It is sort of outsourcing exercise which is executed as a cost controlling measure thereby enabling management to focus on critical matters.
Explanation:
Here, if in the given case CANE outsources manufacturing activity to an established supplier it can save on hiring factory and cost and lab our overheads and can effectively focus on more critical functions including sales and strengthening supply chain management .
They can effectively deploy capital to more productive options.
This process if considered after due diligence will enable it to improve its financial position.
It only needs to ensure that supplier is committed to service, quality and delivery with flexibility so that financial benefits syncs with the set of expectations.
If you were to buy 5 yards at $14 a yard, your first cost would be at $70. But with 14 being 20% of 70, you would subtract 14 out of the $70, which would leave your final cost at $56.
Answer:
price and quantity variances.
Explanation:
In Financial accounting, costing is the measurement of the cost of production of goods and services by assessing the fixed costs and variable costs associated with each step of production.
Manufacturing costs can be defined as the overall costs associated with the acquisition of resources such as materials and the cost of converting these raw materials into finished goods. Manufacturing costs include direct labor costs, direct materials cost and manufacturing overhead costs.
Total direct materials variance gives the difference between the budgeted cost and actual cost of a unit of goods produced.
Generally, a total materials variance is analyzed in terms of price and quantity variances used by a manufacturer in the manufacturing of a particular product.
I do not agree with the given statement that is "Only variable costs can be differential costs.".
The difference in the costs of two alternative decisions is referred to as differential cost.
When a company is faced with several similar options, it must make a decision by selecting one and discarding the other.
Variable costs in cost accounting are costs that vary according to how much a company produces.
Variable costs are typically proportional to output.
As a result, the cost difference between two alternatives, rather than the fixed and variable nature of costs, is relevant for decision-making.
Hence, I disagree with the statement given in the question.
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Answer:
Perfect competition is an ideal type of market structure where all producers and consumers have full and symmetric information, no transaction costs, where there are a large number of producers and consumers competing with one another. Perfect competition is theoretically the opposite of a monopolistic market.
Explanation:
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