COST OF PRODUCTION CONTENTS 1. Introduction 2. Types of costs 3.1 Opportunity, implicit and explicit costs 3.2 Fixed and variable costs 3.3 Average costs 3. Types of cost curves 4.4 Marginal cost curve 4.5 Average cost curves 4. Costs in Short run and in the Long run 5.6 Short run 5.7
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Virtual Organization Strategy FIN/370 October 20, 2012 Riordan Manufacturing is a Fortune 1000 company that employs 550 people with projected annual earnings of $46 million dollars. The company was founded by Dr. Riordan in 1991 and subsequently the company name was changed in 1992 to Riordan Manufacturing after Dr. Riordan obtained venture capital to expand the company. The corporate headquarters is located in San Jose, California with additional manufacturing plants in Georgia
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Chapter 1 Production and Operations Management (POM): An Introduction 0 Overview • • • • • Introduction Historical Milestones in POM Factors Affecting POM Today Different Ways of Studying POM Wrap-Up: What World-Class Producers Do 1 Introduction • Production and operations management (POM) is the management of an organization’s production system. • A production system takes inputs and converts them into outputs. • The conversion process is the predominant activity of a production system
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manufacturing in the Children’s division would generally bring about greater efficiency for the following reasons. First and foremost, it would save time by reducing transfer time. Given that the production machinery would be clustered together in a cell, transfer of work-in-progress along the production line would be much faster. Second, in a cellular system the workers are generally cross-trained. This allows greater utilization of the human resource at hand and thereby reduces worker idle time
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separate measurement of cost is required. Something for which we want to compute a cost e.g. Product Product Line Department Division Geographical Area Cost unit: Unit of Production / service in relation to which cost are ascertained the unit is what is most relevant for the activity of the organization. Cost Centre: A production or service / location, function, activity or item of equipment for which costs are accumulated. i) ii) iii) Cost Classification. Costs can be classified as Direct
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1- Because we can make distinguish between utilization and efficiency We must make a definition to the following 1-Efficiency 2-Performance 3-Utilization Efficiency is the measurement for complete factory/ line/ section etc. It is the simplest measurement and can be calculated as the ratio of output vs input. Performance is the measurement of productivity for one particular resource like human (operator) or machine. The input is considered after excluding all lost times/ off standard time
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Entrepreneur Interview Interviewee’s name: Bob Anderson Designation: CEO of Element Bars Sml Busn Mgmt & Entrprnrshp Part 1 Interviewee’s name: Bob Anderson Designation: CEO of Element Bars Me: Thank you for taking out time for this interview. Please tell me how you became an entrepreneur and what encouraged you to start your own business? Anderson: My passion encouraged me to start up my own business of energy bars. Since college, I was consuming energy bars but soon I realized
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Entrepreneurship TERM PAPER Research paper on the subject of whether it’s better, as a career choice, to be an entrepreneur or work for others Is it better to be an entrepreneur or an employee? Most of the academic research focuses on finding external factors or personal qualities that create entrepreneurs. In early academic papers emphasis has been on psychology and sociology, while more recent research is focusing more on economic perspective. Overall, entrepreneurs are a minority
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1. A transfer price is the price of a product or service that is sold internally within a firm between financial responsibility centres. Transfer prices are important because they include cost information for inputs provided internally that can help managers make better decisions by assessing the profitability of the output that uses this input. This helps both the buying and selling managers decide how much product to buy/sell internally in order to maximize profit or some other performance measure
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in different ways. Furthermore I will describe the circumstances under which we are more likely to experience one of the aforementioned concepts instead of one of the others. Economies of scale exist when average costs decline through increased production. The theory behind economies of scale is that as firms increase their output the marginal cost of the last unit produced is less than the average cost, thereby pulling down total average cost. Many economists depict average cost curves as being
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