Page 254 - DMGT403_ACCOUNTING_FOR_MANAGERS
P. 254
Gopika Juneja, Lovely Professional University Unit 12: Marginal Costing and Profit Planning
Unit 12: Marginal Costing and Profit Planning Notes
CONTENTS
Objectives
Introduction
12.1 Absorption Costing
12.2 Marginal Costing and Direct Costing
12.3 Differential Costing
12.4 Costs-Volume Profit Analysis
12.4.1 Objectives of Cost-Volume-Profit Analysis
12.4.2 Profit-Volume (P/V) Ratio
12.5 Break-even Analysis
12.5.1 Break Even Point in Units
12.5.2 Advantages of Break-even Analysis
12.5.3 Limitations of Break-even Analysis
12.5.4 Application of Break-even Analysis
12.6 Methods of Break-even Analysis
12.6.1 Break-even Chart
12.6.2 Three Alternatives
12.6.3 Break-even Models and Planning for Profit
12.7 Costing Techniques
12.8 Decisions Involving Alternative Choices
12.9 Summary
12.10 Keywords
12.11 Self Assessment
12.12 Review Questions
12.13 Further Readings
Objectives
After studying this unit, you will be able to:
Define absorption costing, marginal costing, direct costing and differential costing
Prepare CVP analysis and break even analysis
Explain costing Techniques
LOVELY PROFESSIONAL UNIVERSITY 249
