Angle of incidence, Margin of Safety
by Angle of incidence It is the angle of intersection between total sales line and total cost line drawn in the case of break even chart. …
Category: Management Notes
Management Notes of Various Universities across india
Cost-Volume-Profit Relationship
Cost-volume-profit (CVP) analysis is used to determine how changes in costs and volume affect a company’s operating income and net income. In performing this analysis, there …
Advantages, Limitations and Applications of Marginal Costing
Advantages (i) The technique is simple to understand and easy to operate because it avoids the complexities of apportionment of fixed costs which, is really, …
Concept of Relevant Costs, Steps in Decision Making
Relevant Costing is a managerial accounting concept used to evaluate the costs directly associated with a specific decision. It focuses on identifying costs that will …
Decisions Regarding determination of Sales Mix.
A sales mix is the collection of all of the products and services a company offers. It considers each individual item a company sells, and the profit …
Exploring New Markets, Reasons, Considerations, Strategies, Challenges
Exploring New Markets is a strategic process in business that involves identifying and entering previously untapped or underdeveloped markets. This expansion enables organizations to increase …
Discontinuance of a Product line
Owners and managers often continue to sell money-losing products out of sentimentality or unwavering optimism. To maximize your business’s profitability, you need to be equipped …
Equipment Replacement
Reasons for Replacement of Equipment’s: Equipment are generally considered for replacement for the following reasons: (i) Deterioration: It is the decline in performance due to wear …
Expand or Contract
Expansion is the phase of the business cycle when the economy moves from a trough to a peak. It is a period when the level …
Shut Down or Continue
Differential cost analysis is also used when a business is confronted with the possibility of a temporary shutdown. This type of analysis has to determine …
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