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