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| Section | Objectives |
|---|---|
| Topic 1: Decision Making Techniques | - Short-term decision making
|
| Topic 2: Introduction to Cost Accounting | - Cost units and cost centers
|
| Topic 3: Accounting for Materials, Labour and Overheads | - Material control
|
| Topic 4: Budgeting and Forecasting | - Budget preparation
|
| Topic 5: Costing Methods | - Marginal costing
|
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A new product requires an investment of $200,000 in machinery and working capital. The total sales volume over the product's life will be 5,000 units. The forecast costs per unit throughout the product's life are as follows:
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The forecast costs per unit for a new product are as follows:
The company uses marginal cost plus pricing and all products are required to achieve a 40% margin.
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A company which manufactures and sells one product has fixed costs of $80,000 per period. The selling price per unit of $25 generates a contribution/sales ratio of 40%.
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