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DEMERITS OF BREAK EVEN POINT
1. It pays no attention to considerations like effect of government policy changes, changes in the marketing environment etc
2. Fixed cost, entire costs cannot be represented as straight lines
3. It is hard to handle advertisement expenditure
4. Semi-variable costs are ignored
5. It ignores economies of scale in production
6. Fixed costs also may alter in the long run
7. Volume of production and volume of sales are for all the time not identical
8. Selling price may or may not be the identical
Critically evaluate the product costing and pricing practices actually in use in modern manufacturing organisations inany of the three countries in the Asia Pacific region, prefera
Image Is Everything, Inc. (IIE) is located in an emerging market. It specializes in lithographic duplication, catering to demands from the nouveau riche for reproductions of paint
Match the items below by entering the appropriate code letter A. Controller B. Deficit C. Payout Ratio D. Stock Dividend E. Declaration Date F. Preemptive right G. Par Value H. L
Campground Inc. is considering the production and sale of propane lamps. Annual fixed costs associated with the project are expected to total $60,000. In addition, each lamp would
prepare a trading and profit and loss accounts for the period using marginal costing and absorption costing
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GZ Inc. manufactures two products that require both machine processing and labor operations. Although there is unlimited demand for both products, GZ could devote all its capacitie
PROFIT VARIANCES Sales variances are important as they have a direct bearing on profits earned by the organization. thus, they can be used as the basis of determining profit
Q. Issues to consider when making decisions? At activity level A it can be seen from diagram that sales revenue line intersects the total cost line specifying that this is the
Accounting for Labour costs We will contain an overview of accounting for labour costs as: a) Gross Earnings It is illustrated as item A that appears like a credit i
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