Caretech Holdings Plc Essay

CareTech Holdings PLC is a service provider working to deliver high quality, personalized care and support within a strongly person centered approach. They support adults people with a lot of complex needs, and in the same time, care for children and young people, offering them carefully designed programmes in specialist centers, most of them have schools attached. (http://www.caretech-uk.com/about-us)

1.1. Explain the main principles of costing and business control systems.

All types of businesses, doesn’t matter if it is about service, manufacturing or trading, require cost accounting to track their activities. Cost accounting has long been used to help managers understand the costs of running a business. The most important ways

By Functions: are production costs, administration costs, selling costs and distribution costs.
4. By Behavior: are fixed costs, variable costs, semi-variable costs. Fixed Costs remain fixed, irrespective of changes in the production volume in one given period of time. Variable costs are changing in accordance with the volume of production. Semi-variable Costs are partly variable and partly fixed.
5. By control ability: are controllable costs and uncontrollable costs. A cost is controllable if it can be controlled or influenced by a conscious management action, which an uncontrollable costs cannot be.
6. By normality: normal costs and abnormal costs. A normal cost is arising during routine day-to-day business operations to abnormal costs, which are arising because of a abnormal activity or an event which is not part of routine business operations.
7. By Time: Predetermined costs and Historical Costs. The historical costs are costs which are incurred in the past and the predetermined costs are the costs computed in advance, based on the factors which affect the cost elements. Example: Standard Costs.
8. By Decision making Costs: These costs are used for managerial decision making.