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Cost Reduction Sample Assignment

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Added on  2021-02-19

Cost Reduction Sample Assignment

   Added on 2021-02-19

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Cost Reduction
Cost Reduction Sample Assignment_1
Table of ContentsINTRODUCTION...........................................................................................................................3TASK...............................................................................................................................................3A.............................................................................................................................................3B.............................................................................................................................................4CONCLUSION................................................................................................................................5REFERENCES................................................................................................................................6
Cost Reduction Sample Assignment_2
INTRODUCTIONCost reduction is significant management task which ensures desired profitability for abusiness entity. In this context this strategy covers computation of job cost, and advantages,criticism and explanation of activity-based costing. TASKA.Calculation of cost of Job: Following are key calculation for computing cost of job, as follows:Direct Costs Indirect Costs€€Materials :65,000Labour: 19,000Labour: 72,000Depreciation:10,000Rent and Rates:6,800Heating:5,000Indirect materials:4,000Others: 2,000Total: 1,37,00046,800Machine hours : 2,900Direct labour: 19000(€ 72000/19000) = 3.79€p/hrOverhead recoveryrate: 46,800/2900 = 16.14€p/hrBudgeted costs for Job:Option A:Direct labour: 1,137 (€ 3.79 x 300)Direct material : 1,560Overheads: 739 (46800 x 1137 / 72000)3,436
Cost Reduction Sample Assignment_3

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