Cost and production analysis - Cost concepts – Cost and output relationship - cost control – Short run and Long run - cost functions - production functions – Break-even analysis - Economies scale of production.
A PROJECT REPORT ON BREAK EVEN CHART BY Indrakumar Padwani.pptxINDRAKUMAR PADWANI
A PROJECT REPORT ON BREAK EVEN CHART
BY
INDRAKUMAR R PADWANI
B.E. MECHANICAL , M.B.A MARKETING, P.G.D.C.A.
LECTURER IN MECHANICAL ENGINEERING DEPARTMENT,
GOVERNMENT POLYTECHNIC, GODHRA, GUJARAT
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
More Related Content
Similar to cost accounting. break-even point analysis.ohada approach. notes.pptx
Cost and production analysis - Cost concepts – Cost and output relationship - cost control – Short run and Long run - cost functions - production functions – Break-even analysis - Economies scale of production.
A PROJECT REPORT ON BREAK EVEN CHART BY Indrakumar Padwani.pptxINDRAKUMAR PADWANI
A PROJECT REPORT ON BREAK EVEN CHART
BY
INDRAKUMAR R PADWANI
B.E. MECHANICAL , M.B.A MARKETING, P.G.D.C.A.
LECTURER IN MECHANICAL ENGINEERING DEPARTMENT,
GOVERNMENT POLYTECHNIC, GODHRA, GUJARAT
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
Enterprise Excellence is Inclusive Excellence.pdfKaiNexus
Enterprise excellence and inclusive excellence are closely linked, and real-world challenges have shown that both are essential to the success of any organization. To achieve enterprise excellence, organizations must focus on improving their operations and processes while creating an inclusive environment that engages everyone. In this interactive session, the facilitator will highlight commonly established business practices and how they limit our ability to engage everyone every day. More importantly, though, participants will likely gain increased awareness of what we can do differently to maximize enterprise excellence through deliberate inclusion.
What is Enterprise Excellence?
Enterprise Excellence is a holistic approach that's aimed at achieving world-class performance across all aspects of the organization.
What might I learn?
A way to engage all in creating Inclusive Excellence. Lessons from the US military and their parallels to the story of Harry Potter. How belt systems and CI teams can destroy inclusive practices. How leadership language invites people to the party. There are three things leaders can do to engage everyone every day: maximizing psychological safety to create environments where folks learn, contribute, and challenge the status quo.
Who might benefit? Anyone and everyone leading folks from the shop floor to top floor.
Dr. William Harvey is a seasoned Operations Leader with extensive experience in chemical processing, manufacturing, and operations management. At Michelman, he currently oversees multiple sites, leading teams in strategic planning and coaching/practicing continuous improvement. William is set to start his eighth year of teaching at the University of Cincinnati where he teaches marketing, finance, and management. William holds various certifications in change management, quality, leadership, operational excellence, team building, and DiSC, among others.
Buy Verified PayPal Account | Buy Google 5 Star Reviewsusawebmarket
Buy Verified PayPal Account
Looking to buy verified PayPal accounts? Discover 7 expert tips for safely purchasing a verified PayPal account in 2024. Ensure security and reliability for your transactions.
PayPal Services Features-
🟢 Email Access
🟢 Bank Added
🟢 Card Verified
🟢 Full SSN Provided
🟢 Phone Number Access
🟢 Driving License Copy
🟢 Fasted Delivery
Client Satisfaction is Our First priority. Our services is very appropriate to buy. We assume that the first-rate way to purchase our offerings is to order on the website. If you have any worry in our cooperation usually You can order us on Skype or Telegram.
24/7 Hours Reply/Please Contact
usawebmarketEmail: support@usawebmarket.com
Skype: usawebmarket
Telegram: @usawebmarket
WhatsApp: +1(218) 203-5951
USA WEB MARKET is the Best Verified PayPal, Payoneer, Cash App, Skrill, Neteller, Stripe Account and SEO, SMM Service provider.100%Satisfection granted.100% replacement Granted.
Attending a job Interview for B1 and B2 Englsih learnersErika906060
It is a sample of an interview for a business english class for pre-intermediate and intermediate english students with emphasis on the speking ability.
Unveiling the Secrets How Does Generative AI Work.pdfSam H
At its core, generative artificial intelligence relies on the concept of generative models, which serve as engines that churn out entirely new data resembling their training data. It is like a sculptor who has studied so many forms found in nature and then uses this knowledge to create sculptures from his imagination that have never been seen before anywhere else. If taken to cyberspace, gans work almost the same way.
Memorandum Of Association Constitution of Company.pptseri bangash
www.seribangash.com
A Memorandum of Association (MOA) is a legal document that outlines the fundamental principles and objectives upon which a company operates. It serves as the company's charter or constitution and defines the scope of its activities. Here's a detailed note on the MOA:
Contents of Memorandum of Association:
Name Clause: This clause states the name of the company, which should end with words like "Limited" or "Ltd." for a public limited company and "Private Limited" or "Pvt. Ltd." for a private limited company.
https://seribangash.com/article-of-association-is-legal-doc-of-company/
Registered Office Clause: It specifies the location where the company's registered office is situated. This office is where all official communications and notices are sent.
Objective Clause: This clause delineates the main objectives for which the company is formed. It's important to define these objectives clearly, as the company cannot undertake activities beyond those mentioned in this clause.
www.seribangash.com
Liability Clause: It outlines the extent of liability of the company's members. In the case of companies limited by shares, the liability of members is limited to the amount unpaid on their shares. For companies limited by guarantee, members' liability is limited to the amount they undertake to contribute if the company is wound up.
https://seribangash.com/promotors-is-person-conceived-formation-company/
Capital Clause: This clause specifies the authorized capital of the company, i.e., the maximum amount of share capital the company is authorized to issue. It also mentions the division of this capital into shares and their respective nominal value.
Association Clause: It simply states that the subscribers wish to form a company and agree to become members of it, in accordance with the terms of the MOA.
Importance of Memorandum of Association:
Legal Requirement: The MOA is a legal requirement for the formation of a company. It must be filed with the Registrar of Companies during the incorporation process.
Constitutional Document: It serves as the company's constitutional document, defining its scope, powers, and limitations.
Protection of Members: It protects the interests of the company's members by clearly defining the objectives and limiting their liability.
External Communication: It provides clarity to external parties, such as investors, creditors, and regulatory authorities, regarding the company's objectives and powers.
https://seribangash.com/difference-public-and-private-company-law/
Binding Authority: The company and its members are bound by the provisions of the MOA. Any action taken beyond its scope may be considered ultra vires (beyond the powers) of the company and therefore void.
Amendment of MOA:
While the MOA lays down the company's fundamental principles, it is not entirely immutable. It can be amended, but only under specific circumstances and in compliance with legal procedures. Amendments typically require shareholder
Tata Group Dials Taiwan for Its Chipmaking Ambition in Gujarat’s DholeraAvirahi City Dholera
The Tata Group, a titan of Indian industry, is making waves with its advanced talks with Taiwanese chipmakers Powerchip Semiconductor Manufacturing Corporation (PSMC) and UMC Group. The goal? Establishing a cutting-edge semiconductor fabrication unit (fab) in Dholera, Gujarat. This isn’t just any project; it’s a potential game changer for India’s chipmaking aspirations and a boon for investors seeking promising residential projects in dholera sir.
Visit : https://www.avirahi.com/blog/tata-group-dials-taiwan-for-its-chipmaking-ambition-in-gujarats-dholera/
3.0 Project 2_ Developing My Brand Identity Kit.pptxtanyjahb
A personal brand exploration presentation summarizes an individual's unique qualities and goals, covering strengths, values, passions, and target audience. It helps individuals understand what makes them stand out, their desired image, and how they aim to achieve it.
Improving profitability for small businessBen Wann
In this comprehensive presentation, we will explore strategies and practical tips for enhancing profitability in small businesses. Tailored to meet the unique challenges faced by small enterprises, this session covers various aspects that directly impact the bottom line. Attendees will learn how to optimize operational efficiency, manage expenses, and increase revenue through innovative marketing and customer engagement techniques.
cost accounting. break-even point analysis.ohada approach. notes.pptx
1. Catholic university of Cameroon (CATUC), Bamenda
Faculty of Business and Management Sciences (FBMS)
Department of Accounting
Level: 300
COST AND MANAGEMENT ACCOUNTING (OHADA
STANDARD)
Course code:
Ass. Lecturer: Gopti Emmanuel Nchamcham
2. UNIT: TWO
THE COST- VOLUME- PROFIT - ANALYSES
It is sometimes refers to as the Break-even point (BEP).
DEFINITION: BEP of an enterprise is the turnover for
which this enterprise has realized neither profit or loss.
The sales are equal to total corresponding charges.
DIFFERENT EXPRESSIONS OF BEP
1. EXPLOITATION RESULT = 0
2. TURNOVER = TOTAL CHARGES (VC+FC)
3. MARGIN ON VARIABLE COST = FIXED CHARGES
3. A. CALCULATION OF BREAK EVENT
POINT (BEP)
1. PRINCIPLES:
The margin on variable cost can be proportional to the
turnover such that: margin on variable cost = K
TURNOVER
WHERE K is a constant
To calculate BEP is to calculate the proportionality so
that,
% mvc = Fixed cost
% TO BEP
4. EXAMPLE 1
After the determination of variable and fixed
charges, the exploitation account of ETS PHILCAM
for 2022 was summarized as follows;
Work to do:
For which turnover does this enterprise attains its
break – even point?
Elements Amounts %
Turnover
Variable cost
Margin on variable cost (m/)
Fixed charges
Exploitation result
250 000
200 000
50 000
- 30 000
20 000
100
80
20
5. B. GRAPHICAL REPRESENTATION OF
BEP
1. With the relation M/VC=FC
2. With the relation TURNOVER (TO) = TOTAL
CHARGES
3. With the relation exploitation result = 0
6. EXAMPLE
The yearly sales of an enterprise amounted to 2
000 000frs. The variable charges for the period
were 1 125 000frs and fixed charges 525 000frs.
Work to do:
1. Present the differential operating table
2. Determine the BEP and present the various
graphs.
7. CONTRIBUTION MARGIN
Contribution Margin is the amount left (balance) from
sales revenue after variable charges have been deducted.
It is from this amount that fixed cost is deducted in order
to obtain the exploitation result of the period.
a. Contribution Margin Ratio (CMR):
The proportion of contribution margin to total sales.
CMR = CM
T.O
The ratio is particularly useful in that it shows the extend
to which contribution margin will be affected by a given
change in total sales.
8. Example
Let’s consider the previous example and;
1. Present the differential table of exploitation
2. If sales increased to 2 200 000frs, present the
differential table assuming that fixed charges
remains unchanged
3. Show directly the change in net profit.
9. Safety (Security) Margin
The difference between the turnover and the break-even-point. This
margin represents the decrease in turnover the enterprise can bear
without realising a loss.
Security or safety main =TURNOVER-BEP
THE SAFETY INDEX
The relative security margin is the ratio between the security margin
and the turnover. It is equally the fraction of turnover whose
contribution margin gives the profit.
Safety index = safety margin
Turnover
Example:
Let us consider the previous example above and calculate the safety
margin and safety index
10. OPERATING LEVERAGE
The degree of operating leverage is a multiple that
measures how much the operating income of an
enterprise will change in response to a change in turnover.
It is greater for enterprises that have a high proportion of
fixed cost in relation to variable cost.
It helps to measure the percentage change inoperating
income that takes place as a result of percentage change in
unit sales.
Degree of operating leverage
DOL=% in operating profit
% in sales
the above formulae can be manipulated to read as follows:
11. DOL = Q(P-VC)
Q(P-VC)-FC
= QP-QVC
QP-QVC-FC
WHERE:
Q= quanity at which DOL is computed
P= price per unit
VC= variable cost per unit
FC= fixed cost
QVC= total Variable cost
QP= Sales
Example
From the above example determine the degree of operating leverage
12. Sales mix and break- even analysis
If a company is selling more than one product,
the break even analysis is some how complex.
The reason being that different products
normally have different selling prices, different
cost and different contribution margins.
Consequently, the break even point will be
difficult to determine when several products are
sold.
13. Example
ETS BITAMA at Commercial Avenue produces two
products A and B. the information concerning these
products are shown below.
Work to do:
Determine the break-even point of the mix
products
Elements Product A Product B
Sales
Variable charges
Fixed charges
300 000
250 000
270 000
900 000
500 000
270 000
14. TIME AND BREAK- EVEN - ANALYSIS
Knowing the break-even in sales amount is very
necessary and knowing when the BEP will be
attained is equally very important. This depends
on whether the company’s activity is continuous
over the year or not.
15. Case of continuous activities
Time or Date of BEP= BEP X 12 Months
Sales
EXAMPLE.
The yearly sales of an enterprise amounted to 1 000
000f, the variable charges for the period is 625
000frsf and fixed charges 262 500f.
Work required:
Determine the BEP and date at which it shall be
reached
16. Case of irregular or discontinuous
activities
Some firms carry out activities which are not
regular through out the year. Their activities are
seasonal. When the activity is irregular or when
there is an interruption, the formulae used
above should be modified.
Date or Time of BEP = BEP X (12-n)
sales
17. Example
Assume that the sales of 1 000 000f is obtained by adding up the following
sales:
1st term 100 000
2nd term 200 000
3rd term 300 000
4th term 400 000
In addition, the cumulative total sales and contribution margins are given in
the following table:
Work to do:
Determine the BEP and BEP time knowing that fixed charges remain
unchanged at 262 500f.
Elements Cumulative sales Cumulative contribution
margin
1st term
2nd term
3rd term
4th term
100 000
300 000
600 000
1 000 000
37 500
112 500
225 000
375 000
18. BREAK-EVEN POINT IN PROVISION
Example:
What should be the sales of the enterprise in
the above, if the result needed is 7 500 000f
other elements remain unchanged.
19. Break even analysis and modifications
The production structure of a firm is modified when a
new fixed asset is acquired. This is manifested by an
increase in fixed cost. If this is carried out in the cause of
the financial year, the break even point changes.
Example:
The contribution margin ratio of a firm is 25%, fixed cost
is 100 000f. An expected annual sales is 1 000 000f. In July
2022, a new machine was acquired which raised the fixed
charges to 160 000f. The information remains unchanged.
Work to do;
1. Calculate the BEP for each structure
2. Present the corresponding BEP CHART