Professional Documents
Culture Documents
Technical difficulties.
Time taken for completion of jobs is not given due
attention.
Less effective.
Balance sheet will not exhibit true and fair view.
Problem of apportionment of variable cost still
arises.
Difficulty to apply in contract or ship building
industry.
Does not provide any standard.
General reduction in selling price and thus losses.
B.E.P = FC/P/V
OR
TOTAL FIXED EXPENSES/S.P PER UNIT-MC PER UNIT
OR
TOTAL FIXED EXPENSES/CONTRIBUTION PER UNIT
COST CONTROL.
PROFIT PLANNING.
EVALUTION OF PERFORMANCE.
DECISION MAKING.
FIXATION OF SELLING PRICE.
KEY LIMITING FACTOR.
SUITABLE PRODUCT MIX.