27.08.2019-342 views -job being
JOB PRICED AT
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.
-- 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
individual aircrafts by
-- Construction of ships
for Mazgaon Ipod dock
JOB COSTING вЂ“ DECISION MAKING PROCESS
1 . Identify the problems and uncertainties вЂ“ What it will cost to complete the job as well as the prices that its opponents are likely to put money.
2 . Obtain information вЂ“ Is the task consistent with the companies strategy.
several. Make estimations about the near future вЂ“ Do the employees have requisite skill sets, Likelihood of the cost overruns.
4. Make decisions by choosing among alternatives вЂ“ 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 вЂ“ 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
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 вЂ“ 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 вЂ“ 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 вЂ“ 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 вЂ“ 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 вЂ“ STEPS
JOB PRICE RECORD
01. 10. 2010
COSTUMER American Pulp & Paper
Time completed 31. 10. 2010
Date received Material Requisition No
12. 10. 2010
15. 10. 2010
46, four hundred
Period covered Labour period record No
one hundred ninety
MANUFACTURING OVER HEAD...