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Marginal costing

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Querist : Anonymous

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Querist : Anonymous (Querist)
28 September 2013 in ipcc marginal costing.. while calculating break even sales or quantity or volume or number of units when do we divide fixed cost by p/v ratio and when by contribution per unit?
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Ashwani Narnoli

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Ashwani Narnoli (Expert)
28 September 2013 When we divide FC by Contribution p.u. we get BEP in Qty and when we divide Fc by pv ratio we Bep in Rs.
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Ashwani Narnoli

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Ashwani Narnoli (Expert)
28 September 2013 So accordingly see the ques, if asks for bep qty use first formula and when asks for bep sales use second one.
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C A S.S.Agarwal, M.Com.,LL.B,

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C A S.S.Agarwal, M.Com.,LL.B, (Expert)
07 October 2013 No in marginal cost fixed cost is excluded
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