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Cost Behaviour
"Profitability is only around the corner." This is a general expression in the business world; you might have heard or said this yourself only. But, the reality is that number of businesses doesn't make it! Business is sturdy, profits are illusive, and the competition has a habit of moving into areas where profits exists. Sometimes, business owners become frustrated because of the revenue growth seems to bring the on waves of additional expenses, even to the point of going towards the back.
How does one sensibly consider the viability of the business? This is perhaps the most essential business assessment a manager should make. Most of us are taught from an early age to perform our best and not give up, even in the face of adversity. And, there are countless stories of businesses which struggled to survive their infancy, but went on to become extremely successful firms. But, it is equally vital to note that some business models won't work. You probably have heard tongue-in- cheek story of the car dealer who said he loses money on every sale but makes it up on the volume. Certainly, the math just won't work. A good manager should learn to use information to make informed decisions about which business prospects to follow. Managerial accounting methods/techniques provide techniques for evaluating the viability and the ability to grow or "scale" the business. These techniques/methods are called cost-volume-profit analysis (CVP).
Cowboy Constructions employs a full-time driver and incurs costs for a vehicle to deliver paperwork between each of their building sites. Select Couriers has offered to carry out t
Q. Show the Profit volume charts? A variation of a break-even chart, representing graphically the relationship between profit &losses at different levels of sales volume achiev
A Government issued a number of index-linked bonds on 1 June 2000 which were redeemed on 1 June 2002. Each bond had a nominal coupon rate of 3% per annum, payable half yearly in a
give informatiom
This is defined as an actual amount paid or incurred, as opposed to estimated cost or standard cost. In contracting, actual costs amount includes direct labor, direct material, and
Financial Statement Issues that are Unique to Manufacturers Different from the retailers, manufacturers have three exclusive inventory category: 1) Raw Materials, 2)Work in
Find Out the Cost per Unit Material A is added at the start of a production process. Overheads and Labor are added continuously throughout the production process. At the endi
Moore Corporation follows a policy of a 10% depreciation charge per year on all machinery and a 5% depreciation charge per year on buildings (the corporation uses the nearest full
visual fit cost estimation
A local government authority owns and operates a leisure centre with numerous sporting facilities, residential accommodation, a cafeteria and a sports shop. The summer season lasts
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