Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Limitation of break even charts
Despite many advantages a break even chart suffers from the following limitations:
1) A break even chart is based upon a number of assumption discussed above which may not hold good under all circumstances. For example fixed costs do not remain constant after a certain level of activity variable costs do not always vary in direct proportion to changes in the volume of output because of the laws of diminishing and increasing returns ; selling prices do not remain the same forever and for all level of output due competition and changes in the general price level; etc.
2) A break even chart provides only a limited information. We have to draw a number of charts to study the effects of changes in the fixed costs variable costs and selling price on the profitability.
3) Break even charts present only cost volume profit relationships but ignore other important consideration such as the amount of capital investment marketing problems and government policies etc.
4) A break even chart does not suggest any action or remedies to the management as a tool of management decisions
5) Moiré often a break even chart presents only a static view of the problem under consideration.
Question: (a) (I) The following equations relate to the market conditions for pullovers at a given point of time: Demand Function: Q d = 1200 - P Supply Function: Q s
DOMINANCE Dominance strategy is useful for reducing the size of the payoff table. Rules of Dominance: 1) If all the elements in a column are greater than or equal to the
given a scenario when iddle capacity is less than the special order.in this case should we accept or reject the order
During the year Leyland Company completed 1,300 units of product. Ending inventory consisted of 400 units that were 50% complete. The total dollar cost associated with production o
Transfer Pricing Transfer pricing can contribute directly to the process of departmental performance measurement and indirectly to the measurement of product performance. A
Full Service Non Recourse: in this method the book debts are purchased through the factor assuming 100 percent credit risk. In case of default through the debtor the whole risk is
According to the Philadelphia Inquirer, in 2004 the city of Philadelphia planned to spend $14 million to convert the Convention Center into an appropriate venue for the Republican
MAKE OR BUY DECISIONS (NO LIMITING FACTORS) The choice between making and buying a given component is one which is likely to face all businesses at some time. It is often one
Pricing decision Price may be defined as the exchange of goods or services in terms of money. Without price firm can survive in the society. If money is not there exchange of g
???? ????? ???? ???? ??????? ???? ??????? ??????? ???. ???? ?????? ?????? ?????: (?) ??????? ??????? ??????? ????? ?? ????? ????? ?? (?) ???? ??????? ??????? ?? ???? ???? ????? ?
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!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd