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Q. Explain Break-even analysis?
Cost-volume-profit (CVP) analysistracks that how profit changes when there are changes insales price, variable costs, fixed costs &quantity.
It is a good illustration of "what if? "Analysis and it in particular looks at sales minus variable costs which is termed as contribution.It permits management to understand the level of sales needed to cover all costs of a project and what level of sales is required start making profits.To break even would mean that an organisation would be earning no profit and no loss.
Sales revenue = All variable and fixed cost
Main assumptions in this model are thatfixed costs, selling price and variable costs are constant.
the folloeing job order cost sheets were purchased for three jobs that were in production during january job 97 job 98 job 99 material
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The difference among "cost accounting" and "financial accounting are terms demote to the accounting techniques used internally by a company's management to explain the costs of run
Variable costs are the cost that are directly proportionate with the quantity of manufacture and or directly associated with the service.
Margin of safety Measures the sensitivity of budgeted sales volume compared with break-even sales volume. The difference between level of sales activity achieved and level of s
wont questions on it and a valuable answer
Pritchard Company manufactures a product that has a variable cost of $30 per unit. Fixed costs total $1,500,000, allocated on the basis of the number of units produced. Selling pri
what is cost center?
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