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C-V-P ANALYSIS – MULTIPLE PRODUCTS
The simple product CVP analysis can be extended to handle the more realistic situations where the firm produces more than one product. The objective in such a case is to produce a mix that maximizes total contribution. Total BEP units = Total fixed cost
Average CM
Here:αt is the sales mix of product t.St is the selling price of product tVt is the variable cost of product t.n is the number of units of product t sold BEPt units = αt (Total BEPunits)BEP tsh. = BEPt(units) xSt
The most ticklish difficulty that is faced through the finance manager is the resolve of the amount of working capital requirement at a specific level of production. To resolve thi
Your manager has informed you that the company is trying to determine if it should use a periodic system or a perpetual system in accounting for the inventory. He wants you to spea
Queuing problems There are two main approaches to queuing problems: • simulation • queuing theory formula Where simple situations apply, queuing theory should be used
MAKE A TRADING ACCOUNT
Proprietary ratio/ equity ratio Meaning: the ratio measures a relationship among proprietor's funds and the total assets. Objective: the objective of computing this ra
Operating cycle considers to the average time lapse among the acquisition of raw material and the final cash realization. This notion is used to determine the needs of cash working
EOQ mathematical model As costs of ordering and holding stock are equal at the EOQ point, we can build a simple mathematical model to solve the problem, as follows: (Q/ 2) X
Define the Balanced Score Card? 1. Distinguish between standard control and budgetary costing. 2. Define the ‘Balanced Score Card? Explain the steps in implementing ‘Balance
Discretionary fixed costs and Semi variable costs Discretionary fixed costs are those which are incurred as a result of management discretion. These costs have two importan
analyse the methods of capital investment appraisal
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