Cost Classifications and Estimation 2.0 Introduction Cost classification may be defined as ‘the arrangement of cost items in a logical sequence having regard to their nature and purpose to be fulfilled’. The term cost must be qualified when in use in order that its precise meaning is established in a particular situation; however‚ cost refers to the amount of resources that have been diverted from other uses or sacrificed so as to achieve the desired objective. But the term is used to refer to
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Generally‚ the term cost of production refers to the ‘money expenses’ incurred in the production of a commodity. But money expenses are not the only expenses incurred on the production of a commodity. There are number of services and inputs such as entrepreneurship‚ land‚ capital etc.‚ which are offered by an entrepreneur without changing any price or receiving any payment for them. While computing the total cost of production‚ allowance should be made for such expenses. It is therefore essential
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activities; c. Productive activities‚ such as finished goods transportation‚ storage‚ customer contact‚ order processing‚ etc. d. Sales activities to let customers understand and buying of goods‚ such as advertising‚ promotion‚ marketing agency costs‚ etc; e. Service activities‚ including training‚ repair‚ maintenance‚ components renewal etc‚ aiming at improving the added value of products. Auxiliary activities: a. Procurement activities‚ to refer to the purchase of used in enterprise value
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Original Kayak Adventures advertises in regional magazines and maintains a Web site‚ which Edie designed. Customers say that the site is attractive and informative‚ but the Caputos are not sure of its effectiveness in attracting new business. At this time‚ no other kayak rentals firms operate within 20 miles of OKA’s location. So far‚ the Caputos’ plan is working out well. OKA rents space at a nearby marina‚ where Edie runs the office and operates her Web design business. She also handles rentals
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Quality ZARA become expanding too fast in international market‚ but doing so company needs to increase the capacity of production‚ they started employ original equipment manufacturer(OEM). This leaded to low quality due of using lower qualification by OEM. For example in China they want to have biggest market share as foreign cloth maker with low cost‚ attracting colleague students and young people; but their product were failed frequently in the quality test made by government ‚ out of 57 product
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* Nonprofit organizations are required to produce financial statements based on the accrual method of accounting. How is this different from the cash basis of accounting? Why is accrual accounting important? * * In an accrual system‚ does revenue equal cash? * * What is the importance of the statement of cash flow in the financial management of an organization? * Accrual accounting is considered to be the standard accounting practice for most companies‚ with the exception
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Labor Cost Cutting Strategy In a sluggish economy‚ it is more important than ever for businesses to cut costs. Knowing how to reduce the cost of paying employees without reducing product quality‚ dropping employee morale or otherwise sacrificing the way you do business can be the difference between being in the red or the black at the end of the year. Stop the Overtime * Don’t pay overtime unless it is absolutely necessary. Remember that you must pay non-exempt employees 1 1/2 times their
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Distillery‚ Inc (Case Analysis) Submitted By: Rahul Srivastava (WMP08034) Vinay Joshi (WMP08045) ANALYSIS Company History * Founded in 1880 in Oakwoods by Daniel Dobbins. * Major product is Old Trailridge Bourbon Whisky * High quality of whisky due to the unusual iron-free spring water used in the distillation process and the specially prepared fire-charred white oak barrels used in the aging process. * David Dobbins takes over in 1973. * Constant demand over the years
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The Quality Gurus The six Quality Gurus I have chosen to write about are Dr. Joseph Juran‚ Dr. W. Edwards Deming‚ Philip Crosby‚ Dr. Shigeo Shingo‚ Dr. Genichi Taguchi and Dr. Kaora Ishikawa. All of these people have made significant contributions to improving businesses‚ healthcare organizations‚ governments and countless other organizations. A guru is a good‚ wise person and a teacher above all else. This is coupled with these people with an approach to quality in business and life that has made
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Cost Allocation Paper Cost Accounting Abstract This article’s focus is how cost accounting allocates costs of a manufacturing plant. All things are hypothetical. The conclusions of this report regarding costing of commercial services provided by Goodyear Tire should be recognized as a theory of the way Goodyear Tire conducts business activities‚ rather than suggestions of how Goodyear Tire should conduct business. Goodyear Tire is a publically traded company‚ which has many different
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