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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
Beginning inventory on March 1 consisted of 2,000 units each costing $11.20. During March, the following was purchased for inventory: Date Purchase
ASSUMPTIONS OF BREAK EVEN ANALYSIS 1. Fixed costs for all time remain constant. 2. All costs are divided into fixed and variable costs. 3. Selling price will not alter de
The CFO of ABC Municipality has heard of activity based costing and wants to execute it in the municipality. Because ABC involves a number of changes to how service costs are deter
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Fixed Costs Are costs such do not change along with of the level of output? It is also named as autonomous cost, as it stays the similar irrespective of the activity level as
what is the meaning of classification of cost in relation to variability?
Morrow Company applies overhead based on direct labor hours. At the beginning of the year, Morrow estimates overhead to be $620,000, machine hours to be 180,000, and direct labor h
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