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

Negotiated prices-transfer pricing methods, Negotiated prices Where mar...

Negotiated prices Where market based prices are not applicable, it has been argued that allowing managers to bargain with each other in order to establish transfer prices devel

Queuing theory, QUEUING THEORY When limited facilities fail/delays to s...

QUEUING THEORY When limited facilities fail/delays to satisfy demands made upon them, problems occur which generate queues or waiting lines. Illustrations are: •    Customers

Managerial accounting, Managerial Accounting Before going to Managerial...

Managerial Accounting Before going to Managerial Accounting let us discuss a bit about Financial Accounting. Financial accounting is concerned with reporting to the external pa

Marginal costing technique, how company apply marginal costing techniques s...

how company apply marginal costing techniques show with an example

Cost analysis purposes, Cost Analysis purposes For purposes of cost ana...

Cost Analysis purposes For purposes of cost analysis, the desegregation of the generic value chain into individual value activities should reflect three principles that are not

Mortgages, You want to purchase a house that costs $325,000. You have a dow...

You want to purchase a house that costs $325,000. You have a down payment of $65,000 and will take out a mortgage to make up the difference. The AMC Mortgage Corporation offers a q

College accounting contemporary approach, question 3.5A Trial balance shee...

question 3.5A Trial balance sheet,income statement, owner''s equity and balance sheet

Controlling material flow , Controlling material flow Figure below out...

Controlling material flow Figure below outlines the progressive stages in purchasing, issuing and recording materials in a manufacturing concern. An efficient system of docume

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