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Total costs less conversion costs equal to material costs?
Conversion cost is total of: Options Direct material and direct wages Direct material, direct wages, and production overheads Direct wages and production overheads. None of the above
Factors in determining over applied variance?
Over-applied variance occurs when the actual overhead costs incurred are less than the overhead costs that were applied based on estimated rates. Key factors in determining this variance include the accuracy of the overhead rate estimates, the actual level of activity or production, and fluctuations in fixed and variable overhead costs. Additionally, changes in operational efficiency and unexpected changes in production volume can also influence the extent of over- or under-applied overhead. Analyzing these factors helps organizations better manage their budgeting and cost control processes.
What are the functions for an MPS?
A Master Production Schedule (MPS) serves several key functions, including planning and controlling production activities, aligning manufacturing with demand forecasts, and optimizing inventory levels. It helps in coordinating resources efficiently, ensuring that materials and labor are available when needed. Additionally, the MPS provides a framework for scheduling production runs, managing lead times, and enhancing communication across departments. Ultimately, it aims to balance supply and demand while minimizing costs and maximizing customer satisfaction.
When does concentration of production make sense?
Concentration of production makes sense when economies of scale can be achieved, allowing for lower costs per unit as production increases. It is also beneficial in industries with high fixed costs, where spreading these costs over a larger output can enhance profitability. Additionally, concentration can facilitate specialization, leading to increased efficiency and innovation. However, it is important to consider market demand and the risk of over-reliance on a single production site.
What does breakeven point mean?
Breakeven Analysis is the process of categorizing costs of production between variable and fixed components and deriving the level of output at which the sum of these costs, referred to as total costs per unit become equal to sales revenue. The analysis helps to determine the 'Breakenev Point' from this point of equality of sales revenue with total costs. At the breakeven point, the production activity neither generates a profit nor a loss. Breakeven analysis is used in production management and Management Accounting.
What ratio sHows an organization's effectiveness in minimizing production costs?
efficiency ratio
How is just in time technique applied in organization?
Just-in-time (JIT) technique involves producing goods only as they are needed in the production process, reducing inventory costs and waste. It is applied in organizations by closely coordinating supply chain and production processes to ensure materials arrive exactly when they are needed for production. By minimizing excess inventory and focusing on efficiency, organizations can lower costs and improve responsiveness to market demands.
What do cost accounting systems track?
These allow organizations to track the costs associated with production of goods and performance of services.
What are production costs?
Production costs are costs to produce
What things do variable costs include?
Variable costs vary depending on a company's production. Production, or output, and costs are included in variable costs. Production and costs are directly related.
What benefit analysis is a process that involves?
Maximizing benefits and minimizing costs
How can linear programming be utilized to develop an aggregate plan for production?
Linear programming can be used to develop an aggregate production plan by optimizing the allocation of resources to meet production goals while minimizing costs. This mathematical technique helps in determining the best combination of production levels for different products to achieve maximum efficiency and profitability.
What cost benefit analysis is a process that involves?
Maximizing benefits and minimizing costs
What Cost-benefit analysis is a process that involves?
Maximizing benefits and minimizing costs
Maximizing benefits and minimizing costs?
Lay offs / downsizing of staff personal budgeting
How is advertising costs measured?
it is important to calculate costs and measure media effectiveness to best reach audience.
Cost benefit analysis is a process that invloves whcih of the following?
Maximizing benefits and minimizing costs.
