Assignment
Part 1
As EEC's corporate business financial analyst, you will need to have a clear understanding of the different types of costs (variable, fixed, and mixed) that the company carries. Complete the following for this assignment:
• Review EEC's journal activity.
• Define and identify its variable, fixed, and mixed costs.
• Determine what affect a sales volume increase or decrease will have on unit fixed cost, unit variable cost, total fixed cost, and total variable cost.
View EEC's journal activity.
Part 2
As an EEC corporate business financial analyst, you must have an expert understanding of the various costing methods. Select 1 of the following costing concepts:
• Full costing or absorption costing
• Variable costing
• Target costing
• Life cycle costing
• Activity-based costing
Respond to the following questions on the costing concept that you selected:
• Provide the definition of the concept.
• Discuss how and when the concept could be used by EEC.
• Discuss the advantages and disadvantages of the concept as it relates to EEC.