Concept introduction:
Variable Cost: Those cost which are increases as the output of the product is increases are called variable cost and it remains same on per unit basis.
Fixed Cost: All those cost which are same in totality and incurred to the company irrespective of the output then it is called fixed cost.
Requirement-1:
To identify:
Should we accept the special order?
Concept introduction:
Variable Cost: Those cost which are increases as the output of the product is increases are called variable cost and it remains same on per unit basis.
Fixed Cost: All those cost which are same in totality and incurred to the company irrespective of the output then it is called fixed cost.
Requirement-1:
To calculate:
Increases or decreases in the profit from accepting the offer.
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