A cost structure analysis of Lakshmi machine works (LTD)

Abstract

This study investigates the importance of cost structure for the manufacturing company. The study has been conducted on the basis of secondary data of Lakshmi Machine works Ltd for a period between 2012 to 2016. The cost structure analysis helps to take an in-depth look at how a firm’s cost structure affect its optimal quantity of goods. To assess the firm’s cost structure, tools like overall cost structure analysis are used. The improvised tools enables the firm to be analysed in the view of cost and performance. The fund flow is used to analyse the reasons for the changes in the financial position of a company. It shows the inflow (source) and outflow (application) of the firm. The application of financial tools like fund flow, cost structure helps to measure the company’s performance and to take decisions based on the company’s cost of capital.