Cost Concepts Relating to Profit Planning Homework Help
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Profit and loss is the difference in accounting that a management gets after deducting the investment with the sales and revenue. If the difference is seemed to be positive then it is said that the management had certain profit and if the difference is negative it had a loss. To ensure more and more profit it is notified by the management that efficient planning is required. These planning are based upon various cost concepts developed. In this article for Cost Concepts Relating to Profit Planning homework Help we discuss such cost concepts.
Importance of Cost Concepts Relating to Profit Planning
It is an integral part of the business and generation of revenue on a high scale becomes difficult when these cost concepts are not taken seriously. As our Cost Concepts Relating to Profit Planning homework Help writers say, the improper application of cost concepts will lead to failed business strategies and administration. The importance of it is
• Business terms related to supply, demand, service and labors etc. can be manipulated.
• Cost increases with the increase in expenses and shown in book keeping.
• Every cost has a special set of records to signify itself.
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Subdivisions of Profit Planning
By reading the following information in Cost Concepts Relating to Profit Planning homework help article you will know various subdivisions of profit planning.
i. Fixed costs, that are related with inputs and do not change with any kind of output.
ii. Variable and semi variable cost that can be changed in whole or some proportion as per situation.
iii. Future costs, that are made keeping in account the future concepts and expenses.
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