Managerial Decision

Making Techniques

Prof. S. Y. Shewale
 Contents -
• Meaning of Variable cost ,Fixed
cost ,& semi variable cost.
• Normal / Absorption costing method
• Marginal costing method
• Break Even Point ( B.E.P.)
• Budgetary Control
• Types Of Budgetary control – Sales,
Production cash budget
 Meaning
1.Varible cost – Variable cost is that which varies according changes
in production.
e.g. Power fuel, Material , Labour etc.

 v.c.


 COST


 VOLUME
2. Fixed Cost (F.C.) – Fixed cost is that cost which remains constant


at all level of output /production . Fixed cost do not vary according

to variation in level of output.


 cost F.C.


 Volume