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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 factor for every product
- Rank the products in order of size and contribution per unit of limiting factor
- Permit any minimum retention of less profitable products that is decided upon
- Use up the net units of the limiting factor in order to fulfill the forecast quantities in order of product ranking.
Example of LIFO, FIFO and Weighted Average Method Suppose the following purchases were made in ABC Ltd as like: Date of purchase Units purchased Price/uni
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procedure,advantages ..
What are the major arguments for absorption costing?
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