Fifth edition Alnoor Bhimani Charles T. Horngren Srikant M. Datar Madhav V. Rajan Farah Ahamed


Not-for-profit institutions and CVP



Download 1.72 Mb.
View original pdf
Page171/469
Date01.12.2021
Size1.72 Mb.
#57828
1   ...   167   168   169   170   171   172   173   174   ...   469
solutions-manual-to-bhimani-et-al-management-and-cost-accounting-pearson-2012-1
Not-for-profit institutions and CVP
This application of CVP in a not-for-profit setting is particularly interesting for two reasons. First, the effect of budget cuts on government agencies is topical, given the current political climate that emphasises reducing spending on social programmes. Second, the not-for-profit sector constitutes an increasing proportion of the economy. There are two distinctions between CM and GM. Variable non-manufacturing expenses are subtracted to get CM (but not GM, and fixed manufacturing costs are subtracted to get GM (but not CM e.g.: Selling price/case
€15.00 Variable manufacturing cost/case
2.00 Variable mktg. and admin. cost/case
4.00 Fixed manufacturing cost/case
4.50 Fixed mktg. and admin. cost/case
1.50 CM = €15 − 2 − 4 = €9 GM = €15 − 2 − 4.5 = €8.50

Download 1.72 Mb.

Share with your friends:
1   ...   167   168   169   170   171   172   173   174   ...   469




The database is protected by copyright ©ininet.org 2024
send message

    Main page