1. BAL BHARTHI’s M J PANCHOLIA COLLEGE OF COMMERECE

2. SUBMITTED TO:- PROF. AARTI CHIKAL TOPIC:- MARGINAL COSTING

3. NAME ROLLNO ZEEL MATHKIYA 13 DHARMIK MEHTA 14 SEJAL MEHTA 15 HIRNI MEWADA 16 VARUN MODI 17 SIDDHI NALAWADE 18 MEMBERS PRESENTING

4. Introduction Definition Features Advantages Disadvantages Break Even Point Profit Volume Ratio CONTENTS

5. NHC Food Ltd. Practical BEP Example Practical PV Ratio Example Conclusion CONTI….

7. The costs are Fixed & VariableINTRODUCTON

8. Marginal costing distinguishes between fixed costs and variable costs as convention ally classified Marginal costing is formally defined as:‘the accounting system in which variable costs are charged to cost units and the fixed costs of the period are written-off in full against the aggregate contribution. Its special value is in decision making’. DEFINITION

9. The term ‘contribution’ mentioned in the formal definition is the term given to the difference between Sales and Marginal cost. Thus MARGINAL COST = VARIABLE COST DIRECT LABOUR+DIRECT MATERIAL+DIRECT EXPENSE+VARIABLE OVERHEADS CONTI…..

11. Stock Valuation

12. Marginal Contribution FEATURES

14. Simplicity

15. Short – Term Profit Planning

16. Maximum Return To Business ADVANTAGES

18. Avoids Semi – Variable Costs

19. Distorted Picture Of Profits

20. Ignorance Of Time Factor DISADVANTAGES

21. The break even point for a business firm shows the volume of sales at which the firm just breaks–even, with total revenue equal to total cost. Break even point shows the price at which the firm makes zero profits, with revenues just covering the costs. BREAK EVEN POINT

22. UNITS SALES (-) VARIABLE COST CONTRIBUTION (-) FIXED COST PROFIT OR LOSS FORMULA

23. The Profit Volume (PV) Ratio is the ratio of Contribution over Sales. It measures the Profitability of the firm and is one of the important ratios for computing profitabilty. P V RATIO

24. CONTRIBUTION X 100 SALES FORMULA

26. Owner.

27. Carried On By.

28. Products. NHC FOODS LTD.

29. BREAK EVEN POINT OF NHC LTD

30. BEP = FC = 90000 = 300000RS PV 30% BEP(In Units) = FIXED COST = 90000 CONTRIBUTION 30 = 3000 units CONTI…..

31. BREAK EVEN POINT GRAPH

32. P.V RATIO = CONTRIBUTION PER UNIT X 100 SALES PER UNIT = 30 X100 100 PV RATIO = 30% PV RATIO OF NHC FOOD LTD

33. Marginal Costing supports the managerial decision making process . By the usage of this technique,themanager can evaluate the positional standing of the concern to a certain extent. CONCLUSION

34. http://www.globusz.com/ebooks/Costing/00000012.htm http://www.scribd.com/doc/36885341/Marginal-Costing-PPt BIBLOGRAPHY

35. THANK YOU