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Explain Ranking of decision packages - zero base budgeting
Ranking of decision packages: by ranking the decision packages a company will be able to weed out a lot of marginal efforts. The scarce resources of organization should be directed to most promising line only. Ranking implies determining the priorities among the available decision packages. Ranking of decision packages is an important exercise and should be attempted only by those who have the requires knowledge and experience. Initial ranking can be conducted by sectional managers and it can afterwards be reviewed by a committee including the departmental heads. A decision package is ranked keeping the following points in view:
Necessity of introducing programmers
Technical competence of company for attempting the programmers
Economic benefit analysis relating programmers
Study of risk involved in abandoning the programmer
Markov Analysis It is a way of analyzing the current movement of some system in an effort to predict the future movement of the same system. There are two elements that must be
LIMITATIONS OF ABC ANALYSIS However ABC analysis is a basic tool for exercising selective control over many inventory items, it does not, in its current form, allow precise con
CHOOSING ORDER QUANTITY (SIZE—PROBLEM) The objective of inventory decisions is usually to minimize total inventory costs to the company. Costs are ascribed to all elements whic
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C-V-P ANALYSIS UNDER UNCERTAINTY A major limitation of the basic C.V.P analysis is the assumption that the unit variable cost, selling price and the fixed costs are constant an
What is Direct material cost variance It can be defined as the difference between the standard costs of direct material specified and the actual cost of direct material used.
Sales of Cool-Man air conditioners have increase steadily during the past five years: Year Sales 1 450 2 495 3 518 4 563 5 584 6 ?
chapter 5 solution
MAKE A TRADING ACCOUNT
Integer Programming It is a technique for solving a linear programming model with an added constraint that the decision variables must only be non-negative integers. In the
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