An additional information are the connections between core and support functions cost. This provides the information to improve efficiency in operation and in long term for costing as well. At least AXE get an understanding which products provides the best mar-gin, which allows the company to set a focus on high profit products. 12. a) 1) Review the characteristics of costs and define how to allocate them compare their connected operations. Keep on focus the balance between accuracy and economical needs.
Question: 1 Activity based costing (ABC) is an accounting method which involves identifying the activities of a firm and assigning overhead cost to the products (activity based costing - ABC, 2015). This method is proven to be more accurate than traditional method which uses direct labor hours, machine hours or other volume based measures to assign indirect cost to products (Mowsen, 202). ABC costing allows companies to identify how much profit products are making and to eliminate unproductive activities. It recognizes the real cost associated with a product and thus makes it easier to fix correct price for a particular product. It helps in allocating resources to the products and services which are more profitable hence increase profitability
First thing to achieve cost calculation according to the system was made in the U.S. Thus a system called “Activity Based Costing” has emerged. The main objectives of the ABC method are, highlighting as directly as possible the activities of the company to obtain value of the products and services. Second, analysing the activities showing the nature of activates, the place of the main causes that determine the increase of resources consumed. There are 3 cost drivers for each type of activity.
More importantly , it is essential for the requirements to be understood. Business and System Analysts have to follow these processes so as to do their job efficiently 1 Conception Business Analyst needs to first understand the project history or a problem and the existing systems to have a reasonably clear picture of the current state that needs to change. A detailed investigation of the system is made by the analyst and then make a proposal which list the problem definition, objectives, constraints, expected benefits of a new system ,etc. Cost benefit analysis,, risk management plan and feasibility study is done in this stage by the analyst. 2 Analysis Analysis involves identification of the business problem and opportunities, and assessment and validation of potential and actual solution.
According to Womack and Jones (2003), lean application in healthcare focus on the patient and includes time and comfort as key performance measures of the system. Having multi skilled teams taking care of the patient and an active involvement of the patient in the process is emphasized. For instance, the customer would pay for the widget to be assembled and painted blue, but not for the overproduction
Next, the relationships between activities are identified. By scheduling the activities and their relevant relationships to each other, development of an achievable project becomes attainable through the use of management software or manual techniques. Following this, estimations of the activity resources needs to be carried out. What type of recourses will be required, how long will they be required for and at what point will each resource be available to perform their relevant tasks. The fourth major process is that of duration; estimating how long each activity will take.
Assignment 1 • Explain in detail the concept of value chain analysis : value chain analysis is a strategically analytical and chosen - helper system that highlights the rule, where agencies can make cost for their customers. The framework can also be to used selection out assets of competitive profit for organizations. price chain is a fixed of eventual sports that company take out for you to gain their first objective of income maximization. most exporter give an talking for the core, and implementation of fee chain analysis affecting their goal market is organizations point to growth the volume in their competitiveness. right here, we adopt an alternative technique.
Everyone from the greeter to the dishwasher needs to know and understand how to respond to any complaint or suggestion from a customer. While the customer may not always be right, they are the one who pay the bills. Without them, you have no business. Cleanliness The next thing that will add to, or destroy, the customers experience is the cleanliness of your restaurant operation. For many customers, if there is anything that appears to be dirty or unsanitary, they will automatically assume that the entire operation is unsanitary.
Maskell and Baggaley (2005) explains that lean accounting can be summarized and segregated into five principles which are lean and simple business accounting, accounting process supporting lean transformation, communication of information which are clear and timely, lean perspective planning and strengthen internal accounting control. Lean and simple business accounting can be stated as "applying lean methods to the accounting processes" (Maskell & Baggaley, 2005). Accounting process can be segregated into two types; namely the type where there are wastes that cannot be eliminated at the moment and the type where wastes can be eliminated. Therefore, lean accounting is done by continuously eliminating wastes from reports, processes and accounting methods in an organization. According to Maskell and Baggaley (2005), this could be acquired by kaizen, value stream maps and Plan-Do-Check-Act (PDCA) problem solving approach.