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DEMERITS OF BREAK EVEN POINT
1. It pays no attention to considerations like effect of government policy changes, changes in the marketing environment etc
2. Fixed cost, entire costs cannot be represented as straight lines
3. It is hard to handle advertisement expenditure
4. Semi-variable costs are ignored
5. It ignores economies of scale in production
6. Fixed costs also may alter in the long run
7. Volume of production and volume of sales are for all the time not identical
8. Selling price may or may not be the identical
Accounting Treatment of Spoilage Costs 1) Normal Spoilage Costs: These costs are assigned to the good output utilizing two approaches as: (i) Omission Approach: Under th
sales to profit volume ratio for three year
Using the information provided prepare the four financial statements for inclusion in Plantagenet Ltd's Annual Report dated at its balance date of 30th June 2011. The statement
Bugga Corp expects to sell 3,000 units in October, and expects sales to increase 20% each month thereafter. Sales price is expected to stay constant at $8 per unit. What are budge
types of operating costing
You want to save $40,000 for a down payment on a new home. You expect to save $7,000 per year, be in the 25% tax bracket and hope to earn 4% on your investments. How long (in mon
SALES REVENUE VARIANCE (SRV) The word 'Sales Variance' is indicated by the expression 'operating profit variance due to sales' by ICMA. It is described as 'the difference betw
Idea behind Activity-Based Costing The most important ideas behind activity-based costing are as given as: Activities cause costs; activities involve ordering, ma
KIW Ltd currently orders Material B in batches of 2,500 kgs. Material B is consumed at a steady, known rate over the company's planning horizon of one year. The current usage is 40
to determine product cost:
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