Production Bugets
A-Vic
Registered Posts: 6,970 Beyond epic contributor 🧙♂️
ive not come across this but just in case - say in the production budget 10% are faulty goods but have a scrap value of half the price do you just produce demand and add the amount made in scrap value to sales?
0
Comments
-
The way i remember it is.
If 10% of your finished goods are faulty then the demand figure needs to be 90% of your production.
For example if the demand was 100 apples, you would have to produce (100/90x100) 111 to be able to have a 10% loss of 11 apples to bring the total back to 100 to sell.
The strapage of 11 apples would then gain a scrap value which could be added to sales.
If you had a demand for 256 shoes, you would have to produce (256/90x100) 284 to provide for the 10% loss of 28.
N.b. in the above examples i have rounded down, in reality you would round up as you would require a full one of something rather than a fraction.0 -
Was ok on the actual budget calculation just wondered on the scrap value not come across any with a value but had to make sure you just add the figure to sales.
Thanks Jo0
Categories
- All Categories
- 1.2K Books to buy and sell
- 2.3K General discussion
- 12.5K For AAT students
- 325 NEW! Qualifications 2022
- 160 General Qualifications 2022 discussion
- 11 AAT Level 2 Certificate in Accounting
- 56 AAT Level 3 Diploma in Accounting
- 95 AAT Level 4 Diploma in Professional Accounting
- 8.8K For accounting professionals
- 23 coronavirus (Covid-19)
- 273 VAT
- 92 Software
- 274 Tax
- 138 Bookkeeping
- 7.2K General accounting discussion
- 202 AAT member discussion
- 3.8K For everyone
- 38 AAT news and announcements
- 345 Feedback for AAT
- 2.8K Chat and off-topic discussion
- 582 Job postings
- 16 Who can benefit from AAT?
- 36 Where can AAT take me?
- 42 Getting started with AAT
- 26 Finding an AAT training provider
- 48 Distance learning and other ways to study AAT
- 25 Apprenticeships
- 66 AAT membership