Costs that occur in financial institutions are to be identified with appropriate activities that have caused its occurrence. Then costs must be reassigned from activities to cost objects (various loan products offered by the organization, customers, etc.) based on identified cost drivers. Information Technology and Information Technology Enabled Services organizations in cinema halls composite cost unit is provide their customers with services or intangible products internally and externally both. These organizations are highly labour intensive and constitute a significant portion of the total operating costs. A enterprise takes all costs and expenditures that it needs to produce a quantity of products or services, and then divides these amounts by that quantity.
- Limitations of financial accounting have made the management to reduce the importance of cost accounting.
- Naturally, the fee unit relies upon upon the service provided, e.g. tonne-km, passenger-km, patient-day, scholar-hour, and so forth.
- Another point raised related to applicability of service tax on inter-connectivity services provided by one ISP to another and the charges recovered for such services.
- If the financial institution has to survive under the present challenging economic conditions, it will have to add value to its products and services.
- The cost drivers may include no. of hours spent on processing of an application and claim processing, no. of application, no. of policy, no. of claim etc.
A protective Al2O3 layer was confirmed for Fe-22Al alloy containing carbon only. However, an additional TiO layer was also observed in Fe-22Al alloy containing carbon with Ti addition. The microstructural and XRD examinations revealed that this additional TiO layer protects better against penetration of corrosive media.
If a unit have been priced at $3 per unit, there would be a loss because $three minus $4 is a lack of $1 per unit. Private and public firms account for unit prices on their financial reporting statements. In this sense, compute it as price of goods out there for sale divided by the variety of units obtainable on the market.
Especially over the lengthy-time period, average value normalizes the fee per unit of production. It additionally smooths out fluctuations attributable to seasonal demand modifications or differing levels of manufacturing effectivity. A service, which does not constitute for a customer an aim in itself but a means of better enjoying the principal supply, is considered as a supply ancillary to the principal supply. User means the person accessing the website and availing the online booking facility. Therefore, it is evident that failure to pay tax is not a justification for imposition of penalty.
Furthermore, manufacturing economies of scale can decrease the threat of new entrants into the industry. Total cost in the easiest terms is all the costs incurred in producing one thing or partaking in an exercise. In economics, total cost is made up of variable prices + mounted prices. There is, therefore, no manner of doubt that the essential characteristic of the arrangement under consideration in these appeals is availing the facility of online booking of ticket and not accessing/retrieving any data/information. Service tax under the category of OIDAR, therefore, cannot be levied upon a user merely because he receives a code for getting a printout of the ticket from the cinema hall. It has now to be seen whether the convenience fees that is charged by the appellant from each user over and above the prescribed value of the movie ticket can be subjected to service tax under OIDAR.
Dominant intention for charging fees is to grant facility of online booking like convenience/facility of online booking and not for access/retrieval of any data or information. It would not mean that such fee is charged for providing information/data. The method of costing refers to a system of cost ascertainment and cost accounting. Industries differ in their nature; in the products they produce and the services they offer.
Also, the word “suppression‟ in the proviso to Section 11A of the Excise Act has to be read in the context of other words in the proviso, i.e. “fraud, collusion, wilful misstatement”. As explained in Uniworth , “misstatement or suppression of facts” does not mean any omission. In other words, there must be deliberate suppression of information for the purpose of evading of payment of duty. It connotes a positive act of the assessee to avoid excise duty. These two issues raised by learned counsel for the appellant are being separately dealt. The issue relating to extended period of limitation shall be first dealt.
Discuss Aristotle’s view of literature as imitation.
The whole price for a period divided by the items processed in that period offers the price per unit in that process. Several price centres are there, even when there is only one product or service provided.Different price units for various services or products. The calculation of the unit cost of manufacturing is a breakeven level. This price types the bottom stage value that a company makes use of when determining its market value value.
Batch costing is adopted by manufacturers of biscuits, prepared-made clothes, spare components medicines and so forth. The major objective of unit costing is the ascertainment of cost per unit. It is adopted by the item of analyzing the cost of each component and its share within the total cost.
Taguchi analysis was used to optimize the parameters of this investigation for obtaining high tensile strength. An orthogonal array, L9 was applied and analysis of variance was done to explore the importance of process parameters on various response. Some links within the website may lead to other websites, including those operated and maintained by third parties. The Company includes these links solely as a convenience to you, and the presence of such a link does not imply a responsibility for the linked site or an endorsement of the linked site, its operator, its contents or under RERA. The Delhi Mall will offer a lifestyle yet unseen in Delhi NCR where shopping sprees, watching movies, or food binging urges can all be catered to at the heart of Delhi. Located in the heart of Central Delhi on Pusa road, The Delhi Mall is planned to be the most happening commercial building of central/west Delhi.
Once variable and glued prices are identified, items have to be identified. This could appear easy enough, however there could possibly be optimum unit values that are not essentially equal to a single product. Since money can serve as a unit of account, it’s divisible without dropping its worth, and can also be fungible and countable.
Additionally, cash as a unit of account permits us to make use of the same ruler to measure the price of products, revenue, expenses, income, losses, debt, and wealth. If the value per unit on your major merchandise may be decreased, your income go up. When your profits enhance, you may need to discontinue sure product lines or cut back manufacturing, till your costs stabilize.
Transcript of Cost Accounting B.com.(hons.) Semester-VI … MULTIPLE CHOICE QUESTIONS … SHORT ANSWER-TYPE…
The cost unit to be applied needs to be defined carefully and frequently, a composite cost unit may be deemed more appropriate. The particulars on the website mention details of the projects/developments undertaken by the Company including depicting banners/posters of the project. The contents are being modified in terms of the stipulations/recommendations under the Real Estate Regulatory Act, 2016 and rules made thereunder and accordingly may not be fully in line thereof as of date. Till such time the details are fully updated, the said information will not be construed as an advertisement. To find out more about a project / development, please telephone our sales centre or visit our sales office during opening hours and speak to one of our sales staff.
It needs to be noted that the purpose of the transaction is to book and procure a ticket online by a user, though the website may provide for various other information like the current movie being exhibited, the upcoming movies and the timing of the movies. These information are even otherwise available through newspaper advertisements or other advertisements and no charge is leviable for the same. The Commissioner, while confirming the demand under the extended period of limitation, observed that the Department was never made aware about the convenience fees received by the appellant and, therefore, the appellant had suppressed facts. The Commissioner also observed that mere suppression of facts is enough for invoking the period of limitation and there is no requirement of any intent to evade payment of service tax. As noticed above, the appellant exhibited movies through cinema halls. It sold tickets from the cinema ticket window as also through its website, which could be accessed through computer and mobile phones.
When the tickets are booked electronically, the hard copies of the same can either be collected over the counter or be retrieved by way of print out from a machine kept outside the counter of the movie hall. Fixed prices don’t change with production ranges, whereas variable costs do fluctuate. From the company’s general monetary perspective, this can be accurate, however it doesn’t reflect the effectivity of manufacturing in the course of the period by which the capital purchase is made. This variation of unit price is commonly referred to as the cost of items sold, or COGS. The unit price is the value incurred by an organization to provide, retailer and promote one unit of a specific product. Unit prices embrace all fixed prices and all variable costs involved in manufacturing.Cost unit is a type of measurement of quantity of production or service.
The Company will not be accepting any bookings or allotments based on the images, material, stock photography, projections, details, and descriptions that are currently available and/or displayed on the website. The company reserves the right to add, alter or delete material from the website at any time and may, at any time, revise these terms without notifying you. You are bound by any such amendments and the company therefore advise that you periodically visit this page to review the current terms. Learning tips on how to calculate the cost-per-unit will information you through many key enterprise decisions and, hopefully, assist you to develop revenue.
All public firms use the commonly accepted accounting rules accrual technique of reporting. These companies have the responsibility of recording unit prices on the time of production and matching them to revenues through revenue recognition. As such, goods-centric companies will file unit prices as inventory on the steadiness sheet at product creation. When the event of a sale occurs, unit costs will then be matched with income and reported on the earnings assertion.
PVR Limited Vs Commissioner of Service Tax (CESTAT Delhi)
A question has been raised as to whether e-commerce transactions are covered in the ambit of service tax. It is clarified that in e-commerce transactions, no service of online information and database access/retrieval is involve. Therefore, e-commerce transactions will not ordinarily be covered under the service tax net. Normally, the web sites do not charge the surfers for information of sale of goods or services offered by them.
Unit costs are synonymous with the cost of goods bought and the cost of gross sales. In cost accounting, unit of services or products for which cost is computed. Cost units are chosen to permit for comparison between precise value and normal price, or between totally different precise costs. The Terms and Conditions of online booking facility do not mention that the essence of the contract is for accessing or retrieving any information or data. Infact, the terms are restricted to the facility of online booking.
Cost unit is different for electricity generation and steam generation. Direct- Commission paid to agents, claim settlement, cost of valuation, premium for re-insurance, legal and other costs etc. One-time fees such as Admission fee, Development fee, Annual fee etc. Cost unit for Passenger transport organization is Passenger– Kilometer – that means cost of carrying one Passenger over a distance of one kilometer. Total cost is averaged over the total amount of service rendered. Abstract Urinary tract infection is a public health concern, estimated to cost billions of dollars in diagnosis and treatment every year.
Once the booing has been processed, the user will receive a confirmation e-mail to their e-mail address with all the relevant details of their booking. PVR is not responsible and will not issue a refund to the user for selecting the wrong tickets or if the user does not meet the minimum age requirements for that particular film. The online booking is non transferable and cannot be further sold. A nominal “convenience fee” shall be charged from each user over and above the prescribed value of the ticket. This convenience fee shall be in lieu of the convenience given to the user by PVR and shall not form a part of the value of the ticket.
It is, therefore, clear that even when an assessee has suppressed facts, the extended period of limitation can be invoked only when “suppression‟ is shown to be wilful with intent to evade the payment of service tax. These overheads are recovered on predetermined rate for cost accounting functions. Under this method, the entire prices incurred is divided by total manufacturing to find out the cost per unit. That was a reasonably straightforward problem, so what if I mix it up slightly for you? Let’s say Company A had a manufacturing line that was down for a time period so it only produced half of the variety of units in July as it did in June. The first part of an organization’s income statement focuses on direct prices.