Commission • Intracompany work is billed at $400 an hour (to meet $82,000 limit) • Work done for other companies is billed at $800 • Computer equipment were acquired by lease and purchases, with leases to run for 4 years • Space costs, custodial services, financial and accounting services are all done and paid to PTC • Salaries: • Operations: six people necessary to run the center, as well as hourly help when computers are running • Systems Development and Maintenance:
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4T12 Project FEASIBILITY STUDY GUIDELINE This guideline is to be used in preparing a feasibility study for major projects. This is different to the work carried out in the Infrastructure Planning examined in Module 2 because we are now concerned with the details of a particular project as opposed to the overall planning of a whole multi-year infrastructure programme. The term “feasibility study” is used as a convenient description for the output for the work done, users of this toolkit should
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ticket, the $100 save is more valuable to you than the $90 saving. 4 Because the price of a movie ticket is a cost the patron must pay explicitly, it tends to be more noticeable than the money that she would fail to earn by seeing the movie. As Sherlock Holmes recognised, it’s easier to notice that a dog has barked than that it has failed to bark. 5 You are wrong to suggest that the album cost you nothing. The astute economic thinker would know to ask the question ‘What would I otherwise have done with
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What is the Importance of Cost Accounting? ACC310: Cost Accounting I (BBJ1220A) Instructor: Ashley Harper Melissa Little June 18, 2012 This paper seeks to explain the practices and principles of cost accounting and their overall effectiveness in assisting a company in minimizing costs where possible and optimizing the return on the costs that are necessary. Every year, no matter the overall state of the economy, businesses both old and new experience huge successes and huge
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between fixed costs, semi fixed costs and variable costs The differences between fixed costs, semi-fixed costs and variable costs has to do with the amount of services provided. Variable costs are cost that are expected to increase and decreases with volume (patient’s days, number of visits, etc...). Fixed costs are costs expected to remain constant regardless of volume. Semi-fixed costs are those that are fixed with in ranges that are less than the relevant range. 2. Total Costs are made up
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Management A Summary Managerial Accounting Abstract Activity-based management (ABM) is an approach to management that directs the focus of cost managers towards activities analysis. Theoretically by concentrating on activities, this will increase the ability of management to control costs be improving efficiencies. Activity-based management (ABM) uses activity-based costing (ABC) information. ABM/ABC has been around for over 25 years and has gone through its
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to the parent company particularly in reducing its costs. Having a low profitability or even a net loss does not necessarily mean that the decision of retaining the subsidiary is wrong. Separating the relevant costs from the irrelevant costs helps the parent company determine how the subsidiary can be a factor in its overall operation. We may not know, but continuing could most likely be the best decision. Identifying cost objects and cost drivers are essential in determining the price, profit
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Compensation: Farm operations should not be a profit centre; it should be a cost centre because it will provide an incentive for George to keep costs low rather than trying to sell to another party for a higher profit margin; thus, preventing the plant operations manager from purchasing its chickens at a higher price. This will inevitably measure performance for each centre more appropriately. Plant centre should be a cost centre as well vs. the sales centre, which should be considered the only profit
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For any operating business, the primary goal is not just to earn profit but also to maximize their profit margins. As normal convention dictates profit as the difference between revenue and cost, how much profit an entity makes depends largely on how much revenue it earns. Therefore, price and quantity of goods sold are the two most direct influence on the profit of every entity and this makes a not only accurate but also strategic pricing decision a necessity for any business that wants to thrive
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1994 titled, “How Boeing tracks costs, A to Z.”, Robert J. Bowlby, the cost management manager at Boeing in Seattle at the time, explains how Boeing transitioned from a traditional job-costing system to a modified process costing system to accommodate this change in product focus. Bowlby explains the transition was catalyzed when two of Boeing’s departments, engineering and operations, informed the finance department that they weren’t getting the appropriate cost information to effectively manage
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