Break-even Charts help in: Determining total cost, variable cost and fixed cost at a given level of activity. Finding out break-even output or sales. Understanding the cost, volume, profit relationship. Making inter-firm comparisons. Forcasting profits. Selecting the best product mix. Enforcing cost control. On the negative side, break-even analysis suffers Read more…
Cash flow analysis yields the following advantages: It is very helpful in understanding the cash position of the firm. This would enable the management to plan and coordinate the financial operations properly. Since it provides information about cash which would be available from operations the management would be in Read more…
Objectives/purposes/functions/aims of cost accounting Main objectives or purposes or functions or aims of cost accounting are: Cost finding or cost ascertainment Control of cost Reduction of cost Fixation of selling price Providing information for framing business policy Cost finding or cost ascertainment : The primary objective of Read more…