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USES OF 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. It is helpful in performance appraisal/evaluation and management control.
5. It is highly useful in managerial decision making
6. It helps in determining the amount of overhead cost to be charged to various levels of operations.
Overhead Cost Analysis and Classification Overhead costs may be analyzed into a) Which that may be directly identifiable along with a single cost center, as an example of,
Standard Costs Establish the Minimum Desirable Costs When actual costs incurred exceed or else are below the standard costs, we after that investigate the variances along with
Inventory, Supplies and Prepaid Expenses You can well understand the requirements for carrying inventory. So as to carry on operations unhindered we require to have sufficien
HOW APPLICABLE IS THE MARGINAL COSTING CONCEPT IN ACCOUNTING
The Pacific Manufacturing Company operates a job-order costing system and applies overhead cost to jobs on the basis of direct labor cost. Its predetermined overhead rate was based
Relationship among Financial Accounting and Cost Accounting The difference among management and cost accounting may be highlighted by using a number of questions namely as;
MARGINAL COSTING IS PREFERRED TO ABSORPTION COSTING IN DECISION MAKING WHY
The follow data relates ot year 20XX for Plano Manufacturing Company: Units produced - 2,000 Units sold - 1,800 Selling price - $200 / per unit Direct material costs - $80,000 Dire
critically explain cost accounting as 1. a service activity 2. a descriptive/analytical discipline 3. an information system
Purchase of office supplies.
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