Mitigating Risk in Transportation Costs Troy Beck MGT325: Introduction to Transportation Management Instructor: Stephen Griffith August 25 2013 Mitigating Risk Mitigating costs is important to the success of every company this is especially true in the transportation industry. Economic, accounting , and social costs all need to be evaluated to ensure that a business can remain successful. This paper will explore these three cost concepts and provide recommendations on how to mitigate the
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Explanation of why an understanding of these elements is so important in managing costs and gaining or sustaining competitive advantage. Establish all important linkages in your answer. (12 marks) The value chain analysis is a useful tool for defining a firm’s core competencies and the activities in which it can pursue a competitive advantage. The core elements of a value chain analysis are the primary and secondary activities and cost. Companies use these primary and support activities as "building blocks"
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the basis of the underlyingnature and extent of the cost drivers isa.Direct costing.c.Cycle-time costing. b.Activity-based costing.d.Variable costing.2.The resource utilized by a given product divided by the total amount of the resource availableis called thea.Activity driver.c.Cost object. b.Consumption ratio.d.Sustaining activity.3.Which of the following statements is true?a.The traditional approach to costing uses many different cost drivers. b.Costs that are indirect to products are by definition
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Cost and Differentiation Strategies A.Cost Reduction as competitive advantage Cost Advantage (=> cost efficiency => cost cutting : restructuring, outsourcing, lean production…)is normally considered as the primary basis for competitive advantage in an industry. The Key to cost-cutting is the study of the 8 factors that determine a firm’s cost position : 1. Economies of scale Economies of scale exist wherever an increase in the amount of inputs employed in a production process results
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preparing business strategies: To survive in today's highly competitive business environment, any organization must achieve, at least temporarily, a competitive advantage. A low cost/price strategy: focuses on providing goods, services at a lower cost than the competition. This strategy requires as well a tight cost-control system, benefiting from economies of scale in production and experience curve effects. Differentiation strategies: The firm ability to offer products and services that are
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the following costs for June: What was the cost of direct materials used during June? $ 275.00 11 Direct Labor vs. Indirect Labor LO2, 3 Jim Wilson is a typical manufacturing employee who commonly works 40 hours per week and is paid $14 per hour. During the last pay period, Jim performed the following activities: 29.5 hrs of DL and 9.5 hrs of IL 12. Job Costing LO3 Required How much manufacturing overhead was incurred during March? $20,000 13. Identification of Cost Drivers LO3 • a. Architectural
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public transport as compared to having a personal vehicle for transportation as the cost for maintenance for a personal vehicle is higher as compared to taking public transport. Recently, Comfort DelGro, the most dominant taxi company (with a total of 15439 taxis) in Singapore has opted to revise their taxi fares to meet the increased demand of taxis in Singapore without the consultation of consumers or taxi drivers. Taxi models by Comfort DelGro include Toyota Crown, Hyundai Sonata, Toyota Camry
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margin ratio calculations (see Exhibit 1-a, 1-b), Bismark Bock is the most profitably beer label followed by Four Heads Stout and finally Buffalo Ale. Buffalo Ale’s low profitability is due to having the lowest selling price and highest production costs. Having a gross profit margin percentage of 19.05% means that Buffalo Ale generates $0.19 of gross profit for every sales dollar. 2. When referencing the gross margin percentages of the three labels under activity based allocation (see Exhibit
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component of a firm’s information system, includes budgets, data on the costs of each product and current inventory and periodic financial reports. Internal accounting systems serve two purposes: v Provide some of the knowledge necessary for planning and decision making; v Help motivate and monitor people in organizations (control). The most basic control use of accounting is to prevent fraud and embezzlement. Design and use of cost systems An internal accounting system should have the following characteristics:
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portion of the company has been successful, the prestige is bought with significant costs which the company hopes to offset with outside business. The issue at hand is to decide if Ideal should proceed with outside Research and Development for other enterprises to help offset the cost or find other avenues to pursue. Activity-Based Overhead Costs and Drivers Ideal Manufacturing activity-based uses in each activity cost item some amount of overhead. The four activity items exist which are revealed by
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