
In this lecture we understand the types of costs based on their nature. We learn about Variable Costs, Fixed Costs which are going to be the foundation for the Marginal Costing Technique.
Explore marginal costing by analyzing how contribution and pv ratio relate to sales, variable costs, and fixed costs to determine break-even points.
Explore marginal costing basics through a practical problem: compute contribution per unit, pv ratio, break-even points, and sales required for targeted profit (including tax considerations).
This lecture solves marginal costing problems by deriving contribution per unit from fixed and variable costs, then calculating selling price, break-even units, and profit targets using pv ratio.
Explore how the margin of safety relates to break-even analysis by comparing actual sales with break-even units, using contribution per unit and fixed costs to determine profits.
Evaluate two firms under marginal costing to determine merged break-even sales, capacity utilization, and profit at 80% and 100% capacity using PV ratio and fixed and variable costs.
Compute the combined break-even point for Noida and Haridwar under marginal costing, using fixed costs, variable costs, and weighted contribution; compare 2:3 production ratio and prioritize the more profitable plant.
This course is intended for all the students and working people who need to understand about the variable costs, fixed costs, marginal costing technique, and how this is a great tool to increase your business profits by better decision making approach.
We will learn about contribution margin, break-even analysis, concept of margin of safety, limiting factor, buy or make decisions.
Applying these concepts into your day to day business can create remarkable difference in your profitability.
This course is also suited to all students of commerce, MBA, CA, CS, CWA, CPA, ACCA who have this topic in their curriculum.
Along with course, we shall solve lot of questions to understand our learning in a better way.
The course starts by introducing the audience to the concept of nature of costs, their variable nature and impact of the same on the total costs, and resultant profits.
We then move to understand the idea of contribution, computing the contribution ratio and using it to easily arrive at various points - Break-even sales, Required Sales for a target profit.
After this, we move on to understand the concept of margin of safety which is very useful to understand the strength of a business. More the margin of safety, the better a firm is placed to deal with uncertainty of future.
We then move on to understand how the whole marginal costing technique can be used to make decisions in order to maximise our bottom-line i.e. profits.
You would surely like the lucid and simple way in which the whole course is delivered.