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Marginal costing

In the 6th question of the pratical problem of the institute's textbook, how can we take the difference of budgeted and actuals to find the P/V RATIO ? What is the logic of this difference?


Swathi Krishna

Swathi Krishna

CA Inter

7K+

01-Oct-20 19:42

87

Answers (9)

No


anju B

anju B

CA Inter

18K+

02-Oct-20 10:09

Means?


Thread Starter

Swathi Krishna

Swathi Krishna

CA Inter

7K+

02-Oct-20 10:59

in marginal analysis, we use the price and volume changes to arrive at conclusions. Fixed costs are not changed.


Suraj Lakhotia

Suraj Lakhotia

Admin

02-Oct-20 17:12

So bugetes profit minus actual profits give us contribution


Thread Starter

Swathi Krishna

Swathi Krishna

CA Inter

7K+

02-Oct-20 23:20

Budgeted *


Thread Starter

Swathi Krishna

Swathi Krishna

CA Inter

7K+

02-Oct-20 23:20

Thread Starter

Swathi Krishna

Budgeted *

This means I wrote budgeted profits - actual profit gives us contribution


Thread Starter

Swathi Krishna

Swathi Krishna

CA Inter

7K+

02-Oct-20 23:22

Thread Starter

Swathi Krishna

This means I wrote budgeted profits - actual profit gives us contribution

The point is that since fixed costs do not change, profit variation is only on account of contribution.


Suraj Lakhotia

Suraj Lakhotia

Admin

03-Oct-20 07:01

K


Thread Starter

Swathi Krishna

Swathi Krishna

CA Inter

7K+

04-Oct-20 01:04

Thanks sir


Thread Starter

Swathi Krishna

Swathi Krishna

CA Inter

7K+

04-Oct-20 01:04

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