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 Essay about job being

JOB PRICED AT

JOB COSTING

Cost target is a unit or multiple units of your distinct product or service called a work.

Product or service can be

A single product such as:

1 . Specialised equipment done by Hitachi.

installment payments on your A development project been able by M & Capital t.

3. Advertising campaign produced by Saatchi and Saatchi.

Multiple identical unit including:

1 . Agni missile intended for Ministry of Defense made by HAL.

TASK COSTING

SERVICE

SECTOR

WORK

COSTING

PROMOTING

SECTOR

-- Audit sites to be done - Special promotion of

by simply PWC.

new products by

- Consulting engagements Shopper's Prevent.

done by McKinsey & Co.

-Advertising advertisments run

simply by Ogilvy and Mather.

-- Movies created by R T

Movies.

MAKING

SECTOR

-Assembly of

individual aircrafts by

Boeing.

-- Construction of ships

for Mazgaon Ipod dock

JOB COSTING – DECISION MAKING PROCESS

1 . Identify the problems and uncertainties – What it will cost to complete the job as well as the prices that its opponents are likely to put money.

2 . Obtain information – Is the task consistent with the companies strategy.

several. Make estimations about the near future – Do the employees have requisite skill sets, Likelihood of the cost overruns.

4. Make decisions by choosing among alternatives – Place the bid if you take into account probably bids of competitors, risks, qualitative elements.

5. Apply the decision, assess performance and find out.

JOB PRICED AT – WAY

1 . Recognize the job that is certainly chosen because the cost subject.

2 . Discover the direct cost of the position.

3. Pick the cost allowance bases to use for allocating indirect costs to the work.

4. Identify the indirect costs associated with every cost share base.

five. Compute the rate per product of each expense allocation base used to spend indirect costs to the task.

6. Calculate the roundabout cost allocated to the job.

six. Compute the whole cost of the work by allocating the immediate cost and indirect price.

JOB BEING - REPRESENTATION

ILLUSTRATION

Heavy engineering firm manufactures and installs specialised machinery to get paper making industry. It receives a request to bid to get manufacturing and installing a brand new paper producing machine intended for Western pulp and conventional paper company.

DECISION MAKING PROCESS

1 ) How much to bid intended for WPP work. What it will cost to complete the job and the prices that the competitors are likely to bid.

installment payments on your Obtain information – If WPP task is in line with HEC's strategy. Will HEC be able to develop a competitive edge over it is competitors. 3. Make forecasts about the future – The actual engineers and employees working on the WPP job have necessary abilities and technical competence. HEC's managers will need to seek one of the most relevant info when making their very own judgments. 4. Make decisions by choosing between alternatives – HEC bids Rs one particular, 50, 500 for WPP job. This includes cost of Rs 1, 00, 000 and mark up of Rs 60, 000. it has placed the bid by taking into mind likely prices for bids of opponents, risks, qualitative factors. your five. HEC is victorious the bid, while work on WPP job is definitely on, it keeps a careful track of every costs to facilitate comparability and evaluate how well they did for the WPP work.

JOB CHARGING – ACTIONS

1 . Recognize the job that is chosen since the cost target.

Cost target is Work WPP 298- Manufacturing newspaper making equipment HEC's managers gather data of price through source documents. The main source doc is WORK COST RECORD.

JOB BEING – STEPS

JOB PRICE RECORD

TASK NO

Date started

WPP 298

01. 10. 2010

COSTUMER American Pulp & Paper

Time completed 31. 10. 2010

DIRECT COMPONENTS

Date received Material Requisition No

12. 10. 2010

2010: 198

15. 10. 2010

2010: 199

Component No

468A

267F

Volume used

almost 8

12

Product cost

150

630

Total cost

1, 120

six, 560

XX

46, four hundred

DIRECT WORK

Period covered Labour period record No

Oct 10-17

LT 232

Oct 10-17

LT 247

Employee Zero

551-89

287-90

Hours used

25

a few

Hour charge

180

one hundred ninety

Total expense

4, five-hundred

950

TWENTY

14, 000

MANUFACTURING OVER HEAD...

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