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: (750 to 1,000 words)
- 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.
Click here to 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.