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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.
Role f marginal costing in management information system
Variable costs are the cost that are directly proportionate with the quantity of manufacture and or directly associated with the service.
Purposes of standard cost accounting connection - suppose you were a management consultant and the client asked you the advantages and disadvantages of using standard costs and cos
Limitations of Budgeting 1. Too mush reliance may reason resistance or inflexibility to change. 2. Difficult to set levels of attainment. It may result into too tight budg
priple of accounting
These balances for a company x Raw materials $40,000 Work in process $30,000 Finished goods $60,000 for the current year the company estimated that it would work 150.000 mach
Classification of Labour Costs This can be classified into like: a) Indirect or Direct cost b) Variable or Fixed cost c) Non controllable and controllable cost a)
Q. Given the below, partial bond accretion table, what was the market rate of interest when the bond was issued? Cash Interest
Below find production and sales information for Herrestad Company. We will use this same company for all the SLPs in this course. Product information
Material Price Variance (MPV) This may be described as the difference amoung the actual price and the standard price of the materials consumed. MPV = Actual quantity used (S
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