Define Contribution.

Contribution: Contribution is the difference between sales and variable costs or marginal costs. It also may be defined as the difference between the selling price per unit and the over-variable cost per unit. If the selling price of a product is Rs.100/- per unit and variable cost per unit is Rs.80/-, contribution per unit is … Read more

What is the Marginal Cost Equation?

Marginal Cost Equation: Sales – Variable Cost = Contribution alternatively, Sales = Contribution + Variable Cost So, Sales = Variable cost + Fixed cost ± Profit So, Sales – Variable Cost = Fixed Cost ± Profit. also, S – V=F ± P.

Write the Definition of Financial Management.

Definition of Financial Management: Financial management is that part of management concerned with the raising of finance necessary for the business and with the implementation of financial policies and practices. Finance is the lifeblood of the business. The plans of a businessman would remain in a dream unless adequate money is available for their actual … Read more

What is the Marginal Costing and Cost Volume Profit Analysis?

Marginal Costing and Cost Volume Profit Analysis Marginal Costing By distinguishing between fixed costs and variable costs, the marginal costing technique can be used to determine marginal costs as well as the impact of changes in output volume and type on profit. Assumption of Marginal Costing Advantages of Marginal Costing Limitations or Disadvantages of Marginal … Read more

Discuss Nature of the Financial Management.

Nature of the Financial Management: Following are the nature of Financial Management. a) Easy Raising of Finance: Before procuring the necessary finance from various sources, a proper estimation is to be fixed as how much will be the number of cash flows of the organization for a specific period. The cash flow has two aspects, … Read more

Write short notes on Performance appraisal.

Ans: Performance evaluations are “a process and a system for determining the suitability of employees for other jobs, particularly of higher responsibility in an organization,” according to one definition of Performance Appraisals. Uses / Purposes of Performance Appraisals

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