The below mentioned article provides a specimen of cost sheet. Cost sheet identifies flow of input throughout the conversion process till its sale or consumption.
In this article we will discuss about the marginal cost analysis. Marginal cost analysis requires analysis of cost into fixed and variable elements. Suppose that selling price per unit of a product is Rs.100 and variable cost per unit is Rs.60. Contribution per unit is Rs.40. You may say contribution as gross margin. Profit Volume […]
Application of Cost Volume Profit Relationship in Decision Making! Now let us take a Few Decision Situations: i. Buying a Spares Versus Taking a Factory on Operating Lease: CVP analysis is carried using cost variability. Fixed cost remains fixed within a range. All short run decisions is linked to the principle of profit maximization given […]