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This approach to costing solves the problem of how to apportion or divide overhead costs between products – it does not apportion them at all. Instead Wholesale San Jose Sharks Jerseys , the method concentrates on two very important accounting concepts: • Marginal cost is the cost of producing an extra unit. This extra cost will clearly be a variable direct cost. For example, if the total cost of producing 100 units is $400 000 and the total cost of producing 101 units is $400 050, the marginal cost is $50. • The contribution to fixed costs and profit. This is the revenue gained from selling a product less its variable direct costs. This is not the same as profit, which can only be calculated after overheads have also been deducted. For example, if that 101st unit with a variable (marginal) cost of $50 is sold for $70, it has made a contribution towards fixed costs of $20. The unit contribution is found as the difference between the sale price ($70) and the extra variable cost ($50) Wholesale Pittsburgh Penguins Jerseys , that is $20. Contribution costing has very important advantages over full costing when management plans to take important decisions based on cost data. If a business makes more than one product or provides more than one service, contribution costing shows managers which product or service is making the greatest or least contribution to overheads and profit. • Overhead costs are not allocated to cost centers, so contribution costing avoids inaccuracies and arbitrary allocations of these costs. • Decisions about a product or department are made on the basis of contribution to overheads – not ‘profit or loss’ based on what may be an inaccurate full-cost calculation. • Excess capacity is more likely to be effectively used, as orders or contracts that make a positive contribution will be accepted. • By ignoring overhead costs until the final calculation of the business’s profit or loss, contribution costing does not consider that some products and departments may actually incur much higher fixed costs than others. In addition, single-product firms have to cover the fixed costs with revenue from this single product Wholesale Philadelphia Flyers Jerseys , so using contribution costing is unlikely to be so appropriate. • It emphasizes contribution in decision-making. It may lead managers to choose to maintain the production of goods just because of a positive contribution – perhaps a brand new product should be launched instead which could, in time, make an even greater contribution. • As in all areas of decision-making, qualitative factors may be important too, such as the image a product gives the business. In addition, products with a low contribution may be part of a range of goods produced by the firm and to cease producing one would reduce the appeal of the whole range. Start A New Playlist With Internet Service Providers In My Area Start A New Playlist With Internet Service Providers In My Area April 10 Wholesale Ottawa Senators Jerseys , 2013 | Author: Marnie Foregatta | Posted in Business Have you ever really thought about how much music you listen to in a day? Some people can’t live without it; they sleep with the radio on, and then go to work and plug in their MP3 players or tune into their favourite satellite radio station. But as great as it is to have your own personal collection of preferred music to get you through a day, what about the new music that you may be missing out on? There is actually a world of musical colour available when you access your connection from internet service providers in my area. Listening to older music is something that many enjoy. And let’s face it – without the classics, we wouldn’t have the music we do today. But that’s no reason not to explore new music. There’s a lot out there, and you could be missing out on new sounds that you might actually really like. Today’s Top 40 radio stations can be a good place to start. But public radio also includes a lot of advertisements that you might not want to be forced to listen to. Satellite radio has many stations dedicated to particular decades and genres of music. And these can be accessed by either a mobile receiver for your vehicle, or via your internet connection with a username and password. If live music is more your thing Wholesale New York Rangers Jerseys , you can easily get online to see what’s happening near you. In the summer, you might find enough festivals and competitions to keep you immersed in the new music scene for some time. During the fall and winter is when many artists choose to visit cities and towns to perform. Looking in your local newspaper online can show you where they’re going to be. You might also discover that your local music publications are online as well, and these can also tell you where the music’s happening. Getting online and searching for blogs about new music can yield a treasure trove of artists to explore. Video sites like YouTube have caused many a talented artist to be discovered. Sites that feature indie bands – those who are not signed with any record label – are another good online resource to consult when you’re on the hunt for new music. If you aren’t sure where to begin with your search, think about what you enjoy listening to now. And then, type in those terms at the video and other sites you visit to see whether there are new artists out there who offer that sound you can’t live without. If you liked this article, you may check out additional information on High speed broadband in your area from Marnie Foregatta. Resources are available for High speed internet enabling you to make a more informed decision. 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