To: Prof.

Khushboo A Presentation By: SHRUTI SHARMA & KHALIDA ZIA BFT Vth Sem

Types of Costs with respect to level of production

Fixed Cost Variable Cost

Total Cost
Average Cost

Cost per unit at that level of production

Relation of cost and production

*When considering the size of plant

SRAC

1000

Overcoming cost limitation

To overcome the problem of cost limitation a company should adopt a strategy of TARGET COSTING.
Costs change with production scale and experience. They can also change as a result of concentrated effort by designers, engineers and purchasing agents to reduce them through target costing. ACCUMULATED PRODUCTION

ADVERTISING COSTS
Designing costs Copyright Costs

Media broadcasting costs

Production costs Miscellaneous charges

As cost and production are interrelated, the company should plan accordingly. If we talk in terms of advertising and media, the company should go for the following:
Being cost efficient in choosing the right advertising media Reducing cost by choosing the right advertising agency