(d) JAYB, manager of a Fabrication company, has the following aggregate demand requirements and other data for the upcoming four quarters. [JÄYB, pengurus sebuah syarikat fabrikasi, mempunyai keperluan permintaan agregat berikut dan data lain untuk empat suku yang akan datang.] Table 5: Forecast and cost information [Jadual 5: Maklumat Ramalan dan kos] Previous quarter's output [Keluaran suku sebelumnya] Beginning inventory [Inventori awal] Hiring workers [Pengambilan pekerja] Laying off workers [Pembuangan pekerja] Unit cost Quarter Demand 1,500 units [Suku] [Permintaan] 1 1,400 200 units 2 1,000 RM6 per unit 3 1,500 RM11 per unit 4 1,300 RM30 per unit [Kos unit] With the information given, JAYB wants you to calculate the total cost of using chase strategy by hiring and layoff workers. [Dengan maklumat yang diberikan, JAYB inginkan anda untuk menghitung kos menggunakan "chase strategy" dengan mengambil dan memberhentikan pekerja.
Cost-Volume-Profit Analysis
Cost Volume Profit (CVP) analysis is a cost accounting method that analyses the effect of fluctuating cost and volume on the operating profit. Also known as break-even analysis, CVP determines the break-even point for varying volumes of sales and cost structures. This information helps the managers make economic decisions on a short-term basis. CVP analysis is based on many assumptions. Sales price, variable costs, and fixed costs per unit are assumed to be constant. The analysis also assumes that all units produced are sold and costs get impacted due to changes in activities. All costs incurred by the company like administrative, manufacturing, and selling costs are identified as either fixed or variable.
Marginal Costing
Marginal cost is defined as the change in the total cost which takes place when one additional unit of a product is manufactured. The marginal cost is influenced only by the variations which generally occur in the variable costs because the fixed costs remain the same irrespective of the output produced. The concept of marginal cost is used for product pricing when the customers want the lowest possible price for a certain number of orders. There is no accounting entry for marginal cost and it is only used by the management for taking effective decisions.
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