1. An entrepreneur in the agricultural sector also wants to determine the cost of production for a particular period such as the cost of all used materials, labor costs, and other overhead costs.
2. Cost information is important to help them control spending, set reasonable sales prices, and assess the profit margins of their production.
Mr. Choo rented a piece of land on Fraser Hill to carry flower planting. The following information was quoted from his book on 30 June 1999.
- Farm equipment is depreciated at 10% per annum
- The payment rate for June 1999 of RM78 remains unpaid.
You are required to provide a cost statement for Mr Choo for the year ended 30 June 1999