CMS Business School hosted a business practitioner session on 04^th September 2024. Guest lecturer Mr. Raveendranath Kaushik worked up a lecture on ‘Cost & Revenue Analysis’.

The speaker provided a comprehensive overview of key concepts and their application in business decision-making. The session began with an introduction to the fundamental terms, contextualized with relevant examples to enhance understanding. Costs were discussed from the perspective of producers and suppliers, emphasizing their role as confidential estimates. The speaker illustrated the determination of selling prices with practical examples from Bata and Paragon, highlighting how companies strategically price their products. The concepts of cost object, cost center, and cost units were clarified using a smartphone manufacturer as a case study.

The lecture explored the business strategy of outsourcing and the shift from manpower to advanced technology. The speaker emphasized that better technology reduces costs and enhances value and efficiency.

A key part of the session was a thorough explanation of the Cost-Volume-Profit (CVP) relationship, where the speaker analyzed the interconnection between these variables and their significance in the decision-making process. This led to a detailed explanation of Break-Even Point (BEP) analysis, supported by graphs and schedules, to illustrate its practical application. Further discussion covered capacity utilization and the impact of sales volume on cost. The speaker shared a few insights on cost reduction techniques and how market dynamics influence cost structures.

The lecture concluded by exploring factors affecting costs, such as volume, quantity mix, size, internal efficiency, and production methods, reinforcing the importance of strategic cost management in business operations.