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Changes in Variable Cost and Selling Price per Unit
The contribution sales ratio is affected by any change in variable cost or selling price per unit. This ratio is a measure of the rate at which profit is being earned and its size demonstrated via the steepness of the slope of the profit volume graph
Line xy displayed the existing profit curve for a company
Fixed costs = OY
The profit at sales volume OS = SX;
Break-even point happens at point B and the margin of safety = M
A rise in selling price and/or a falls in variable cost per unit will rises the contribution; sales ratio resulting in a new point curve yx
A falls in selling price and/or increase in variable cost per unit will decrease contribution; sales ratio resulting in a new profit curve yx2.
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
Methods of Allocating Service Costs Direct Method The service costs are merely allocated to the production department according to the usage of the services given. St
Discuss the advantages and disadvantages of designing an IC using VHDL and synthesis compared with the traditional design approach using schematic capture, simulation and layout.
What is labor costing,what are the problems involved in labor costing
determine the break even point
A machine costing $210,400 with a four-year life and an estimated $20,000 salvage value is installed in Luther Company's factory on January 1. The factory manager estimates the mac
scope and limitations of product costing
You are the manager of a firm that sells output at a price of $40 per unit. You are interested in hiring a new worker who will increase your firm's output by 2,000 units per year.
with relevant illustrations and examples, discuss the different overhead costing and control method.
Financial Accounting It is the analysis, and recording and classification of financial transactions and the ascertainment of how that information will be reported to the diffe
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