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Zero Based Budgeting
It is referred to also like priority based budgeting. It is a cost advantage approach budgeting where it is assumed that the cost allowance is Zero for any item till the manager responsible justifies its existence in terms of costs and benefits.
CIMA definition: it method of budgeting whereby all activities are re-evaluated each time the budget is set. It is concerned along with alternative implies that established activities have been compared along with alternative employs of the same resources.It takes away the implied right of existing activities to continue obtaining resources unless they can be implies to be the best employ of such resources.
how variable cost help in decision making.with suitable example
#question.ABC Corportaion produces and sell two products. In the most recent month, Product 123 had sales of $33,000 and variable expenses of $15,840. Product 245 had sales of $42,
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What is the major value of the weighted cost of capital calculation for the firm?
Identify and explain many classification of costs for planning, control, performance evaluation and decision making.
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Multiple Products, Selling Costs, and Margin Management Selling charge are oftentimes variable. For instance, a salesperson can be paid a designated percentage of entire sales
Standard Cost A predetermined cost is representing the ideal or norm achievable through an organization. Standard costs form the basis of a standard cost system used extensivel
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