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Identifying cost behaviour

It’s all very well being able to recognise the different types of cost by looking at a graph – but how do you identify them in real life, just from …

Sources and characteristics of information

Data and information can come from one of two different sources – and both sources can generate data and information that falls into one of two categories. The Kaplan tutor …

Incremental budgeting

Incremental budgeting involves taking the previous years’ budget (or actual closing position for the previous year) and making adjustments with a ‘copy and paste’ method. Incremental budgeting is best suited …

Seven benefits

The previous step should have started to give you an idea of why budgets are ‘a good idea’ for businesses and organisations. Now let’s look at some of the reasons …

Information used in budgeting

Information is the starting point of the budget setting process. As the Kaplan tutor explains in this video, a management accountant or manager can provide a wide range of information …

Cost behaviour

As the video explains, one other way of grouping costs is by the way those costs are affected by the business’ activity level. Essentially, as the business produces more units, …