Question & Answer: Managerial Accounting" Need a detailed analysis……..

Managerial Accounting” Need a detailed analysis…

Please take three companies from the cement industries:

Look at their profit and loss account in the annual accounts and reports of the company for three years.

Please observe the patteren of fixed and variable costs.

Please assume Depreciation; Interest and Salaries as fixed costs.

All other expenses are variable costs.

Please find out whether profit of these companies have gone up or gone down.

What are the reasons as per your analysis on the profit behaviour

Choose any of the sector considering the companies should be three, so for example if consider “cement” as industry then three companies should be from cement industry needs to be analysed.

Please prepare a three page note (with another three page as annexure) on the industries cost behaviour