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Marginal costing
Costing
In this q I found out cost indifference point ..but I don’t understand the interpretation of above and below the cost indifference point
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If your production is below cost indifference point go with alternative having less fixed cost component in that cost structure Because since units are less .. Variable costs will be less and u want to take advantage of that If production is above cost indifference point go for cost structure having higher component of fixed costs as because even if units are high fixed costs will be fixed and u can take advantage of that factor
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