Assignment 1 - Part 1: Volume-Based Costing Systems This part will show an analyses of product costs and profitability for the Salewa Case. We start with a description of assumptions and methods that are used for the calculations. To calculate the amount of costs each product should be carrying based on traditional absorption costing we first started with calculating the fifth years sales for each product. In order to obtain these we summed up all quarterly sales of the products. Total revenues
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30 176 38 659 – 22% Cost of sales – 21 786 – 27 300 – 20% Gross profit 8 390 11 359 – 26% Research and development expenses – 4 782 – 5 584 – 14% Selling and marketing expenses – 3 205 – 3 769 – 15% Administrative and general expenses – 959 – 1 085 – 12% Other operating income and expenses – 1 747 – 1 994 – 12% Operating loss – 2 303 – 1 073 Sales and Profit Entire Nokia Group
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| 1. | INTRODUCTION TO COST CUTTING | 02 | 2. | COST CUTTING – AN ANALYSIS | 06 | 3. | CORPORATE COST CUTTING | 18 | 4. | COST CUTTING– A TRADITIONAL APPROACH TO POOR FINANCIAL PERFORMANCE | 24 | 5. | CHALLENGER CORPORATE COST-CUTTING SURVEY | 27 | 6. | COST CUTTING : DIFFERENT COMPANIES DIFFERENT METHODS A GIST | 31 | 7. | CONCLUSION | 32 | 8. | REFERRENCES | 33 | 1. INTRODUCTION TO COST CUTTING Cost cutting, cost reduction, consolidation or cost management have become central
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Selling Price per Unit | $19.00 | | Direct Material Cost per Unit | $3.50 | | Direct Labor Cost per Unit | $1.40 | | Variable Selling Costs per Unit | $1.20 | | Fixed Manufacturing Costs | $1,600,000 | | Fixed Selling & Administrative Costs | $1,200,000 | | | | | | | | Absorption (GAAP) Income | | | | | Revenues (Sales) | | $6,555,000 | Cost of Goods Sold (Cost of Sales) | | 3,070,500 | Gross Profit (Gross Margin) | | $3,484,500 | Selling & Administrative
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Planning and Controlling The planning function for an organization is accomplished by determining where the company wants to go and how to get there. According to Modern Management, the formal definition is “the systematic development of action programs aimed at reading agreed-upon business objectives by the process of analyzing, evaluating, and selecting among the opportunities which are foreseen” (Certo & Certo, 2009). It is then vitally important for an organization to accomplish the planning
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of the cost of goods sold, one European office-equipment manufacturer began to rely more heavily on American and Japanese suppliers, revise its materials planning system to reduce in-process inventories, and require its divisions to add people with electronics and foreign language skills to their purchasing staffs. o Through contracts that include long-term shipping charters and run to 1988 with suppliers in countries as distant as Brazil, the Japanese steel industry has secured an 18% cost advantage
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After Tax Interest Cost The after tax interest cost increased greatly during the past 3 years, especially from 2012 to 2013, which shows that the company is spending more money on financing. The net operating profit after tax increased from 2011 to 2013 by 20%. This shows that the operating profit including the financing cost which is the return for net assets. However there was a huge decrease in 2012, where one of the reasons is the extremely high tax rate. ROE ROE measures a corporation’s
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company’s objective is to motivate dealerships as intermediaries. Company S wants the existing scooter dealerships to sell its product instead of the competitions. The company will motivate the dealerships as intermediaries through Incentive Programs, Profit Opportunities, Sales Quotas, Decision Making, and Frequent/Timely Delivery. Incentive Program. Company S can motivate scooter dealerships as intermediaries by offering compelling incentives. The company could offer a quantity discount on large
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telephone companies & soldcomputer services to other companies. * Yet to experience profit. * Manager -More time required for business to become profitable. * President -Reduce the drain in company resources. Objectives * Analyze the results of operations. * Understand the economics of a business. * Forecast the potential change in income with each alternativesolution. * Understand cost information reporting. Issues * To continue or stop Prestige Data Services
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Kaluyu 1 What is the value of the cost pool? The Housekeeping department of Ruger Clinic consisted of $100,000 in total budgeted costs for the year of 2007. The cost pool is basically direct costs of one support department. In the case of Ruger Clinic, the cost pool's value is $100 K. 2aWhat is the allocation rate if patient services revenue is used as the cost driver? The cost pool, which must be found first, is the total cost of the Housekeeping department which is $100,000
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