In: Accounting
For this discussion:
Use the Internet and/or Strayer Library to research the financial statements of a manufacturing company.
Analyze the cost components of the primary manufacturing process and examine the significance of cost behavior analysis to the company.
Evaluate the value of using cost behavior analysis to management.
Ans- The company I researched is Dell. I looked at their financial statements for the year 2018 and found that the Cost of Goods Sold (COGS). There was also raw materials at 967M, finished goods at 1.2B, and work in progress at 514M. Cost behavior analysis is the study of how sure cost respond to the changes in the level of activity inside a business. It is essential to a manager because it helps the management to plan the business activities and is also critical choosing between different systems of actions. IfDell used the cost behavior analysis, mitigate what they are wasting and how they can improve in time to come. Dell is an electronics company, and if they steadily release new laptops, it can affect them in a good or bad way.