What am I required to do in this assignment?

An understanding of cost behavior is the key to many decisions in an organization in that by understanding how costs behave, a manager is better able to predict what costs will be under various operating circumstances. And the Cost Volume- Profit (CVP) analysis is the analytical process that uses the understanding of cost behaviour in order to provide information for management decision-making. And after the analysis there will be budget, is a quantified plan of action for a forthcoming accounting period.

In view of the above discussion you are required to write a report covering the following aspects mentioned in below:

Part 1

• Discussion on different types of Cost behavior how a cost will react or change as changes takes place in the level of business activity.
• Discussion on the importance of statement of cost of goods manufactured and the reasons for which it is prepared.
• Discussion on the purpose of budgeting and steps in preparation of the budget.

Part 2

Manufacturing company is planning to produce new product in the market and the information for each product is given below.

	Alpha	Beta	Delta
Selling Price	10	5	15
Variable cost: Material Labor	20 per unit 15 per unit	5 per unit 10 per unit	15 per unit 6 per unit
Fixed cost: Selling expanses Administrative expanses	10,000 per month 5,000 per month	3,000 per month 5,000 per month	4,000 per month 6,000 per month

You are required to:

• Discuss the importance of Cost Volume- Profit (CVP) analysis in order to provide information for management decision-making.
• From the above information which product should the company manufacture, summarize your findings with rationale.

Is there a word limit (Number of Words 10%)?

1200 Words

What do I need to do to pass? (Threshold Expectations)

• Discuss the different type of Cost behavior for a business.
• Discussion on importance of cost of goods manufactured and the reasons for which it is prepared.
• Discuss the importance of Cost Volume- Profit and analysis the information given.
• Summarize the findings with rationale for the information given by using CVP.

How do I produce high quality work that merits a higher grade?

• Brief introduction focusing of Cost behavior and the importance short-term decision making.
• Discussion on different types of Cost behavior.
• Discussion on goods manufactured and the reasons for which it is prepared.
• Discuss the importance of budgeting and steps in preparation of the budget of a company.
• Discussion on different types of functional budgets.
• Discussing the importance of (CVP) analysis in order to provide information for management decision-making
• Summarize the findings with rationale for the information given by using CVP.
• Conclusions.