cost accounting is profitable investment: Cost Accounting system is neither unnecessary nor expensive rather it is a profitable

It is said that cost accounting is unnecessary expensive luxury and hence not needed comment.

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cost accounting is profitable investment

Answer:

Management of ABC Ltd.is seeking your advice relating to two of its product X’ and ‘Y’.

’ It sells its product ‘X’ at Rs.15 per unit. In a particular period when company produces and

sells its 80,000 units, it incurs a loss of Rs.5 per unit. If the volume is raised to 2,00,000

units, it earns a profit of Rs.4 per unit. Calculate Break even points of this product both in

terms of rupees as well as in terms of units.

For product ‘Y’ break-even sales level is at Rs.50,00,000. P/V ratio of the product is 20%.

The company now wants to replace the old machinery being used in the production of

product ‘Y’ with new one.This will result in an increase of its fixed cost by 25% though

selling price and variable cost remains unchanged. What should be the percentage increase in

sales for break-even if fixed cost goes up by 25%?

cost accounting system is neither unnecessary nor expensive, rather it is profitable investment

Cost Accounting system is neither unnecessary nor expensive rather it is a profitable investment”. Discuss. Also, clarify whether direct cost and product cost and indirect cost and period cost are same and similar concepts.2. SR Ltd. is reviewing it

It is said that cost accounting is unnecessary expensive luxury and hence not needed comment

It is said that cost accounting is unnecessary expensive luxury and hence not needed comment

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