COSTING AND PRICING The key principle of costing is to calculate the true cost of a product or service while pricing is determined by demand, market conditions and factors which influence pricing such as advertising, promotional activity and the ability to differentiate from competitive or alternative products and services. Costing is based on the simple principle of recovering cost. Cost are classified as Variable or Fixed. Variable costs are those costs which vary in direct proportion
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Causes and Effects – College Stress There are many different things that seem to cause stress on college students. College students do not seem to get a break from the workload. Even when they are not physically doing the work it still happens to be on their mind. Many college students have to battle with work, school, and even children at home. It may seem like it isn’t a lot to deal with but it can be very stressful. Increased Responsibility and Independence During
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EXERCISE 15-6 (a) (1) The source documents are: Direct materials—Materials requisition slips. Direct labor—Time tickets. Manufacturing overhead—Predetermined overhead rate. (2) The predetermined overhead rate is 125% of direct labor cost. For example, on July 15, the computation is $550 ÷ $440 = 125%. The same result is obtained on July 22 and 31. (3) The total cost is: Direct materials $4,700 Direct labor 1,360 Manufacturing
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major assumptions (they should relate to your analyses in sections A and B) for your “most likely” scenario. Describe the cash outflows and inflows associated with the proposed solution. a. Perform a break-even analysis How much does the firm need to sell in order to break-even? Is it feasible to break-even within the desired time frame? b. Construct a cash flow diagram The cash flow diagram should contain all the costs (split them out) and the expected revenues/contribution. Include net cash flow, cumulative
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They are present in every environment on the planet and perform vital functions to the habitats they inhabit. Insects help to aerate the soil, pollinate blooms, decompose dead organisms thus adding minerals and nutrients back into the soil, and even help with controlling the levels of other pests that exist in their individual ecosystem. Unfortunately for humans, many insects can also be very troublesome and invasive to farmer’s crops due to their destructive nature, or toxic to humans by spreading
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artist run the company. Their mission is to provide their customers with cutting edge, creative artwork designed out of recycled bicycle parts in a booming niche market that BikeArt believes it can capitalize on. With their marketing plans and break-even analysis BikeArt believes that they have what it takes to take over the market and create strong brand loyalty. BikeArt differentiates itself from the rest of the competition because of the founders knowledge of the target market and their convenient
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Unit three Written Assignment Vanna Mata MT435 Operations Management Kaplan University September 22, 2011 Albatross Anchor has been in business since 1976. They are manufacturer of bell/mushroom anchors. They are only deal with wholesale; there is no retail service at all. Their building consists of their administrative offices, foundry, shipping and receiving, raw materials and finished materials storage, and manufacturing. Their building is not up to standards and is very old. In
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Actual Performances vs Forecast / Benchmark 787- Jumbo The closer approximation to the A380, from either the technical side as well as the type of market served, is the Boeing 747 “Jumbo”. In terms of size the two giants are comparable. Both over 70 meters in length two decks and targeting long distance routes (for both the maximum distance above 8000 nautical miles). Given those similitudes it will be interesting to compare the performances in sales and market penetration. However one caveat would
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1. Using the information in the case, design an activity-based costing system and estimate product costs and gross margin percentages for valves, pumps and flow controllers. Justify your reasons for your ABC system design and computations. As per the ABC costing system, the 5 overhead cost drivers that can be identified are: A. Product Sustaining Activity Costs (i) Engineering Costs B. Batch Activity Costs (i) Receiving & Production Costs (ii) Setup Labor Costs (iii) Packaging & Shipping
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Knitwear, a publicly traded company operates in the $24.5 billion category of non-fashion casual knit wear. 2005 Classic revenues- $550 million, gross margin 18%, compared to average gross margin of leading branded product manufacturers- 30-40% Revenue break-up: o Sale to wholesalers who in turn supplied to screen print channels consisted 75% of Classic’s revenues, #2 player in this market with 16.5% share, B&B was #1 player with 23.6% share o 25% of Classic’s sales came from mass-retail channels which
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