during 2 hours

Chapter 4 Theoretical Background

& Implications on COST STANDARDS

1

What is an Industry ?

2

Overview of Industry Types

An industry is classified according to :

• The customer needs it satisfies

• Whether it sells a product, a service, or some combination of the two

• Whether it makes the product or service; distributes it to an intermediary (middleman); or sells it to a customer who is the end user

3

Overview of Industry Types

4

Manufacturer

5

Wholesaler

6

Retailer

7

Check your Understanding

• Retailer

• Manufacturer

• Wholesaler

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9

Service Industries

10

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12

Hybrid Industries

13

Check Your Understanding

14

15

Cost Structure & Operating Leverage

16

Industry Maturity Stages

17

Terms used in Tutorial

• Break Even Analysis

• Limiting Factor

• Costing – budgeting

• Budgets

• Variance analysis

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