Cost comprise impact, Managerial Accounting

Assignment Help:

Cost comprise impact

Some of the policy choices which tend to have the maximum impact on cost comprise:

  1. Product performance, configuration, and characteristics
  2. Mix and variety of products offered
  3. Level of service provided
  4. Spending rate on marketing and technology development activities
  5. Delivery time
  6. Buyers served (e.g., small versus large)
  7. Channels employed (e.g., fewer, more efficient dealers versus many small ones)
  8. Process technology chosen, independent or scale, timing, or other cost drivers
  9. The specifications of raw materials or other purchased inputs used (e.g., raw material quality affects processing yield in semiconductors)
  10. Wages paid and amenities provided to employees, relative to prevailing norms
  11. Other human resource policies including hiring, training, and employee motivation
  12. Process for scheduling manufacture, maintenance, the sales force and other activities


Though policy choices always play an independent role in determining the cost of value activities, they also frequently affect or are affected by other cost drivers. Process technology is frequently dictated partly by scale and partly by what product characteristics are preferred, for illustration. Furthermore, other cost drivers unavoidably affect the cost of policies. For illustration, an automated ticketing and seat selection system might well be subject to economies of scale which make such a system very expensive for a small airline to accept.

Policies usually play a particularly necessary role in differentiation strategies. Differentiation frequently rests on policy choices which make a firm unique in performing one or more value activities, deliberately increasing cost in the procedure. A differentiator should understand the costs related with its differentiation and compare them to the price premium which results. This can be completed only by isolating the effects of policies on cost.


Related Discussions:- Cost comprise impact

Graphic analysis, Graphic Analysis Whenever you have two data points, you...

Graphic Analysis Whenever you have two data points, you should generally suppose a linear relationship. When you acquire more data, you can study the data to determine when there

Bugeting, PART 1 Carlton Ltd operates at capacity and makes glass-topped d...

PART 1 Carlton Ltd operates at capacity and makes glass-topped dining tables and wooden chairs which are then typically sold as sets of four chairs with one table. However, some c

Mr, i want to get the answer for exercises 2.1 and 2.2 on strategic and tac...

i want to get the answer for exercises 2.1 and 2.2 on strategic and tactical decisions

Security analysis and portfolio management, Security Analysis and Portfolio...

Security Analysis and Portfolio Management Define Capital Market Line and how is it dissimilar from Security Market Line. Describe with illustrations?

Explain zero bases budgeting according to david humdinger, Explain Zero bas...

Explain Zero bases budgeting According to David humdinger According to David humdinger, ZBB is a management tool which provides a systematic method for evaluating all operation

Marginal costing, marginal costing decision making assignment questions

marginal costing decision making assignment questions

What does your analysis tell you about each firm, When the stock market is ...

When the stock market is going up over a long period of time, investors can become complacent about the risks of being a stockholder. After the significant decline of the stock mar

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd