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Why are cost ascertainment and cost estimation important to a manufacturing firm?
Wiki User
∙ 13y ago
Cost ascertainment as well as cost estimation both are inter-related and are immense use to the management. In case of concern has a sound costing system, the ascertained costs will greatly help the management in the process of estimation of rational accurate costs which are no necessary for a variety of purposes stated above. Moreover, the ascertained costs may be compared with the predetermined costs on a continuing basis and proper and timely steps be taken for controlling costs and maximizing profits.
Wiki User
∙ 13y ago
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Is advertising a direct variable cost?
Advertising is not a variable cost as well as not a direct cost because it has no connection with manufacturing of units of products as well as it does not vary with volume of products.
What are the characteristics of marketing's production era?
Companies believed that exchanges could be facilitated merely by lowering manufacturing costs, and in turn, passing along the cost savings to customers in the form of lower prices.
What is the resale value of 22kt gold jewelry in Indian market?
the resale value is determined by the original price of gold in market - manufacturing cost - service tax at the time of purchase or you can take the purchase price of gold - 20% of that price.
What is a value chain Coca-Cola has?
a-cola might have the following value chain elements: 1. Research and development (Will cherry taste good with cola?) 2. Manufacturing (How much does the bottling plant cost to build and run? How often do factories need to be re-engineered?) 3. Cost of goods sold (How much does it cost to manufacture cola? Is there a frost in Florida that will drive up the cost of cherries?) 4. Packaging and shipping (How much does that new design of packaging cost? Are many cans of cola lost in transit? What are the fixed costs of shipping?)
What are the major factors affecting the pricing strategy of firms?
Product pricing may depend heavily on the productivity of a manufacturing facility (e.g., how much can be produced within a certain period of time). The marketer knows that increasing productivity can reduce the cost of producing each product and thus allow the marketer to potentially lower the product's price. However, increasing productivity might require large changes at the manufacturing facility that will take time and money and will not translate into lower price products for a considerable period of time.
Why cost estimation is important for project management?
Cost estimation is important because each project has the risk of added costs that weren't consider up front throwing the project into a state where you may not have the budget required to continue working on the project. The cost estimation should include the initial assessment plus % available for added costs.
What is the difference between estimation and costing?
1,estimation is finding the cost before it has been actually manufactured. and costing is finding cost after manufacturing the product including the defect product cost. 2,estimation need high technical skills and knowledge hence its done by engineering department but costing need high accounting skills hence its usually done by Accountants or account departments 3,estimation foresee the probable cost and hence it can be used to decide whether one need to produce a particular product or not. or if its profitable or not costing helps to understand to what extent the estimation holds good also when and where it fails
Are manufacturing cost an important criteria while converting input into output?
false
Is Manufacturing cost is overhead or variable?
Manufacturing cost is variable cost.
Is fire a selling cost manufacturing cost direct manufacturing cost indirect administraitve cost fixed cost or variable cost?
Is fire a selling cost, direct manufacturing cost, indirect manufacturing cost, administrative cost, foxed cost or variable cost.
Difference between pre-feasibility and feasibility?
The most difference is on cost estimation. In PreFS, cost estimation is based on assumptions while cost estimation in FS is normally based on vendors' offers/proposals, at least for expensive price equipment/materials.
What is a manufacturing cost variance?
manufacturing cost refers to varaiable costs
What is a estimation?
an estimation is an educated guess as to the cost of a certain procedure or product.
Is direct material a selling cost?
is direct cost a? Selling cost, manufacturing costs, direct, manufacturing cost indirect, general and administrative cost, fixed cost , variable cost, is direct cost a? Selling cost, manufacturing costs, direct, manufacturing cost indirect, general and administrative cost, fixed cost , variable cost,
What role of cost accounting in manufacturing organization?
cost accounting plays very important role in manufacturing organisation.unless cost accounting system one can't get the cost of the product appropriately.Many organisations fix their selling price based on the cost information.Not only in ascertaining cost of the product it can be used as measurement for their performance
Role of cost accountant in manufacturing organization?
cost accounting plays very important role in manufacturing organisation.unless cost accounting system one can't get the cost of the product appropriately.Many organisations fix their selling price based on the cost information.Not only in ascertaining cost of the product it can be used as measurement for their performance
Is manufacturing overhead same as manufacturing cost?
No. Cost would include the cost of materials. Overhead would not.
