Analyzing The Concepts Of Production And Cost Essay

Total Variable Cost = (Number of Workers * Worker’s Daily Wage) + Other Variable Costs

To analyze The Goal, Part 2, I have chosen the second option to analyze a complex value creation system using management concepts. Management is being able to prioritize, making decision and coordinate the entire process effectively and efficiently through others, while utilizing all the resources to achieve the organization objectives and goals. The novel continues as Mr. Rogo seeks for more suggestion from his colleague Jonah to keep the plant operating producing revenue. Mr. Rogo is having some personal issues at the moment, he is having a difficult time managing his family which is probably affecting his professional life and the decision he tries to make regarding in managing Bearington Manufacturing Plant. I would suggest that Mr. Rogo take into consideration the Theory of Constraints (TOC) to assist him in evaluating the production of enhancing the performance of the Plant. According to, Dalton, M. A. (2009). “This is a tool that has been used to help manufacturing operations identify and eliminate bottlenecks. This approach enables innovators to rapidly improve their growth results while gradually creating a culture of continuous innovation improvement.” (p.52).

Q 2: Test the accuracy of the monthly postings to the general ledger. Note that the table includes a month code. Monthly sales per the general ledger are provided below:

|B)     On the same set of axes, plot the total , average, and marginal-revenue schedules of part (a) |

In order for any business to be successful they would need to know how to make the most profit for the goods they are producing and selling.

What formula or function does he put in columns B through F in Row 13 that will give him the total expenses for the week in each category?

2.) Develop a similar table to show the effects of adding operations on Saturday. (Assume that 30 operations would still be performed each day.)

Such decisions may affect the company’s profitability today but judging from the fact that high risk means low stock price and vice-versa, high return waits in the future.

Opportunity cost is the value of the next best alternative in a decision. Imagine that you have $150 to see a concert. You can either see "Hot Stuff" or you can see "Good Times Band." Assume that you value Hot Stuff's concert at $225 and Good Times' concert at $150. Both concerts cost $150 per ticket, but it would take you a couple of hours to drive to Hot Stuff's concert and you have to be in school (the next) morning for an exam. Good Times' concert is right here in town. Explain how you would assess the opportunity cost of seeing Good Times in concert. What is the opportunity cost of going to Good Times' concert?

5. The following table shows the quantities of ice cream cones that will be demanded and supplied at various prices.

A comparison of the direct and indirect cost that is associated with the navigation system within VectorCal and my company.

Besides, decreasing the production cost is also important as the firm can then lower the price. So the decisions related to change in plant size, process improvement and the training are also important.

The following three plots shows the average inbound commuters by bicycle from the three separate years of data. Only the inbound data was accounted for to prevent any possible error by doubling up on data, as well as the possibility of a commuter going inbound but not outbound on the same day.

The long run average, or law of large numbers, makes it possible for owners and managers to better visualize how optimal strategies can be formulated in order to lower their costs and increase their systems’ performance and effectiveness.

The current method of apportioning production overheads based on direct labour hours can be described as a traditional approach to product costing. In a manufacturing company’s financial statements, each item produced must be allocated some of the production overheads to make the statements compliant. Sometimes the individual costs of these items can be calculated incorrectly based on overall production overhead and the system of allocating in place, however the overall financial statement can still be accurate. This traditional method of allocating the production