Cost behaviour, Cost Accounting

Cost Behaviour

"Profitability is only around the corner." This is a general expression in the business world; you might have heard or said this yourself only. But, the reality is that number of businesses doesn't make it! Business is sturdy, profits are illusive, and the competition has a habit of moving into areas where profits exists. Sometimes, business owners become frustrated because of the revenue growth seems to bring the on waves of additional expenses, even to the point of going towards the back.

How does one sensibly consider the viability of the business? This is perhaps the most essential business assessment a manager should make. Most of us are taught from an early age to perform our best and not give up, even in the face of adversity. And, there are countless stories of businesses which struggled to survive their infancy, but went on to become extremely successful firms. But, it is equally vital to note that some business models won't work. You probably have heard tongue-in- cheek story of the car dealer who said he loses money on every sale but makes it up on the volume. Certainly, the math just won't work. A good manager should learn to use information to make informed decisions about which business prospects to follow. Managerial accounting methods/techniques provide techniques for evaluating the viability and the ability to grow or "scale" the business. These techniques/methods are called cost-volume-profit analysis (CVP).

 

 

Posted Date: 7/21/2012 3:57:16 AM | Location : United States







Related Discussions:- Cost behaviour, Assignment Help, Ask Question on Cost behaviour, Get Answer, Expert's Help, Cost behaviour Discussions

Write discussion on Cost behaviour
Your posts are moderated
Related Questions
Bull Bay Ltd. Manufacturers two types of surfboard, "Winner" and "Surf King", whose selling prices are $300 and $900 respectively. Each surfboard passes through two manufacturing d

Prepare a properly classified Cash Flow Statement for Sports Enterprises Ltd for the year ended 31st December 2011. Note that the Closing Cash at Bank Balance at 31st December 2011

meaning and definition of operating costing

Why do we separate factory overhead from materials and labor?

2012                     2011 Cash                               12200                 17700 Acct receivable                  25200                  22300 Investments

how to prepare separate accounts for each process given having been givent normal loss,output,overhead and output passes to next process

Shortflower Ltd currently publishes, prints and distributes a range of catalogues and instruction manuals. The management has now decided to discontinue printing and distribution a


This is difficult to perceive cash maintained in the vault as an investment. Fairly, you would be thinking that if we invest cash, then how can cash itself be an investment? Howeve

WORKED EXAMPLES OF EXPECTED CASH COLLECTIONS PATTERNS