Sales and production have various effects in the managerial accounting of an organization but in terms of specific costs when the sales and production volume was to decrease, Unit variable costs experience an increase in prices This is due to the laws of efficiency which has savings in numbers and repetition. Specifically the higher the volume the lower the variable costs, in this case since there is a drop in volume the opposite occurs. Total fixed costs for example salaries for management( Non hourly based) remains the same as the company has to make these payments regardless of the Continue reading...
