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margin of safety in a company can be improved by 1. reducing the fixed cost and variable cost 2, increasing sales volume and price of sales 3, increasing stock of material in the expectation of price rise 4. expanding business to fulfil the demand of market 5. changign the product mix to increase contribution

May 03, 2020

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a radio manufacturing fund that while it cost 6.25 per unit to make a component ,the same is avaoilable in the market at 5.75 each. Continous supply is also fully assured . The break up of cost per unit is as follows Material : 2.75, Labour 1.75, Other variable expenses 0.50 , depreciation and other fixed costs 1.25 . the best option for the manufacturer will be

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statement I : when tehre are no inventories, profit figure under marginal costing and absorption costing identical statement II : inventories are valued at cost of production in absorption and marginal costing system

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