____ is the process of analyzing each individual cost element that together add up to the final price.

Question

Quizplus · Accepted Answer

Cost analysis is the process of breaking down the final price of a product or service into individual cost elements and analyzing each element to understand the total cost. This helps in identifying areas where costs can be reduced or eliminated to improve profitability. Price analysis involves comparing prices of similar products or services in the market while target costing is a method of setting a target price for a product based on customer requirements and designing the product to meet that price. Total cost analysis involves looking at all costs associated with a product or service including variable and fixed costs. Make-buy analysis is a process of deciding whether to make a product or service in-house or outsource it to a vendor.

____ Is the Process of Analyzing Each Individual Cost Element