Cost Behavior Analysis

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Cost Behavior Analysis 1 Running head: COST BEHAVIOR ANALYSIS Cost Behavior Analysis Michelle Haxton Strayer University
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Cost Behavior Analysis 2 Abstract This paper explores four different companies that manufacture and sell their products throughout the world. The four companies are Biolea, Evian, Ircon International Limited, and Gulf Craft Inc. The way each company represents their information varies from tables to paragraphs and even verbally. These companies all manufacture products of different kinds and therefore would have different costs associated with their product. The costs they may incur could be fixed, variable, or mixed. This paper examines each company and in what manner each cost they may have will behave.
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Cost Behavior Analysis 3 Cost Behavior Analysis The internet has a wealth of information available for different companies around the world. They have information available for companies that sell and manufacture products from olive oil, to water, to public transportation systems, and even yachts and boats. These companies, in order to get their information marketed to a wider target market will advertise and post information about what they do and who they serve over the internet. A few of the companies that post information over the internet include those such as Biolea, Evian, Ircon International Limited, and even Gulf Craft Inc. These companies, along with others have a wealth of information available about many of the aspects of their businesses over the internet. Using this information, one may be able to determine how their costs behave. Biolea was founded in 1997 by George Dimitriadis and Christine Lacroix. The company is located on the island of Crete. They specialize in the production of organic, stone milled and cold pressed extra virgin olive oil. Biolea’s target market is the “health conscious person who appreciates and understands ‘gourmet’ foods and who has a keen sense of value (Biolea, 2007).” Biolea’s olive factory was built to accommodate visitors and hold in-house presentations and olive oil tastings. They introduce and educate tourists to olive oil, as well as host culinary experts, food writers, and journalists from around the world at this location (Biolea, 2007). Biolea sells three different types of olive oil. The first of those types is made with Koroneiki Olives Stone Milled with Bitter Oranges (Biolea, 2007). This is an exotic tasting olive oil with a taste of orange blossoms and orange rind. It is good used as a marinade for roasts and barbecued poultry, meat and game, or lends a wonderful orange taste for cakes, biscotti, and cookies.
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Cost Behavior Analysis 4 The next type of olive oil is an Organic Stone Milled and Cold Pressed Olive Oil (Biolea, 2007). The oil is made by settling it and then decanting it repeatedly in stainless steel tanks before bottling it. It is perfect for use in dipping bread or even to drizzle over seafood, pasta, young salad greens or grilled vegetables. The last type of olive oil is one made of Koroneiki Olives Stone Milled with Fresh Lemons
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This note was uploaded on 02/21/2010 for the course ACC 560 taught by Professor Lowry during the Spring '08 term at Strayer.

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Cost Behavior Analysis - Cost Behavior Analysis Running...

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