Areas of applications-BEP final

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Areas of applications-BEP final

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Areas of applications-BEP final

  1. 1. CHAPTER - Different Approaches to Costing Decision Making Approaches Deals in details the following Marginal Costing, Linear Programming, Learning Curve, Statistical Investigation, Differentiation, Probability, Capital Budgeting and Economic Applications for Decisions. Applications 1. Special Selling price decision 2. Product –Mix decisions when capacity constraints exit 3. Decision on replacement of equipment 4. Outsourcing (make or buy) 5. Discontinuation decision 6. Export or local sales if local sales are affected/when local sales are not affected 7. Relevance of variable cost and irrelevance of variable costs 8. Irrelevance of fixed cost and relevance of fixed cost 9. Cost–volume –Profit analysis in hospital, hotel industry 10. Changes in product 11. Graphical representation mix 12. Product aba

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