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question states which is data among the following
A-profit in a year
B-increase in total profit than previous year
C-profit as per marginal costing
D-profit as per absorbtion costingAs per me it should be option A, as it is not solely useful for managers than the other ones.
Am i right?can u please tell the answer,as the answer is missing for some questions of ch1 in the kit due to misprint.
The answer is indeed A.
Please tell me why on earth have you not contacted Emile Woolf if there is a misprint? They will either send you a new copy or an errata sheet!!
NO actually i have my bpp kit.This emile woolf kit is of my friend who have already cleared the exam before and its of 2014 edition .He just had it so i took it from him.
Sir also can u tell if i’m logically correct or not
Profit measures the performance of a business over a period and that information is valuable for managers to know so that they can plan out things. So profit as per Marginal, Absorbtion Costing & comparing to previous year- these are all informations. But profit margin of a product is something that is already set,and more of like a data, and itself is of no use to the manager. That’s why option A is a data that cab be used for processing.
But the profit margin is not something that will necessarily have been set! (They may possibly have set a gross profit margin, but they cannot have set a net profit margin)
The margin they end up achieving depends on the level of sales revenue and the level of the costs.
ok so option A which is a data is probably talking about gross profit margin.
if it was net profit margin then it would have become an information.right?
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