SlideShare a Scribd company logo

17a marginal costing & breakeven analysis

•Download as PPT, PDF•
•
U
Umar Gul
EducationBusinessTechnology
1 of 20
Chapter 17 continued 17a: Marginal costing and breakeven analysis ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
The story so far ... ,[object Object],[object Object],[object Object]
Marginal costing ,[object Object],[object Object],[object Object]
Classifying costs by behaviour ,[object Object],[object Object],[object Object],[object Object],[object Object]
Exercise 1 Variable and fixed costs ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Solution 1 Variable and fixed costs
Calculating contribution ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Exercise 2 Marginal cost statement ,[object Object],[object Object],[object Object],[object Object],[object Object]
Pro forma Cotswold Coolers Marginal cost statement
Solution 2 Cotswold Coolers Marginal cost statement
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Techniques based on marginal costing
Breakeven analysis ,[object Object],[object Object],[object Object],[object Object]
Exercise 3 Breakeven point in units ,[object Object],[object Object],[object Object],[object Object],[object Object]
Solution 3 Breakeven point in units
Breakeven point in sales value or % of capacity
Exercise 4 Level of activity to achieve a target profit ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Solution 4 Level of activity to achieve a target profit
Margin of safety ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Breakeven graph Costs/Sales (£) £1,350 Profit £500 £1,264 £850 Fixed costs ←-> Margin of safety 233 units 0 395 628 Activity level (units) Sales revenue PROFIT LOSS Breakeven point Variable costs
Conclusions ,[object Object],[object Object],[object Object],[object Object]

Recommended

Marginal costing & breakeven analysis
Marginal costing & breakeven analysisMarginal costing & breakeven analysis
Marginal costing & breakeven analysis
Faltu Focat
 
Marginal Costing
Marginal CostingMarginal Costing
Marginal Costing
Sheetal Narkar
 
Bba ii cost and management accounting u 4.2 cost -marginal costing
Bba ii cost and management accounting u 4.2 cost -marginal costingBba ii cost and management accounting u 4.2 cost -marginal costing
Bba ii cost and management accounting u 4.2 cost -marginal costing
Rai University
 
Marginal costing
Marginal costing Marginal costing
Marginal costing
VARUN MODI
 
Marginal costing
Marginal costingMarginal costing
Marginal costing
Nishant Singh
 
Marginal cost-Introduction
Marginal cost-IntroductionMarginal cost-Introduction
Marginal cost-Introduction
Bharti Goyal
 
Accounts : Marginal Costing
Accounts : Marginal CostingAccounts : Marginal Costing
Accounts : Marginal Costing
Sanchit
 
4 marginal cost
4 marginal cost4 marginal cost
4 marginal cost
Astha Borthakur
 

Recommended

Marginal costing & breakeven analysis
Marginal costing & breakeven analysisMarginal costing & breakeven analysis
Marginal costing & breakeven analysis
Faltu Focat
 
Marginal Costing
Marginal CostingMarginal Costing
Marginal Costing
Sheetal Narkar
 
Bba ii cost and management accounting u 4.2 cost -marginal costing
Bba ii cost and management accounting u 4.2 cost -marginal costingBba ii cost and management accounting u 4.2 cost -marginal costing
Bba ii cost and management accounting u 4.2 cost -marginal costing
Rai University
 
Marginal costing
Marginal costing Marginal costing
Marginal costing
VARUN MODI
 
Marginal costing
Marginal costingMarginal costing
Marginal costing
Nishant Singh
 
Marginal cost-Introduction
Marginal cost-IntroductionMarginal cost-Introduction
Marginal cost-Introduction
Bharti Goyal
 
Accounts : Marginal Costing
Accounts : Marginal CostingAccounts : Marginal Costing
Accounts : Marginal Costing
Sanchit
 
4 marginal cost
4 marginal cost4 marginal cost
4 marginal cost
Astha Borthakur
 
Absorption and marginal costing
Absorption and marginal costingAbsorption and marginal costing
Absorption and marginal costing
Trisha Dookhony
 
Marginal Costing & Profit Planning
Marginal Costing & Profit PlanningMarginal Costing & Profit Planning
Marginal Costing & Profit Planning
Dr. Trilok Kumar Jain
 
Marginal Costing for IPCC
Marginal Costing for IPCCMarginal Costing for IPCC
Marginal Costing for IPCC
Roopa Kamath
 
Marginal costing
Marginal costing Marginal costing
Marginal costing
student
 
UNDERSTANDING MARGINAL COSTING
UNDERSTANDING MARGINAL COSTINGUNDERSTANDING MARGINAL COSTING
UNDERSTANDING MARGINAL COSTING
ambarish_9
 
Marginal cost
Marginal costMarginal cost
Marginal cost
neelakshi81
 
Marginal Costing for Decision Making Techniques
Marginal Costing for Decision Making TechniquesMarginal Costing for Decision Making Techniques
Marginal Costing for Decision Making Techniques
Muhammad Al-Shaibah
 
Mrginal accounting
Mrginal accounting Mrginal accounting
Mrginal accounting
J Prateek Kundu
 
Marginal costing
Marginal costingMarginal costing
Marginal costing
Praveen Ojha
 
Marginal costing
Marginal costingMarginal costing
Marginal costing
Priyanka Jain
 
Marginal costing basics
Marginal costing basicsMarginal costing basics
Marginal costing basics
KadeejaMustafa
 
marginal costing
marginal costingmarginal costing
marginal costing
Aswin prakash i , Xantus Technologies
 
Marginal costing & budgets by Neeraj Bhandari ( Surkhet.Nepal )
Marginal costing & budgets by Neeraj Bhandari ( Surkhet.Nepal )Marginal costing & budgets by Neeraj Bhandari ( Surkhet.Nepal )
Marginal costing & budgets by Neeraj Bhandari ( Surkhet.Nepal )
Neeraj Bhandari
 
Marginalcosting
MarginalcostingMarginalcosting
Marginalcosting
JOYAL SAJI
 
marginal cost accounting
marginal cost accountingmarginal cost accounting
marginal cost accounting
vaishali_bansal
 
Marginal costing
Marginal costingMarginal costing
Marginal costing
Ajiths Sathya
 
Break even analysis
Break even analysisBreak even analysis
Break even analysis
Maheshwari Gummapu
 
Marginal cost
Marginal costMarginal cost
Marginal cost
Rohit Mohan
 
Marginal costing and break even analysis
Marginal costing and break even analysisMarginal costing and break even analysis
Marginal costing and break even analysis
Syed Mahmood Ali
 
Break Even Analysis
Break Even AnalysisBreak Even Analysis
Break Even Analysis
yogesh raghuwanshi
 
Ppt marginal-costing
Ppt marginal-costingPpt marginal-costing
Ppt marginal-costing
prasadkeer
 
Marginal cost
Marginal costMarginal cost
Marginal cost
Jijo Mathew
 

More Related Content

What's hot

Marginal costing & budgets by Neeraj Bhandari ( Surkhet.Nepal )
Marginal costing & budgets by Neeraj Bhandari ( Surkhet.Nepal )Marginal costing & budgets by Neeraj Bhandari ( Surkhet.Nepal )
Marginal costing & budgets by Neeraj Bhandari ( Surkhet.Nepal )
Neeraj Bhandari
 
marginal cost accounting
marginal cost accountingmarginal cost accounting
marginal cost accounting
vaishali_bansal
 

What's hot (20)

Absorption and marginal costing
Absorption and marginal costingAbsorption and marginal costing
Absorption and marginal costing
 
Marginal Costing & Profit Planning
Marginal Costing & Profit PlanningMarginal Costing & Profit Planning
Marginal Costing & Profit Planning
 
Marginal Costing for IPCC
Marginal Costing for IPCCMarginal Costing for IPCC
Marginal Costing for IPCC
 
Marginal costing
Marginal costing Marginal costing
Marginal costing
 
UNDERSTANDING MARGINAL COSTING
UNDERSTANDING MARGINAL COSTINGUNDERSTANDING MARGINAL COSTING
UNDERSTANDING MARGINAL COSTING
 
Marginal cost
Marginal costMarginal cost
Marginal cost
 
Marginal Costing for Decision Making Techniques
Marginal Costing for Decision Making TechniquesMarginal Costing for Decision Making Techniques
Marginal Costing for Decision Making Techniques
 
Mrginal accounting
Mrginal accounting Mrginal accounting
Mrginal accounting
 
Marginal costing
Marginal costingMarginal costing
Marginal costing
 
Marginal costing
Marginal costingMarginal costing
Marginal costing
 
Marginal costing basics
Marginal costing basicsMarginal costing basics
Marginal costing basics
 
marginal costing
marginal costingmarginal costing
marginal costing
 
Marginal costing & budgets by Neeraj Bhandari ( Surkhet.Nepal )
Marginal costing & budgets by Neeraj Bhandari ( Surkhet.Nepal )Marginal costing & budgets by Neeraj Bhandari ( Surkhet.Nepal )
Marginal costing & budgets by Neeraj Bhandari ( Surkhet.Nepal )
 
Marginalcosting
MarginalcostingMarginalcosting
Marginalcosting
 
marginal cost accounting
marginal cost accountingmarginal cost accounting
marginal cost accounting
 
Marginal costing
Marginal costingMarginal costing
Marginal costing
 
Break even analysis
Break even analysisBreak even analysis
Break even analysis
 
Marginal cost
Marginal costMarginal cost
Marginal cost
 
Marginal costing and break even analysis
Marginal costing and break even analysisMarginal costing and break even analysis
Marginal costing and break even analysis
 
Break Even Analysis
Break Even AnalysisBreak Even Analysis
Break Even Analysis
 

Viewers also liked

Ppt marginal-costing
Ppt marginal-costingPpt marginal-costing
Ppt marginal-costing
prasadkeer
 
Marginal costing
Marginal costingMarginal costing
Marginal costing
camie5566
 
Universidad tecnica de amabato joha ntics
Universidad tecnica de amabato joha nticsUniversidad tecnica de amabato joha ntics
Universidad tecnica de amabato joha ntics
jcaritoavila
 
Marginal costing
Marginal costingMarginal costing
Marginal costing
jmb164
 
Marginal cost
Marginal costMarginal cost
Marginal cost
Joel Pais
 
Marginal and absorption costing
Marginal and absorption costingMarginal and absorption costing
Marginal and absorption costing
Nandini Chowdary
 
Standard costs and variance analysis
Standard costs and variance analysisStandard costs and variance analysis
Standard costs and variance analysis
Sumit Malhotra
 

Viewers also liked (14)

Ppt marginal-costing
Ppt marginal-costingPpt marginal-costing
Ppt marginal-costing
 
Marginal cost
Marginal costMarginal cost
Marginal cost
 
Marginal costing
Marginal costingMarginal costing
Marginal costing
 
Universidad tecnica de amabato joha ntics
Universidad tecnica de amabato joha nticsUniversidad tecnica de amabato joha ntics
Universidad tecnica de amabato joha ntics
 
Marginal costing
Marginal costingMarginal costing
Marginal costing
 
Marginal costing
Marginal costingMarginal costing
Marginal costing
 
Forfeiture of Shares : Company Accounts
Forfeiture of Shares : Company Accounts Forfeiture of Shares : Company Accounts
Forfeiture of Shares : Company Accounts
 
Mahalanobis Model Kaldor model Harrod- Domar Model
Mahalanobis Model Kaldor model Harrod- Domar ModelMahalanobis Model Kaldor model Harrod- Domar Model
Mahalanobis Model Kaldor model Harrod- Domar Model
 
moodle upload
moodle upload moodle upload
moodle upload
 
Marginal Costing vs Absorption Costing - ACCA - F5
Marginal Costing vs Absorption Costing - ACCA - F5Marginal Costing vs Absorption Costing - ACCA - F5
Marginal Costing vs Absorption Costing - ACCA - F5
 
Marginal cost
Marginal costMarginal cost
Marginal cost
 
Marginal and absorption costing
Marginal and absorption costingMarginal and absorption costing
Marginal and absorption costing
 
Issue of shares
Issue of sharesIssue of shares
Issue of shares
 
Standard costs and variance analysis
Standard costs and variance analysisStandard costs and variance analysis
Standard costs and variance analysis
 

Similar to 17a marginal costing & breakeven analysis

Cost, volume, profit Analysis. for decision making
Cost, volume, profit Analysis. for decision makingCost, volume, profit Analysis. for decision making
Cost, volume, profit Analysis. for decision making
HAFIDHISAIDI1
 
New microsoft office word document
New microsoft office word documentNew microsoft office word document
New microsoft office word document
guest62656af
 
New microsoft office word document
New microsoft office word documentNew microsoft office word document
New microsoft office word document
guest62656af
 
Horngrenima14e ch13
Horngrenima14e ch13Horngrenima14e ch13
Horngrenima14e ch13
Anchit Jain
 
ARKA RAJ SAHA 27332020003.....pdf
ARKA RAJ SAHA 27332020003.....pdfARKA RAJ SAHA 27332020003.....pdf
ARKA RAJ SAHA 27332020003.....pdf
ARKARAJSAHA
 
Production And Cost In The Short Run
Production And Cost In The Short RunProduction And Cost In The Short Run
Production And Cost In The Short Run
mandalina landy
 
Absorptionandmarginalcosting 120601013706-phpapp02
Absorptionandmarginalcosting 120601013706-phpapp02Absorptionandmarginalcosting 120601013706-phpapp02
Absorptionandmarginalcosting 120601013706-phpapp02
gkibuye
 
Breakeven analysis 0
Breakeven analysis 0Breakeven analysis 0
Breakeven analysis 0
dixie pasos
 
Differential Cost Analysis chapter7
Differential Cost Analysis chapter7Differential Cost Analysis chapter7
Differential Cost Analysis chapter7
coiness
 

Similar to 17a marginal costing & breakeven analysis (20)

Study manual icab chapter 4, Management Information, ICAB
Study manual icab chapter 4, Management Information, ICABStudy manual icab chapter 4, Management Information, ICAB
Study manual icab chapter 4, Management Information, ICAB
 
L6 marginal & absorption costing
L6 marginal & absorption costingL6 marginal & absorption costing
L6 marginal & absorption costing
 
Marginal and absorption costing zimsec zimbabwe cambridge
Marginal and absorption costing zimsec zimbabwe cambridgeMarginal and absorption costing zimsec zimbabwe cambridge
Marginal and absorption costing zimsec zimbabwe cambridge
 
Cost, volume, profit Analysis. for decision making
Cost, volume, profit Analysis. for decision makingCost, volume, profit Analysis. for decision making
Cost, volume, profit Analysis. for decision making
 
New microsoft office word document
New microsoft office word documentNew microsoft office word document
New microsoft office word document
 
New microsoft office word document
New microsoft office word documentNew microsoft office word document
New microsoft office word document
 
Horngrenima14e ch13
Horngrenima14e ch13Horngrenima14e ch13
Horngrenima14e ch13
 
Session 6.3: Business Work Improvement Course (Financial Analysis) developed ...
Session 6.3: Business Work Improvement Course (Financial Analysis) developed ...Session 6.3: Business Work Improvement Course (Financial Analysis) developed ...
Session 6.3: Business Work Improvement Course (Financial Analysis) developed ...
 
ma_ch03_slides.ppt
ma_ch03_slides.pptma_ch03_slides.ppt
ma_ch03_slides.ppt
 
ARKA RAJ SAHA 27332020003.....pdf
ARKA RAJ SAHA 27332020003.....pdfARKA RAJ SAHA 27332020003.....pdf
ARKA RAJ SAHA 27332020003.....pdf
 
Production And Cost In The Short Run
Production And Cost In The Short RunProduction And Cost In The Short Run
Production And Cost In The Short Run
 
St.claret college 17-05-2021-marginal costing
St.claret college 17-05-2021-marginal costingSt.claret college 17-05-2021-marginal costing
St.claret college 17-05-2021-marginal costing
 
Absorptionandmarginalcosting 120601013706-phpapp02
Absorptionandmarginalcosting 120601013706-phpapp02Absorptionandmarginalcosting 120601013706-phpapp02
Absorptionandmarginalcosting 120601013706-phpapp02
 
Breakeven analysis 0
Breakeven analysis 0Breakeven analysis 0
Breakeven analysis 0
 
Costs Of Production Micro Economics ECO101
Costs Of Production Micro Economics ECO101Costs Of Production Micro Economics ECO101
Costs Of Production Micro Economics ECO101
 
Costs of Production
Costs of ProductionCosts of Production
Costs of Production
 
Notes on Cost volume profit analysis
Notes on Cost volume profit analysisNotes on Cost volume profit analysis
Notes on Cost volume profit analysis
 
MICROECONOMICS-PPT examples.pptx
MICROECONOMICS-PPT examples.pptxMICROECONOMICS-PPT examples.pptx
MICROECONOMICS-PPT examples.pptx
 
Chapter 07 Marginal Costing
Chapter 07 Marginal CostingChapter 07 Marginal Costing
Chapter 07 Marginal Costing
 
Differential Cost Analysis chapter7
Differential Cost Analysis chapter7Differential Cost Analysis chapter7
Differential Cost Analysis chapter7
 

Recently uploaded

Russian Escort Service in Delhi 11k Hotel Foreigner Russian Call Girls in Delhi
Russian Escort Service in Delhi 11k Hotel Foreigner Russian Call Girls in DelhiRussian Escort Service in Delhi 11k Hotel Foreigner Russian Call Girls in Delhi
Russian Escort Service in Delhi 11k Hotel Foreigner Russian Call Girls in Delhi
kauryashika82
 
1029-Danh muc Sach Giao Khoa khoi 6.pdf
1029-Danh muc Sach Giao Khoa khoi 6.pdf1029-Danh muc Sach Giao Khoa khoi 6.pdf
1029-Danh muc Sach Giao Khoa khoi 6.pdf
QucHHunhnh
 
Activity 01 - Artificial Culture (1).pdf
Activity 01 - Artificial Culture (1).pdfActivity 01 - Artificial Culture (1).pdf
Activity 01 - Artificial Culture (1).pdf
ciinovamais
 
Gardella_Mateo_IntellectualProperty.pdf.
Gardella_Mateo_IntellectualProperty.pdf.Gardella_Mateo_IntellectualProperty.pdf.
Gardella_Mateo_IntellectualProperty.pdf.
MateoGardella
 

Recently uploaded (20)

Russian Escort Service in Delhi 11k Hotel Foreigner Russian Call Girls in Delhi
Russian Escort Service in Delhi 11k Hotel Foreigner Russian Call Girls in DelhiRussian Escort Service in Delhi 11k Hotel Foreigner Russian Call Girls in Delhi
Russian Escort Service in Delhi 11k Hotel Foreigner Russian Call Girls in Delhi
 
1029-Danh muc Sach Giao Khoa khoi 6.pdf
1029-Danh muc Sach Giao Khoa khoi 6.pdf1029-Danh muc Sach Giao Khoa khoi 6.pdf
1029-Danh muc Sach Giao Khoa khoi 6.pdf
 
Activity 01 - Artificial Culture (1).pdf
Activity 01 - Artificial Culture (1).pdfActivity 01 - Artificial Culture (1).pdf
Activity 01 - Artificial Culture (1).pdf
 
Measures of Central Tendency: Mean, Median and Mode
Measures of Central Tendency: Mean, Median and ModeMeasures of Central Tendency: Mean, Median and Mode
Measures of Central Tendency: Mean, Median and Mode
 
Class 11th Physics NEET formula sheet pdf
Class 11th Physics NEET formula sheet pdfClass 11th Physics NEET formula sheet pdf
Class 11th Physics NEET formula sheet pdf
 
Advanced Views - Calendar View in Odoo 17
Advanced Views - Calendar View in Odoo 17Advanced Views - Calendar View in Odoo 17
Advanced Views - Calendar View in Odoo 17
 
PROCESS RECORDING FORMAT.docx
PROCESS RECORDING FORMAT.docxPROCESS RECORDING FORMAT.docx
PROCESS RECORDING FORMAT.docx
 
Web & Social Media Analytics Previous Year Question Paper.pdf
Web & Social Media Analytics Previous Year Question Paper.pdfWeb & Social Media Analytics Previous Year Question Paper.pdf
Web & Social Media Analytics Previous Year Question Paper.pdf
 
ICT Role in 21st Century Education & its Challenges.pptx
ICT Role in 21st Century Education & its Challenges.pptxICT Role in 21st Century Education & its Challenges.pptx
ICT Role in 21st Century Education & its Challenges.pptx
 
Gardella_Mateo_IntellectualProperty.pdf.
Gardella_Mateo_IntellectualProperty.pdf.Gardella_Mateo_IntellectualProperty.pdf.
Gardella_Mateo_IntellectualProperty.pdf.
 
Unit-V; Pricing (Pharma Marketing Management).pptx
Unit-V; Pricing (Pharma Marketing Management).pptxUnit-V; Pricing (Pharma Marketing Management).pptx
Unit-V; Pricing (Pharma Marketing Management).pptx
 
psychiatric nursing HISTORY COLLECTION .docx
psychiatric nursing HISTORY COLLECTION .docxpsychiatric nursing HISTORY COLLECTION .docx
psychiatric nursing HISTORY COLLECTION .docx
 
Introduction to Nonprofit Accounting: The Basics
Introduction to Nonprofit Accounting: The BasicsIntroduction to Nonprofit Accounting: The Basics
Introduction to Nonprofit Accounting: The Basics
 
APM Welcome, APM North West Network Conference, Synergies Across Sectors
APM Welcome, APM North West Network Conference, Synergies Across SectorsAPM Welcome, APM North West Network Conference, Synergies Across Sectors
APM Welcome, APM North West Network Conference, Synergies Across Sectors
 
Mixin Classes in Odoo 17 How to Extend Models Using Mixin Classes
Mixin Classes in Odoo 17 How to Extend Models Using Mixin ClassesMixin Classes in Odoo 17 How to Extend Models Using Mixin Classes
Mixin Classes in Odoo 17 How to Extend Models Using Mixin Classes
 
Unit-IV; Professional Sales Representative (PSR).pptx
Unit-IV; Professional Sales Representative (PSR).pptxUnit-IV; Professional Sales Representative (PSR).pptx
Unit-IV; Professional Sales Representative (PSR).pptx
 
Mattingly "AI & Prompt Design: The Basics of Prompt Design"
Mattingly "AI & Prompt Design: The Basics of Prompt Design"Mattingly "AI & Prompt Design: The Basics of Prompt Design"
Mattingly "AI & Prompt Design: The Basics of Prompt Design"
 
Unit-IV- Pharma. Marketing Channels.pptx
Unit-IV- Pharma. Marketing Channels.pptxUnit-IV- Pharma. Marketing Channels.pptx
Unit-IV- Pharma. Marketing Channels.pptx
 
Grant Readiness 101 TechSoup and Remy Consulting
Grant Readiness 101 TechSoup and Remy ConsultingGrant Readiness 101 TechSoup and Remy Consulting
Grant Readiness 101 TechSoup and Remy Consulting
 
SECOND SEMESTER TOPIC COVERAGE SY 2023-2024 Trends, Networks, and Critical Th...
SECOND SEMESTER TOPIC COVERAGE SY 2023-2024 Trends, Networks, and Critical Th...SECOND SEMESTER TOPIC COVERAGE SY 2023-2024 Trends, Networks, and Critical Th...
SECOND SEMESTER TOPIC COVERAGE SY 2023-2024 Trends, Networks, and Critical Th...
 

17a marginal costing & breakeven analysis