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DEMERITS OF BREAK EVEN POINT
1. It pays no attention to considerations like effect of government policy changes, changes in the marketing environment etc
2. Fixed cost, entire costs cannot be represented as straight lines
3. It is hard to handle advertisement expenditure
4. Semi-variable costs are ignored
5. It ignores economies of scale in production
6. Fixed costs also may alter in the long run
7. Volume of production and volume of sales are for all the time not identical
8. Selling price may or may not be the identical
Question: At the beginning of the year, Asquith Company Ltd initiated a quality improvement program. The program was successful in reducing scrap and rework costs. To help asse
BEP- Break Event Point: It shows no Loss and no Profit The level of activity at which, total revenues equivalent total costs. A point at which there is no profit and no loss.
mojor elements of cost sheet
give informatiom
FNSD analysis example
Estimate the manufacturing cost for a bearing housing following the Formula Student Costing Scheme. Dimensions and materials of the bearing housing will depend on your student
Assume that you are the purchaser of the building at the end of the construction period, and you have paid the developer an amount which gives you a 7% annual return on net revenue
Product and period costs; CGM; CGS On August 1, 2013, Sietens Corporation had the following account balances: Raw Material Inventory (both direct and indirect) :- $ 72,000 WIP Inve
Q. WILL BY MEANS OF FCA SAVE MONEY? Ans. It depends. in the end, the more departments know about what it obtain to deliver a unit of service, the more efficiently they can
What is an advantage of using absorption costing? A. It permits a business to calculate the break-even point for production. B. It permits a business to calculate the total c
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