Decision making under marginal costing covering exploring new markets, make or buy decisions, sales mix decisions, key factor analysis, product mix optimization, contribution analysis for managerial decisions.
Marginal costing and absorption costing covering meaning, basic features, income statement preparation under both methods, direct costing, differential costing, comparison of marginal and absorption costing techniques.
Break-even analysis covering meaning of break-even point, calculation methods (units, value, percentage), margin of safety, break-even chart preparation, angle of incidence, profit and loss areas, graphical representation.
Cost-volume-profit analysis covering contribution, P/V ratio computation, uses of P/V ratio, improving P/V ratio, relationship between cost, volume and profit at different activity levels, sales mix decisions.
Process costing method covering definition, features, elements of cost, process accounts preparation, treatment of normal and abnormal losses, abnormal gains, inter-process profits, work-in-progress valuation, equivalent production calculations.