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In contract costing profit can be recognised only when the contract is completed?
Wiki User
∙ 9y ago
In contract costing, the profit is only guaranteed when the actual contract is completed because the prices keep changing. There is usually a slight variation between projected profit and the actual figures.
Wiki User
∙ 9y ago
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What are the uses of marginal costing and absorption costing?
to calculate the profit easilly
What are the limitations of absorption costing?
Absorption costing does not understand the importance of fixed costs. In absortption costing, fixed costs are absorbed to unit, therefore it is hard to distinguish between variable and fixed costs. And also, the variability of profit will cause confusion, the reason is that the net profit varies with both sales and stock changed under absorption costing. Absorption costing does not understand the importance of fixed costs. In absortption costing, fixed costs are absorbed to unit, therefore it is hard to distinguish between variable and fixed costs. And also, the variability of profit will cause confusion, the reason is that the net profit varies with both sales and stock changed under absorption costing.
How do you calculate restaurant profit?
Restaurant Gross profit = Total generated revenue - total costing *total costing = fixed assets, stock in hand, manpower, utilities, rental and maintenance. *Gross profit=Revenues-Variable costs-fixed costs
What will be the profit percent if a bag of price costing Rs.480 is sold by making a profit of Rs 120?
It is 25%.
Find the selling price of an article costing rs.30that was sold at a profit of 15 percent of the cost price?
find the selling price of an article costing Rs.30.00,that was sold at a profit of 15% of the cost price
Compare marginal costing versus cvp analysis?
CVP stands for Cost-Volume-Profit.
Can an Ijara contract be a discounted contract for the purpose of calculating profit?
The Ijara contract cannot be discounting. because on the date of the contract you don't agree the profit amount with the customer. Under actual business scenario, you will link the Ijara to a LIBOR / EIBOR rate feeds.
Role of target costing?
Target costing refers to the design of a product and the processes used to produce it , so the ultimately the product can be manufactured at a cost that will enable the firm to make a profit when product is sold
Difference between absorption costing and marginal costing calicut uviversity?
The difference between marginal and absorption costing is that when preparing a statement based on marginal costing, you would subtract all variable costs, production or otherwise, from the sales revenue, to give the contribution, from which you subtract all fixed costs (production and non-production) to give profit made.Using absorption costing however, you subtract production costs (this will include both variable and fixed production costs) only from sales to give you the gross profit, from which you then subtract all non-production costs (fixed or variable) to give net profit.The final profit using both methods is always the same.
How do you calculate knit garments costing?
Several factors come into play when costing knitted garments. First is whether they are hand knit or machine knit, then cost of materials and cost of labor. On top of this, profit must be added.
The cost method that can be used most easily with the break-even analysis and other cost volume-profit techniques is?
process costing
What is the average profit margin of the furniture industry?
Contract furniture manufacturer profit margin is between 30-35%. Distributor or "Dealer" profit margin is 20-25%.
