Question

Note : November 16 is a Cash transaction, hence will not be recorded.
31. Prepare Sales Book from the following details-
2016
✓ March
8 Sold to Shri Omprakash, Ratlam at 15% trade discount-
20 Than silk cloth @ 250 each 2 dozen Bed sheets a 3.50
per bed sheet
50 meter cotton cloth @ 20
per meter.
March 20 Sold to Shri Ratanlal, Jabalpur at 10% trade discount-
30 pieces Woollen Shawls @ * 600 per dozen.
4 dozen pillow covers @ 10 per cover.
[ Ans. Total of Sales Book * 7,902)
32. Enter the following transactions in the Sales Book of M/s Naman



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Answer 1

Answer:

Benefits:

The following are the benefits out of break-even analysis:

1. Make or buy decision:

The C-V-P analysis assists in making a choice between two courses of action to make versus to buy. If the variable cost is less than the price that has to be paid to an outside supplier, it may be better to manufacture than to buy.

2. Production planning;

The C-V-P analysis helps in planning the production of items giving maximum contribution towards profit and fixed costs.

3. Cost control:

As a cost control device, the C-V-P analysis can be used to detect insidious upward creep of costs that might otherwise go down.

4. Financial structure:

Break-even analysis provides an understanding of the behaviour of profits in relation to output. This understanding is significant in planning the financial structure of a company.

5. Conditions of uncertainty:

When some reasonable basis for subjective extrapolation is available, the break­even analysis provides the financial management with information helpful in its decision-making activities.