for coting how to applay costing concepts in decison making long sum and how to interpret long sum
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
Marginal Costing and Decision Making:
Areas of decision making:
Limiting factor or product mix problems:Key factor orlimiting factor is a constraint on the production i.e rawmaterials, labour , machine hrs, storage space
The steps to solve a decision makign problem:
1. Identify the key factor in the problem
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.
i think it is the difference between overall cost of a product, i am not sure about it if you know u tell me
ok then next question, where can we find previous questions chapter wise in costing at one place
cost reduction is one of the technique of cost controling
CAclubindia
