Algebraic analysis, Managerial Accounting

Assignment Help:

ALGEBRAIC ANALYSIS

The supposition of linear cost behavior allows use of straight-line graphs and simple linear algebra in cost-volume study.

The net cost is a semi-variable cost—few of the costs are fixed, a number of costs are variable, and others are semi-variable. In study, the fixed component of a semi-variable cost can be treated similar to any other fixed cost. The variable component can be treated similar to any other variable cost. As an outcome, we can state that:

Total Cost = Fixed Cost + Variable Cost
          
By using symbols:
               
C = F + V


Here:

C = Total cost
F = Fixed cost
V = Variable cost

Net variable cost based on two elements:

Variable Cost = Variable Cost per Unit x Volume Produced
           
By using symbols:

V = Vu (Q)

Here:

VU = Variable cost per unit
Q   = Quantity (volume) produced

Replacing this variable cost information into the fundamental total cost equation, we have the equation employed in cost-volume study:

C = F + VU (Q)


Related Discussions:- Algebraic analysis

Account analysis-high low method-cost estimation method, Account analysis (...

Account analysis (Inspection of accounts) method: This method requires that departmental managers and the accountant inspect each item of expenditure within the accounts for s

What is sunk cost, What is Sunk cost A cost has been incurred in the p...

What is Sunk cost A cost has been incurred in the past or sunk in the past and is not relevant to the particular decision making, is a sunk cost. If it is decided to replac

Corporate Governance., Discuss the dominant compensation philosophy, share ...

Discuss the dominant compensation philosophy, share value creation and the link between company size and executive pay. Solve Parmalat''s case, which may be found in reading No. 8.

What is the scope of waste heat boilers, What is the Scope of Waste heat bo...

What is the Scope of Waste heat boilers This specification covers the minimum requirements for the design, material selections, fabrication, testing and inspection of shop- / o

State the opportunity cost, State the Opportunity cost The net selling ...

State the Opportunity cost The net selling price, rental value or transfer value which could be obtained at a point in time if a particular asset or group of the assets were to

Explain the objectives of management accounting, Explain the Objectives of ...

Explain the Objectives of management accounting? 1. Planning and policy formulation: the object of management accounting is to supply necessary data to the management for fo

Management accounting , Management Accounting 1) Which is concerned wi...

Management Accounting 1) Which is concerned with provision of information to people within the organization to help them make better decisions? Management accounting is concer

Define inputted cost, Determine the Inputted cost It is hypothetical c...

Determine the Inputted cost It is hypothetical cost required to be considered to make costs comparable. It is the owner of the factory charges rent of the factory to the cost

Marginal costing variances, reasons for favourable or adverse variances i....

reasons for favourable or adverse variances i.e. prise usage, mix, yeild

Homework.., given the above data what would the breakeven in units and doll...

given the above data what would the breakeven in units and dollars be if u wanted a necessary after tax profit of $ 36,000 (assume a 30% tax rate ) units __________ ales dollars _

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