Computation of the costs of the five components in Exhibit 6 using the (a) Existing System, (b) First Modified System, (c) Second Modified System (a) The existing system: Total Cost = Direct Labor Cost + Burden = Direct Labor Cost + (Burden Rate x Direct Labor Cost) = Direct Labor Cost + (145% x Direct Labor Cost) Accordingly, using Exhibits 3 and 6, the costs will be as follows: Product | Direct Labor Cost ($) | Burden Rate x Direct Labor Cost (approx)
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for direct to customers Advantage Disadvantages of integrated are solves through separation Ability to offer exclusive items for online or store customers Disadvantage Duplicates are necessary, increasing need for space, labour Costs are increased • Chips supreme currently have 2 distribution centre so they could work on specialising each. However this would be costly and one may be over capacity while the online sector was growing Outsourced fulfilment – another firm will
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This paper highlights the importance of Total Quality Management as it relates to business ethics, the value-chain, and regarding executional and structural cost in four scenarios. The four scenarios discuss HighTech’s COO ethical issues, Harley Davidson’s value-chain, Bikes.com executional cost drivers, and Food Fare’s structural cost drivers (Blocher, et al., 2013). All are techniques in which management creates policies and procedures that will guarantee that their products and services will
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being said, Wharton Co. lawyers have stated that the lawsuit is baseless and offered a settlement to the plaintiff of $100,000. If Wharton Co. goes through with the lawsuit, it is almost guaranteed that the costs will be greater than the settlement offer of $100,000. A reasonable estimate for that cost is not given however. So the plaintiff has made a counter offer of $350,000. While that may be more expensive than Wharton Co.’s offer, it would still be a much cheaper option than losing the lawsuit and
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of ultimate pleasure. Families come together to relax, spend quality time together, and just enjoy themselves. They unfortunately don’t consider the price of these times. Plane tickets, hotel stays, dining, and entertainment generally cost a month’s salary. The cost of these pleasures often leads to greater debt for the average family. Sometimes these debts aren’t paid until it’s time for the next vacation. Money can be spent on lavish hotels that are not worth the money. Many hotels that will
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and developing animals to be sold to a third party. The question of impairment applies only to the live hogs and developing animals to be sold to a third party because it is believed that internally processed pork products will be able to cover the costs of live hogs and developing animals to be processed internally. Question: How should the Company determine whether an inventory impairment exists at September 30, 2002? More specifically, how should management evaluate impairment? Response: ASC
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the United States, there has been such a radical dip in the national economy. Because of this, more and more people and companies are scrambling for any financial scraps they can find. Engineering ways to maximize profits while reducing production costs is essential for both individuals and companies alike. Companies all over the United States are becoming increasingly desperate when it comes to ways to reorganize their company and still deliver a low price for their customers. Companies like Wal-Mart
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information below. You must answer ALL questions. Remember, in addition to research concerning software and other costs, you will be making assumptions concerning details of the project that would, in real life, be determined via communications with the client. The work does not have to be entered into MS Project at this point and the cost estimates are rough estimates at this point, but, cost estimates and answers for all questions should include source cites. This assignment will be due Sunday at the
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are as per below. a) Basic Cost Description Ac Repair Segment per hour cost $ Home and Light Commercial Refrigerator Repair Segment $ 500 150 / 200 Kunst Cost Competitors Cost 500 250 / 320 b) Associated Cost Ac Repair Segment per hour cost (a) ($) 8 Home Refrigerator Segment per hour cost (b) ($) 4 Light Commercial refrigerator Segment per hour cost (c) ($) 4 Description Per quart of Oil Material Associated with it (Soap + Towels) Oil Disposal Cost is 5$ per gallon. 4 quart
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amount of holding costs. From the item master file, we know that the annual demands are 150000, 100000, and 50000 corresponding to Economy, Standard, and Delux Model. Thus, the inventory level of the Economy and Standard is around 8.5% of the annual demand whereas the inventory level of the Delux model accounts for roughly 14% of the annual demand. For a product with the lowest annual demand in its product line, keeping a high inventory level will create unnecessary carrying cost that could be avoided
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