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Although the absorption format helps the income statement look more simplified, I do not feel this is the best way to obtain the information the management is looking for. “Absorption costing treats all manufacturing costs as product costs, regardless of whether they are variable or fixed” (Garrison, E.W., & Brewer, 2018). With the management team wanting to find their break-even point, they cannot use an absorption format as it does not provide the different needed categories within the income statement.
With the intern utilizing the absorption income statement format, it makes me feel as though she may not know exactly what she is doing. “With absorption costing, gross profit is derived by subtracting cost of goods sold from sales” while with variable costing, “all variable costs are subtracted from sales to arrive at the contribution margin” (Walther, 2019). This will allow the management team to have a better ability to decide their break-even point for the business.
Operations Management is about a book review. Title of the book is "Goal". This book has been written by Dr. Eliyahu Goldartt. The book has been appreciated by many as one of those books which offers an insight into the operations and strategic capac..
Operational plan pertaining to a hospitality enterprise is given in detail in the solution. The operational plan is an important plan or preparation which gives guidelines regarding the role and responsibilities of each and every operation at all lev..
Recognise the importance of a strategic approach to the development and deployment of organisational information systems. Demonstrate an understanding of the importance of databases and their integration to the organisation's overall information mana..
An analysis of the holding costs, including the appropriate annual holding cost rate.
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Prepare a staffing plan showing the change of your unit from medical/surgical staffing to oncology staffing.
Ccompare the effectiveness of different leadership styles in different organizations
Be able to understand the concept of risk, roles and responsibilities for risk management and risk management tools and models.
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