victoria company produces a single product. last year's income statement is as follows: sales(29000 units) br 1218000 less: variable costs : 812000, contribution margin 406000 less: fixed expenses 300000, net income 106000. required 1=compute the break even post in units and sales br ? 2=what was the margin of safety for victoria last year? 3=suppose that victoria company is considering an investment in new technology that will increase fixed cost by br 250000 per year but will lower variable costs to 45%of sales? 4=units sold will remain unchanged. prepare a budgeted income statement assuming that victoria makes this investment . what is the new break even point in units and sales br, assuming that the investment is made?
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
victoria company produces a single product. last year's income statement is as follows: sales(29000 units) br 1218000 less: variable costs : 812000, contribution margin 406000 less: fixed expenses 300000, net income 106000. required 1=compute the break even post in units and sales br ? 2=what was the margin of safety for victoria last year? 3=suppose that victoria company is considering an investment in new technology that will increase fixed cost by br 250000 per year but will lower variable costs to 45%of sales? 4=units sold will remain unchanged. prepare a
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