1- Explain the nature and importance of a job cost sheet- 2- Distingui.docx

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1. Explain the nature and importance of a job cost sheet. 2. Distinguish among operating, investing, and financing activities. 3. Managersâ€™ activities and responsibilities can be classified into three broad functions. List and discuss each function. Solution 1)Importance of job sheet : Job sheet is used to calculate the cost of particular project or order.The object of job sheet is to determine The total cost and cost per job or unit . Nature of job sheet :The job sheet is the subsiduary ledger for the control account work in process. 2)Operating activities : It includes cash flow from operation of day to day activites such as sales , purchase . expenses , change in current asset aand liabilites. Investing activity : It includes business activities that involve buying and selling long term asset , Buying and selling of equity securities of other companies , making and collecting loans. Financing activity : It includes obtaining cash from issuing debt and repaying the amount borrowed ,obtaining cash from shareholders , repurchasing own shares and paying dividend. 3) Top management :manager at this level have responsibility for overall orgainsational performance covering multiple business activities. Middle level management : The manager at this level have responsibility for any particular business segment of total work of organisation. Lower level management : They are responsible for directly supervising the work of operational staff and form a link between them and management . .

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