08-01-2013, 12:04 PM
PRESTIGE TELEPHONE COMPANY
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PRESTIGE TELEPHONE COMPANY
Daniel Rowe, President of Prestige Telephone Company and Susan Bradley, Manager of company subsidiary, Prestige Data Services.
State Public Service Commission permitted the company to establish computer data service subsidiary.
In 1994, Rowe told the commission that the subsidiary would reduce pressure for telephone rate increases.
Prestige Data Services had grown out of the needs.
Rowe argued for separate but wholly owned entity which prices for services would not be regulated.
Marginal Costing
Marginal costing can be defined as an accounting technique whereby small increase or decrease in output result In change in total cost.
Advantage of marginal costing…
Marginal Costing is simple to understand and operate; it can be
combined with other forms of costing.
It helps in short-term profit planning by break-even charts and profit
graphs.
The effects of alternative sales or production policies can be more
readily appreciated and assessed