Basics Fixed costs Activ. Based Costing Target Cost. Life-Cycle Costing Cost Benchmarking Prof. Dr. P. Weber-Dreßler Stategic Costing.ppt (p. 1) Strategic Costing Strategic Costing Basics Contents Fixed costs Part 1: Basics to strategic costing 1. Traditional costing vs. strategic costing 2. Specifics of strategic costing 3. Tools of strategic costing Activ. Based Costing Target Cost. Life-Cycle Costing Cost Benchmarking Prof. Dr. P. Weber-Dreßler Stategic
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made by Mosby. The cost per unit for RB911 is as follows: Table 1: Allocation of cost for Mosby’s RB911 Cost per unit Not to buy or purchase from other suppliers To purchase from another supplier Direct materials $9.00 Inclusive in the price Direct labor $3.00 Inclusive in the price Variable overhead $2.50 Inclusive in the price Fixed overhead $4.00 Inclusive in the price Total $18.50 per unit $16.00 40 units annually x 40‚000 units per year x 40‚000 units per year Total annual costs for RB911 = $740
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(through break-even analysis) can provide a simple‚ yet powerful quantitative tool for managers. In its simplest form‚ break-even analysis provides insight into whether or not revenue from a product or service has the ability to cover the relevant costs of production of that product or service. Managers can use this information in making a wide range of business decisions‚ including setting prices‚ preparing competitive bids‚ and applying for loans. BACKGROUND The break-even point
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Analyzing Financial Statements December 16‚ 2012 Regina Campbell Calculate the following: Current ratio‚ long-term solvency ratio‚ contribution ratio‚ programs and expense ratio‚ general and management and expense ratio‚ fund-raising and expense ratio‚ and revenue and expense ratio for the years 2003 and 2004. 2003 2004 Current Ratio: .87 .90 Long Term Solvency Ratio:
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Variable cost per unit in Ogden is $110‚00; in Sandy variable cost is $15 higher. Selling price for the printer is $320‚00. Based on the data mentioned above the contribution margin per unit of normal production is $210‚00 in Ogden and $195‚00 in Sandy. Fixed costs per unit based on normal capacity are $70‚00 and $39‚00; total fixed cost is $4 200 000 for the Ogden plant and $1 872 000 for Sandy. In the circumstance when Ogden plant produces 20 000 units‚ and 9 600 units are produced by Sandy‚ cost and
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work cell Fender work cell Engines and transmissions Arrive on a JIT schedule from a 10-station work cell in Milwaukee Crating 7-6 Process Strategy The objective is to create a process to produce products that meets customer requirements within cost and other managerial constraints © 2014 Pearson Education‚ Inc. 7-7 Process Strategies ► ► How to produce a product or provide a service
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BUILD BRIGHT UNIVERSITY SIHANOUKVILLE STUDY CENTER MBA -PROGRAM Course: Production and Operation Management (POM) Preparation Questions and Exercises for Final Examination I. Question : 1) What Objectives of production and operation management? 2) What do you understand by production and operational management? 3) What is Production and Operations Management? What are the scope of Operation Management? 4) Describe the stages of the product life cycle‚ and what are the demand characteristics
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BASIC NUMERACY SKILLS – A REVISION BODMAS B Brackets first O Orders (ie Powers and Square Roots‚ etc.) DM Division and Multiplication (left-to-right) AS Addition and Subtraction (left-to-right) Do things in Brackets First. [pic] | |6 × (5 + 3) |= |6 × 8 |= |48 | | |[pic] | |6 × (5 + 3) |= |30 + 3 |= |33 |(wrong) | |Example: (Powers‚ Roots) before Multiply‚ Divide‚ Add or Subtract. [pic] | |5 × 22 |= |5 × 4 |= |20 | | |[pic] | |5 × 22 |= |102 |= |100 |(wrong) | | | |
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(1) Production - To completely understand the cost of production‚ you need to understand that the costs vary by what type of anchor you ’re making‚ how much raw material it would take to make an anchor‚ how many anchors you are making and the amount of labor that is put into it; also known as the variable cost. The variable cost "depends on what materials and labor are needed for the company” (Russel & Taylor‚ 2011). You also need to understand which costs can make the company gain a profit or‚ unfortunately
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Juice Company Ltd. Pro foma Income Statement For the year ended 31 July 2014 Particulars taka taka Revenue: Net sales 25500000.00 Less: Cost of Goods Sold: Beginning Inventory 0.00 add Purchase 11500000.00 Freight-in 350000.00 11850000.00 Less: Ending Inventory 1704500.00 Total costs of goods sold 10145500.00 Gross Profit 15354500.00 Less: Operating Expenses: Advertising 2900000.00 Maintainece 30000.00 Salaries
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