By using the scientific method, the researcher has a systematic model that enables documentation of their results. The more specific the researcher is in documenting their methods, the better others will be able to follow and repeat their experiment. Therefore, the net assets of the TATA motors for March 2018 were 95,427.91, which would compromise equity and reserves. Kedia broker and the company are following TATA motors, one of the listed companies of NSE. TATA motors have been recently suffering from decline sales of its most sold product Jaguar Land Rover, and hence its shares have been declining since then. Aman, who is working at Kedia LTD., wants to know the net assets of the company first.

Organizations must be careful to consider the long-run implications of reducing prices for special orders. The second assumption is that this is a one-time order, and therefore represents a short-run pricing decision. If Tony’s T-shirts expects future orders from the high school at the $17 per shirt price, the company must consider the impact this might have on long-run pricing with other customers. That is, regular customers may hear of this special price and demand the same price, particularly those customers who have been loyal to Tony’s T-shirts for many years.

With this increased capacity, the special order would not affect regular customer sales. Customer One generates $150,000 in income after direct fixed costs are deducted, and Customer Two generates $200,000 in income after direct fixed costs are deducted. Allocated fixed costs total $300,000 and are assigned 30 percent to Customer One and 70 percent to Customer Two based on several different cost drivers.

Cost accounting means the formal accounting system for costs in the book of accounts that helps determine and control the cost of products and services. white lights can sometimes be found on what kind of buoys It measures internal cost tracking and allocating system to track cost and expenditure. It guides the business policy and determines the selling price.

Pneumatic can produce up to 30,000 units a quarter, so the special order would not affect regular customer sales. RadioCom received an offer from the Coast Guard Auxiliary to purchase 1,000 radios next month for $75 per unit. RadioCom can only produce up to 5,000 radios a month, so the special order would result in reduced sales to regular customers.

The following graph combines the revenue and cost functions depicted in the previous two graphs into a single graph. Learn about setting sales targets and break-even points. Calculate your minimum number of sales to break even .

A machine-hour bottleneck has been identified in the production department. Ratcliff would like to optimize its use of machine hours by producing the two most profitable computers. Explain why the loss shown for the Apple LLP account in the segmented income statement might be misleading to management.

For example, in the manufacturing sector, a company can build its own factory or outsource production . A merchandising company can pay its sales force a flat salary or rely to some extent on sales commissions . A restaurant can purchase the equipment to launder table cloths and towels, or it can hire a laundry service. In other words, fixed costs remain unchanged in total, and variable costs remain unchanged per unit, over the range of Q under consideration.