What are the advantages of contributionmargin analysis, Managerial Accounting

Assignment Help:

What are the Advantages of contributionmargin analysis

the concept of contribution is variable aid to management in making managerial decisions . a few benefits resulting from the contribution margin are given below :

1) It helps the management in the fixation of selling prices

2) It assists in determining the break -even points.

3) It helps management in the selection of a suitable product mix for profit maximization .

4) It helps in choosing from among alternative methods method which gives highest contribution per limiting factor is adopted

5) It helps the management in deciding whether to purchase or manufacture a product or a component

6) It helps in taking a decision as regards to adding a new product in the market .

 


Related Discussions:- What are the advantages of contributionmargin analysis

Cyclic chains-recurrent state, Cyclic Chains: In Markov Chains the cur...

Cyclic Chains: In Markov Chains the current state of the system depends on all previous states. It is a stochastic process.  Sometimes transition probability matrices are diff

Consistent Descion framing, What does it mean when we say consistency is th...

What does it mean when we say consistency is the central feature of economic rationality?

Advantages of marginal costing, Problem Marginal costing plays a major ...

Problem Marginal costing plays a major role in making certain decisions. It provides information to management regarding the behaviour of costs and the incidence of such costs

What are the characteristics of product life cycle, Characteristics of prod...

Characteristics of product life cycle The major characteristics of life-cycle concept are as follows: 1) The products have finite live and pass by the cycle of development i

Determine how the airline company has grown, From the subsequent financial ...

From the subsequent financial data describe: a) How the airline company has grown-up b) How the company has been capable to earn grater margins at higher levels of sales

CVP, What is cvp?

What is cvp?

Interest rate and dividend, Compute the ‘fair' value of the two nearest to ...

Compute the ‘fair' value of the two nearest to expiration futures contracts on the Hang - Seng Index (HSI) using HSI as the underlying asset Answer the following questions: a

Strategic plan, How to write introduction on strategy plan

How to write introduction on strategy plan

Carrying costs of inventory-relevant costs of eoq model, Carrying costs of ...

Carrying costs of inventory These are costs incurred because the firm has decided to maintain inventories. They generally consist of: •    Stock-out costs •    Insurance co

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd