Fixed cost

assembly technicians Appropriate, as the Westside Division will no longer have to pay these wages. Correct as this is the cost associated with the 40 technicians who will no longer be employed by the Westside Division. 2 Assembly supervisor transferred Inappropriate as the Assembly Supervisor will continue to be employed by the Westside Division for two years. Incorrect, this cost will continue to incur. The amount that should be included would be the supervisor’s salary less the benefits…

to you the 2016 Income Statement (IS). In compliance with your request, the Managerial accounting interpretation of the results and merely in gross margin income, statement was using Variable Costing. The cost classification is based in “all non-manufacturing categories”, direct, indirect and fixed. It also includes the recommended projection on how SRC can adjust its strategies. By looking at the 2016 statement in three (3) different…

us in MESO analysis of the market. It determines competitive intensity among the market. Competitive intensity depends on certain factors such as lots of/less competition, industry growth potential, product differentiation, exit barriers, storage cost, competitive strategies etc. Below are the five forces which are determined by Porter. In the centre, he has mentioned Rivalry among existing competitors, this also includes your own business. Rivalry is surrounded by 4 forces. Each…

Budgeting refers to the process of coming up with detailed statements on financial outcomes that are anticipated for some amount of time in future in an organization. It gives companies an opportunity to estimate the number of resources the company will apply in days ahead in a bid to increase its overall productivity through facilitating operation of economic strategies. Organizations have to ensure that their budgets are sound at all times lest they will experience dwindling economic outcomes.…

would be sub-optimal because as long as it achieved its variable costs it makes sense because it has unused capacity. 5. Setting a market price for DIV A products when there is still no market for the intermediate product means that the managers have to find a comparable product to estimate the price for DIV B which might not be really…

activities among the airlines and its suppliers at the e-marketplace for purchases of products and orders of services. There are several advantages of an e-marketplace. It can bring efficiencies into the ordering and purchasing operations to reduce costs and also create higher value. It can enable the market actors to exchange the knowledge more easily, identify and utilize innovative…

Minimum Wage Cities like Emeryville are raising the minimum wage to keep up with the cost of living. Other cities and states are looking and debating on whether they should raise the minimum wage. People want to raise wages to fight poverty. Some companies can raise the minimum wage and still make profits by raising the prices on their goods. Other companies decided to send their companies overseas and pay their new employees lower wages. One change in the economy can lead to other changes.…

In this case, we had 2 costs, fixed and variable, and 3 different options, reconstructing old equipment, purchasing new equipment, and outsourcing. This decision analysis tool allowed me to construct a crossover chart which showed the points at which the costs of the options demonstrated an advantage over the other. A1. Submit a copy of the output from your decision analysis tool…

Revenue and cost are the two most major issues facing the public sector agencies. This places agencies under pressure to reduce costs of operation and to lower expenditures to be able to account for revenue shortfalls. An example of this would be the constant variance in taxes for the general public. A major issue that is faced is reduced funding for agencies that leads to less staffing and the use of older or inoperable equipment. Property taxes and sales tax are two forms of revenue which…

I would consolidate the PE and EL depots, as the cost of running a warehouse is less than the transportation cost to deliver directly to the EL depot from PE. I would also do a centre of gravity exercise to ensure that all the depots are in the correct area. I would decrease the level of stock holding from 8 weeks to 4 weeks, and place orders more frequently. The transportation cost to deliver to the EL customers would be less than the cost to run an entire warehouse and separate fleet. If…