Topic : INCO Terms
What costs seem likely to be incurred and by whom? Who might be liable to cover the costs? Is NB Power likely to get all of their costs covered? If not which costs are at risk?
Diagram the parties. Estimate from the limited data who is responsible? Identify issues.
Sol:
The following costs would be incurred: 1. Replacement Cost: Cost involved in manufacturing the new turbines. 2. Delay Cost: As it would take another 1 year to manufacture the new turbines which requires NB power to get the old rotors re installed. 3. Loss of Revenue: As the new turbines were expected to increase the
…show more content…
John * CIF Point Lepreau * DDU Point Lepreau
DEQ St. John: Delivered Ex Quay St. John:
The seller (Siemen’s) was supposed to clear the goods for export and was responsible of making the turbines available to NB Turbines on the quay. The turbines sank when they were being transferred onto a barge for shipping to the nuclear reactor by Irving Equipment.
Costs Incurred by Buyer (NB Turbines) would be as follow: * Replacement Cost: Cost of PO,Buyer would have to pay for the new turbines as they were shipped on the quay and sank later. * Insurance Cost: Neither seller or buyer has the obligation of insurance, so as the turbines sank after being made available at the port, so NB Turbines would get the basic insurance coverage from Irving company or/and money from some other insurance company if they had arranged for some sort of special insurance. * Lawyer fees * Repair Cost, Delay cost, Import, Duties,Taxes, Documentation cost, Filing Claim, Loss of Time, Loss of revenue, Re installation cost of the old turbines which they had taken out in anticipation of the new ones, Carriage charges for shipping the turbines back to UK for repair and bring them back, also for the shipping from St .John to Pt Lepreau.
Costs Incurred by Irving Equipment would be that of Investigation along with paying for the Insurance of 214 tonnes of equipment. Depending upon NB
If this hypothetical natural disaster actually did occur, there are certain accounting considerations WWA would have to assess in determining the edits needed on their consolidated financial reports to disclose relevant information, or else they would be material misstated. This disaster would be a subsequent event, according to ASC 855-10-25-1, where the event happens after the balance sheet date of the subsidiaries, but before the financials are issued in the consolidated statements. WWA would classify this as recognized subsequent event because it occurs before its own balance sheet date. The financial impact will be presented in both the balance sheet and income statement after the damaged assets have been tested for recoverability because in this case there was a significant adverse change in the asset’s physical condition (ASC 360-10-35-21). Since NS Wave’s 9 power generators were destroyed and Kahuku Wind’s 12 wind turbines have irreparable damage, these assets are deemed non recoverable and must be written off as a loss (ASC 360-10-35-17). Insurance proceeds may offset this loss and whether the assets are insured should be disclosed because a gain from this
It defines the expenditures and also denotes the possibility of cost reductions from the supplier’s marketing representative. This, for simplicities sake, can be possibly noted as the better of the two. The overall unit price $31.27, and with the tooling cost of $ 6,000 and 5,000 units delivered, the initial cost would be $162,350 for the first delivery (see figure 1). The $6,000 being a onetime fee for the re-tooling will only be charged during the first delivery, or may be spaced out over the course of several installments. Regardless, the re-tooling fee is not factored into the cost per unit as there is no length of time set for the contracting. With Original Wire being a local vendor, close buyer-seller relations may result from a long-term contract with price reductions. Since Original Wire claims it is ‘hungry’ for business, there is the possibility of some price negotiations as well. (Monczka, Handfield, Giunipero, Patterson, Purchasing and Supply Chain Management, 2011, pgs 805)
As a member of management Clive Jenkins is responsible for boosting employee morale to ensure that company goals are met
There are several different types of business ownership which are most commonly used in business’ and company’s today, these include; Co-operative which is a business owned by its employees, Partnership which is a business owned by between 2 and 20 people, Private limited which is a business owner by a small groups of people who have shares and a Public limited business is owned by private individuals by shares bought and sold on the stock market. A charity is a business with the purpose to help the public, the government is a business owned by the government and lastly a sole trader which is a business owned by only one person.
The purpose of storing and retrieving required information is so you can readily retrieve it when it becomes required.
In the same way should be treated cost of $1 million related to dismantlement of the existing manufacturing operation. According to the ASC 420-10-24-14, this cost
This case analysis explores the possibility of Breezy, a leading supplier of carburators and air filters in North America, the possibility of developing offshore busines in countries where car manufacturing is growing. The report is structured as follows: First, there are five important questions that Breezy must consider and ask itself before developing a relationship with a new customer. After Breezy decides to go offshore, it will have to go through the negotiating process, which involves five steps. Breezy then, must have capabilities of how an offshore business is organized, consider the many different costs and risks involved in the implementation and decide how it will finance the project. The report also talks
(NSY) had been providing parts and services to the Mega-Yacht Industry since receiving their initial seed capital in 2000. The Mega-Yacht industry provided an attractive opportunity for NSY. Although the industry was small by comparison, serving only 10,000 vessels, it generated in excess of $1 billion in economic activity annually, divvied amongst the new build, and maintenance, refit and repair business sectors (Mark & Mitchell, 2003, p. 48). The industry’s supporting cast included captains and crews, owners, management companies, procurement agents, yacht builders and repair entities, brokers, and local husbanding agents. Although unknown to the firm at its inception, consultants in 2002 forecasted the mega-yacht industry would see annual growth of 6%, with the potential for even better numbers in the short-term (Mark & Mitchell, 2003, p. 48).
With failure costs some of the costs would be equipment break downs and spills. Our equipment costs 3 million dollars so we don’t want to replace it for at least 10 years. The routine maintenance for the equipment is $500,000 a year. The cost for the spills is a total of $120,000 a year. That includes $50,000 for the training classes on spill prevention and $70,000 for the salary of two new spill prevention workers.
The case study focuses on an employee, Paul Keller, who is being affected by a number of factors. His job performance is hindered by constraints such as his work environment, his home environment, stressors, mood, and the management style of his superior. The case study demonstrates how his job performance is affected and what the consequences could be as a result of his poor job performance and lack of concentration.
Estimated machinery life: 3 years (after which there will be zero value for the equipment and no further cost savings)
This is beyond the company cost limit set of $16 million capital and $2.6 million yearly payment for improvement. The company is committed to keep the plant but at the basis on the cost limit set.
costs $350,000, that will have a useful life of eight years, and that will have a salvage value of $25,000. If this
1. Assess Interco's financial performance. Why is the company a target of a hostile takeover attempt?
The company may have to pay higher production costs or may not be able to produce and