Sample Essay

The company of Excel Limited is operating in a very competitive industry which requires it to be very efficient in term of its operations as well as in the management of its cost centers. The analysis of the costing strategy of the company provided that the company needs to use the activity based costing instead of the current costing strategy. Additionally the forecasting and budgeting method of the company which is static was compared against the flexible and the zero based methods. The zero based method has been proposed for the budgeting of the costs and the operation for the company.

The company performance however is not up to the standards the company which was depicted through the financial rations which were much less for the company as compared to the industry. As result based on the performance of the company, the investment of the company in the machinery is not recommended as it will become more difficult for the company to bear the additional financial burden and still be competitive in a very saturated market.

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