Cost Management Strategies for Dysonica Plc

CASE STUDY
DYSONICA Plc LO1
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Contents
INTRODUCTION...........................................................................................................................3
Task 1...............................................................................................................................................4
Describes the cost regarding the nature of the business..............................................................4
TASK 2............................................................................................................................................6
Provide the company your ideas for a cost-cutting approach......................................................6
TASK 3............................................................................................................................................8
The creation of a 12-month plan and budget for the company until 30 April 2023....................8
TASK 4..........................................................................................................................................15
On the basis of the facts and figures in the forecasts and budgets, evaluate and analyze the
performance of Dysonica Plc.....................................................................................................15
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................18

INTRODUCTION
The seamless operation of the company’s activities depends on finance. It aids a range of
enterprises in securing funding from various sources. It serves to get goods, property, and raw
resources for the business. A business that begins out with minimal capital will continually need
more money to run its activities. The foundation of any firm is finance. Without even a strong
financial base, success is all but unattainable. Financial management refers to the funds and
credits utilized by a company. Major corporations also oversee a wide range of procedures to
produce this income in order to satisfy these requirements. In order to build a financially sound
strategy for the efficient operation of an organisation, the analysis of the financial demands and
opportunities can be bridge on a daily basis. In this research, the research project of Dysonica Plc
is examined. It consists of four tasks, the first of which includes the cost divisions of a firm and
how it distinguishes them. The next duty focuses on management recommendations that will
assist managers in lowering expenditures and costs. The Dysonica Plc's cash flow predictions
through April 30, 2023 are covered in the third step. The last task examines the company's
successes and achievements as well as its performance within that particular sector (Sandra and
Kim, 2022). This decision will be made by considering the anticipated amounts of Dysonica
Plc's cash flow.
Each firm must choose the financing from its preferred sources. A firm like Dysonica Plc.
operates in several nations and contends with strong competition. Therefore, it needs to manage
all of its activities extremely effectively if it would like to compete including its rivals. These
businesses will employ a variety of methods for cost-cutting and several mechanisms to boost
sales operational income. The many cost elements, such as variable costs, overhead expenses,
and marginal costs, are also distinct in addition to this. This study has also provided a
comprehensive explanation of how to forecast a company concern's expected investment
capacity and potential to satisfy its impending wants and demands. The two most effective
methods for Dysonica Plc to reduce needless costs and keep track of costs related to various
types of tasks carried out in various divisions are marginal costing and activity-based costing.

Task 1
Describes the cost regarding the nature of the business.
Cost is a concept used throughout the production and distribution of both goods and
services. Cost is crucial at every phase of the manufacturing process, from procuring raw
materials to producing a firm's final items. In essence, cost is the sum of money used to offset
production-related costs. The costs which are relevant for any type of organization need to be
characterised and defined, so as to effectively manage the costs related to various items used in
the course of business. The definition of cost may differ from the point of view of different
individuals, such as the seller may view the cost of producing and manufacturing a product as
costs to the company, however for the buyer, the amount which has been paid towards availing
the services or products is often called the price. This amount or the price, is the unified
monetary value of the activities which the seller executed to bring the product or service to its
current condition and not to mention, the cost of the commodity itself. Furthermore, the costs
should include the expenses which directly or indirectly form part of the overall amount of the
product or service sold or to be sold. There are numerous different sorts of costs that the business
must deal with, but the two that pose the most challenges to the creation of products are indirect
costs and fixed costs.
 Variable costs: These costs are those that are significantly influenced by a firm's sales
and productivity, or they are those that gauge how many products a business is producing
and marketing. A company's variable costs will rise or fall in direct proportion to its sale
and manufacturing of commodities, therefore indicates that things are simultaneous to
one another. The cost of transportation, raw materials, plastic cards, and other expenses
are all variables. Also, there will be deviations in the variable costs of the products across
the profits and may need to be allocated among the products, if the same are incurred for
goods or services sold through multiple branches. The variable costs are not of one kind,
they may be related to different items and accordingly their nature may vary, such as the
raw material and labour costs, commissions provided to the salesperson, utilities directly
affecting the costs of goods and services, shipping or freight charges incurred at the time
of transportation of the commodity by way of cargo. All of such costs are expenses to the
company and need to be allocated systematically.