Question

Please solve in another way, especially for me only because it is a previous answer that reached a student and was published

cost accounting 1

4 Q4. Mr. Jalal and Mr. Jameel both are working as a cost accountant in "Oman Transport" which is logistic service providing company. Cost sheet of January 2019- December 2019 showed cost of logistics service providing was excess. Both of them are planning to reduce the cost of logistics service to attract new customer. For reducing cost, they have to control the overheads. You are required to explain various overheads classification in transportation, logistics service providing business with appropriate example. (5 Points with appropriate example of logistic and transport service - 5 Marks) Answer:

Answer 1

140 LIC classification of overheads Generally, overheads according to mall be classified 1 Nature variability 3. Control No emality classification. according to Nabure. on the basis of nature of overheads expenses are classified into: Indirect materials Material cast, which can't be allocated to finished product but which are to be appontioned to or absorbed by Cast i) Indirect labour a labour cost which can't be allocated to a Particular unit byt which are to be apportioned to on absorbed by Cost Centres on Cost units. i) Indirect Expenses > Expenses which, Can't be allocated bit which are to be apporpioned to ou abscobed' by Coast Centues 04 634 units. > Forum a

LIC classification according to variability on the basis of variability, overheads may be classified into y Axed overheads - These are Costs that remain waffected or fixed in total amount and do not Vary with changes in the volume of output i variable overhead & These are costs that tends to vary in direct proportion to changes in volume of output. Total variable Cast tend to Vasly directly with the volume of output while it is thely to demain fixed per unit at all levels of output. y Serra-Variable overheats - These are Casts tot is partly fixed and partly variable Semi-variable oretreats may remain Constant at certain level In the proportion of changes in output. they vary at other levels, but not classification according to Cart wol on the basis of Control, overheads are classifed into Controllable casts These are costs that Can be controlled by the management through

भारतीय जीवन बीमा निगम INSURANCE CORPORATION OF INDIA & LIC efficient use of Hesawlles like idle time, wastages e.t.o. Hi) On Controllable costs These are casts which is not under the control of management. All fred expenses are uncontrollable costs. la classification acording to Formality on the basis of normality, overheads be classhed into: i) Normal costo - These are expected to be incurred in the process of output and are unavoidable 1) Abroimal Gsto → These age not exipected to occus in the process of production. may