Eastern Dawn Transport Relocation Analysis: The Concepts Of Relevant Costing

This paper will explain GM’s most pressing challenges. Overcapacity is negatively impacted their financial results, brutal international competition is causing GM to react with target costing strategies, rising fuel prices directly impacts their cash flows and complicates capital budgeting strategies and tactics and their ongoing health care and pension costs continue to color their future earning potential.

Our Trucking companies have not only survived the high costs of heavy highway taxes such as, IFTA, IRP, and other taxes like, vehicle registration cost, escalating fuel prices, and skyrocketing insurance premiums. These high operating costs place enough of a burden on small businesses. This does not include tolls, vehicle and trailer maintenance, and payroll. To deal with these rising costs we had to reduce the size of our fleet and personnel.

* The truck transportation industry is a vital part of the Canadian economy with $43 billion in sales annually and employing 400,000 people

Taking advantage of increased development and technological improvement that have occurred in the airline industry, Munro and Khan (2013) mentions that WestJet has become extremely competitive global player. It is also part of the company’s current strategy to differentiate itself from its competitors through relatively higher customer service and affordable tickets. Lamb (2011) indicates that to achieve high customer service, the company offers extensive benefits to its employees, maintains a high corporate culture, and motivates its employees to achieve enhanced customer services. With regard to its value proposition, the airline has a fleet size of 97 and total assets that are valued at 3,473,678,000 Canadian dollars.

Heavy Rail system need track and power therefore it is less costly than bus for volumes greater than 30,000 (O’Sullivan). It is an efficient choice for big cities like New York, San Francisco, or Chicago. For example, the BART uses feeder bus system and heavy rail system. Its capital costs are high due to tracks and right-of-way (Bresnock). BART costs are more expensive than integrated bus system because capital costs, operating costs, and distribution costs are higher. Light rail systems are more common in medium sized-cities. Some older versions of light rail are trolleys, and streetcars. The capital costs are higher than bus, but cheaper than heavy rail since they operate on the surface streets (Bresnock).

“Other airlines were becoming more sophisticated with the integration of IT and guest experience, and WestJet was not keeping pace.” Munro and Kahn, (2013). P.1 realizing the situation, the CEO Saretsky seeks advice from an outside source, Cheryl Smith. He was concerned about whether or not the company had an adequate IT infrastructure. Upon her arrival at WestJet, prior to giving a response to the CEO, Smith did her research and brought in experts to do a comparison study between similar companies in the transportation industry. She wanted to compare WestJet’s IT budget, resources and cost to the standards of the other industries. After the studies were completed, the results showed that WestJet IT technicians were skilled only in WestJet

Each of the above targets have clearly defined targets which need to be achieved in order for funding to be released. If National Rail or any subsidiary fails to meet these targets as noted in the funding agreement, the DfT could initiate the necessary measures to remedy the situation, and if needed, request reimbursement of some of the funding paid.

In 2013, Detroit shined again, and combined came in higher than its global competitors. Research showed U.S. car companies held 46% of auto sales and this surpassed all the competition in Japan, Germany and Korea (Wood, 2014). Detroit automakers were nearly destroyed in 2009 when hit by a crippling recession. The American tax payers bailed the companies out and they have recently started to show the growth it takes to succeed and be number one. The recession has also forced the American auto industry to become more efficient and competitive. It has overall decreased the number of employees and reduced costs in other ways to protect the company’s wellbeing and the taxpayer’s investment.

TAG’s business plan is to provide small trucking companies complete back office solutions and strategic alliances to eliminate the competitive advantage large trucking companies’ benefit from. The small trucking companies will receive greater revenue per mile and have lower operational expenses through TAG’s services, which are gained by leveraging a large client base, forming strategic alliances, and implementing their software.

Ford Motor Company has been in business since the 19th century and it has enjoyed a rather successful run as one of the top automobile industries in the United States. Ford Motor Company is a prosperous business because of strategic changes that it was willing to develop and implement. Successful corporations have to adapt to the constantly changing environment or the company will be doomed to failure. In other words, customer shopping habits change as new products are introduced to the market or when other factors beyond Ford Motor Company’s control affect which vehicles are sold. For example, there is an increased demand for fuel efficient cars when the price per gallon of gasoline increases. In its long history, Ford Motor Company has demonstrated the willingness to cut its losses and try innovative techniques in order to maximize profit and maintain customer satisfaction and sustainability. Although the company no longer resembles the same corporation that Henry Ford built, it remains an example of how successful businesses should adapt to their changing environment by being receptive to different strategies.

' 'How we use capital determines market value. ' ' Snow has lots of capital to worry about, a mammoth fleet of locomotives, containers, and railcars. His stiffest challenge came in the fast-growing but low-margin CSX Intermodal business, where trains speed freight to waiting trucks or cargo ships. Figuring in all its capital costs, Intermodal lost $70 million in 1988. In other words, its EVA was negative $70 million. Snow issued an ultimatum: Get that EVA up to breakeven by 1993 or be sold. Freight volume has since swelled 25%, yet the number of containers and trailers—representing a lot of capital—has dropped from 18,000 to 14,000. They used to sit in terminals for two weeks between runs, but once CSX managers started seeing them as expensive, idle capital, they figured out ways to return them to the rails in five days. This is hardly rocket science. But before EVA, no one had done it; no one had had enough incentive to do it. The company is also making do with a locomotive fleet of 100 instead of 150, a $70 million reduction in capital. How? On the route from New Orleans to Jacksonville, Florida, four locomotives used to power trains at 28 mph. But the trains arrived at midnight, long before they were unloaded onto trucks or freighters. Spurred by the EVA imperative, CSX decided to run the trains at 25 mph with only three locomotives and arrive three hours later, still in plenty of time to be unloaded at

• RP: 100% – If half completed by the end of the week: RP 50% • EV: $5000

In economics it is important to understand the costs and revenues of firms. This will give an important insight into the behaviour of firms. Basic / traditional economic considers that the sole purpose of firms is to maximise profits. This goal then leads firms to minimise costs and maximise profits.

Unit costing is the method of costing used when the cost units are identical. Identical cost units should have identical costs and this concept of equality of costs is the basic feature of unit costing.

It is very important for every airliner to create value for their shareholders; ticket pricing is the main source that an airliner can make revenue from. Therefore, airliners should have strategies that help them to be sustainable in the industry. I think that my research is on a problem that most of the airliners are facing today. Especially domestic airliners and the airlines with limited destinations are making more losses due to improper pricing strategies. This research focusses on creating a value to the airliner that I will be working for. It also creates value to the shareholders and stakeholders of the company. As every business is based on the customer satisfaction, my research is achievable if I could make a good analysis of customers’ needs and wants.