Case Study Dysonica Plc

Case Study Dysonica
Plc

Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Classify the costs according to their nature.................................................................................3
TASK 2............................................................................................................................................6
Provide recommendation and cost reduction strategy.................................................................6
TASK 3............................................................................................................................................7
Preparation a 12 - month forecast/budget for the business up to 30 April 2023.........................7
TASK 4..........................................................................................................................................10
Based on the facts in the forecast and budgets, evaluate Dysonica's performance...................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Business finance refers to the funds generated, arranged, and managed by businesses in
order to accomplish their objectives. It may also be defined as the assets obtained by
organisations in order to start a business. The capital assets and credit subsidises that are invested
into a firm are included in these assets. This money will be used to acquire resources, purchase
raw materials, and make goods for the company's operating operations. When a company first
begins operations, the funding available is insufficient to solve all of the issues that arise. As a
result, in order to meet these needs, business organisations must take care of a large number of
components in order to generate revenue. The evaluation of monetary requirements and possible
results may be cross-checked in a standard approach, allowing for the creation of a superb
monetary management plan for the smooth operation of a project (Anghelache and et.al., 2019).
The context analysis of Dysonica Plc is the subject of this research. It consists of four exercises,
the first of which covers the expenditure elements of a business and how they are separated. The
next project consists of suggestions for the administration that will aid the chiefs in lowering
their expenses and prices. The third section includes Dysonica Plc's income forecasts until April
30, 2023. Furthermore, the final project examines the organization's triumphs and achievements,
as well as how it operates in that particular industry. This decision will be made based on the
gauge values in Dysonica Plc's revenue.
TASK 1
Classify the costs according to their nature
The term "cost" is used while putting together and supplying services and products. Cost is
critical at every stage of the production and manufacturing cycle, from procuring unprocessed
materials to completing an organization's finished goods. Essentially, cost is the amount of
money used to help pay the costs of production. There are several types of costs that affect an
organisation, but the most common two types of expenses that cause product problems are
variable expense and fixed cost (Feyaerts and Demarsin, 2020).
Variable cost refers to an expense that is directly related to an organization's sales and
production, or an expense that controls the number of items sold and assembled in a project. If an
organization's inventory and product creation increase or decrease, the variable expenditure

increases or decreases separately, implying that the two are related. It is a measure of
transportation, natural material, Visa, and many other things.
Fixed Cost: It is an expenditure that remains constant regardless of changes in the selling and
producing of services and products. It is a separate expense whose quantity is unaffected by any
increase or decrease in the cost of goods and administrations. It covers wages, rent, energy bills,
insurance, and a variety of other expenses (Flaah, 2020).
Semi-variable expenditure: An expense that is paid on a regular basis, such as month to month,
quarterly, or ahead of schedule, for the purpose of determining the organization's requirement. It
essentially incorporates both variable and fixed expenses. Depreciation of fixed resources, office
leasing, and employment are examples of semi-variable expenditures.
Fixed
Costs
£ Variable
Costs
£ Semi-variable
Costs
£
Machinery 1500 Raw materials 15000 Office and
sales staff
9000
Factory
and
storage
rent
18000 Direct labour 17500 Logistics 3000
Utilities 500
Insurance 500
Total 20500 32500 12000
The cost of producing a comparable thing in a large volume on a regular basis is referred to as
unit cost. The cost that refers to a single unit of assembly material. It's also known as the cost of
items supplied, and cycle costing refers to the accounting that results in identical or
indistinguishable units of outcome. The following are the differences between unit and
interaction costs:
Absorption Costing: This is an expense that covers the costing approach that dissects and
accounts for all assembly-related expenses. The majority of the time, this component is used by
businesses to internalise the cost of items. In simple terms, the expense is sometimes referred to
as "full costing". Direct material, Direct Labor, variable creation upward, and fixed assembly