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Product life cycle costing
It is an approach used to give a long term picture of product line profitability feedback on the effectiveness of life cycle planning and cost data to make clear the economic impact of alternatives chosen in the design engineering phase etc. it is also considered as a way to enhance the control of manufacturing costs. The thrust of product life cycle costing is on the distribution of costs among it is important to track and measure costing is on the distribution of costs among categories changes over the life of the product as dose the potential profitability of a product. Hence it is significant to track and measure costs during each stage of a product's life cycle.
a annual sales are 585000 unit. the purchase price per unit is $2. the carrying cost is 26% of purchase price of goods safty stock is 100000 units on hand two weeks are required fo
Explain the tools of management accounting
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Stock-out costs These are the opportunity costs of running out of stock. They comprise: 1) The costs of lost customer sales, and therefore lost contribution to fixed costs.
The case of variable quantity discounts In practice, suppliers may offer different discounts for different quantities purchased. For illustration: Segment Quantity
costs/per unit labor ... $ 4 materials ...5 fixed cost... $ 12 determine the break even point in units if the seeling price is $ 19 determine the break even point in sales at
Select the cost driver(s): This might also be termed to as independent, explanatory or predictor variable. A cost driver can be stated as any factor whose change causes a chang
case study on payroll system
So as to makes sure that the receivables are collected in occupied and on due date by the customers, prior information of their credit worthiness must be obtainable. This informati
SIMULATION MODELS Simulation is a method of analyzing a system by experimentally duplicating its behavior. Management accountants can be able to make meaningful inferences conc
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