Business Costs

This PowerPoint, “Business Costs - Comprehensive Guide”, is a detailed Cambridge A-Level Business (9609) study resource focused on understanding, classifying, and applying business costs for strategic decision-making.

It is structured into nine clear sections:

1. Why Cost Information Matters – Uses real examples (e.g., WeWork) to show the importance of cost awareness.
2. Cost Classifications – Breaks down direct vs. indirect, fixed vs. variable, and total vs. average costs.
3. Full Costing Method – Explains absorption costing with bakery examples.
4. Contribution Costing – Introduces marginal analysis and its power in product decisions.
5. Special Order Decisions – Applies contribution analysis to below-cost pricing dilemmas (e.g., SportGear, airlines).
6. Break-Even Analysis – Covers calculation, charts, and margin of safety with worked examples.
7. Strategic Decisions – Shows how break-even analysis supports pricing, automation, and location choices.
8. Limitations – Highlights assumptions and real-world constraints of cost models.
9. Exam Technique – Clarifies command words and includes sample calculation questions.

Perfect for Year 13 students and teachers seeking a practical, example-rich guide to cost concepts and their application in exams and real business scenarios.