In pure bundling, it is possible to transfer the consumer surplus for one product to the other product, in which case the high Reservation Price for the one can compensate for the low Reservation Price for the other. Consumers would thereby purchase the bundle, although their Reservation Price for the single products is lower than variable
The figure may prove realistic, especially if similar projects have been undertaken recently. However this technique is used simply because it is quick, or because only a certain level of funding is available. In bottom-up budgeting the project manager consults the project team, and others, to calculate a budget based on the tasks that make up the project. In this process Work breakdown structure (WBS) is a useful tool. The budget may express all resources in monetary amounts, or may show money and other resources – such as staff hours.
Qualitative forecasting methods are often applied when limited data is available or when time is insufficient. These forecasting methods usually rely on the judgment of experts within a certain field. They usually take less time to construct and can be relatively inexpensive and easy to understand. A major disadvantage of qualitative forecasting is that it can be largely opinionated and as a result be subjective. Quantitative forecasting methods rely on historical data to predict the future by finding trends and relationships in the historical data.
ADVANTAGES AND DISADVANTAGES OF THE PROCUREMENT METHODS PROCUREMENT METHOD ADVANTAGES DISADVANTAGES TRADITIONAL Because there is competitive selection of contractor and consultants there is accountability. There is equity in the tendering process for contractor bidding. Price is know at the the award of the contract. Managing change is relatively easy because the client is directly involved in the design process. Construction cannot commence until the design phase is completed so the project duration is long.
Introduction- In the current era of economic slowdown, investment in human resource is a profit center and not cost centers. It is the profit center as its performance is judged through the profit generated by it. Human resource people work with the employees to train them for better productivity and have less cost expenses and similarly HR manage everything to cut costs and maximize profit. Cost Centre is the unit that produces only cost whereas profit center is the unit that generates revenue, profit & cost for the firm, for example production department is cost center & the human resource department is the profit center as HR controls revenue. So Human Resource is important for a firm as it helps in generating profit, which is essential
By sorting all costs of products and services to individual units. Activity Based costing system method helps to find out inefficient and non-profitable products. By using Activity Based Costing method, company can reduce prices for those processes, which bring less activity and profit and increase prices for those activities, which represent more activities and bring more profit. Activity Based Costing method provides fixed selling price for multi-products, it is right, because overheads allocated on the basis of relevant cost drivers. Through the Activity Based Costing company can get more accurate information and results, because the Activity Based Costing system focused on effects of costs and activities.
Activity Based Budgeting Traditional approaches to budgeting are effective for unit level activity costs where the consumption of resources varies proportionately with the volume of the final output of products or services. However for those indirect costs and support activities where there is no clearly no defined input-output relationship and the consumption of resources does not vary with the final output of products or services, traditional budgeting approaches merely serve to authorise levels of spending for each budgeted item of expense. Activity budgeting approach demonstrates an activity based costing approach to the allocation of costs. The main aim of this approach is to more accurately identify product costs where the production
In business, cost is usually a monetary valuation of effort, material, resources, time & utilities consumed, risks incurred, opportunity foregone in production & delivering of goods or services. All expenses are costs but not necessary all costs need to be expenses. Example, Acquisition of an income generating asset. Important Methods of Costing used by Reliance Digitals: Reliance Digitals mainly follows the operations method of costing. Operations play a important role in Reliance Digitals.
Self- assessment leads to a strengthening of the human resource training function, product testing and computer aided design (CAD) facilities and customer satisfaction. It leads to improved policies and strategies and communication across the organisation. The disadvantages of self-assessment are scarcity of time, problems with measurement and focussing on scores, lack of communication between departments and sustaining the self-assessment process were some of the difficulties with the self-assessment process. Some of the disadvantages of self-assessment are the problem with measurement , there will be not much communication within departments, foccussing on scors and finally there will not be much time. Top management commitment and support is, perhaps, the most crucial of all the factors relating to the success of self-assessment.