Costing Tutors for CA CPT in Indore

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CVP Analysis- is to determine how changes in cost and volume affect the profit and net income of the company. Important Assumptions 1. Selling Price p.u -Constant. 2. Variable Cost p.u.-constant. 3. Total Fixed Cost- constant

Application of Marginal costing 1)Profit Planning:- profit can be enhanced by increasing volume,Increasing SP,Decreasing FC or VC. 2)Evalation of performance:-CVP analysis helps in determining product or sector wise performance. 3)Make or Buy decision:-Marginal costing helps to decide whether particular product should be made within the organisation or it should be purchased.

On the graph,when sales and total cost line intersect at Break Even Point, it is called as Angle of incidence.At that point there will be no profit and no loss.

Budget manual is a document which sets out instructions that govern responsibilities of persons. Features:-1)Maximisation of profits 2)Helps in fixing up the responsibility 3)Problems can be easily detected and solved 4)Ensures efficient utilisation of resources 5)No or Less ambiguity

1)Organisational chart 2)Budget centre 3)Budget Manual 4)Budget Controller 5)Budget Committee 6)Budget Period 7)Budget Key Factor 8)Budget Reports

1)Availability of funds 2)Expected Returns 3)Government Regulation 4)Skills of personnel

Essentials:-1)statement expressed in monetary or physical units 2)Laid down prior to the budget period 3)prepared for definite future period

Fixed budget remains unchanged irrespective of the level of activity whereas Flexible budget keeps on changing depending upon the level of activity.Fixed budget incorporates only fixed costs whereas flexible budget incorporates Fixed,Variable and Semi-veriable cost.

1)sales budget 2)Production budget 3)Materials 4)Labour 5)Plant Utilisation 6)Overhead 7)Research and Development 8)Financial Budget 9)Cash budget