This power point presentation related to process costing. which is useful to students who studying B.com, BBA,M.COM MBA etc.
It involves short notes on definition of process costing,its features,applications,difference between process costing and job costing, advantages and disadvantageous of process costing, procedure of process costing,format of process account, process losses and abnormal gain.
MARGINAL COSTING AS A TOOL FOR DECISION MAKINGShubham Boni
DON'T FORGET TO LIKE AND SHARE THE PRESENTATION.
MARGINAL COST:-
“Marginal cost is the additional cost of producing an additional unit of product.”
MARGINAL COSTING:-
“In Marginal costing technique, only variable costs are charged as product costs and included in inventory valuation.”
MARGINAL COSTING HELPS IN DECISION MAKING:-
1.Fixation of Selling Price.
2.Exploring New markets.
3.Make or buy decisions.
4.Product mix
5.Operate plant or shut down.
CASE STUDY 1:-
MAKE OR BUY DECISION.
CASE STUDY 2:-
PRODUCT MIX.
This power point presentation related to process costing. which is useful to students who studying B.com, BBA,M.COM MBA etc.
It involves short notes on definition of process costing,its features,applications,difference between process costing and job costing, advantages and disadvantageous of process costing, procedure of process costing,format of process account, process losses and abnormal gain.
MARGINAL COSTING AS A TOOL FOR DECISION MAKINGShubham Boni
DON'T FORGET TO LIKE AND SHARE THE PRESENTATION.
MARGINAL COST:-
“Marginal cost is the additional cost of producing an additional unit of product.”
MARGINAL COSTING:-
“In Marginal costing technique, only variable costs are charged as product costs and included in inventory valuation.”
MARGINAL COSTING HELPS IN DECISION MAKING:-
1.Fixation of Selling Price.
2.Exploring New markets.
3.Make or buy decisions.
4.Product mix
5.Operate plant or shut down.
CASE STUDY 1:-
MAKE OR BUY DECISION.
CASE STUDY 2:-
PRODUCT MIX.
A power point presentation describing some basic definitions, father of cost accounting, Indian aspect of cost accounting and Various Methods and Techniques of costing.
Presented by: Aquib Ali, Ajay Gupta and Ashwin Showi. (M.Com students)
at the Bhopal School of Social Sciences(BSSS) on 6 September, 2017
the document is on Cost volume profit analysis.
(Cost-volume-profit (CVP) analysis is used to determine how changes in costs and volume affect a company's operating income and net income.)
Break-even analysis is a study of costs, revenues and sales of a firm and find out the volume of sales where the firm’s costs and revenues will be equal. The Break-even point is the zone of no-profit and no-loss as the costs equal revenues.
Centurion university
Elaborate Description on Marginal costing and decision making.
It is Helpful To Set Career In Accounting . For Professional Students.Accounting Is An Exiting And Dynamic Field Of Study.
So For More Updates Keep Following Me.
A power point presentation describing some basic definitions, father of cost accounting, Indian aspect of cost accounting and Various Methods and Techniques of costing.
Presented by: Aquib Ali, Ajay Gupta and Ashwin Showi. (M.Com students)
at the Bhopal School of Social Sciences(BSSS) on 6 September, 2017
the document is on Cost volume profit analysis.
(Cost-volume-profit (CVP) analysis is used to determine how changes in costs and volume affect a company's operating income and net income.)
Break-even analysis is a study of costs, revenues and sales of a firm and find out the volume of sales where the firm’s costs and revenues will be equal. The Break-even point is the zone of no-profit and no-loss as the costs equal revenues.
Centurion university
Elaborate Description on Marginal costing and decision making.
It is Helpful To Set Career In Accounting . For Professional Students.Accounting Is An Exiting And Dynamic Field Of Study.
So For More Updates Keep Following Me.
The foreign exchange market or forex market as it is often called is the market in which currencies are traded.
Currency Trading is the world’s largest market consisting of almost trillion in daily volumes
The market continues to rapidly grow. Not only is the forex market the largest market in the world, but it is also the most liquid, differentiating it from the other markets.
There is no central marketplace for the exchange of currency, but instead the trading is conducted over-the-counter.
This decentralization of the market allows traders to choose from a number of different dealers to make trades with and allows for comparison of prices. Typically, the larger a dealer is the better access they have to pricing at the largest banks in the world, and are able to pass that on to their clients.
The spot currency market is open twenty-four hours a day, five days a week, with currencies being traded around the world in all of the major financial centers.
All trades that take place in the foreign exchange market involve the buying of one currency and the selling of another currency simultaneously. This is because the value of one currency is determined by its comparison to another currency.
The first currency of a currency pair is called the “base currency,” while the second currency is called the counter currency. The currency pair shows how much of the counter currency is needed to purchase one unit of the base currency.
Currency pairs can be thought of as a single unit that can be bought or sold. When purchasing a currency pair, the base currency is being bought, while the counter currency is being sold.
Forex Capital Markets (FXCM) is an online currency trading firm that offers a free demo account to traders who are new and interested in the foreign exchange market.
It allows you to experience every step of currency trading including choosing currency pairs, deciding how much risk to take, tracking the time and dates of placed trades, deciding how long to stay in the trade, and when to exit the trade. It also allows the placing of stop and limit orders on trades.
Information about trading and specifically about how to use the online trading platform can be found on the FXCM webpage. In addition, FXCM offers FREE interactive online seminars that are extremely useful to both new and experienced currency traders.
Characteristics of foreign exchange
Its huge trading volume representing the largest asset class in the world leading to high liquidity;
Its geographical dispersion;
Its continuous operation: 24 hours a day except weekends, i.e., trading from 20:15 GMT on Sunday until 22:00 GMT Friday;
The variety of factors that affect exchange rates;
The low margins of relative profit compared with other markets of fixed income;
The use of leverage to enhance profit and loss margins and with respect to account size.
1. PRESENTATION
ON
MARGINAL COSTING
&
DECISION MAKING
BY: Group-6
2. MARGINAL COSTING….
Marginal cost is the change in total cost that arises when,`
the quantity produced changes by one unit.
It is the cost of producing one more unit of a goods.
If the good being produced is infinitely divisible, so the size
of a marginal cost will change with volume, as a non-linear
and non-proportional cost function.
3. PRINCIPLES OF MARGINAL COSTING….
By selling an extra item of product or services following
will happen:
Revenue will increase by the sales value of the item sold
Costs will increase by the variable cost per unit.
Profit will increase by the amount of contribution earned
from the extra item.
Profit measurement should therefore be based on the
analysis of total contribution.
4. ASSUMPTIONS OF MARGINAL COSTING….
The basic assumptions of marginal costing are :
Total variable cost is directly proportion to the level of
activity.
However, variable cost per unit remains constant at all the
levels of activities.
Per unit selling price remains constant at all levels of activities.
All the items produced by the organization are sold off.
5. Features of Marginal costing:
It is a method of recording costs and reporting profits.
It involves ascertaining marginal costs which is the
difference of fixed cost and variable cost.
Fixed costs are treated as period charge and are written
off to the profit and loss account in the period incurred.
Only variable costs are taken into consideration while
computing the product cost..
6. Contribution ( Per unit) = Sale per unit - Variable Cost per unit
Total profit or loss = Total Contribution - Total Fixed Costs
or Contribution = Fixed Cost + Profit
or Profit = Contribution - Fixed Cost
Profit Volume Ratio = Contribution/ Sale X 100
Break Even Point is a point where Total sale = Total Cost
7. MARGINAL COSTING APPROACH….
Charged cost of
goods produced
Charged as
DIRECT (RM,L)
expense when
VARIABLE goods are sold
(F.OH)
9. ADVANTAGES OF MARGINAL COSTING….
Helps in managerial decisions.
Cost Control.
Simple Technique.
Constant cost per unit.
Realistic valuation of stocks.
Aid to profit planning.
10. DISADVANTAGES OF MARGINAL COSTING….
Ignores time factor.
Less effective in capital intensive industries.
Difficulty in Application.
11. DECISION MAKING….
It involves selecting the best course of action
from two or more available alternatives.
And, the decision is to be taken will be,
affected by cost & other factors.
12. Special Decision Making Areas….
Selling price decisions.
Make or Buy decisions.
Sales mix decisions.
Selection of a suitable method of production.
Plant shut down decisions.
13. DIFFRENTIAL COST ANALYSIS….
It’s a special technique to help management in
decision-making which shows how costs and
revenues would be different under different
alternative course of action.
Its a difference in cost between one alternative
and another.