All operating budgets for a commercial company follow this structure: Sale / Turnover - Variable costs / used goods = Gross profit - Fixed costs - Depreciation - Interests = Profit Accounts Below you can find different types of expenses. Maybe your company does not have all the expenses. Then just delete the expense (the account) in your budget. Maybe you have another expense. Then just put it in the budget. The budget must reflect your company. You can buy a Business Plan iPhone app
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Dixon, a specialty chemicals company, was willing to purchase the aforementioned plant for $12m with the option to invest a further $2.25m on laminate technology. The subsequent investment in Laminate technology was expected to eliminate graphite costs and reduce power consumption at the Collinsville plant by 15% to 20%. We will evaluate the acquisition of the Collinsville by Dixon at the proposed price. Table 1 identifies the assumptions that have been used for the evaluation of this acquisition
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for the company to choose is the second project. After using the replacement chain because the projects do not have the same life the NPV gave us a clear conclusion. Even though this problem is cost based and not based on revenue you would still take the NPV project that has the lowest NPV or associated cost. Project 2 actually had positive free cash flow for the years that were not a reinvestment or replacement chain year. 2) After analysis of the firm and manufacturing the container I have
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cost vs expense Cost and expenditure are closely related. You spend your resources in return for another thing of value. SUMMARY: 1. Cost is used on something that has returns, while expenses are expenditures used on things that depreciate. 2. Cost is reported in the balance sheet because it means more funds will come to the balance sheet after the expenditure. Expense on the other hand, is reported on the income sheet because it will be taking away funds from the income sheet in making the expenditures
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CLASSIC PEN COMPANY: DEVELOPING AN ABC MODEL REVISED PRODUCT COSTS FOR THE FOUR PENS, BASED ON THE ACTIVITY INFORMATION COLLECTED BY DEMPSEY Cost centres under ABC Indirect labour=$ 20,000 40% *20,000=8,000 Total indirect labour=$ 28,000 Computer expenses=$ 10,000 Machine expenses= $ 8,000+ $ 4,000+ $ 2,000=$ 14,000 Cost estimates/allocation under ABC Activity | Indirect labour | Computer expenses | Machine expenses | Total | Activity rate | Handle production runs | 50% | 14,000
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Financial Planning Assignment 1. From the goal setting sheet choose two monetary goals – one that will be achieved during this school year and one that is intermediate term (2 to 5 years). Reproduce the goals you chose – include the amount needed, months to achieve, action to be taken, and priority. For each goal, identify one constraint or reason why you may not reach the goal. (2 marks) A short term monetary goal that will be achieved during this school year is for me to save enough money to
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themes that explain most of the pressures to outsource. First of all, organization concerns about cost and quality drive outsourcing. The same issues such as getting existing services for a reduced price at acceptable quality standard came up repeatedly. Second, failure to meet service standards can force organization to find other ways of achieving reliability. Third, organization under intense cost or competitive pressures, which does not see IT as its core competence, may find outsourcing a way
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received and sold. Another advantage of the FIFO method is that the inventory is stated at the current cost since those items are the most recent items placed into the inventory as either unfinished or finished goods for the current period. Since the inventory on the books at the end of the period are the products most recently received, the current market price that is on the balance sheets actually reflect the true price of these items. FIFO Disadvantages A disadvantage to the FIFO method is
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the existing system, which could not meet the industry standards and takes a lot of time, the advantages of the new ERP system will be shown. First, it meets the suppliers’ and the industry requirements. Secondly, the financial benefits outweigh the costs in a long run. Finally, employees seem positive about the new ERP system. Therefore, I recommend use the proposed ERP software and will explain further in the following section. Introduction: As Impcorp Foods grows up to 7 suppliers and sells products
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SOLUTIONS: 2510 C ADMS 2510.3.0 Section C: Thursday 4-7: ACW 006: Mid-Term Exam #1 One hour allowed: there are three equally weighted questions: answer them all. Question 1: You are given the following list of cost and sales data for the Tiny Co for the year to 31st December 2013. Sales revenue: | $900,000 | Purchase of raw materials | $200,000 | Raw materials inventory at 1st January 2013 | $ 50,000 | Raw materials inventory at 31st December 2013 | $ 25,000 | Work-in-process
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