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Areas of applications-BEP final
1. CHAPTER -
Different Approaches to Costing
Decision Making Approaches
Deals in details the following
Marginal Costing, Linear Programming, Learning Curve, Statistical
Investigation, Differentiation, Probability, Capital Budgeting and Economic
Applications for Decisions.
Applications
1. Special Selling price decision
2. Product –Mix decisions when capacity constraints exit
3. Decision on replacement of equipment
4. Outsourcing (make or buy)
5. Discontinuation decision
6. Export or local sales if local sales are affected/when local sales are not
affected
7. Relevance of variable cost and irrelevance of variable costs
8. Irrelevance of fixed cost and relevance of fixed cost
9. Cost–volume –Profit analysis in hospital, hotel industry
10. Changes in product
11. Graphical representation mix
12. Product aba