Accounting Management

Budgetary Control A budget is a formal written statement of management’s plans for a specified future time period, expressed in financial terms. Budgetary control refers…

The contribution margin ratio is the percentage of a firm’s contribution margin to its net sales. Contribution margin is a product’s price minus its variable…

Break-even point is that level of operation at which sales revenues for a period are equal to the costs assigned to that period. As a…

CPV analysis is a powerful tool that helps managers understands the relationships of cost volume and profit. Cost volume profit (CVP) analysis is the relationship…

Ways of Lowering the Break-Even Point Break-even point is that level of operation at which sales revenues for a period are equal to the costs…

An increase in Income Tax Rate affects the Break-Even Point An increase in the income tax rate does not affect the breakeven point. Operating income…

Cost-volume-profit (CVP) analysis is used to determine how changes in costs and volume affect a company’s operating income and net income. CPV analysis is a…

Product’s Contribution Margin Ratio: Product Contribution margin ratio is commonly expressed as a percentage of sales prices. It is the difference between a company’s sales…

“Absorption costing considers more categories of costs a product cost” Absorption costing, also known as full costing is a method by which all of the…

The significance of Margin of Safety The margin of safety establishes the surplus of actual sales earnings over and above the break-even earnings. The excess…