clear thinking along with presentation | | | Subject Specific Parameters | 1. Understanding the procedures of Costing | Clarity of concept | | | 2. To be able to calculate the unit cost and prepare costing Profit & Loss statement | Precision in cost calculation and preparation of cost sheet | | | Grades | Grade Descriptors | Achieved Yes/No (Y / N) | P | A Pass grade is achieved by meeting all the requirements defined. | | M | Identify & apply strategies/techniques
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Production Cost Analysis and Estimation Applied Problems 1. Jennifer Trucking Company operates a large rig transportation business in Texas that transports locally grown vegetables to San Diego‚ California. The company owns 5 large rigs and hires local drivers paid fixed salaries monthly‚ regardless of the number of trips or tons of cargo that each driver transports each month. The below table presents details about the number of drivers and the total cargo transported by the company at different
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Introduction This assignment focuses on the cost functions of the Dutch Railways. In this tutorial will be an estimated cost function developed for the Nederlandse Spoorwegen (NS). This cost function (expressed in Dutch Guilders) is based on the period of Year 1951 till Year 1993. This due to certain developments that made it more difficult to come to a good approach of a cost function. Based on the cost function‚ developed in this tutorial‚ there will be an answer provided on the question whether
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such things as an established sales force or access to existing channels‚ reducing barriers to entry (Porter‚ 2001) - Economies of scale: In some industries‚ economies of scale are extremely important. However‚ startup costs for e commerce retail operation are a fraction of the costs of starting a traditional brick and mortar company. - Access to industry distribution channels: In many industries manufacturers have had control over supply and/or distribution channels. In the online retain
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BT 365 COST PLANNING AND CONTROL Lecturer: J.K. Ofori-Kuragu September‚ 2006 Course Objectives / Course Outline: At the end of this course‚ you will know: 1. What Cost Control is. 2. Purposes of Cost control. 3. Elements of Cost Control 4. The Introduction to Cost Control Systems. 5. Cost Analysis and Cost planning 6. Costs in Use 7. Introduction to Value Engineering Recommended Texts • A. Ashworth Cost Studies of Buildings • Ivor Seeley
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Written by: Edmund Quek CHAPTER 6 THE THEORY OF COST LECTURE OUTLINE 1 2 2.1 2.2 2.3 2.4 2.5 2.6 3 3.1 3.2 3.3 INTRODUCTION SHORT-RUN THEORY OF COST Distinction between fixed cost and variable cost Total cost Marginal cost Average cost Relationship between marginal cost and average cost Optimum capacity LONG-RUN THEORY OF COST Cost minimisation in the long run Long-run average cost Productive efficiency References John Sloman‚ Economics William A. McEachern‚ Economics Richard G. Lipsey and
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Objective 1 Identify and give examples of each of the three basic manufacturing cost categories. 1-1 Classifications of Manufacturing Costs Direct Materials Direct Labor Manufacturing Overhead The Product 1-2 1-2 Direct Materials Raw materials that become an integral part of the product and that can be conveniently traced directly to it. Example: A radio installed in an automobile 1-3 Direct Labor Those labor costs that can be easily traced to individual units of product. Example: Wages paid
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Strategic Cost Management Chapter 11 The Honda Business Model for Suppliers Six-year plan 100% understanding of all components of product cost Lean supplier development concurrent engineering Flawless new product launch Communications The Value Equation Definitions Price analysis Process of comparing supplier prices against external price benchmarks Cost analysis Process of analyzing each individual cost element that makes up final price Total cost analysis Applies value equation
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INVENTORY CARRYING COSTS: Inventory carrying costs refers to the costs associated with carrying a quantity of stored inventory. This is one of the vital costs that needs to be optimized in any logistics system. It is a well-known fact that the inventory carrying costs is a part of the total logistics costs of the firm. Aspects of these vital costs can be described and evaluated from a variety of perspectives. Knowledge of inventory carrying costs is likely to be important to the success of any business
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operating costs Making a profit is usually the primary aim of running any business‚ and although this is normally achieved by increasing sales‚ it can also be enhanced through the careful control of costs. A business that keeps costs under control will be able to release more resources for growth and be better placed to survive in a downturn or recession. A structured and ongoing approach to cost control is an essential part of any well-managed business. Finding ways to reduce operating costs is
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