Costs, scale of production and break-even analysis

What the syllabus asks of you

• Identify and classify costs: Classifying costs using examples, e.g. fixed, variable, average, total
• Identify and classify costs: Use cost data to help make simple cost-based decisions, e.g. to stop production or continue
• Economies and diseconomies of scale: The concept of economies of scale with examples, e.g. purchasing, marketing, financial, managerial, technical
• Economies and diseconomies of scale: The concept of diseconomies of scale with examples, e.g. poor communication, lack of commitment from employees, weak coordination
• Break-even analysis: The concept of break-even
• Break-even analysis: Construct, complete or amend a simple break-even chart
• Break-even analysis: Interpret a given chart and use it to analyse a situation
• Break-even analysis: Calculate break-even output from given data
• Break-even analysis: Define, calculate and interpret the margin of safety
• Break-even analysis: Use break-even analysis to help make simple decisions, e.g. impact of higher price
• Break-even analysis: Understand the limitations of break-even analysis