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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.
State the Penetration pricing As opposed to the skimming pricing the objective of penetration pricing is to gain a foothold in a highly competitive market. The objective of thi
EOQ mathematical model As costs of ordering and holding stock are equal at the EOQ point, we can build a simple mathematical model to solve the problem, as follows: (Q/ 2) X
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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
Ross White's machine shop uses 2,500 brackets during the course of a year, and this usage is relatively constant by the year. These brackets are purchased from a supplier 100 miles
The revolving credit facility will be specified by the banker to the customer through providing specific amount of credit facility for a continuous basis. The borrower will not be
Explain the Scope of cost accounting Scope of cost accounting: the scope of cost accounting is very wide and includes the following: 1 cost ascertainment: it deals with t
Introduction of zero base budgeting Steps involved in the introduction of zero base budgeting 1) Corporate objectives should be established and laid down in detail 2) Dec
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
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.
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