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Value analysis
Is a formalized technique involving a rigorous analysis of products at the design stage or at any time during the saleable lives, to determine their value characteristics? These are the attributes that a customer looks for in a product and include its use value (functional qualities), appeal value (color, style etc.) and second-hand value (e.g. trade-in-price). The object of value analysis is to build into the product the optimum of desired value at minimum cost, by introducing the most up-to-date designs, materials and methods of manufacture. No more value need be built into the product than is desired by the customer. For example, moulded plastic bumper bars are now fitted to many cars, because they are cheaper than and equally as functional as chromium-plated steel ones.
Carrying costs of inventory These are costs incurred because the firm has decided to maintain inventories. They generally consist of: • Stock-out costs • Insurance co
Describe Financial budgets Financial budgets: financial budgets are concerned with cash receipts and disbursements working capital expenditure financial position and business o
Implementing management accounting and control innovations are often problematic. Provide a brief commentary around the key factors necessary to give such innovations the best chan
This is a most familiar form of medium term financing in obtaining plant and vehicles, machinery etc. In hire purchase transactions, the purchaser of goods will obtain the possessi
Maximum change in marginal Profit or Cost Just as we did in studying the permissible ranges for changes in resources, we are also interested in studying the permissible ranges
How to calculate straight line depreciation for a partial year i.e. Refurb. depreciation starts in may till end of 8 year lease. Therefore its 7.666 years
Cost comprise impact Some of the policy choices which tend to have the maximum impact on cost comprise: Product performance, configuration, and characteristics Mix and
Cash budget is a detailed budget of income and cash expenditure including both capital and revenue items. For control reasons the year's budget is usually phased in smaller periods
Types of Factoring The factoring facilities can be largely categorized in four groups that are as follows: 1) Full service non-recourse (old line) 2) Full service rec
In the earlier unit, we have studied how firms determine their requirements for current assets and manage their holdings in cash and marketable securities. Inside a classical manuf
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