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Joint Cost
Manufacturers incur many costs in the production process. It is the cost accountant's job to trace these costs back to a certain product or process (cost object) during production. Some costs cannot be traced back to a single cost object. Some costs benefit more than one product or process in the manufacturing process. These costs are called joint costs. Almost all manufacturers incur joint costs at some level the manufacturing process. It can also be defined as the cost to operate joint-product processes including the disposal of waste.Wouters, Mark; Selto, Frank H.; Hilton, Ronald W.; Maher, Michael W. (2012): ''Cost Management: Strategies for Business Decisions'', International Edition, Berkshire (UK), p. 532. With regard to joint costs, it is essential to allocate the joint cost for the different joint products for determining individual product costs. Several methods are used to allocate joint costs. These methods are mainly classified onto engineering and non-engineering methods ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Waste
Waste are unwanted or unusable materials. Waste is any substance discarded after primary use, or is worthless, defective and of no use. A by-product, by contrast is a joint product of relatively minor Value (economics), economic value. A waste product may become a by-product, joint product or resource through an invention that raises a waste product's value above zero. Examples include municipal solid waste (household trash/refuse), hazardous waste, wastewater (such as sewage, which contains bodily wastes (feces and urine) and surface runoff), radioactive waste, and others. Definitions What constitutes waste depends on the eye of the beholder; one person's waste can be a resource for another person. Though waste is a physical object, its generation is a physical and psychological process. The definitions used by various agencies are as below. United Nations Environment Program According to the Basel Convention on the Control of Transboundary Movements of Hazardous Wastes a ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Market Share
Market share is the percentage of the total revenue or sales in a Market (economics), market that a company's business makes up. For example, if there are 50,000 units sold per year in a given industry, a company whose sales were 5,000 of those units would have a 10percent share in that market. "Marketers need to be able to translate sales targets into market share because this will demonstrate whether forecasts are to be attained by growing with the market or by capturing share from competitors. The latter will almost always be more difficult to achieve. Market share is closely monitored for signs of change in the competitive landscape, and it frequently drives strategic or tactical action."Farris, Paul W.; Neil T. Bendle; Phillip E. Pfeifer; David J. Reibstein (2010). ''Marketing Metrics: The Definitive Guide to Measuring Marketing Performance.'' Upper Saddle River, New Jersey: Pearson Education, Inc. . The Marketing Accountability Standards Board (MASB) endorses the definitio ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Net Realizable Value
Net realizable value (NRV) is a measure of a fixed or current asset's worth when held in inventory, in the field of accounting. NRV is part of the Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS) that apply to valuing inventory, so as to not overstate or understate the value of inventory goods. Net realizable value is generally equal to the selling price of the inventory goods less the selling costs (completion and disposal). Therefore, it is expected sales price less selling costs (e.g. repair and disposal costs). NRV prevents overstating or understating of an assets value. NRV is the price cap when using the Lower of Cost or Market Rule. Under IFRS, companies need to record the cost of their ending inventory at the lower of cost and NRV, to ensure that their inventory and income statement are not overstated (under ASPE, companies record the lower of cost and market value). For example, under IFRS, at a company's year end, if ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Proportionality (mathematics)
In mathematics, two sequences of numbers, often experimental data, are proportional or directly proportional if their corresponding elements have a constant ratio. The ratio is called ''coefficient of proportionality'' (or ''proportionality constant'') and its reciprocal is known as ''constant of normalization'' (or ''normalizing constant''). Two sequences are inversely proportional if corresponding elements have a constant product. Two functions f(x) and g(x) are ''proportional'' if their ratio \frac is a constant function. If several pairs of variables share the same direct proportionality constant, the equation expressing the equality of these ratios is called a proportion, e.g., (for details see Ratio). Proportionality is closely related to ''linearity''. Direct proportionality Given an independent variable ''x'' and a dependent variable ''y'', ''y'' is directly proportional to ''x'' if there is a positive constant ''k'' such that: : y = kx The relation is oft ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Economies Of Scope
Economies of scope are "efficiencies formed by variety, not volume" (the latter concept is "economies of scale"). In the field of economics, "economies" is synonymous with cost savings and "scope" is synonymous with broadening production/services through diversified products. Economies of scope is an economic theory stating that average total cost (ATC) of production decrease as a result of increasing the number of different goods produced. For example, a gas station primarily sells gasoline, but can sell soda, milk, baked goods, etc. and thus achieve economies of scope since with the same facility, each new product attracts new dollars a customer would have spent elsewhere. The business historian Alfred Chandler argued that economies of scope contributed to the rise of American business corporations during the 20th century. Economics The term and the development of the concept are attributed to economists John C. Panzar and Robert D. Willig (1977, 1981). Their 1981 article n ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Specific Costs
Specific may refer to: * Specificity (other) * Specific, a cure or therapy for a specific illness Law * Specific deterrence, focussed on an individual * Specific finding, intermediate verdict used by a jury in determining the final verdict * Specific jurisdiction over an out-of-state party, specific to cases that have a substantial connection to the party's in-state activity * Order of specific performance, court order to perform a specific act Economics, finance, and accounting * Asset specificity, the extent to which the investments made to support a particular transaction have a higher value to that transaction than they would have if they were redeployed for any other purpose * Specific identification (inventories), summing purchase costs of all inventory items * Specific rate duty, duty paid at a specific amount per unit * Specific risk, risk that affects a very small number of assets Psychology * Domain specificity, theory that many aspects of cognition ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
