Explain cost analysis.

Explanation should include

• identifying expenses for a company and developing a cost analysis sheet
• identifying build-out costs, employee pay, and the cost of equipment and consumables
• requesting credit from a vendor
• distinguishing between fixed and variable costs.

Process/Skill Questions:

• What tools are commonly used in cost analysis?
• How do companies manage cost? What are some ways to keep cost down?
• Why would it be advantageous to keep cost analysis as simple as possible?
• How does cost analysis help companies avoid threats and enhance opportunities?
• How can a company reduce fixed costs?
• What is the break-even point for a company?
• Which software can be used to ensure efficiency when conducting cost analysis?
• Where can companies find valid information to use in conducting cost analysis?