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State the factors of CVP
The three factors of CVP analysis I e cost volume and profit are interconnected and dependent on one another . for example profit depends upon sales selling price to a large extent depends upon cost and cost depends upon volume of production as it is only the variable cost that varies directly with production whereas fixed cost remains fixed regardless of the volume production . in cost volume profit analysis an attempt is made to analysis the relationship between variation in cost with variation in volume .
Standard error of estimate (Se) The coefficient of determination r 2 gives us an indication of the reliability of the estimate of total cost based on the regression equation b
Explain decision unit - zero base budgeting Decision units: an organization is divided among decision units. The manager of the decision unit justifies the relative budget
Difficulties in cost reduction 1) Resistance by employees to pressure to reduce cost usually because the nature and purpose of the campaign has not been properly explained to t
Rate of return or target pricing method Under this method of price determination first of all a rate of return desired by the enterprises on the amount of profit capital inves
what is master budget?
After determining the amount of working capital as in above, a specific amount say 5 percent or 10 percent may be added to cover contingencies. This is to be noted that facts depen
Adm2341 manufactures and sells four different products. The following data are extracted from the most recent financial statements: Products
need help with a master budget and assumptions for project
It is a commitment by a bank to lend a specific amount of funds on demand identifies the maximum amount of unsecured credit the bank will allow the customer to borrow at any time.
Bridge loans are obtainable from the banks and financial institutions while the source and timing of the funds to be raised is identified along with certainty. While there is a tim
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