RHN is a clothing retailer. It has 50 shops and 290 employees. All RHN's employees are provided with training. Commission is used as one method of financial reward. The business often uses internal recruitment when there is a job vacancy. Last year RHN made a profit of $$$\$ 1.5$$$ million. The Managing Director, as an internal user of accounts, has been analysing RHN's statement of financial position. Identify two external users of accounts. External user 1: ............................................................................................................ ....................................................................................................................................... External user 2: ............................................................................................................ .......................................................................................................................................

Business

IGCSE&ALevel

CAIE

Exam No：0450_w24_qp_13 Year：2024 Question No：4(b)

Answer:

Knowledge points:

5.4.1.1 the need for accurate cost information

5.4.1.2 different types of costs: fixed, variable, direct and indirect

5.4.2.1 the differences between full and contribution costing

5.4.2.2 the uses and limitations of the full costing method

5.4.2.3 the nature of the technique of contribution costing

5.4.2.4 the difference between contribution and profit

5.4.2.5 the limitations of contribution costing

5.4.2.6 situations in which contribution costing would be and would not be used

5.4.3.1 cost information for decision-making purposes, e.g. average, marginal, total costs

5.4.3.2 how costs can be used for pricing decisions

5.4.3.3 how costs can be used to monitor and improve business performance, including using cost information to calculate profits

5.4.3.4 contribution costing as a means to help make special order decisions

5.4.4.1 the meaning and importance of break-even analysis

5.4.4.2 calculation and interpretation of break-even level of output, contribution, margin of safety and level of profit (in numeric and graphic form)

Answer:

Knowledge points:

Solution:

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