Marginal costing decisions covering marginal and absorption costing comparison, income statements under both methods, decision making applications, key factor analysis, sales mix decisions, product profitability, contribution analysis for managerial decisions, practical problems.
Marginal costing and absorption costing covering meaning and features of marginal costing, income statement under marginal costing, direct costing, differential costing, absorption costing meaning and features, income statement under absorption costing, comparison between marginal and absorption costing.
Cost-volume-profit analysis covering meaning of contribution, computation of contribution, profit/volume (P/V) ratio, meaning and computation of P/V ratio, uses of P/V ratio, improving P/V ratio, CVP relationship, practical examples and calculations.
Revenue variance/sales variance covering introduction, sales value variance, sales price variance, sales volume variance, sales quantity variance, sales mix variance, sales margin variance, turnover method, profit method, formulas and calculations.
Variance analysis types covering objectives, introduction, meaning of variance and variance analysis, controllable/uncontrollable variances, classification (cost and sales variances), direct material, direct labor, overhead cost variance calculations and interpretations.