labor market‚ * maintain internal pay relationships among jobs‚ * recognize and reward differences in level of responsibility‚ skill‚ and performance‚ and * manage pay expenditures.Structure setting and adjustment provides a systematic way to manage pay structures. | Elements of a pay structure | A pay structure is defined by several elements‚ including: * coverage – the occupations‚ positions‚ or persons included‚ * the number of pay ranges or grades‚ * the differences between pay
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Plant overhead $122‚000 D/L rate/hour $30 Youngstown has a traditional cost system. It calculates a plant-wide overhead rate by dividing total overhead costs by total direct labor hours. Assume‚ for the calculations below‚ that plant overhead is a committed (fixed) cost during the year‚ but that direct labor is a variable cost. 1. Calculate the plant-wide overhead rate. Use this rate to assign overhead costs to products and calculate the profitability of the four products. The
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2 Cost Terms‚ Concepts‚ and Classifications Learning Objectives LO1. Identify and give examples of each of the three basic manufacturing cost categories. LO2. Distinguish between product costs and period costs and give examples of each. LO3. Prepare an income statement including calculation of the cost of goods sold. LO4. Prepare a schedule of cost of goods manufactured. LO5. Understand the differences between variable costs and fixed costs
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Definition of Anchoring Effect: Agents would make decisions based on adjacent arbitrary event or exposure. It is one kind of “representativeness” heuristic Bounded rationality (heusistics) leading to preference reversal in the Prominence effect and response and Compatibility effect Agents use heuristics which‚ on average work‚ but sometimes it leads to inconsistent choices (preference reversal) in regards to the matching of prices/costs Bounded rationality (heusistics) leading to preference
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Why would any customer‚ let alone large advertising agencies and departmental stores‚ go to Colorscope rather than go to large printers listed in Exhibit 3? Before desktop publishing became popular‚ Colorscope had a competitive advantage through its expensive proprietary computer equipment that could produce complicated print special effects. Colorscope had also been able to build strong relationships with valuable customers through the years and had a good reputation for providing high quality
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Ronald Coase noted‚“The cost of doing anything consists of the receipts that could have been obtained if that particular decision had not been taken.” For example‚ the opportunity set for this Friday night includes the movies‚ a concert‚ staying home and studying‚ staying home and watching television‚ inviting friends over‚ and so forth. The opportunity cost of taking job A included the forgone salary of $102‚000 plus the $5‚000 of intangibles from job B. Opportunity cost is the sacrifice of
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management concluded the large fixed cost absorbed sale figure. First it is important to understand the standard costing system implemented in Rubber group. Standard costing assigns quantity and price standards to each component of variable and fixed costs in calculating the total cost. In the case of NASA‚ the system uses standard purchasing price (input cost) and standard inputs usage in place for variable costs‚ and standard spending price (input cost) and standard
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Quality Cost 1 Quality is defined from the customer´s point of view l Performance l Performance or the primary operating characteristics of a product or service. Example: For a car‚ it is speed‚ handling‚ and acceleration. For a restaurant‚ it is good food. l Features l Features or the secondary characteristics of a product or service. Example: For a TV‚ it is an automatic tuner. For a restaurant‚ it is linen table cloths and napkins . l Reliability l Reliability
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Cost of Quality In current context same meaning: Quality Costs‚ Cost of Quality‚ Cost of Poor Quality Impact of Costs Price Erosion Sales Profit +Warranty Cost +Material allowance Ideal $ Variable Cost Spread of break-even zone Fixed Cost Quantity Yield -> Waste -> (from design‚ defects‚ efficiency) -> impact costs Why Focus on Cost of Poor Quality? Price Erosion Profit Profit Profit Profit Total Cost to manufacture and deliver products Cost of Poor Quality COPQ Cost of Poor Quality
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division’s profits increase‚ while the buying division’s costs increase. So‚ transfer pricing should be established on a reasonable and objective basis‚ which should maximize the companywide profit‚ rather than being based on an individual division’s profit. The company can choose market-based transfer pricing‚ cost-based transfer pricing‚ or negotiated transfer pricing. We will mainly focus on comparing market-based transfer pricing and cost-based transfer pricing in order to evaluate which method
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