# Cost Distortion Calculator

## Introduction

In various financial scenarios, understanding the impact of cost distortion is crucial. Whether you are managing a business, making financial decisions, or simply exploring the effects of cost changes, a Cost Distortion Calculator can be a valuable tool. This article presents an HTML code for creating a calculator that helps you determine cost distortion based on the original cost and distortion rate.

## How to Use

1. To utilize the Cost Distortion Calculator effectively, follow these simple steps:

2. Open your preferred HTML editor or a text editor to create an HTML document.
3. Inside the HTML document, create a <form> element to structure the calculator. Within the form, include the following input fields and labels:
Original Cost (\$): <input type=”number” id=”originalCost”>
Distortion Rate (%): <input type=”number” id=”distortionRate”>
4. Add a clickable button within the form to trigger the calculation. You can achieve this by including the following code:

<input type=”button” value=”Calculate” onclick=”calculateCostDistortion()”>
Create a <p> element to display the result, and give it an id, for example, <p id=”result”></p>. This is where the calculated cost distortion will be displayed.

5. In your HTML document, include a <script> element to write the JavaScript code for the calculation. Define the calculateCostDistortion() function.
6. Use the provided formula to calculate the cost distortion and update the result in the designated <p> element.
7. Save your HTML document with an appropriate filename and open it in a web browser.

## Formula

The formula for calculating Cost Distortion (CDIS) is as follows:

CDIS = OC – (OC * C / 100)

Where:

• CDIS is the Cost Distortion in dollars.
• OC is the Original Cost in dollars.
• C is the Distortion Rate in percentage.

This formula allows you to determine the distorted cost based on the original cost and the distortion rate applied.

## Example

Let’s consider an example to illustrate the use of the Cost Distortion Calculator:

• Original Cost (OC) = \$1,000
• Distortion Rate (C) = 20%

Using the formula, we can calculate the cost distortion:

CDIS = 1000 – (1000 * 20 / 100) = 1000 – 200 = \$800

So, with an original cost of \$1,000 and a 20% distortion rate, the cost distortion is \$800.

## FAQ’s

Q1: What is cost distortion?

A1: Cost distortion refers to the change in the cost of a product or service due to factors like discounts, markups, or other adjustments. It is usually expressed as a percentage of the original cost.

Q2: Can I use this calculator for any currency?

A2: Yes, you can use this calculator for any currency, as long as you enter the original cost in that currency.

Q3: How accurate is this calculator for complex financial scenarios?

A3: This calculator provides a basic understanding of cost distortion. For complex financial analyses, you may need more advanced tools and calculations.

## Conclusion

The Cost Distortion Calculator is a useful tool for quickly estimating cost changes based on an original cost and a distortion rate. By following the simple steps outlined in this article, you can easily create and use this calculator in your HTML documents. Understanding cost distortion is essential for making informed financial decisions and managing various financial scenarios.