PRINCIPLES OF COST CONTROL 1.1 Introduction Cost is important to all industry. Costs can be divided into two general classes; absolute costs and relative costs. Absolute cost measures the loss in value of assets. Relative cost involves a comparison between the chosen course of action and the course of action that was rejected. This cost of the alternative action - the action not taken - is often called the "opportunity cost". The accountant is primarily concerned with the absolute cost. However‚
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Administrative Office Management Chapter 1 The office in today’s world of business The office - A place where activities take place to facilitate operations of the business enterprise - Data gathering‚ record keeping‚ info management‚ business communication - “beehive” of activity where substantial paperwork of many kinds are done Importance of office work - Facilitating/servicing unit for all major functions in the company - Brain and nerve centre because of its network of activities
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Cost reduction Generally defined as the act of cutting costs to improve profitability. Cost reduction‚ should therefore‚ not be confused with cost saving and cost control. Cost saving could be a temporary affair and may be at the cost of quality. Cost reduction implies the retention of essential characteristics and quality of the product and thus it must be confined to permanent and genuine savings in the costs of manufacture‚ administration‚ distribution and selling‚ brought about by elimination
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Topic 6: Management Accounting and Cost Case: Shelter Partnership a. My main learning outcomes from Topic 6 and the Case Study; 1) Firstly‚ I realize management accounting has much to offer. Somehow I can handle physics but not accounting. Now thanks to this course I can appreciate and make sense of it. The bit that really caught my attention was seeing how management accounting can be really useful for business planning‚ cost management‚ budgeting and performance measurement. It offers
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ey Chapter 8 Stocks and Their Valuation LEARNING OBJECTIVES After reading this chapter‚ students should be able to: • Identify some of the more important rights that come with stock ownership and define the following terms: proxy‚ proxy fight‚ takeover‚ and preemptive right. • Briefly explain why classified stock might be used by a corporation and what founders’ shares are. • Differentiate between closely held and publicly owned corporations and list the three
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relationship management initiative? In Old costing system ‚ material realted overhead cost was divided into 3 categories 1) Material related 2) Production related 3) Support related The support related cost were allocated based on sum of direct material ‚ direct labor costs ‚ material overhead and production overhead. Compared to old costing system‚ in PROKASTA 2 additional cost pools (Order processing and special components related cost) to allocated support related costs. This strategy
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successful cost reduction programmes In the current economic climate‚ most organisations must face up to a prolonged period of extreme competition and funding restrictions. This is particularly the case if the past few years have been focused on growth‚ service improvement or reorganisation (i.e. cost efficiency has not been a recent priority). Such pressures require an approach that reduces costs in a strategic‚ disciplined‚ and sustainable manner - delivered at pace. In our view serious cost reduction
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Cost Control and Cost Reduction A business enterprise must survive‚ grow‚ and prosper. Cost Control and Cost Reduction are activities necessary for ensuring that these objectives are fulfilled. With the liberalization of the Indian Economy and Globalization‚ there is now a cut throat competition from various concerns of the world. As a result there is now a race to secure a place for survival. This has increased the importance of cost control and Cost Reduction. Cost Control “Cost control
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Chapter 1 Summary: The novel opens with Aunt Polly searching for Tom Sawyer‚ the young protagonist of the novel who‚ along with his younger brother Sidney‚ was sent to live in St. Petersburg‚ Missouri‚ after his mother’s death. After hearing no answer to her calls‚ Polly finds Tom eating out of the jam closet. Tom escapes Aunt Polly’s beating by diverting her attention‚ leading Polly into a tirade against Tom’s irreverent ways. During dinner‚ Aunt Polly tries to trick Tom into admitting that he
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Chapter 2 Management Yesterday and Today |ANNOTATED OUTLINE | | 1. HISTORICAL BACKGROUND OF MANAGEMENT Many fascinating examples from history illustrate how management has been practiced for thousands of years. A. Organizations and managers have existed for thousands of years. The Egyptian pyramids and the Great Wall of China were projects of tremendous scope and magnitude
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