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Apportionment of fixed cost

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Tax Consultant at Nagpur
303 Points Posted on 10 August 2012

I WANT TO KNOW.... WHY FIXED COST IS ALWAYS APPORTIONED AT FULL CAPACITY??

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On 10 August 2012 at 22:43 Report
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Dy. Manger Accounts
66 Points Posted on 11 August 2012
Because fixed costs are based on utilized capacity. In detail fixed cost is depends on certain capacity say Rs.50000/- for 90 % capacity utilization. Beyond that it wil increase to 80000/-
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On 11 August 2012 at 00:03


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