Cost Analysis
Cost analysis can be defined as a process of evaluating the different elements of
costs that form part of a product or service to ascertain if they are directly or
indirectly related to the product or service and reasonable. The different elements
of costs include the cost of raw materials, labor, supplies, direct overheads, and
a allocation or apportionment of indirect costs to the product or service on a consistent
and scientific basis. The reasonableness of the costs can be determined by analyzing
if the costs are allocable to the product or service. It means analyzing that the
costs are logically required or related to the manufacturing of the product or rendering
of the service. Reasonableness also means applying the test to ascertain if costs
incurred are such that a prudent business would pay in a competitive marketplace.
It basically involves three steps:
- Verifying the accuracy of cost information
- Ascertaining the necessity of the costs incurred
- Application of scientific and standard overhead rates for allocation of indirect costs
As with any analysis, reporting the findings and taking appropriate corrective actions,
where necessary, is the final outcome of the cost analysis process.
Online Live Tutor Cost Analysis:
We have the best tutors in accounts in the industry. Our tutors can break down a
complex Cost Analysis problem into its sub parts and explain to you in detail how
each step is performed. This approach of breaking down a problem has been appreciated
by majority of our students for learning Cost Analysis concepts. You will get one-to-one
personalized attention through our online tutoring which will make learning fun
and easy. Our tutors are highly qualified and hold advanced degrees. Please do send
us a request for Cost Analysis tutoring and experience the quality yourself.
Online Cost Analysis Help:
If you are stuck with a Cost Analysis Homework problem and need help, we have excellent
tutors who can provide you with Homework Help. Our tutors who provide Cost Analysis
help are highly qualified. Our tutors have many years of industry experience and
have had years of experience providing Cost Analysis Homework Help. Please do send
us the Cost Analysis problems on which you need Help and we will forward then to
our tutors for review.
Topics under Performance Metrics:
