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What are the Advantages of contributionmargin analysis
the concept of contribution is variable aid to management in making managerial decisions . a few benefits resulting from the contribution margin are given below :
1) It helps the management in the fixation of selling prices
2) It assists in determining the break -even points.
3) It helps management in the selection of a suitable product mix for profit maximization .
4) It helps in choosing from among alternative methods method which gives highest contribution per limiting factor is adopted
5) It helps the management in deciding whether to purchase or manufacture a product or a component
6) It helps in taking a decision as regards to adding a new product in the market .
Activity Based Costing (ABC) differs from Absorption Costing (AC) in the manner in which overheads are charged to units. ABC charges overheads to units based on their proportion
Value analysis Is a formalized technique involving a rigorous analysis of products at the design stage or at any time during the saleable lives, to determine their value charac
Benefit of product life cycle costing The benefits of product life cycle costing are summarized as follows: 1) The product life cycle costing results in earlier actions to g
Transient Analysis A state is said to be transient if it is impossible to move to that state from any other state except itself. This state is temporary and eventually a stead
What are the Advantages of contributionmargin analysis the concept of contribution is variable aid to management in making managerial decisions . a few benefits resulting from
Stages of the suggestion system 1) Encouragement : in the first stage management should make every effort to help the workers provide suggestion no matter how primitive for th
meaning standard costing
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A firm requires continuously monitoring and controlling its receivables to make sure that the dues are paid on the due date and no dues stay outstanding for a long period of time.
Managerial Accounting Before going to Managerial Accounting let us discuss a bit about Financial Accounting. Financial accounting is concerned with reporting to the external pa
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