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Background information For a detailed understanding of the success of a company and to derive measures for its improvement, an accurate profit and loss account
Background information For a detailed understanding of the success of a company and to derive measures for its improvement, an accurate profit and loss account is necessary. Against this background, direct costing has supplemented or even replaced full costing in some areas. While full costing is still justified for calculating and ensuring comprehensive cost coverage, direct costing offers a significantly higher degree of transparency in the analysis of results with regard to their origin and allocation to products and/or divisions. Task On the following page you will find information on the finances of a car dealer (with an affiliated repair shop). In addition to the information on sales, the costs are listed according to cost types. Although this full costing view allows a first statement about the overall success, a more detailed control is not yet possible. Therefore, work on the following two tasks: 1. Convert the information into a multi-level contribution margin calculation and determine how high the contribution margins of the individual business areas are. 2. What suggestions for the management of the company can be derived from this new view
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