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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 despite competition.
4. Variable costs SVD change in direct proportion to production.
5. There is no alteration in common price level.
6. There is no alteration in operating efficiency.
7. Quantity of production is the only affecting factor.
8. Quantity of sales and volume of production are equal.
9. Only one product or sales mix is same.
Allocation of Joint Costs Whereas two or more products of relatively high value emerge simultaneously from a single process, they are named as joint products. The processes s
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What do you mean by differential costing ? How it differ from marginal costing ? explain its practical application with examples?
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