Page 252 - DCOM302_MANAGEMENT_ACCOUNTING

Unit 12: Decisions Involving Alternative Choices

The directors want to be acquainted with the desirability of adopting any one of the Notes
following alternative sales mixes in the budget for the next period.
(a) 250 units of X and 250 units of Y
(b) 400 units of Y only
(c) 400 units of X and 100 units of Y

(d) 150 units of X and 350 units of Y.
State which of the alternative sales mixes you would recommend to the management?

Answers: Self Assessment

1. cost and revenue 2. alternative
3. additional costs 4. sale
5. production or manufacturing 6. optimum level
7. capital investment 8. hire

9. profi tability 10. contribution
11. Profit-Volume (P/V) Ratio 12. quantitative

13. decision 14. Decision-making
15. hire

12.9 Further Readings

Books B.M. Lall Nigam and I.C. Jain, Cost Accounting, Prentice-Hall of India (P) Ltd.
Hilton, Maher and Selto, Cost Management, 2nd Edition, Tata McGraw-Hill
Publishing Company Ltd.
M.N. Arora, Cost and Management Accounting, 8th Edition, Vikas Publishing House
(P) Ltd.
M.P. Pandikumar, Management Accounting, Excel Books.

Online links www.allbusiness.com
www.internalaccounting.com

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