Cost Analysis refers to the measure of the cost – output relationship, i.e. the economists are concerned with determining the cost incurred in hiring the inputs and how well these can be re-arranged to increase the productivity (output) of the firm.
In other words, the cost analysis is concerned with determining money value of inputs (labor, raw material), called as the overall cost of production which helps in deciding the optimum level of production.
What we do
There are several cost concepts relevant to the business operations and decisions and for the convenience of understanding these can be grouped under two overlapping categories:
The ultimate objective of the process is the entity to achieve its goals without deviations by combining the best suggested retail price.
More specifically, collecting, controlling and treating the primary cost elements we carry out the preparation of cost accounting statements, while we offer the possibility of drafting Budgets for Income-Expense (Drafts) for a selected period (month, quarter, semester, annual, etc.).
In order achieve the desired result, with a corresponding status monitoring Report (Budget Plan) for the studying the variations relating to financial structure, performance management and business policy.
Cost Concepts Used for Accounting Purposes:
Generally, the accountants use these cost concepts to study the financial position of the firm. They are concerned with arranging the finances of the firm and therefore keep a track of the assets and liabilities of the firm.
Analytical Cost Concepts Used for Economic Analysis of Business Activities
These cost concepts are used by the economists to analyse the likely cost of production in the future. They are concerned with how the cost of production can be managed or how the input and output can be re-arranged such that the overall profitability of the firm gets improved.