Therefore on that basis, all products, including pumps would be generating substantial contribution to overhead and profits. Therefore, given the overhead allocation problems, Wilkerson’s best bet would be to adopt the variable costing method for various reasons, as follows: 1. This cost concept provides a better understanding of the effect of fixed costs on the net profits, due to the fact that total fixed cost for the period is shown on the income statement. 2. Also, various methods of controlling costs such as standard costing system and flexible budgets have close relation with the variable costing system, in turn making it easy to use those methods.
There are many different cost and structures that need to be considered when forming a profitable business. A companies expansion can play a role in how some of these concepts are engaged. Furthermore, understanding the level of success a company has can be measured in multiple ways. In this paper I would like to discuss the types of costs a company can expect to have, and they ways these cost can be determined and understood. Then closing with an explanation of how these can affect an expansion of our business and profits.
1. Provide an explanation to the divisional manager why variable and absorption costing systems result in the reporting of different profits using the information shown in Exhibit 1 Under the adoption of variable costing systems or absorption costing systems, different profits, being classified as gross profit and net profit, will be calculated and reported. In the case of Bohemia Industries, adopting variable costing system reported higher gross margin for both July and August than adopting absorption costing, however, the net profit before tax under absorption costing is higher than variable costing in July, unlike August. Variable and absorption costing systems result in the reporting of different profits since they have different
Although the risk pooling strategy is considered for supply chain management in the previous research such as Gerchak and He (2003), and Miranda and Garrido (2004), they do not consider the inventory holding costs at retailers, and argue that the effect of risk pooling becomes more significant as the inventory holding costs at the warehouses and the variances of the demands increase. Note that the risk pooling strategy may cause an increase in the inventory holding costs at the retailers and the transportation costs from the warehouses to the retailers, since the lead times of the retailers and the distances between ware- houses and retailers may be increased. Since the bargaining power of the retailers is not negligible but rather significant nowadays, the costs incurred at both the retailers’ side and the supplier’s side should be considered simultaneously (as was done in this study) to reduce the overall cost of the whole supply chain and to improve the partnership between the supplier and
If the mill was unable to economically carry a profit based on using the smaller sheets in correlation with the other mills it would not be a wise choice to open the mill. Now, if the mill could expand and make those larger sheets as the other mills do, then the cost options would have to be weighed out to determine if it was profitable. What other capabilities would the new mill have, maybe it could be set to only do small jobs, or the headquarters for all offices to call for orders and paperwork statuses. This would change the marketing strategy and the manufacturing determined on the financial approach. Would this align with the company culture and the financial targets they are trying to
The study findings showed that this new accounting standard had given organizations an opportunity to practice earnings management in the year of adoption. Other studies propose big write-offs mostly occur when there is a change in management teams. New managers perform those write-offs as offset for their previous fault. Levitt (1998) stated that significant restructuring charges as one of big bath strategy. Tokuga and Yamashita (2011) concluded that evidence of potential big bath practices in case of Nissan Motor Company in 2000.
The agent’s share of surplus is denoted by s and therefore the principal’s share is denoted by (1-s). Level of customization that the agent chooses is defined as q≥0. The surplus that is obtained from input production with some level of customization is given by f(q). By assumption, 〖f(q)〗^'>0 and 〖f(q)〗^''≤0 which means that production of inputs is an increasing function of the level of customization with a decreasing rate. For simplicity, the production and customization of inputs are assumed to take place at zero
• It heavily relies on excess of revenue over Variable cost. • It fails to take into account capital disbursement required by additional productive
I checked all the out budgeting accounts to invest some of them I was looking for an account with at least 50000 S.R and has no payment for 3 month at least , I created a list then we picked four account and full the formal paper to be approved this investment was with anb ( Murabh Mubarkah contract ) within three month Also I learned how to crated formal paper for collect profits when the investment period ends and I did it for all investment which ends for the 2 weeks Also I worked on October salaries payment to consultants after I received completion certificate from the sector that has contact with them that he complete the month duties then I prepared issue voucher, after the approval from financial manager I worked on anb program to full bank transfer papers and send it to them I reviewed Sultan Qaboos Award and Rationalization of electricity and water consumption accounts and all their Files and I prepared report about each account expenses and if its follow the expenses plans and all the revenue that have been collected since the account created, The reason that I did this report was to prove how these profit helped over years the report Provided with excel sheet and