Application of transportation model, Managerial Accounting

Assignment Help:

Application of Transportation Model

In the direct logic, the transportation model looks for the determination of a transportation plan of a particular commodity from a number of sources to a number of destinations. The data of the model comprise:

(1) The level of supply at each source and quantity of demand at each destination.

(2) The unit transportation cost of the commodity from each and every source to each and every destination.

As there is only one commodity, a destination can accept its demand from one or more sources. The purpose of the model is to establish the amount to be shipped from each source to each destination, and hence the total transportation cost is reduced.


Related Discussions:- Application of transportation model

Role of the management accountant, Define role of Management Accountant ...

Define role of Management Accountant The main role of management accountant is defined below. Planner e.g. budgeting Information provider e.g. operating statement

Strategic positioning, Strategic Positioning The company must identify ...

Strategic Positioning The company must identify its strategic choices. This can be done from the firm’s objectives, which emanates from the firms mission. Strategies have to be

Describe the selling costs and development costs, Describe the Selling cost...

Describe the Selling costs and Development costs Selling costs: These are costs of seeking to create and stimulate demand (sometimes termed as marketing) and securing orde

State the debtors turnover ratio, Debtors turnover ratio( or receivables tu...

Debtors turnover ratio( or receivables turnover ratio) Meaning: this ratio establishes a relation ship between net credit sales and averages trade debtors.   Objective

Testing the slope, Testing the Slope The strong point of the relationsh...

Testing the Slope The strong point of the relationship among the dependent variable and each of the independent variables can be determined using 3 methods: 1) Correlation

Moral Law vs. Tax Law, 1. Do you think that the tax minimization scheme ...

1. Do you think that the tax minimization scheme described to Debbie Kishimoto is in harmony with the ethical behavior that should be displayed by top corpo- rate executives? Wh

Which of the following costs is an example of a cost, Which of the followin...

Which of the following costs is an example of a cost that remains the same in total as the number of units produced changes?

Material control, MATERIAL CONTROL It is said that "any fool can sell"—...

MATERIAL CONTROL It is said that "any fool can sell"—it is buying at the right price that is more critical to the achievement of a satisfactory return on capital employed.  Buy

Parameter prediction error-randomness of operating process, Parameter predi...

Parameter prediction error: This is another aspect of faulty planning. As Hongren says, ‘planning decisions are based on predictions of future costs, future selling price, fut

Investing surplus cash, The requirement for working capital fluctuates acco...

The requirement for working capital fluctuates according the level of inventory, production, debtors and creditors etc. The working capital needs are not uniform during the year be

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