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Cost Units - Terms Used in Cost Accounting
It is the quantitative units of the service or product in relation to those costs are ascertained. The cost unit will be determined through the nature of the business enterprise. It might be as:
1. A service is given to the customer
2. A unit of production expressed like a relevant quantity
3. An individual job, contract or batch.
Single Limiting Factor Where a single limiting factor exists for the decision making sequence may be implemented given as:- - Compute the contribution per unit of limiting
USES O F CVP ANALYSIS 1. .It allows preparation of flexible budgets. 2. It provides help in forecasting accurate profit. 3. It aids in formulating price policy. 4
a partial income statement
Variable Costs Are costs such raise or fall proportionately along with the level of activity that is such portion of the cost of an activity which changes along with the leve
explain fully the concept of the cost.how does cost accounting contribute to the effective and efficent management of an industrial established?
1. A fellow student says to you: "The statement of cash flows is the easiest of the basic financial statements to prepare because you know the answer before you start. You compa
How do I figure the estimated activity and estimated allocation base?
Features of Effective Cost Center Framework During the establishing cost centers, an organization must consider the given points as: a) Clear definition about the cost cent
Marginal Costing and Marginal Cost Marginal Costing is an optionally method of costing to absorption costing , In marginal costing, merely variable costs are charged like a
examples of industries using this method
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