INTERNATIONAL B-SCHOOL SUBJECT: FINANCIAL & COST ACCOUNTING Total Marks: 80 N.B.: 1)Allquestionsarecompulsory 2) All questions carry equal marks. Q1) ABC Ltd. Produces room coolers. The company is considering whether it should continue to manufacture air circulating fans itself or purchase them from outside. Its annual requirement is 25000 units. An outsider vendor is prepared to supply fans for Rs 285 each. In addition‚ ABC Ltd will have to incur costs of Rs 1.50 per unit for freight and Rs 10‚000
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3 Cost-Volume-Profit Analysis Learning Objectives 1. Explain the features of cost-volumeprofit (CVP) analysis 2. Determine the breakeven point and output level needed to achieve a target operating income 3. Understand how income taxes affect CVP analysis 4. Explain how managers use CVP analysis in decision making 5. Explain how sensitivity analysis helps managers cope with uncertainty 6. Use CVP analysis to plan variable and fixed costs 7. Apply CVP analysis to a company producing multiple
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The Cost of Turnover Putting a Price on the Learning Curve by Timothy R. Hinkin and J.BruceTracey Employee turnover does more than reduce service quality and damage employee moraleit hits a hotels pocketbook. E mployee turnover has long been a concern of the hospitality industry‚ and therefore of researchers who examine industry human-resources concerns. One stream of research that arose in the past 20 years was an effort to quantify the cost of employee turnover. Although most managers
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Q: Is depreciation expense or depreciation cost is fixed cost or variable cost in nature? Fixed costs: Fixed costs are such costs that do not change with the change in activity level within the relevant range. Where relevant range can be defined in terms of time or activity level. Variable costs: Variable costs are such costs that change with the change in activity level . Coming to the question‚ depreciation expense or depreciation cost can either be fixed or variable and this depends on the
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a continuous review system – P and T for a periodic review system • Because stockouts are costly relative to inventory holding costs‚ a 95% cycle-service level is recommended. CASE: PARTS EMPORIUM • Inventory holding costs are 21% of the value of each item (expressed at cost). • The ordering costs: $20 for exhaust gaskets and $10 for drive belts – The ordering costs should not be increased to include charges for making customer deliveries. – These charges are independent of the inventory
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following data have been recorded for recently completed Job 501 on its job cost sheet. Direct materials cost was $3‚067. A total of 30 direct labor-hours and 104 machine-hours were worked on the job. The direct labor wage rate is $12 per labor-hour. The company applies manufacturing overhead on the basis of machinehours. The predetermined overhead rate is $11 per machine-hour. The total cost for the job on its job cost sheet would be: A. $4‚571 B. $3‚757 C. $3‚090 D. $3‚427 Applied manufacturing
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Cost Management or Cost Control In broad sense‚ both the terms have the same meaning. Yet cost management seems to connote broader perspective. Cost control to an un-initiated may mean cutting down the incurrence of cost or expenditure every time or in every situation. In reality it is not always so. In many specific situations‚ many times‚ one has to spend or incur cost in order to gain or make more money. It is in fact like an investment. Cost management sounds better then. Profits Making
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14 4.2 Inventory Holding 15 4.3 Adopted Model 15 4.4 Contingency Plans 16 5.0 RECOMMENDATIONS 17 6.0 PERSONAL REFLECTION 18 7.0 CONCLUSION 20 8.0 REFERENCES 22 9.0 APPENDIX 26 1.0 INTRODUCTION It is said that one of the most important aspects of operations is managing the inventory. According to Kiesmuller‚ 2003‚ he states that Inventory Management is defined as the process of specifying and placement of stock goods while taking into account the aspects of costs and space as well
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Terrasse‚ Université Laval‚ Québec‚ Canada G1V 0A6 Abstract. This paper reconsiders the inventory replenishment problem and emphasises the fact that it is a multi-objective problem where‚ in addition to minimizing the sum of order and inventory holding costs‚ we should optimize the usage of storage resources. The paper proposes a mathematical formulation of the problem‚ suggests two heuristic solution approaches‚ and assesses their performance. Keywords. Inventory replenishment planning and staggering
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1 year data is collected from the POS system of Discount Brand Factory. Keywords ABC segmentation‚ Profit margin‚ POS‚ Inventory management‚ pruning‚ Holding Cost‚ Congestion factor‚ Channel profit 1. INTRODUCTION
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