You are a corporate accountant for White Oak, Inc. Your organization's competitor, Black Elm, Inc., has recently shifted its cost structure from variable cost to fixed cost. Your supervisor has asked you to write a short analytical paper for the accounting department explaining how Black Elm, Inc., handles cost accounting. Your supervisor has also asked for the advantages and disadvantages that your competitor may have considered before they made this change. This information will help your supervisor determine whether a similar change would benefit White Oak, Inc., and help the organization ensure better budgetary planning. The skills practiced in this short paper will help to support you in your project. Directions Write a short analytical paper that describes cost structures that the organization can use and the types of costs within the organization. Specifically, you must address the following rubric criteria: Provide a rationale for the changes in cost structure. Differentiate the types of costs in the organization: fixed, variable, step, and mixed. Explain how fixed cost affects the organization's profitability in situations where sales increase and decrease. Summarize how an increased level of fixed costs enables the organization to plan more effectively.

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