The implications and limitations of cost-based analysis are compelling: in order for an enterprise to compete in an intense market to be neutral, it is necessary to strengthen corporate governance and cost control, and to provide regulators with the information they need for strategic decision-making by analysing relevant cost information for the enterprise itself and its competitors. In practice, costs can be classified from different angles, most commonly by cost-economic function and cost-specific nature, in order to adapt to different business management needs. : cost pattern; analysis; meaning; limits; i. Cost pattern analysis is a function of cost as yield, analysing the dependencies between them, and then depending on the cost to yield. A differential analysis of the dynamics of cost versus output is an important component of underlying management accounting. The aim is to reflect the interrelationship between costs and operations such as production, sales, and to analyse whether the corresponding costs will vary when business changes. And eventually, there's a quantitative specification of the pattern between cost and production capacity. A cost-based analysis of cost patterns and classifications requires, first of all, that costs be divided into three broad categories of fixed and mixed costs (variable and semi-variant costs) according to their dependency on production. (i) fixed-cost fixed costs, also referred to as “fixed costs”, are those costs that do not vary with the total volume of production. By virtue of the fact that their total amount is not affected by changes in production, their cost is inversely proportional to production. For example, factories, equipment, etc. The fixed cost in the campus has nothing to do with the construction reporting office, library, laboratory, use, etc. And the number of students. It's also a lecture, 55 students or 300 students, the cost of which is the same. Fixed costs are characterized by constant aggregates, but they decrease gradually as business volume increases. For example, the depreciation fee is fixed at $0. 3 million a year, and if an enterprise produces only one item a year, then the depreciation is $0. 3 million per unit; if 30 items are produced, then the depreciation is only $0. 010,000 per unit. So, fixed composition is a relatively fixed concept. The fixed-cost customary model is shown in figure 1. Figure 1 fixed cost behaviour model (ii) variable cost change costs are those parts of the total amount that will vary in relation to production within a given production range. The total will be positive as production increases or decreases. This will typically include the costs of direct materials in the production cost, the cost of materials in the direct labour and the cost of manufacturing in proportion to the positive production, the cost, the cost of motors, and the wages of productive workers in the form of piecework. The variable cost is characterized by the fact that the variable cost is not affected by changes in the volume of its operations, while the overall variable cost is subject to positive changes in the volume of its operations. For example: company xx offers all necessary equipment and experience guides and offers a good and delicious meal to its guests. For full-time travel, the company made a commitment to the catering industry at $30 per person, $30 to purchase meals. If the cost of meals is taken into account by humans, then the cost remains unchanged at $30, regardless of the number of participants in full-time travel, the cost per person at $30 is a change in the nature of one type of variable cost, as shown in figure 2: figure 2 the variable cost habits model is shown in figure 2 below. Both fixed and variable costs emphasize the range of related business volumes (which can lead to production, sales or working hours), once that range is exceeded. The variable costs may change and the fixed costs may change. (iii) the hybrid is between fixed and variable costs, and the total cost, while varying with the volume of business, does not change equally. In its relationship to business volume, it is divided into semi-variant costs and fixed components. There is usually a base figure for the semi-variant costs, similar to that for fixed costs, which increases as business volume increases, but is similar to the variable costs. Like, the fee, once in a month, doesn't hit, but you have to pay the basic monthly rent, this month's rent is the initial base, and for every minute, you have to pay that minute. For example, stationary charges, water charges, gas charges, etc. Are semi-variant costs. Its cost habits are shown in figure 3. Figure 3 semi-changed cost habits model 2 and semi-fixed cost semi-fixed costs are steps up as production changes, i. E. When business volume increases within a given range, it takes place at a fixed level, but when business volume increases beyond a certain threshold, its costs leapfrog and then remain constant within a given range of new business volume until a new repetition occurs. For example, the salary of the examiner generally falls within this cost, but once this is done, the salary increases by $100 if the number of checks is up to $1,500 in 2000. For example, cost items such as the manager of the enterprise, the salary of the shipper, etc. Fall into this category. Its cost is illustrated by its customary model as figure 4. Figure 4 semi-fixed cost behaviour model iii, and cost-based analysis of methodological cost patterns can use two processes: multi-step analysis and single-step procedures. However, whatever process analysis is used, it is necessary to decompose with the total cost of technology so that an enterprise can become more interdependent with its volume of business and the pattern of change in order to achieve the maximum profits of its enterprise and to place the firm in a competitive position. So there's usually three methods: an analysis of historical information; an analysis of historical information; an analysis of historical information, based on information on the volume and cost of business that has actually occurred in the past; a computational analysis using a numerical method; an equation of the function between cost and business. The formula is: total fixed cost = maximum point of business volume cost-change cost x maximum point of business or: = minimum point of business cost-change cost x minimum point of business is more simple to calculate using a high and low point method, but it uses only two sets of high and low points in historical cost information and is less representative. 2 the technical identification method is a method of distinguishing between fixed and variable costs using a reasonable relationship between inputs and outputs in the production process, i. E. By comparing material, manual inputs with output volumes, and by grouping production-related costs into variable costs, with the remaining side fixed costs. The method is more accurate, but it is more complex and heavy. 3 the direct analysis method is to analyse the specific patterns of each cost. The methodology, which is a qualitative analysis, requires that all projects be cost-effective, simple and of high practical value, but with a heavy workload. Cost-type analysis means 1. Cost-type analysis is a prerequisite for the application of a variable costing method. The variable costing method calculates the cost of an enterprise's economic costs incurred during a given period, i. E., fixed and variable costs, for each period of time, and then the cost of production in relation to which the volume of business generates a positive correlation, and on the basis of which the cost of sale is determined, as well as the opening of the inventory at the end of the period, and treats all fixed costs that are unrelated to the change in production as a period cost, which is fully deducted from current sales revenue, so that a cost-type analysis, the correct distinction between the change cost and the fixed cost, is the basis for the calculation of the change costs. As fixed costs are often influenced by both production and costs incurred, controlling and reducing fixed costs should start with controlling and reducing them and increasing business performance. That is, the reduction of fixed costs depends largely on increased production. If a tool company produces a variety of drills, of which the d40 drilling capacity is 400,000, the design capacity is designed at a single cost of $29, the target profit is $3 million, and until 2002 the annual sales volume was always under 300,000, with a selling price of $40 per piece and a single cost of $30. 11, of which: 1. 76 for supporting materials, 2. 05 for labour costs, 1. 8 for fixed cost amortization, 24. 5 for alloys and around $2. 9 million for gross profit. At the beginning of 2002, after cai took office, the company operated a production workshop, which reflected the fact that the plant had been amortized to a greater extent than the industry because the volume of its sales had not reached design capacity; and at the sales department, the sales manager had shown that sales were hard to raise because the price was around $1 million higher, although quality was possible。in response to this practical question, it was proposed in the context of the target accountability programme that in 2002 it would be reduced to 38 yuan per unit, slightly below the level of industry, and that sales would have to reach 400,000 dollars, with an additional prize and a reduced penalty; and that, in the case of production workshops, the target cost would be reduced to 29 yuan per unit by increasing labour productivity and reducing single consumption, which would be settled at the end of the year on the basis of this goal, and that, subject to quality assurance, workers who failed to complete their tasks would be paid a direct reduction of 20 per cent of the cost of the work, which would be exceeded by 50 per cent of the cost savings. As a result of the efforts of all employees, the annual sales volume at the end of 2002 reached 420,000 items and the cost per unit decreased to $28. 44, of which the amount of material consumed was 0. 37 kg for single steel at a price of $1. 41 per unit; the amount of time worked per unit was reduced to 0. 56 hours at an hourly rate of $3, resulting in a reduction of the individual wage to $1. 68 per unit; the fixed cost per unit was apportioned to $1. 35 per unit; and the total amount of the alloy head was reduced to 24 dollars, resulting in a gross profit of $4. 01 million per year, which resulted in a substantial gain in benefits and personal benefits for the employee. Cost-type analysis facilitates the analysis of the interdependence of cost-production-profits. The analysis of mass dependencies is the underlying analytical method of management accounting, which uses mathematical models and graphics to analyse the interdependencies of costs, volumes and profits, to study their patterns of change and ultimately to maximize the benefits for the enterprise. Thus, costs are broken down into fixed costs and variations into these two categories with relative accuracy. 3. Cost-based analysis is the basis for sound business decision-making. Short-term business decisions must distinguish between associated and non-related costs. Within the “relevant range”, fixed costs do not vary according to output and are mostly unrelated to short-term business decisions; in most cases, variable costs are associated costs. So the key to making the right short-term business decisions is to divide costs into fixed and variable costs by their nature. 4. Cost-type analysis is the correct evaluation of an enterprise
