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What is a US company that encourages their suppliers to cut their product cost?
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∙ 16y ago
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Is cost per 1000 the same as mean cost?
No, it is not. cost per 1000 relates to one product that is produced by one company. The item comes in at a cost of so much per 1000 units. If you went to several different suppliers of the same item and got each company's cost per 1000, then you could calculate the mean, or average cost.
What is vertical intergation?
Vertical integration is the combination in one company of two or more stages of production normally operated by separate companies. It can help companies reduce cost.
Differentiate between period cost and product cost?
Period Cost: It is that cost which must be incurred by the company no matter it produce any product or not. Product cost: Product cost is that cost which is necessary to produce any production units to earn revenue.
Transportation costs incurred by a manufacturing company to ship its product to its customers would be classified as which of the following a. Product cost b. Manufacturing overhead c. Period cost?
Product cost
What is the difference between traditional based costing and target costing?
Traditional Cost Accounting System: In this system company first produce the product and then determine the cost of production and then try to sell that product at price covering that cost plus certain percentage of markup on cost.Target Costing: In this system first of all company determines the value of product in the eyes of customer that is how much a customer is willing to pay for the product and then if cost of production of that product is more then the customer willing to pay then company makes analysis of how they can reduce the cost of production to the level of cost a customer willing to pay by reducing the components of product which is costing towards final price but not giving any value to customer and in this way company tries to acheive the target cost customer willing to pay.
Why do suppliers use price rather than production to resolve problem excess deman?
If supply increases and demand remains unchanged then lower equilibrium price and higher quantity. Suppliers cannot be assured of product sale, and product equilibrium price may be lower than cost of product, due solely to market saturation
How much does a Dyson DC15 cost?
The Dyson DC15 is manufactured by the Dyson company and is sold worldwide. The cost can vary between suppliers but is likely to be around the å£480 mark.
Difference between net profit and turnover?
Net Profit is the profit determined by a company after deducting the cost of product plus the cost of carrying the prdt from the gross received amount. While turnover of a company represents the total volume of sales a company does .It includes the cost price of the product plus the profit.
How much cost that can be consumed by the company to produce high quality product?
All the cost belong to you, for great justice.
What will happen if a product becomes more popular and there is a fall in the cost of its production?
If a product increases in poularity, and decreases its production cost, I would expect that the company selling this product is going to enjoy increased profits.
How money encourages specialization?
exchange cost
How cost accounting helps the firm in determining the selling price?
Cost accounting helps a company know how much an item cost a company. The company can then add the cost they need to make to the product, usually done as a percentage.
