Monica.Cavalieri2 Acc350-1203b-03.Ph2Ip

Monica Cavalieri ACC35 -1203B-03 Phase 2 IP Colorado Technical University Online prof Jacob Gordon 09/03/2012 I have been asked to prep ar a presentation for the jump on of directors meeting. Managers fool decisions based on embody information, everything that leads to the bottom line. mathematical production think and pricing are two major categories that moldiness(prenominal) be supported by cost information. They must know if the repute of the harvesting will be market determined whereby they must decide if they stool profitably produce the product in order to make a profit or if they bath set their own price using cost convinced(p) pricing. harvesting planning is also supported by cost information. stone pit cost is used to concentrate their efforts on product and exploitation design that will lend a fair profit. cost plus pricing uses variable be and portions of firm direct costs. It seems a fairly simple calculation. For example: If a subterfuge has a variable cost of $.75, a obstinate storage allocation of $.25 and a desired markup of 30% the price of the wid enchant would be calculated like this: (.75 + .25 )*(1 + .30) = $1.30. (Investorwords). derriere costing, used in product/process design, is favored by Japanese companies in the car industry, electronics and precision manufacturing.

It differs from traditional costing methods in which costs are based on design and markup, and determining a price. Target costing sets price first, subtracts target income and then reaches a cost. It is a time saving tool. In target costing more than of the cost is allocated to the develop! ment stage which reduces costs during the labor stage. Just-in-Time, issue forth Quality Control, Material Requirements Planning and Value engineering are used in cost reduction practice. Just-in-Time (JIT) strain anxiety technique, one of the systems mentioned above, minimizes inventory by having materials arrive at incisively the time they are needed for production or sale. This pith less space needed for storage and...If you requirement to get a full essay, order it on our website: OrderCustomPaper.com

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