i. The allocation of the current method of allocating of warehousing and shipping cost is not really correct. The current method is direct method which ignores In term of Shipping and Warehousing cost‚ low volume products should incur this cost instead of both high volume and low volume products. Because‚ high volume products are deliveried directly to customer so it does not incur the cost of shipping. The low volume products which are sent to distribution center incurred the cost of shipping
Premium Value added
Q: Is depreciation expense or depreciation cost is fixed cost or variable cost in nature? Fixed costs: Fixed costs are such costs that do not change with the change in activity level within the relevant range. Where relevant range can be defined in terms of time or activity level. Variable costs: Variable costs are such costs that change with the change in activity level . Coming to the question‚ depreciation expense or depreciation cost can either be fixed or variable and this depends on the
Premium Costs Variable cost Depreciation
Course: Material Handling Systems-ISEN 605 Student: Hasnain Millwala UIN: 319002456 Journal Article Analyzed: Mathematical model for warehouse design and product allocation S. S. Heragu‚ L. Du‚ R. J. Mantel and P. C. Schuur International Journal of Production Research‚ Vol. 43‚ No. 2‚ 15 January 2005‚ 327–338 Article Summary: This article primarily deals with two fundamental decisions involved in
Premium Operations research Allocation
EDC’s foreign sales performance has been flat the last two years‚ likely the result of not being able to compete on price given their current U.S. distribution channels in place. EDC has higher wage rates‚ material costs‚ and distribution costs than their competitors in Asia and other foreign markets. Both of Ann’s vice-presidents agree that EDC must move quickly to capitalize on the growing Asian market before other competitors change the market landscape
Premium Competitor analysis Competition Supply and demand
products. Chuck questioned if the current cost-management system was providing the management with accurate data about product costs. In a traditional‚ volume-based product-costing system‚ only a single predetermine overhead rate is used. All manufacturing-overhead costs are combined into one cost pool‚ a grouping of individual indirect cost items‚ and they are applied to products on the basis of a single variable that costs over a given time span (cost driver) that is closely related to production
Premium Cost Costs Manufacturing
Product cost is the cost of direct labor‚ direct materials‚ and manufacturing overhead that are consumed to create a product. Product cost can also be considered the cost of the labor required to deliver a service to a customer. Direct Material Cost Definition: Direct material cost is the cost of materials used to manufacture a product or provide a service. Direct Labor Definition: Direct labor is production or services labor that is assigned to a specific product‚ cost center‚ or work order
Premium Manufacturing Production and manufacturing
Resource allocation is the delivery of resources‚ typically financial‚ among competing groups of people or programs. Because of the increasing need for healthcare services and increasing costs to supply those services‚ Americans must decide how to allocate healthcare dollars. A number of ethical questions arise when talking about healthcare resource allocation. The paper answers the ethical question of whether hospitals should charge uninsured patients more money than insured patients for the
Premium Health care Medicine Health insurance
Cost accounting deals with ascertainment ‚ allocation ‚ apportionment accounting aspect of costs.Management accounting deals with the effect and impact of costs on the business. 2. Cost accounting provides a base for management accounting whereas management accounting is derived from cost accounting and financial accounting. 3. Cost accounting does not include financial accounting ‚ tax planning and tax accounting. Management accounting includes financial and cost accounting ‚ tax accounting
Premium International Financial Reporting Standards Financial statements Balance sheet
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
Premium Supply chain management Costs Cost
work for “‚ which is what Libertarian theory: Theory of both Access and Allocation represents. When you choose to start rationing healthcare resources you start to take away people’s liberty and freedom. Liberty and Freedom is what America is built on and if we start to ration healthcare resources people will no longer have a say in what they get no matter how much they are contributing like Capabilities theory: Theory of Allocation states. I believe the outlook is pessimistic because there is only one
Premium Health care Health economics Medicine