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
process of choosing one option‚ item‚ good‚ or service over another‚ opportunity cost is the value of what is foregone in order to have the alternative option. More simply‚ the opportunity cost of an item is the benefits you could have received by taking an alternative action. Every decision that involves a choice between two or more options has an opportunity cost. Opportunity costs are not limited to fiscal or monetary costs‚ the value or opportunity not chosen can take many forms including lost time
Premium Economics Price Opportunity cost
Capital Budgeting Decision Process 1. Introduction The maximization of shareholder wealth can be achieved through dividend policy and increasing share price of the mark value. In order to derive more profits‚ our company shall invest potential investments which always cover a number of years. Those investments involve substantial initial outlay at the outset and the process. The management is responsible to participate in the process of planning‚ analyzing‚ evaluating‚ selecting
Premium Net present value Capital budgeting Investment
Capital budgeting refers to the total process of generating‚ evaluating‚ selecting and following up on capital expenditure alternatives. The firm allocates or budgets financial resources to new investment proposals. Basically‚ the firm may be confronted with three types of capital budgeting decisions i) the accept/reject decision‚ ii) the mutually exclusively choice decision and iii) the capital rationing decision. i) Asset – reject decision: This is a fundamental decision in capital budgeting
Premium Investment Net present value
The budgeting process for nonprofit organizations can be very interesting. Good nonprofit leaders ask for input before finalizing a nonprofit’s budget. One reason to ensure everyone has a voice in the budget process is because at the end of the day everyone will own the final budget. By owning I mean everyone will be held to the budget that is approved so it makes sense to get everyone involved in the process. It makes sense for staff to request their own expense increases or decreases because no
Premium Management Corporation Corporate governance
Cost Control of Projects: An Introduction to Earned Value Analysis Abstract Earned value analysis is a method of performance measurement. Many project managers manage their project performance by comparing planned to actual results. With this method‚ one could easily be on time but overspend according to the plan. A better method is earned value because it integrates cost‚ schedule and scope and can be used to forecast future performance and project completion dates. It is an “early warning”
Premium Management Project management Costs
Chapter 1 Introduction Project Management is not something new in today’s world as it has been practiced since the early civilization by early architects and engineers such as Vitruvius‚ a Roman writer‚ architect and engineer‚ Christopher Wren‚ Thomas Telford and Isambard Kingdom Brunel. Though it has been used before‚ organizations started to apply systematically the project management tools and techniques to complex project in the 1950s. No matter what the size of the organization is‚ there
Premium Project management
According to F. John Reh‚ a manager is the person responsible for planning and directing the work of a group of individuals‚ monitoring their work‚ and taking corrective action when necessary. Different types of manager responsible for different sections in a company. An operation manager responsible for the daily operation of company. Accounting section is supervise by an accounting manager. As there are various management functions in a business‚ hence a manager is responsible in planning‚ directing
Premium Management
an organization over a specific period. Budgeting describes the overall process of preparing and using a budget. Since budgets are such valuable tools for planning and control of finances‚ budgeting affects nearly every type of organization from governments and large corporations to small businesses. A small business generally engages in budgeting to determine the most efficient and effective strategies for making money and expanding its asset base. Budgeting can help a company use its limited financial
Premium Budget Management Business
benefit of the project in terms of efficiency and effectiveness as well as long-term reduction in operation cost and improved relationship between police and communities. The challenge of high level of resource requirement can be addressed by proposing a multi-phased implementation strategy where implementation will be broken down into several phases to reduce the budget
Premium Police Resource allocation Allocation