Sales are way to buy or sell any service in return of compensation. Sales are important component of business because as the sales increases profit of the company also increases. More of the sales more are the return in form of profit that brings positive image of the organization.
The sales variance can be defined as the difference between the quantities of different types of products or product mix actually purchased by the business as compared to the quantity of product or service expected by the business to be sold. The major objective
Transfer at Cost to the Selling Division: Many companies set transfer prices at either the variable cost or full (absorption) cost incurred by the selling division. Although the cost approach to setting transfer prices is relatively simple to apply, it has many defects. First,
Learning Objectives: Define and explain margin of safety. Calculate margin of safety ratio in Percentage. What is its significance/importance? Calculation of merging of safety in cost volume profit analysis Contents: Definition of Margin of Safety (MOS) Formula of MOS Example Review Problem Definition and Explanation: