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One example of non unit level overhead cost is the cost of business consulting. Another example is paying the CEO. These costs can't be linked to a direct product.
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What is the definition for non core business processes?
Non-core business processes are activities that supply no competitive advantage and are less likely to do serious harm to the company in the short term if poorly performed, though they are still important. They are those, which are not essential, defining activities of the organization (Core activities) or ones that do not place an organization at a competitive disadvantage or create a risk (Critical but non-core activities). Examples are cleaning and security.
Formula for net operating assets?
Get the balance sheet and sererate any financing activities from the operating activities. Financing activities are anything that is interest-bearing like debt, equity investments etc and not part of the business' everyday operations. The reformatted balance sheet should look like this: Operating Activities: Current Assets - Current Liabilities = Net Current Assets + Non Current Assets - Non Current Liabilities = NET OPERATING ASSETS - Financing activities (Net Financial Obligations) = Equity Cash is not an operating asset so the basic equation is: Total Assets - Cash = Operating Assets Total Liabilities - LTD - Current LTD = Operating Liabilities NOA = Operating Assets - Operating Liabilities
What is the difference between operating expenses and non-operating expenses?
An interview with a company's operations managers and a review of its commercial ambitions often give investors a clear idea of the firm's operating activities.
What is a non-operated joint venture?
i take the scenario of exploration fields.. for instance, shell is operating in an exploration field as a partner for executing exploration related activities having lesser percentage share (20 to 80%) and shell does not act as an owner for this project and hence known Non operated venture.
What is a non profit organizaton?
hahaha. it means they dont make money from what they do. A non-profit is an organization founded for one of several reasons (education, scientific endeavors, etc.) for public support. Contrary to what most people believe, non-profits can in fact make a profit. The difference is that for-profits may then divide up these profits and disburse them among the various officers and directors. You cannot do this in a non-profit. Also, if organizations are looking to be tax-exempt (not subject to federal income tax) then there are various restrictions that are put in place and certain activities that non-profits cannot engage in.
Discuss why overhead costing methods using plant-wide overhead rate or departmental overhead rates are no longer adequate for costing products and sevrices in other companies?
With advancing technology and intense competitions, companies will strive to provide wider varieties of goods and services. Companies will thus produce both simple and complex products. Complex products tend to consume more non-unit level activities. Examples of non-unit level activities are setups, inspections and equipment maintenance, etc. When there is a large proportion of non-unit level activities, plant-wide overhead rate and departmental overhead rates will result in inaccurate costing. This is because the two traditional methods use unit-level cost driver that cannot capture non-unit level activities with precision. An example of unit-level cost driver is machine hours, since every product requires machine time. Usually complex products are produced in lower volume than simple products. Since the traditional costing methods use a unit-level cost driver, simple products will have higher overhead costs than the complex products. The products will thus be priced higher. The complex products, which use more non-unit level activities are priced lower. Logically, complex products are more expensive than simpler products because of their more complicated production processes. These production processes involve more non unit-level activities. The inaccurate costing leads to inaccurate prices of products, i.e. overpricing the simpler products and underpricing the complex products. The overpriced products might lead the firm to shut down its production unit due to low demand. Similarly, the underpriced complex products will have unexceptionally higher demand. This will undermine the true profits made by the firm. Because although higher demands lead to higher sales, the revenue that the firm collects are, in fact, less than what it supposed to get, if proper costing method is used, e.g. ABC Costing. Companies will incur losses instead because of the high expenses incurred that are not captured in producing the complex products. Hence, the plant-wide rate and departmental rates are no longer adequate to use for costing products.Activity based costing refers to the methodology that identifies activities in a given organization and assigning each activity a given cost.
Why are overhead costing methods using a plantwide overhead rate no longer adequate for pricing products and services?
With advancing technology and intense competitions, companies will strive to provide wider varieties of goods and services. Companies will thus produce both simple and complex products. Complex products tend to consume more non-unit level activities. Examples of non-unit level activities are setups, inspections and equipment maintenance, etc. When there is a large proportion of non-unit level activities, plant-wide overhead rate and departmental overhead rates will result in inaccurate costing. This is because the two traditional methods use unit-level cost driver that cannot capture non-unit level activities with precision. An example of unit-level cost driver is machine hours, since every product requires machine time. Usually complex products are produced in lower volume than simple products. Since the traditional costing methods use a unit-level cost driver, simple products will have higher overhead costs than the complex products. The products will thus be priced higher. The complex products, which use more non-unit level activities are priced lower. Logically, complex products are more expensive than simpler products because of their more complicated production processes. These production processes involve more non unit-level activities. The inaccurate costing leads to inaccurate prices of products, i.e. overpricing the simpler products and underpricing the complex products. The overpriced products might lead the firm to shut down its production unit due to low demand. Similarly, the underpriced complex products will have unexceptionally higher demand. This will undermine the true profits made by the firm. Because although higher demands lead to higher sales, the revenue that the firm collects are, in fact, less than what it supposed to get, if proper costing method is used, e.g. ABC Costing. Companies will incur losses instead because of the high expenses incurred that are not captured in producing the complex products. Hence, the plant-wide rate and departmental rates are no longer adequate to use for costing products. With advancing technology and intense competitions, companies will strive to provide wider varieties of goods and services. Companies will thus produce both simple and complex products. Complex products tend to consume more non-unit level activities. Examples of non-unit level activities are setups, inspections and equipment maintenance, etc. When there is a large proportion of non-unit level activities, plant-wide overhead rate and departmental overhead rates will result in inaccurate costing. This is because the two traditional methods use unit-level cost driver that cannot capture non-unit level activities with precision. An example of unit-level cost driver is machine hours, since every product requires machine time. Usually complex products are produced in lower volume than simple products. Since the traditional costing methods use a unit-level cost driver, simple products will have higher overhead costs than the complex products. The products will thus be priced higher. The complex products, which use more non-unit level activities are priced lower. Logically, complex products are more expensive than simpler products because of their more complicated production processes. These production processes involve more non unit-level activities. The inaccurate costing leads to inaccurate prices of products, i.e. overpricing the simpler products and underpricing the complex products. The overpriced products might lead the firm to shut down its production unit due to low demand. Similarly, the underpriced complex products will have unexceptionally higher demand. This will undermine the true profits made by the firm. Because although higher demands lead to higher sales, the revenue that the firm collects are, in fact, less than what it supposed to get, if proper costing method is used, e.g. ABC Costing. Companies will incur losses instead because of the high expenses incurred that are not captured in producing the complex products. Hence, the plant-wide rate and departmental rates are no longer adequate to use for costing products.
Overhead departmentalization in non-manufacturing business?
denine overhead departmentalization
What is the difference between production overhead and non-production overhead?
Production overhead are overhead items necessary to produce your product or service, such as the square footage necessary to house your production equipment and area. Non-production overhead will include items not directly related to production, such as advertising & garbage collection, for example.
How can you eliminate non added value activities?
non value adding activities can not be eliminated. Waste are non-value adding activities that should be eliminated.
Which options are properties of contention-based media access for a shared media?
- non-deterministic - less overhead - collisions exist
Non economic activities and its examples?
What is the difference between economic and non economic activities.?
What are alternatives to rotator cuff surgery?
A majority of those with rotator cuff syndrome respond to conservative non-surgical approaches. Conservative therapies include.heat or ice.medication.cortisone injections.rest.reduction of activities that involve the movement of the arms overhead
What is on overhead?
Overhead refers to the cost of a business in a particular period. Specifically, overhead points to fixed and indirect costs. They are non-labor costs. Non-labor costs are variable or fixed. Rent and salaries are examples of fixed costs. Advertising and supplies are variable costs.
What are non- farm activities?
the activities which rae not related to farming or agriculture are known as non farm activities for example transprotation,production,manufacturing .
Is the Chevy 2.2 a overhead cam motor?
The older ones, non ecotec are not overhead cam. they Use the cam in block with pushrods.
Factory overhead departmentalization in non-manufacturing business?
an accounting procedure
