be used which result in low CGS and sold where as
if we compare this method to LIFO that will only increase cost of goods manufactured and sold due to material used for production at last the material we purchased at last and what is the gurantee that those material purchased at last are of low cost than compare to first one the one we purchased at begening....
and if we compare it with Weighted average than it will give the result that will fall between FIFO and LIFO not the results even if we know the cost of all items we purchased because we are averaging both the cost of item purchased of first and last.
If prices go up, FIFO will give you a lower cost of goods sold because you are using your older, cheaper goods first.
Your bottom line will look better to your investors, if you have any, but your tax liability will be higher because you have higher profit.
A positive about the FIFO method is that it represents recent purchases and, as such, more accurately reflects replacement costs.
guys hurry up discus the gdb and fine a favorable solution. don't stay on this answer nd plz discus it continuously.
If the prices fluctuate frequently, FIFO method may lead to clerical error.
1. Since each issue of material to production is related to a specific purchase price, the costs charged to the same job are likely to show a variation from period to period.
2. In the case of rising prices, the real profits of the concern being low, they may be inadequate to meet the concern's demand to purchase raw materials at the ruling price.
yar vu id hi open nhi ho raha, kiya overall technical problem hai ya just mera open nhi ho raha?