2. Cost Analysis
It is the review and evaluation of a company’s cost
data and its comparison with the anticipated cost data
furnished in the annual budget.
Regard to cost analysis in sales organization, it is the
detailed examination of selling costs and their impacts
on the sales volume and profit margins.
It is essential for cost control in organizational
activities
It act as a tool for managerial decision-making
3. Objectives of cost Analysis
It is important for proper allocation of cost to different
selling units or marketing functions.
It aid in forecasting future sales and preparation of
sales budgets.
It helps to know various cost components such as fixed
and variable costs, direct and indirect cost, controllable
and uncontrollable cost, etc
It helps to determine sales productivity and
profitability of the enterprise.
4. It help to understand whether costs are incurred within the
expense budget.
It facilitates control of the sales operations.
It helps to estimate the gross and net profit, profit margins.
It enables management to spot and compare trouble areas in
different market segments.
