Variable cost

of 20,000 line items. The current inventory method supported is a manual Cardex System which is outdated and not a cost effective way to manage the company inventory system. It is an Independent demand system which is directly proportional to the market condition in its current state. Henry sets a target earn turn ratio each year for the business which determines the estimated costs of operations and return on investment goal for the company, but has been ineffective to fulfill the actual demand…

we became established. When customers bring their items to us for sale, they need to be ready to put on the shelf. All clothing has to be dry cleaned in advance, and free from stains, pet hair, and odors. We priced the item by checking the original cost, then cutting it by half. We then draw up a contract stating that, when the item sells, the store gets 60% and the customer 40% of the profit. Prices are negotiable, and the prices come down after 30 days. If the…

Act-based liability. According to this rule criminal is responsible for the expected harm regardless it actually occurs or not. Thus, if a party commits an act that will cause harm of $1,000 with probability 10 percent, he will be liable for $100 for having committed the act. 18 Discussed liability rules suggest that it is important to know the amount of harm that is imposed by wrongful act and sanctions need sometimes to be made severe or sometimes less severe in order to reach the situation…

First I have to start by saying that the PowerPoint presentation was easy to follow and was pleasing to the eye. The theme and colors grabbed my attention and held my interest throughout the entire presentation. After reviewing the recruitment plan as described by Group 4 I found the strengths to be the very detailed steps outlined for making the actual decision, and gathering information. Of course the more detailed the process the easier it will be to make a final decision. In all honesty I…

you think are the "necessities of human life?" Are there necessities of human life that are different than the necessities of, say, a dog's life? If so, what are they? 3. Work out how much it would cost to live on your own for a month. What would you need (or want) for this month and what would it cost? (Include essentials like rent, food, and medical and non-essentials like entertainment or going out to eat.) 4. Multiply your monthly budget by 12 and compare it to the official poverty index for…

Costing and pricing methods reviewed Cost-orientated pricing Many small businesses determine their basic price based on their costs. The idea is to set your price high enough to cover your costs and still make a profit (Van der Walt et al., 1995). Cost-plus pricing Many small businesses use this method. Here you determine the cost of the product and then add a set percentage to the cost for the profit margin. This method is popular and easy to use. Assume you are the manufacturer of steel…

price increases and cost increases all by the same amount– no change to profit. Here both the price and cost are increased in the same way so there is no change in profit. In this case also the company is not earning any profit and not increasing the company’s performance by increasing the value. 3. In the third case the value increases, price increases but cost increase is greater than price increase; profit is reduced. Here both the price and the cost are increased but the cost gets higher…

the Actual Sales versus our Budget we found that our cost numbers were off. We had actually spent more than we had expected on our Variable Costs associated with volume and our Fixed Costs. Per our budget, our Variable Expenses should have been $13,890,000 and our Fixed Costs should have been $10,920,000. Our Actual Variable Expenses were $14,400,000 and our Actual Fixed Costs ended up being $11,190,000. We ended up being over budget on these costs by $780,000.00. Our largest discrepancies were…

Maximum Price Guaranteed maximum price or GMP is one of the most popular types of the arrangement in which construction contractor pays the all costs incurred in project, plus a fixed cost or a certain percentage of the total cost of the project as their profit margin. In this type of contract the contractor is fully responsible for the overrunning costs. Any additional scope and changes from client required arrangement of the new contract or must be formally stated in the supplementary section…

companies to reduce costs by transferring portions of work to outside suppliers rather than completing it internally. Advantage • Reduced Operational and Recruitment costs: Outsourcing eludes the need to hire individuals in-house; hence recruitment and operational costs can be minimized to a great extent. • Outsourcing the supporting processes gives the organization more time to strengthen their core business process Disadvantage • Although outsourcing most of the times is cost-effective at…