What is an Essay? It could be on a topic related to political manifestos, learned arguments, daily reflections, literary criticism, name it. When you read a well-written essay, you can see the flow of thoughts of the writer. Why write an essay?
There are no significant inventories of supplies beginning or ending. Supplies are accounted for separately from materials. A transcript of their recorded conversation is given next: They are coming in with lower-priced phones of comparable or higher quality than our own.
They are convinced that we can sell more if we lower our prices. But we also need to make sure that the quality of our products meets that of our competitors. As you know, we are spending a lot of money each month on rework and warranties.
If we could do that, then customers would be more satisfied with our products, and I bet that we would not only regain our market share but increase it. I think we need to improve our cost accounting system.
I am not confident that we really know how much each of our product lines is costing us. It may be that we are overpricing some of our units because we are overcosting them.
We may be underpricing other units. A price decrease for these products would make the biggest difference—and if we knew they were overcosted, then we could offer immediate price reductions. We have been using the same cost accounting system for the last 10 years. Why would it be a problem?
Over the years, we have added a lot of different product lines. Some of these products make very different demands on our manufacturing overhead resources.
We trace—or attempt to trace—overhead costs to the different products using direct labor cost, a unit-based cost driver. We may be doing more allocation than tracing.
Also, as you know, with the way computer technology has changed over time, it is easier and cheaper to collect and use detailed information—information that will allow us to assign costs more accurately.
Jacob, what do you suggest?
In particular, we need to understand activity cost behavior. Knowing what activities we perform, why we perform them, and how well we perform them will help us identify areas for improvement. We also need to know how the different products consume activity resources. What this boils down to is the need to use an activity-based management system.
But before we jump into this, we need some idea of whether nonunit-based drivers add anything.
Activity-based management is not an inexpensive undertaking. So I suggest that we do a preliminary study to see if direct labor cost is adequate for tracing. If not, then maybe some nonunit-drivers might be needed. In fact, if you would like, I can gather some data that will provide some evidence on the usefulness of the activity-based approach.
I think he should pursue it and do so quickly. I also think that we need to look at improving our quality. It sounds like we have a problem there. If quality could be improved, then our costs will drop. Jacob, in the meantime, find out for us if moving to an activity-based system is the way to go.
How much time do you need? I could probably have a report within two weeks. Preliminary Analysis Based on my initial analysis, I am confident that an ABC system will offer significant improvement. I regressed total monthly overhead cost on monthly direct labor cost using the following 15 months of data:During the fortnight the entire oil industry under the guidance of MOP&NG undertakes various kinds of activities to emphasize the need and importance of conservation of petroleum products & environment protection.
The macro environment tends to exert forces from outside the organization’s sphere of influence and the forces are usually beyond its control. 3 However it has a major influence on the industry environment in which the organization operates.
Bargaining power of the buyers is existent because prices have to accommodate their needs. However, the buyers are so significant they create a substantial demand which gives Qantas control to establish prices that meets the needs of the company and its customers.
Analyzing the Industry Environment The business environment consists of all external influences that affect its decisions and performance. These should be analysed systematically and with continuous scanning, keeping in mind that it needs to be cost effective and not create too much information.
The Key Environmental Drivers in the Airline Industry (appendix, PESTEL / Porters Five forces) The airline industry is a turbulent and competitive sector, influenced by multiple environmental variables/driving forces. Impacts Of Tourism On Natural Environment Tourism Essay.
Print Reference this Sustainable development is development that ‘meets the needs of the present without compromising the ability of future generations to meet their own needs’ (According to WCED ) cited in Hall, C.M. and Lew, A.A. All these examples however .