angle of incidence it is an angle that is
ANGLE OF INCIDENCE: It is an angle that is created when the entire sales line intercepts the entire cost line from below in the breakeven chart. It is inferred that higher the angle, higher is the profit, and lower the angle lower the profit.
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uses of cvp analysis1 it allows preparation of flexible budgets2 it provides help in forecasting accurate profit3 it aids in formulating price
break even analysisbreak even analysis is a broadly used technique to study cost-volume-profit relationship it can be explained as - a system for
assumptions of break even analysis1 fixed costs for all time remain constant2 all costs are divided into fixed and variable costs3 selling price will
contribution it is the variation between the marginal cost of sales and sales and it contributes towards fixed profit and expenses it is differ
angle of incidence it is an angle that is created when the entire sales line intercepts the entire cost line from below in the breakeven chart it
demerits of break even point1 it pays no attention to considerations like effect of government policy changes changes in the marketing environment
utility of break even point in managerial decision making1 it assists in determination of sales mix2 it assists in exploring new markets3 it assists
standard costingstandard costing is a method which uses standards for costs and revenues for the idea of control by variance analysis it can be used
advantages of standard costing1 it offers a yardstick for measurement of performance2 it helps management by
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