What are the advantages of contributionmargin analysis, Managerial Accounting

Assignment Help:

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 .

 


Related Discussions:- What are the advantages of contributionmargin analysis

Describe the graphic method of break even analysis, Graphic method of break...

Graphic method of break even analysis or break even chart The break even point can also be computed graphically. A break even chart is a graphical representation of marginal co

What is the flexible budgets, What is the Flexible budgets  A flexible ...

What is the Flexible budgets  A flexible budget consists of a series of budgets for different level of activity. It therefore varies with the level of activity attained. A flex

State the price determination under the market condition, State the price d...

State the price determination under the market condition The price determination under the following market condition is as follows: 1) Pure competition: in this situation

Overhead rate , During 2010, Jackson Company estimated that its manufacturi...

During 2010, Jackson Company estimated that its manufacturing employees would work 80,000 direct labor hours. During the year the company actually worked 75,000 direct labor hours.

Duffy tol and stamping, What are the objectives of excellence teams and min...

What are the objectives of excellence teams and minicompanies? Did the companies achieve these objectives?estion #Minimum 100 words accepted#

Jit purchasing-jit aims, JIT purchasing On the other hand is a purchasi...

JIT purchasing On the other hand is a purchasing system in which material purchased are contracted so as that the receipt and usage of materials to the maximum extent possible,

What are the features of zero base budgeting, What are the Features of zero...

What are the Features of zero base budgeting 1) Manager of a decision unit has to completely justify why there should be at all any budget allotment for his derision unit. This

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd