In preparing a business plan, one of the starting point is to compute costing of a unit
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Question:
In preparing a business plan, one of the starting point is to compute costing of a unit of a product or a service.
(a) Discuss the relevance of costing of a unit of a product or service.
(b) Explain four advantages of costing in an enterprise.
(c ) Costing can also help you to determine the Break-Even-Point (B.E.P).
(i) State the formula for B.E.P.
(ii) What is the importance of B.E.P in business?
(d) Construct a costing matrix that is used in costing by an enterprise.
Expert Answer:
a The costing of a unit of a product or service is relevant because it provides essential information about the cost structure of the business It helps in determining the total cost involved in produc... View the full answer
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