MANAGERIAL ACCOUNTING

Involves collecting and analyzing historical data and applying quantitative models, techniques, tools, and databases to predict a program’s future cost.

The impact on the operating profit due to the varying levels of volume and the costs and determines a break-even point for cost structures with different sales volumes that will help managers in making economic decisions for short term.

It is mostly used in the manufacturing industry since it enhances the reliability of cost data, hence producing nearly true costs and better classifying the costs incurred by the company during its production process.

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