Flower Pharmaceuticals Essay examples

What Is Your Estimate? Once an individual or team has assessed your project, they should be able to provide a general estimate. If they cannot or will not do that, you have no assurance of a price range. Make sure that you get an estimate in writing. Verbal promises are difficult to

Most direct costs can be charged to a program without any allocations, such as salaries and benefits of most of employees when assigned full time to a particular program;

below, that plant overhead is a committed (fixed) cost during the year, but that direct

This defined expenses recognized on income statements were a function of an employer’s funding policy, not their economic cost.

Implicit simply implies the problem, letting one ponder and figure out the facts for themselves. Whereas, explicit straight out tells one the problem, giving all the facts, then telling one to decide.

Define and give examples of cost classifications used in making decisions: differential costs, opportunity costs, and sunk costs.

Total cost structure suggests that the costs they will incur during the business would be 8,196,000 per annum and the revenue generated for the project would be 12,100,000 per annum.

On the other hand, indirect costs are the opposite of direct costs. This means, the costs under this are the ones that cannot be linked back to the cost under inspection (Seal

Indirect costs are costs that are not directly accountable to a cost object (such as a particular project, facility, function or product). Indirect costs may be either fixed or variable. Indirect costs include administration, personnel and security costs. These are those costs which are not directly related to production. Some indirect costs may be overhead. But some overhead costs can be directly attributed to a project and are direct costs. (wikipedia, n.d.)

Indirect costs that could not be traced back directly to the income statement were then assigned to cost pools by activity. The cost for each activity were then divided by the total volume of the cost driver and assigned to the cost objectives.

For example, if a company produces furniture, the cost of the wood or fabric, the cost of the employee building the furniture and the patent for the design are direct costs. They are clearly visible to the production department and to each item produced.

Indirect costs are typically fixed costs that cannot be tied to a specific product or production process. Examples of these costs are advertising, maintenance, supervision, anything that is difficult to assign to a specific cost object. A direct cost, on the other hand, is a cost that is traceable to a specific product or service. An example of a direct cost would be the plastic used to produce a child’s toy. The cost of the plastic is easily attributable to the cost of production of the toy and is

Relevant costs are those costs which would be changed by a managerial decision and are also the future costs that will differ among alternatives according to (Accounting Verse,2014). Its concept is that management requires data and information to take important decisions regarding management and high level authorities and this data can make decision making teams confuse because of its huge quantity, so they eliminate unnecessary data which could make the decision making process complicated and the management can make decisions on the basis of selected data. Examples of relevant cost include differential, avoidable and opportunity costs. It is also expressed as opportunity cost as it is the benefit foregone by choosing one opportunity instead of the next best alternative. Future outlay cost may or may not be relevant.

The implicit cost is the cost connected with an alternative while the explicit cost is accounting cost of making a decision, which represents clear, obvious outflows from a business.

Direct costs is a cost that can be followed straightforwardly to (or related to) a particular cost