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CONTRIBUTION: It is the variation between the marginal cost of sales and sales and it contributes towards fixed profit and expenses. It is differ from the profit which is the net gain in activity or the extra and remains after deducting fixed expenses from the entire contribution. In marginal costing, the idea of contribution is very essential as it helps to observe the profitability of a product, department or division, to have a better product mix, for maximize the profits and profit planning to of a concern.
Contribution = Sales - Variable cost (or) Fixed cost +Profit (or) Fixed cost - Loss
Decision Making Cycle Steps in decision-making cycle are as: a) Clearly define the objective that is to be the focus of the decision. This is significant in order that the
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diff between cost estimation and cost accounting
Both the parts, Profit and Loss Account and Trading Account of last account are interdependent upon each other. Gross Profit or loss plays a very important role in the calculation
Dixon Corporation was established on January 1, Year 1. The firm has 2 divisions, Division A and Division B. Division A manufactures standard carpets, and Division B manufactures
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.
It may be dispute that in a total quality environment, variance analysis from a standard costing system is redundant.í Talk about the validity of this statement.
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Marginal Cost Marginal cost is the change in a firm's cost of production. It is related to a unit change in its output, or the added cost of producing the next unit. The margin
The vice president of operations of six layer computer Inc. is evaluating the performance of two divisions organized as investments centers. Invested assets and condensed income st
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