Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Cash discount is given to buyers to bring them to make prompt payment. The credit terms identify the percentage discount and the period throughout which it is obtainable. Liberal cash discount policy implies that either the discount percentage is raised or the discount period is raise. This leads to improved sales, reduce in average collection period and increase in cost. The consequence of this on net profit can be estimate through the equation 3.
?NP = [? S (1 - V ) - ?DIS ] (1 - t ) + k?I
Here I = Savings in receivables investment
? DIS = Increase in discount cost
? I = S0/360 (ACPn - ACP0) - V (ACPn)( ?S/360)
? DIS = Pn (S0 +?S) dn - P0S0d0
Here Pn = Proportion of discount sales after liberalizing the discount terms.
S0 = Sales before liberalizing the discount terms
? S = raise in sales
dn = New discount percentage
P0 = Proportion of discount sales before liberalizing the discount terms
d0 = Old discount percentage
Steps of Graphic Analysis There are four steps in using graph paper to study cost-volume relationships: Step 1: Compute the scale which you will use: Volume is considered
Assignment help
Explain the External factors of pricing decisions 1) Demand: the market demand for a product or service obviously has big impact on pricing. Since demand is affected by fact
Types of Non-Controlled Variables a) Parameters: These are input variables that for a given simulation have a constant value. They are factors which help specify the relat
Significance points of Variance The following significant points must be kept in mind: Controllability: Controllability should also influence the decision whether t
The least-cost method The process is described as follows: Assign as much as possible to the variable with the least unit cost in the whole tableau. (Ties are broken randomly).
full explaination with diagram
State the factors of CVP The three factors of CVP analysis I e cost volume and profit are interconnected and dependent on one another . for example profit depends upon sales se
Scorecard The traditional approach to the monitoring organizational performance has focused on the financial measures and the outcomes. Increasingly, companies are realizing th
What is Budgetary control Budgetary control is the process of determining various budgeted figures for the enterprises for the future period and then comparing the budgeted fi
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!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd