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Question:
(a) A retail store wants to evaluate how many units it must sell in order to earn a profit of Rs 10000 per month if the price of the unit is Rs 300, the average variable cost is Rs 100, and the fixed costs are Rs 5000 per month. If the store prices the unit at Rs 350, would that make a difference? On the other hand, if the price is Rs 350 and the variable costs fall to Rs 85 would that make a difference?
(b) What do you understand by ‘Marging of Safety'?
(c) Describe how the determination of the Break Even Point can help for planning purposes.
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If a company creates sales to a number of customers on credit terms this will have to wait for two or still three months before its debtors pay that they owe. It means that the deb
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
solution to problem 2-23,T-Accounts;applied overhead of Kleinman Company is a manufacturing firm and employess a job-order costing system.
Implementation of ABC analysis The following steps are included in implementing the ABC analysis: 1. Categorize the items of inventories, establishing the expected use in un
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MULTIPLE REGRESSION The least square regression equation discussed above was based on the assumption that total cost was determined by only one activity based variable. However
do you write a case study regarding this topic?
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