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Sir inventory for the first quarter is not specifically written but it is written as a company policy that company wishes to have a closing inventory(at the end of quarter 4) equal to the opening inventory of first quarter….
How we can find out the inventory of first quarter to comply with the policy and how we can say that inventory for the fourth quarter to be the same as quarter 1?
Sir please tell the reason here otherwise i would require to review the complete lecture again i am not asking to repeat the complete cvp analysis here.
I only asked that why we need to take cumulative revenue and cumulative cost rather than revenue and cost of each product separately?I am little bit confused.Sir Sequence is not a question.Profit Volume Chart consist of further two types one is Multi Product Profit Volume Chart and second is Sequence Profit Volume Chart.I have a problem in the Second chart as the one i mentioned above.
Hope you understand my question
Sir I am not asking for a specific CVP exam question.I asked generally that why We calculate cumculative revenue and cumculative cost which is required only in Sequence Profit Volume chart(PV)
Yes I had already passed my F2 exam,But I am a little bit confused that if Production units are equal to sales units our closing inventory will be Nill
And With regard to opening inventory which is the closing inventory of previous year.How it Could be same as Closing inventory of this year..
For Example, Opening Inventory is 5000 and Production units are 8000 and Sales units are also 8000 units.Therefore our closing is 0 for this year but opening inventory is still 5000 units.
Sir long term means cumulation of all years(eg Year 1 to 5) or Only year 5.?
Sir Kindly tell that If opening inventory of 1st period and closing of last period is same eg in year 3 then only production equal sales and profit will be same under both techniques Absorption and Margional Costing?
Why it is so?Why we need same closing inventory in year 3 same as opening in year 1 to report same profits under two techniques…Please clarify this.
In Investment appraisal question i had taken change in working capital before Taxable or operating
cashflows mistakenly rather than it should be taken into account after calculating taxable cashflows.I want to ask for this particular mistake how much marks would be deducted.?