Describe the term Material Cost
Briefly describe the term Material Cost?
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This is the cost of material or the product employed by the organization for its manufacture purpose. Material is the matter, from that a product is made. Therefore, it might be in a raw or a manufactured state. It can be indirect or direct.
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Rs. Sales 2,40,000 Variable costs 1,44,000 Fixed costs 26,000 Profit before tax 70,000 Rate of tax 40% Firm is proposing to buy the new plant that could generate extra annual profit of Rs. 10,000. The fixed cost of new plant is expected to Rs. 4000. New plant would increase sales volume by Rs. 40,00
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