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The sales revenue line demonstrates the amount of sales earned throughout the different level of activities. It can be observed that between zero and somewhere between activity B and C there is a straight line increase or constant rise in sales revenue. This means that unit price charged is the same and volume sold has been increasing at a constant rate.
Beyond the point between C and B sales revenue increases at much slower rate, this represents that selling price per unit is too high and in order to achieve previous rates of growth there has to be a reduction in unit price.
explain advantages of marginal costing
Typical Causes of Material Variances Price Variances a) Paying lower or higher prices than planned. b) Losing or gaining quantity discounts via buying in large
Factory Overhead Budget This budget represents the forecasts of each the production variable and fixed and semi-variable overheads to be incurred throughout the budget period.
A organization is evaluating a proposed 4-year project. The depreciable cost will have the following: $300,000 for the equipment, $20,000 for shipping, and $30,000 for installatio
One month before she died on April 14, 2002, Barbara Gent (Amy's aunt) gave Amy a coin collection. Based on careful records that Barbara kept, the collection had a cost basis of $9
Your client has asked you to evaluate an investment project for her using what you have learned in school regarding the net present value method. The project will run for eight yea
A corporation acquired a truck on July 1, 2012, at a cost of $162,000. The truck has a six-year useful life and an estimated salvage value of $18,000. The straight-line method of d
H Bhd has a 75% holding in the ordinary shares of S Sdn Bhd and 40% in A Sdn Bhd. Shares in S were acquired in 2006 when its retained earnings were RM120 million. The shares in A
The Integrated Management Project is to be based on an organisation, a strategic business unit, or profit centre that has good potential for growth and development. The brief is to
ADVANTAGES OF COST ACCOUNTING 1. It helps in efficient decision making. 2. It assists in cost drop. 3. It is useful in obsession of selling price
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