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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.
Alternative performance measures There are various measures that can be used to measure performance of a decentralized company. The major ones are: • Return on Investmen
RULES OF GAME THEORY 1) The number of competitors is finite. 2) There is a conflict of interests between the participants. 3) Each of these participants has available to
Prepare two tables showing net profit, residual income and return on investment for each year of the project and also net present value (NPV) for: (i) The BEST OUTCOME; (ii) The
Human behavior and budgetary control An important feature of control in business is that control is exercised by managers over people. Their attitudes and response to budgetary
Cash discount is given to buyers to bring them to make prompt payment. The credit terms identify the percentage discount and the period throughout which it is obtainable. Liberal c
Transfer pricing sometimes entails using different transfer pricing systems: one for tax purposes, and one for internal decision making, even though maintaining two systems can be
After determining the amount of working capital as in above, a specific amount say 5 percent or 10 percent may be added to cover contingencies. This is to be noted that facts depen
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Pricing is a problem in four general types of situations: 1) When the firm develops or introduces a new product and it is fix the price of the product for the first time. 2)
areas where zero based budgeting can be effectively used?
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