Question
Which category do Bad debt fall
under? Refer to the following information to answer the next 4 questions (Q15 to Q18) Overheads are indirect costs that cannot be directly traced to specific products or services but are necessary for the overall operations of a business. These costs include various types of expenses such as administration, production, selling, and distribution overheads. Each category of overheads plays a distinct role in the functioning of a business. Accurate classification and allocation of these overheads are crucial for effective cost accounting, enabling businesses to determine the true cost of their products and services and make informed financial decisions. Understanding how to allocate and manage these overheads helps in analyzing the profitability and efficiency of different segments of the business, ensuring better financial control and strategic planning. The process of cost allocation involves assigning costs to cost centers or cost units, ensuring that each segment of the business is charged with its relevant expenses. This helps in analyzing the profitability and efficiency of different segments of the business, ensuring better financial control and strategic planning. Overheads also impact financial accounting, as adjustments for under-absorption or over-absorption need to be made to reflect the actual costs incurred. Understanding how to manage these overheads aids in financial analysis, budgeting, and forecasting, ultimately contributing to the overall financial health and sustainability of the business.Solution
Bad debts are classified as selling overheads because they are costs that arise from extending credit to customers, which is part of the sales process. These debts are recorded when customers fail to pay the amounts owed, impacting the overall expenses related to selling products.
A tank can be filled by two pipes, A and B, in 15 minutes and 20 minutes, respectively. Both pipes are opened together, but after 5 minutes, pipe A is c...
Taps Q and R can fill a tank in 24 minutes and 32 minutes, respectively. The efficiency of tap S is 75% greater than that of tap Q. If tap R's efficienc...
Tap A and Tap B fill a drum of volume 408 liters in 12 minutes. If their efficiencies are in the ratio x:y respectively and B alone takes to fill the ci...
Pipe A can empty a completely filled tank in 40 hours. Pipe B and A together can fill an empty tank completely in (z+4) hours. The efficiency of pipe B ...
Two pipes X and Y can fill a cistern in 21 hours and 24 hours, respectively. The pipes are opened simultaneously, and it is found that due to a leakage ...
Pipe A and Pipe B together can fill the tank in 32 hours. The capacity of the pipe A is 25% of the capacity of the pipe B. How much time will pipe B alo...
Pipes 'J' and 'K' can fill a tank in 12 hours and 18 hours respectively, while pipe 'L' can empty it in 36 hours. All pipes are opened together when the...
If a tank can be filled by a tap in 12 hours, but due to an outlet, it actually takes 6 hours longer to fill the tank, find the duration in which the ou...
- There are two inlet pipes 'A', 'B' and one outlet pipe 'C' in a tank. ‘A’ and ‘B’ can fill the tank in 24 minutes and 16 minutes respectively. ‘C...
A cistern has two pipes one can fill it with water in 24 hours and other can empty it in 9 hours. In how many hours will the cistern be emptied if both ...
