GEZ PETROL STATION: USING COST-VOLUME-PROFIT ANALYSIS FOR PLANNING By KU NOR IZAH KU ISMAIL (Corresponding author) School of Accountancy UUM College of Business Universiti Utara Malaysia E-mail: norizah@uum.edu.my Tel: 04-9283906 And WAN NORDIN WAN HUSSIN Othman Yeop Abdullah Graduate School of Business Universiti Utara Malaysia GEZ PETROL STATION: USING COST-VOLUME-PROFIT ANALYSIS FOR PLANNING INTRODUCTION As an Area Manager of GEZ Bhd, a major oil company in Malaysia,
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questions: Q1 How is activity-based costing (ABC) different from traditional costing? Q2 What are activities, and how are they identified? Q3 What process is used to assign costs in an ABC system? Q4 How are cost drivers selected for activities? Q5 What is activity-based management (ABM)? Q6 What are the benefits, costs, and limitations of ABC and ABM? These learning questions (Q1 through Q6) are cross-referenced in the textbook to individual exercises and problems. COMPLEXITY SYMBOLS The
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Decisions Cost Allocations Cost allocation is the process of assigning the indirect costs of producing a product. These indirect costs may be shared by multiple products. This is where cost allocation comes into play. Indirect costs can be allocated to products, services and departments. Cost allocation allows a company to calculate fully cost of their products. This provides them the ability to price products accurately. Three common costs that need to be considered when allocating costs include
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significantly more than it costs you to produce it. The business I work for focuses on three factor for value proposition: * Production cost * Customer utility and * Price Begin with production cost, which is often the number you can estimate with the most precision. If we're selling lattes or planning to manufacture electronics, bake cupcakes or develop games that run on social networking websites, hopefully you know enough to come up with an estimate of what it will cost us to produce them
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(short) problems. If you want to shorten the material somewhat, I would suggest omitting the finite source model and/or the multiple priority model. You can shorten the section even more by not assigning problems which require cost comparisons, although I personally feel that cost comparisons are perhaps the ultimate goal in an operations management course. Answers to Discussion and Review Questions 1. Queuing analysis is appropriate in analyzing capacity when service and/or arrival rates are highly
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- Firm have to know what profit is and how to measure it - Economic profit more reliable measure as accounting profit - Measure of e.p. is EVA, economic value added - Firm must maximize the future net cash flow to maximize its value and mimimize cost of capital - C.f. forecasts are very difficult,estimate future c.f. need make assumption - Important for value maximization is the consistency Real options theory - Two types: growth and flexibility options - Strategic alliances and joint ventures
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How To Choose A Cost Effective Training Provider Dr Patrick White HRM Global Ltd www.hrmglobal.co.uk +44 (0)2079399910 info@hrmglobal.co.uk Introduction ................................................................................................................ 3 1 Define Your Training Needs And Limitations ...................................... 4 2 Solicit Proposals And Do Your Research ................................................ 6 3 Evaluate Expected ROI For Your Training
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manufacturing overhead consists of costs that cannot be practically traced to jobs. Therefore, if these costs are to be assigned to jobs, they must be allocated rather than traced. 3-2 Job-order costing is used in situations where many different products or services are produced each period. Process costing is used in situations where a single, homogeneous product, such as cement, bricks, or gasoline, is produced for long periods. 3-3 The job cost sheet is used to record all costs that are assigned to a particular
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1. Introduction The Wesfarmers Coal division, with mining interests throughout Australia, is part of Wesfarmers Limited, a major diversified Australian public company. They only produce thermal (steam) coal and metallurgical (coking) coal, with the latter being exported (Figure A). As shown in Figure B coking coal is priced much higher than thermal coal. The firm’s coal interests include the Curragh mine in Queensland’s Bowen Basin, the Premier Coal mine at Collie in Western Australia’s south
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