in costing first u be well versed with theoritical questions which carried 20-25 marks and next standard costing, QT, next small small chapters then go for big ones like decision making etc. ok shall we do any one chapter u tell me which chapter
Limiting factor or product mix problems:Key factor orlimiting factor is a constraint on the production i.e rawmaterials, labour , machine hrs, storage space
2. prepare a statement showing contibution per key factor i.e contribution PU / Key factor
3. assign ranks toi products in the descendfing order of contributioin per key factor and allocate hte resources to the products in the order of ranking
it is the cost that incurred or that would be incurred for a product to go into further process. whether a decision has to be taken to go futher processing or to stop at the present situation, the incremental revenue should be more than incremental cost then only we can move further.