trial paper question??? (1 Viewer)

[nevmirza]

hey guys,

confused with what to write wit this question

"outline the cost and revnue controls suggested below (4 marks)

1) fixed and variable costs

2) cost centres

3) sales mix

4) pricing policy.

i have no idea what to write!

any ideas?

 

[samuel slack]

Is there another part to that question, or a word you've missed, like "outline the roles" "outline the importance"? Because it kind of doesn't make that much sense. Well...
Fixed costs stay the same every period- likesalaries.
Variable costs vary between periods proportionately with activity- like electricity or materials.
Cost centres- Are particular areas of a business to which costs can be attributed, which allow management to identify the source and amounts of expenses, and then to encourage staff to minimise expenses.

Not sure about these ones.
The sales mix- unsure, anything like the marketing mix?
Pricing policy- Again not sure, anything like marketing price strategies like price skimming, price pentration, loss leader or price lining? Or pricing methods lke cost plus margin competition-based or market?

 

[aussiedrunk]

sales mix and pricing policy refer to effective profitability management : revenue controls
Sales mix: refers to the range of products a business sells. each product in the mix will provide a certain rate of profit

Pricing Policy: concerned with working out the price for each product which will improve market share and meet profitability objectives

Hope that helps