Explain Different Types Of Costs And How To Calculate Them

Question

Explain how you would analyse cost information within a business.

You will need to:

·    explain how you would classify different types of cost

For this you need to describe the different cost types – such as fixed, variable, semi variable -and why certain costs are allocated to each cost type – for example Rent would be classified as a Fixed Cost.

·    explain why you would use different costing methods

Here you need to briefly describe the different costing methods – such as job, standard, activity based, service, batch costing – and why, in what circumstances/ types of organisation, would one be selected rather than another.

·    explain how you would calculate costs using appropriate techniques

For this you will need to briefly describe the different techniques – such as absorption, marginal, cost plus – and how to use each one – ideally with one actual example.

·    explain how you would analyse cost data using appropriate techniques

Here you will need to describe how, in what situations, you would use technique such as sampling, break-even, cost-benefit analysis.

Summary

The question belongs to Finance and it discusses about the cost information of an organization and how different types of cost are classified, costing methods, calculating costs using appropriate techniques and how to analyze cost data using appropriate techniques.

Total Word Count 451

Download Full Solution

Comments

  • HWA
    Rasha

    this is a very good website

  • HWA
    maani

    I have 50 questions for the same test your page is showing only 28

  • HWA
    joeanne

    hi can you please help or guide me to answer my assignments. thanks

  • HWA
    joeanne

    hi can anyone help or guide me to my assignments. thanks

  • HWA
    Monik


  • HWA
    Cristina

    This solution is perfect ...thanks

  • HWA
    Janete

    Hello Allison,I love the 2nd image that you did! I also, had never heard of SumoPaint, is something that I will have to exolpre a bit! I understand completely the 52 (or so) youtube videos that you probably watched. Sometimes they have what you want, sometimes they don't! However, it is always satisfying when you are able to produce something that you have taught yourself. Great job!Debra 0 likes

  • HWA
    Sandeep

    Perfect bank of solution. 

  • HWA
    Oxana

    great !

  • HWA
    Paul Brandon-Fritzius

    thanks for the quick response. the solution looks good. :)

  • HWA
    tina Johnson

    thnx for the answer. it was perfect. just the way i wanted it. 

  • HWA
    Giuseppe

    works fine.