1 / 10

ME 2605 -Performance and Cost analysis

ME 2605 -Performance and Cost analysis. INTEC ENTERPRISES. AMRISH GUPTA LI HONG RAMESH KHANAL XIONG JIE. Value Chain. Product portfolio. Cost centre, profit center, invest centre. Milk Can. Kitchen Utensil. Pump&Motors. Agriculture Equipment. Fasteners. PRODUCTION.

raanan
Download Presentation

ME 2605 -Performance and Cost analysis

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. ME 2605 -Performance and Cost analysis INTEC ENTERPRISES AMRISH GUPTA LI HONG RAMESH KHANAL XIONG JIE

  2. Value Chain Product portfolio Cost centre, profit center, invest centre Milk Can Kitchen Utensil Pump&Motors Agriculture Equipment Fasteners PRODUCTION Procurement Quality Control Selling & administration Research and Development Assembly

  3. Managerial Strategy • Price taker facing long term product-mix decisions • Activity based profitability analysis essential. • Target costing • non-customized high sales volume products. • Price dominates markets.

  4. Second Stage Allocation First Stage Allocation Traditional approach

  5. Assigning to final product Traditional approach

  6. Second Stage allocation First Stage allocation ABC Approach

  7. Assigning to final product ABC Approach

  8. Cost Comparison

  9. Break Even Analysis Sensitivity to Volume

  10. Break Even Analysis Sensitivity to total over head

More Related