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Why are cost ascertainment and cost estimation important to a manufacturing firm?
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.
What is differentiated marketing and what are five costs associated with this type of marketing?
Differential marketing is when a company targets more than one segment and has a different approach for each. The five costs associated with it are technology costs, price/quality, customer service, product differentiation, and user differentiation. All of these 5 things can effect the cost to run a business.
What are price setting tools for existing and new products?
Factors underlaying the decision:-Direct and Indirect costs-Fixed costs long term investment the recovery can be deffered and variable costs must be recovered from sale of the product/service-Compititiveness-as if the product/service is not very strong to lead the market then there is not much control on pricing of the same as if not able to lead then have to follow the trend-Other Economic Factors-Tax structue/Goverment Aid,Entry and Exit barriers-Nature of product-whether the product can be used independently or has to be used along with another,whether its a Industrial/Consumer product-Brand Image of the Organisation and whether the product is part of range of products-Marketing and Promotion plan - The stretagy of the organisatin will drive the plan of marketing and promotion which considers the target market as in any economy Customer is considered to be the King.-Point of break even (Level of activity where all costs are recovered) as this will be minimum level of production and sale expected to be carred out to be in no profit no loss position.
Discuss the factors influencing product mix?
There are a few factors that influence product mix . The main few are changes in the demand in the market , what is costs to produce the product , and financial generation.
What is 'value and satisfaction' in marketing?
The buyer chooses between different offerings on the basis of which is perceived to deliver the most value. Value reflects the perceived tangible and intangible benefits and costs to customers. Satisfaction reflects a person's comparative judgment resulting from a product's perceived performance (or outcome) in relation to his or her expectations.
What is the difference between cost centre and cost unit?
cost centre is a production or service location, function, activity or item of equipment for which costs are accumulated(i.e stores,canteen, farm, personnel) cost unit is a unit of product or service in relation to which costs are ascertained(i.e typewriter,thousand of washers)
What are the advantage of computerize?
Lower Costs A better Service or Product A new service or Product
Fixed costs are costs that?
Fixed costs are costs that donot vary with the quantity of the product produce and have no relation with volume of product like administration staff salary or building rent etc.
Costs which are ascertained after they have been incurred are known as?
Costs which are ascertained after they have been incurred are know as "Historical Cost".
What basicaly business is?
To sell a product or service at price higher than what it costs to you to make that product or provide that service. Basically to be profitable.
Things you must give up to buy the product or service are called product?
opportunity costs
What does an advertisement have?
An advertisement contains information about a product or service that is available for purchase by consumers. It usually has: details about the product or service, where it is available and how much it costs.
What are Things you must give up to buy product or service called?
opportunity costs
How do you calculate the average cost of a product or service?
To calculate the average cost of a product or service, you add up all the costs associated with producing that product or service and then divide by the total number of units produced. This gives you the average cost per unit.
What is a cost unit in cost accounting?
Cost unit is a unit of production, service or time or combination of these, in relation to which costs may be ascertained or expressed. Ex: Toy making: Batch costing, unit of cost: per batch (ex: $500 per batch) Advertising: Job Costing, unit of cost: per Job Hospital: Operating costing, unit of cost: per patient day
How is cost determined?
Cost is determined by calculating all expenses related to producing a product or providing a service, including materials, labor, and overhead costs. These costs are then used to establish the selling price of the product or service to ensure a profit margin. Various costing methods, such as job order costing or activity-based costing, can be used to determine costs accurately.
Describe the differences between implicit costs and explicit costs?
Explicit costs are those that are a result of a product. Implicit costs are costs that are associated with a product, but they can't be directly linked to the product.
