What is the Weighted Average Contribution Margin in Break-Even Analysis?

The contribution margin for a single product is deducting the variable costs from the sales or revenue figure. The break-even point is the stage where the company makes no profit or losses. Estimating the break-even point for a multiple product facility can take different methods. One of such methods in calculating the weighted average contribution […]

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What is Reasonableness Test in Audit?

During an audit assignment, auditors must perform various audit procedures to verify different aspects of financial statement items. These aspects generally come in the form of assertions. For every financial statement item, the assertion tested will differ. Therefore, auditors must use different procedures to verify all of them. Similarly, the assertions also vary based on

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Five Components of Internal Control under the COSO Framework

For companies to be profitable, they need their processes to run as efficiently and effectively as possible. For obvious reasons, planning how companies perform these processes play a fundamental role in ensuring profitability. However, just planning out their processes does not suffice. Companies must also have systems to ensure their processes run according to the

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How to Improve Inventory Turnover?

To improve inventory turnover we need to increase the efficiency of a business to turn stock into sales. For any business in any industry, the faster it turns inventory into sales, the better it works. However, in practice, businesses need to cater to many factors that affect inventory management. Each business sector and industry set

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