Identify and evaluate different types of costs incurred and their behaviour.

Using the income and expenditure information provided, prepare a Profit and Loss Statement of “X” for the year ended 30th June 2001 and Balance Sheet as at that date. – Please ensure that you show all your workings to gain full marks. You may use template provided.

Comment on the performance of the business using ratio analysis, conduct a Cost and Revenue analysis and advise the company on ways of improving profitability and performance based on the information above and the result from 1 (above). (50 marks) – 1 200words

Part 2 of the question requires you to address the following elements:

Define costs (2 marks)

Identify and evaluate different types of costs incurred and their behaviour. (8 marks)

Define Ratios. (2 marks)

Ratios as a Performance Management tool including benchmarking factors. (8 marks)

State the 5 different classes of Ratios. (5 marks)

Define each Ratio and calculate as per given formulae and discuss influencing factors. (20 marks) – see appendix for formulae.

Give recommendations on how the company can improve performance. (5 marks)

Please let me know if you understood the task. Thank you

Identify and evaluate different types of costs incurred and their behaviour.
Scroll to top