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Ordering Costs
These are incurred in getting purchased items into the company’s inventory or stores, and usually consist of clerical costs of:• Making the purchase demand.• Issuing of a purchase order• Follow-up action• Receiving the goods• Inspection for quality control• Placing goods in stores• Paying vendors (Suppliers)Note:The basic EOQ model assumes that these costs are fixed constant for each order made.
ADVANTAGES OF "ABC ANALYSIS" The advantages derived from this analysis and its consequent follow up are summarized below: 1) Facilities selective control and thereby save va
Objective Function Although the standard LP model can be either the maximization or the minimization type, it is sometimes useful to convert one form to the other. The maximiz
In this scheme, non-revolving line of credit is extended to the seller to be utilized inside a stipulated period. Assistance is provided to manufactures for promoting sale of their
WHY VARIANCES IS INVESTIGATED UNDER STANDARD COSTING
Objectives of ratio analysis 1) Measuring the profitability: we can measure the profitability of the business by calculation gross profit net profit expenses ratio and other.
Explain in Details Return on INVESTMENTS
accepted#Regarding the Overhead costs, these are allocated based on Direct Labor;
Cost Advantage and Value Chain Cost advantage is one of the two types of competitive advantage a firm may possess. Cost is also of vital significance to differentiation strate
how much is this service?
Explain Activities uses through activities based costing In order to correctly associate costs with products and services. ABC assigns cost to activities based on their use of
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