Marginal costing
This query is : Resolved
Querist : Anonymous
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?
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.
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.
07 October 2013
No in marginal cost fixed cost is excluded
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