Operating cost Essays

measure a company's pricing strategy and operating efficiency of a firm .During the last four years Operating profit ratio is highest in FY 2015-16 at 21.06% and the Company has posted highest profit in that year . Thus, this financial year can be termed as the best year for the company in terms of operating profit ratio for the last four years .This ratio has increased gradually in the years thereby indicating increased operating profit Company’s operating margins increased from 18 to 21% margin

control, (4) purchase of assets below replacement cost, and (5) synergy. From the standpoint of society, which of these reasons are justifiable? Which are not? Why is such a question relevant to a company like ICI, which is considering a specific acquisition? Explain your answers. Answer: From the stand point of society, synergy is the only benefit to the same. Tax considerations, diversification, control, purchase of assets below replacement cost are not relevant from the standpoint of society.

A comprehensive budget is a compilation of an operating budget for short-term goals involving recurring items and a capital budget for long-term goals involving nonrecurring items.(p93) Comprehensive Budget The operating budget shows recurring income such as weekly, biweekly, or monthly wages from the sales of labor. It also shows expenses someone may have, for instance rent, energy costs, food and gas. The income and expenses are based on a specific time based on

characteristics for a monopoly is that the monopoly firm is a price maker because there is lack of competition. This position allows the firm to obtain abnormal profit in the long run when it operates at the profit maximising point, where marginal cost equals marginal revenue. The products in the industry are non-homogeneous and hence, they do not have close substitutes. A monopoly is characterised by asymmetric information. Consumers, who buy the product, do not have the same information as the

Introduction to Budgets and Preparing the Master Budget Budgets and the Organization Many people associate the word budget primarily with limitations on spending. For example, management often gives each unit in an organization a spending budget and then expects them to slay within the limits prescribed by the budget. However, budgeting can play a much more important role than simply limiting spending. Budgeting moves planning to the forefront of the manager's mind. Well-managed organizations make

Abstract The operation of conveyance determines the efficiency of moving products. The progress in techniques and management principles improving the moving load, distribution celerity, accommodation quality, operation costs, the utilization of facilities and energy preserving. Conveyance takes a crucial part in the manipulation of logistic. Reviewing the current condition, a vigorous system needs a clear frame of logistics and an opportune convey implements and techniques to link the caused procedures

reasons, such as organizational reason (specialization and division of labor); financial reason (a large firm can get a better interest rate and also a better discount rate due to a large quantity that it buys); technical reason (division of high fixed costs across large number of units) and many more. In line with this concept then it is evident that a positive relationship between the profitability and the firm size is expected. Carl Ericson (2011) of Atomic Object in his research on profit margins and

to spend more thinking they are doing good deals. Based on Michael Port’s strategy, the company definitely have great potential to succeed and gain more market place. The reason is because the strategy of marking prices down and cutting internal costs to achieve is a very good strategy. By doing that, the company is attracting more customers. Like everyone knows, in business customers are key to success.

Determine and clarify the logistics cost. Logistics cost Logistics cost usually differently defined by different company. But, in general logistic is defined as the process of the management of goods that across all over the countries and also across the world. The company create a good path of their goods into supply chain or transport path which the use repeatedly to get a goods shipped to customers. Transportation cost Transportation cost is known as all the expenditure that involved in the

Why would different companies have different accounting cycles? Different companies are going to have different accounting cycles because even though there are some similarities, there also some differences in activities that each company performs. A manufacturing company purchases raw material in order to manufacture their supply inventory and then sells it to a retail company. A retail company purchase supply inventory from the manufacturing company and then sells it. For example, Apple Inc

performance. It reduces the need to manage transformed resources as they pass through the operation and therefore reduces inventory, minimize risk saving cost. Dependability This factor explains the customer's dependability on the company. It prevents lateness causing disruption and wasted time and effort gives stability and therefore reduces cost. IKEA Not a major factor in case of IKEA but like the opening hours is very important for IKEA, constant availability of parking, or buy car roof rack

bottom-line oriented and places emphasis on cost reduction and improved production levels. To ensure this emphasis is maintained, bonuses are tied to employee’s ability to produce more while lowering costs. Consequently, Flatrock’s misconception that Tower’s margins are 30%, when in actuality they are 16%, can be attributed to this bottom-line oriented culture as it promotes cost containing behaviours. Increasing transparency into Tower’s operating model and costs will resolve this misconception and will

variable costs (the variable cost per service rendered), the break even point is reached. This is based on the utilization of the services. The higher the utilization, the higher the profit. In this model, there are certain variables which include fixed costs, variable costs and the projected payment for the services. Therefore, it can be determined at what point profit will be reached. This scenario changes in the capitated environment. The variables remain the same.The fixed cost is known

3-20-18, Marcus Ragland, @02778104 Energy Subsidies in the United States Energy subsidies are dollars or benefits paid to industries or businesses as a profit for them to keep operating. They are not meant to provide the whole cost to operate respective companies. In the United States, these subsidies are used in multiple ways for multiple purposes. One being to promote moving towards a more routine use of renewable energy sources, optimistically having renewable energy sources as the ordinary in

income greatly because of the number of customers we lose and the costs we need to cover. The primary revenue center for the business will come from ongoing removal of debris from construction

Both the Mac and PC have top of the line operating systems that overlooks all operations of the computers. The Mac is known to use the Operation System X (OS X) as its main operation system, while the PC uses Microsoft Windows as its main operating system. The Mac can work just like a PC and run Microsoft Windows as well. However, a PC cannot run Mac’s OS X, because Apple does not allow the use

Whole life building costs take into account all costs associated with the lifecycle of the building project from inception to construction (Ashworth and Perera, 2015). Further to this, the whole life building costs account for associated costs during the use of the building, operations and disposal of the building (Kilbert, 2016). Kishk et al., (2003) defines whole life building costing as the systematic consideration of all costs and revenues related to the acquisition, use, maintenance and disposal

interrelated business that need to be optimized in purpose to depress the cost and increase the profit. The substantial aspects that most take the role are distribution and production planning. The considerations of integration between both of them are leading the company to have several goals such as minimizing the sum of holding cost, backorder cost, production cost, setup cost, capacity change cost, and unused capacity cost while satisfying the demand over specified time horizon [1], or in other

expenses 15,000 Interest income 15,000 Total Current Assets: $229,000 Non-Current Assets: Property, Plant and Equipment At cost $580,000

Services and SAS Cargo was to be discontinued and outsourced to third parties. SAS has a huge cost for staff compared to its competitors (see appendix xx). In By outsourcing the operations, SAS will be able to minimize the cost without compromising its core competencies. Porter's five forces compare with Barney Resource Based View theory The theory of five competitive forces by Michael E. Porter shapes the strategy of firms and the nature of competitive interaction within an industry. There