COST ANALYSIS OBJECTIVES INTRODUCTION MEANING DEFINITIONS TYPES OF COSTS MONETARY COSTS REAL COSTS OPPORTUNITY COSTS ECONOMIC COSTS ACCOUNTING COSTS INCREMENTAL COSTS SUNK COSTS FUTURE COSTS PRIVATE‚ EXTERNAL AND SOCIAL COSTS FIXED / SUPPLEMENTARY / OVERHEAD COSTS VARIABLE / PRIME COSTS REPLACEMENT COSTS PRODUCTION COSTS SELLING COSTS CONTROLLABLE COSTS DIRECT COSTS INDIRECT COSTS SHORT RUN COSTS CURVES LONG RUN COSTS CURVES OBJECTIVES To understand the meaning of cost. To discuss different types
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Describe the schedule of cost goods manufactured. How does it tie into the income statement? 5. Why are product costs sometimes called inventoriable costs? Describe the flow of such costs in a manufacturing company from the point of incurrence until they finally become expenses on the income statement. 6. Is it possible for costs such as salaries or depreciation to end up assets on the balance sheet? Explain. 7. “The variable cost per unit varies with output‚ whereas the fixed cost per unit is constant
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business and how the new equipment will help the business to function and the cost of the product will determine what the managers of the business decides. Marginal costs are change in total costs divided by change in output. Marginal revenue is the change in total revenue divided by change in output. Increase in fixed costs means that when the fixed costs cannot be changed it is the short run and when the fixed costs change it is the long run. The second questions that I chose to answer was
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Costs and Revenues What is cost? If you go to a store and like an item and you want to buy it‚ which of the following questions would you ask: What’s the price of …..? 0R How much does …. cost? Examples of costs – set-up Examples of costs - running Fixed Costs 5000 What happened to the fixed costs if for some reason the company had technical problems and was unable to produce for 2 weeks? What happens if the landlord decided to raise the rent due to high property prices
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Managing Cost of Quality: Insight into Industry Practice Andrea Schiffauerova *‚ Vince Thomson ** * École Polytechnique de Montréal‚ Department of Mathematics and Industrial Engineering‚ Montreal ** Department of Mechanical Engineering‚ McGill University‚ Montreal‚ Canada Article Reference: Schiffauerova‚ A. and Thomson‚ V.‚ “Managing cost of quality: Insight into industry practice”‚ The TQM Magazine‚ 2006 Abstract This paper reports on the study of the quality costing practices at four large
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Case Study: Cost Justified Managers face many challenges in the day to Day operations of their business. Often times some of the greatest challenges come from within their own ranks‚ as superior managers use their position and influence to coerce one to make decisions or commit acts that are sometimes on the boundaries of the law and often cross the ethical line. In the case of “Cost Justified‚” we are introduced to Joe‚ the District
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Cost of Capital Definition: cost of capital is the rate of return that a company must earn on its project investments to maintain its market value and attract funds. The cost of capital to a company is the minimum rate of return that is must earn on its investments in order to satisfy the various categories of investors‚ who have made investments in the form of shares ‚ debentures and loans. The cost of capital in operational terms refers to the discount rate that would be used in determining the
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INTRODUCTION Cost accounting is an important tool in the management of any business firm or organization‚ which includes those in the small scaled industry. In the cause of our research instrument indicated the maintenance of improper and inadequate records coupled with the fact that cost methods used‚ through sometimes effective‚ were unconventional. For a small scale business to approach profit maximization level‚ it must be effective in cost control procedures and appropriate books
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Cost management | Wilkerson Company Case | | 1. What is the competitive situation faced by Wilkerson? The competitive situation faced by Wilkerson is quite severe. Price cutting in its main product has led to a huge drop in profit. While price increase in another product line partially made up the loss. We will discuss the detailed situation line by line. (1) Valves It was the first product line developed by Wilkerson and its high quality brought it a loyal customer base. Even
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CONTENTS 1 EXECUTIVE SUMMARY 2 INTRODUCTION 3 - 7 STUDY OF OBJECTIVES‚ SCOPE & LIMITATION 8 RESEARCH METHODOLOGY 9 - 12 COMPANY PROFILE 13 – 20 CONCEPTUAL BACKGROUND 21 - 25 COMPETITIVENESS OF BUSINESS PROCESS INTEGRATION 26- 65 ANALYSIS & INTREPRETATION 66 - 81 PORTER’S FIVE FORCES MODEL 82 - 84 SWOT ANALYSIS 85 - 87 FINDINGS AND SUGGESTIONS 88 - 89 CONCLUSION 90 ANNEXURE 91 - 92 BIBLIOGRAPHY 93 1. EXECUTIVE SUMMARY This project is done at GARDEN CITY FASHIONS
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