(1) - Managerial Accounting: The Branch Of Accounting That

1138 WordsMay 3, 20175 Pages
(1) - Managerial Accounting: The branch of accounting that focuses on information for internal decision makers of an organization. Management accounting provides information to help managers plan and control operations as they lead the business. Managerial accounting help to calculate cost of goods sold and cost of goods manufactured, helps in prepare budget and if you have the budget, you can compare between it and the accrual to make variance analysis. - In case study, helps you to determine cost for each product, the suitable selling price, the contribution margin, the perfect mix production, the profit margin for each product. So, if you can determine the cost, you can decrease the cost, you can create competitive…show more content…
: 180-60 : 200-140 30 : 120 : 60 × × × Sales Mix in Units: 3 : 2 : 1 ( = 6 ) Contribution margin Per Unit: 90 : 240 : 60 ( = 390 ) *Weighted-Average CM = 390/6 = 65\$ BEP (Units) = Fixed Cost / Contribution Margin = 162,500 / 65 = 2,500 Units For Product A: 2,500 × (3/6) = 1,250 Units for Product B: 2,500 × (2/6) = 833 Units for Product C: 2,500 × (1/6) = 417 Units *Proof: A : B : C : Total Sales (1,250×60) : (833×180) : (417×200) 75,000 : 149,940 : 83,400 - Variable Cost (1,250×30) : (833×60) : (417×140) 37,500 : 49,980 : 58,380 = Contribution Margin 37,500 : 99,960 : 25,020 :162,500 (ap.) - Fixed