COST ANALYSIS OBJECTIVES INTRODUCTION MEANING DEFINITIONS TYPES OF COSTS MONETARY COSTS REAL COSTS OPPORTUNITY COSTS ECONOMIC COSTS ACCOUNTING COSTS INCREMENTAL COSTS SUNK COSTS FUTURE COSTS PRIVATE‚ EXTERNAL AND SOCIAL COSTS FIXED / SUPPLEMENTARY / OVERHEAD COSTS VARIABLE / PRIME COSTS REPLACEMENT COSTS PRODUCTION COSTS SELLING COSTS CONTROLLABLE COSTS DIRECT COSTS INDIRECT COSTS SHORT RUN COSTS CURVES LONG RUN COSTS CURVES OBJECTIVES To understand the meaning of cost. To discuss different types
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warehousing and shipping cost is not really correct. The current method is direct method which ignores In term of Shipping and Warehousing cost‚ low volume products should incur this cost instead of both high volume and low volume products. Because‚ high volume products are deliveried directly to customer so it does not incur the cost of shipping. The low volume products which are sent to distribution center incurred the cost of shipping and warehousing. However‚ the cost of shipping and warehousing
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manager is held responsible for the unit’s performance.’1 The performance of each centre and its manager is measured and controlled through a system of responsibility accounting which is based on the principles of locating responsibility and tracing costs/revenue/investments etc. to the individual managers who are primarily responsible. The division of the firm into separately identifiable units of responsibility allows for more accurate measurement of managerial performance because local information
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Analysis of Ethics and Values Susan G. Komen‚ Not-for-Profit According to Merriam-Webster.com‚ Not-for-Profit‚ also known as nonprofit is defined as‚ “not existing or done for the purpose of making a profit.” Whereas For-Profit is the opposite and is defined as “existing or done for the purpose of making a profit.” I am an ethnographic researcher for a popular organizational behavior research journal. In this article‚ we will be looking at 2 popular and major organizations‚ where one is Not-for-Profit
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CRITICAL THINKING: AN EXTENDED DEFINITION Petress‚ Ken < http://www.findarticles.com/p/articles/mi_qa3673/is_200404/ai_n9345203> Critical thinking is a pervasive academic literature term that is seldom clearly or comprehensively defined. The definitions that are available in various sources are quite disparate and are often narrowly field dependent. "Definitions tend to so broad they are not always helpful in the sense of defining a concrete entity."1 For a term that is often expressed
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Include the following: * The basic assumption of accounting * The constraints of accounting * A conclusion stating how you think sound financial reporting depends on principles‚ assumptions‚ and constraints. Refer to the U.S. GAAP in your response. The basic assumptions of accounting = separate entity assumption- finances from the company finance so that they don’t get intertwined with the owner or shareholders finance. Going concern assumption= the business will be operating for
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As many freshman do in college‚ we make quick assumptions of what our experience will be like. Assumptions are made about academics‚ first time experiences and even relationships. Expectations are higher and the thought of having more mature relationships is one of them. Leaving high school and entering an institution of higher learning is supposed to separate the mature from the immature. We are even quick to think that the longer an individual has been in college the more
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ACCOUNTING ASSUMPTIONS‚ PRINCIPLES‚ AND CONSTRAINTS Phil Toms March 29‚ 2013 The basic assumptions are monetary unit assumption and the economic entity assumption. The monetary unit assumption requires that companies include in the accounting records only transaction data that can be expressed in terms of money. This assumption enables accounting to measure economic events. The monetary unit assumption is vital to applying the cost principle. An economic entity can be any organization
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2. Prospective Analysis Explanation of Forecast Assumptions Myer decided to change their business strategy due to the poor performance in the prior years (appendix A). First‚ they are planning to focus on customer satisfaction by investing more than $600 million for capital and the implementation costs of the new strategy (Myer Holdings Limited 2015). Second‚ they are expanding the range of their brands and focusing on the big and well-known names such as Calvin Klein and Nine West to achieve the
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Assumption based planning in project management is a post-planning method‚ that helps companies to deal with uncertainty. It is used to identify the most important assumptions in a company’s business plans‚ test these assumptions and think of hedging actions and what-if scenarios. Conventional business planning methods operate on the premise that managers can extrapolate future results from a well-understood base of information from the past. However‚ for new businesses and projects this way of
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