Reliance Digital Case Study

expenses are spent on salaries of employers who are hired to monitor certain aspects of the company. This can include monitoring the inventory of the business or the distribution of products and services. It is important for companies to monitor the OMM costs of their business in order to make predictions about future profits and losses.

Next there is total cost and total revenue. Total cost is what the company spends to produce a certain quantity of its product. This includes the cost of all the materials,

a. (i.) According to FASB Statement of Concepts No. 6, paragraph 25, assets are probable future economic benefits obtained or controlled by a particular entity as a result of past transactions or events. They represent probable future economic benefits controlled by the enterprise. According to FASB Statement of Concepts No 6, paragraph 80, expenses are outflows or other using up of assets or incurrences of liabilities (or a combination of both) during a period from delivering or producing goods, rendering services, or carrying out other activities that constitute the entity's ongoing major, or central, operations. Expenses are gross outflows

According to Rajasekaran and Lalitha (2010 ) the cost is an estimated amount given for an item or a global expense that the owner of the enterprise

Staff travel, transport and accommodation- Cost of staff travel and associated costs for sales, etc.;

Over-all ownership cost method that involves cost summation. Its primary objective is to make comparisons within product lines.

After identifying and developing a comprehensive panorama on the activity of both companies, their respective targeted customers and the industry in which they operate, the next step involves examining and analyzing the financial records of both companies. To be able to generate accurate interpretations based on the financial parameters and standing of both companies, I utilized the annual financial reports for fiscal years 2012, 2013 and 2014 to help me develop a better understanding and thorough perspective. Based on the presented information in the entirety of the report, also accounting for balance sheet, income statement, cash flow statement, stockholder’s equity statement and related

The costing approach should be based on per Transaction Basis rather than on per kit or per pound basis because of the following reasons:

Staff travel, transport and accommodation- Cost of staff travel and associated costs for sales, etc.;

The following annotated bibliography includes a list of references that address cost measures, direct and indirect costs and pricing systems. Cost accounting systems are well-developed for tangible goods. Accounting principles are applied to businesses for financial reporting to analyze the profitability of the business. Direct and indirect costs is the basis to setting regulated prices on products.

Cvii) Expenses are defined as outflows or other uses of assets or incurring of liabilities during a period from delivering or producing goods or rendering services, or carrying out other activities that constitute the entity's ongoing major or central operation. An example of Expenses from Maple Leaf Garden's

An organization costing system is a system that helps the management with the strategy planning while the system plays an important role in providing accurate cost information about the products and customers (Curtin, 2006). UPS utilizes the Activity-Based Costing (ABC) system. ABC assumes that activities cause costs and that cost objects create the demand for activities (Marx,

Operating expenses includes production costs, such as direct labor, indirect labor, inventory carrying costs, equipment depreciation, materials and supplies used in production, and administrative cost. This was not happening at Alex’s plant. His inventories had increased over the past six or seven months and operational expense also increased. This meant he had a lot of work to do to keep his plant open and he was now aware of it.

With this costing technique , a Manager can easily determine if there is a weak link in production chain by keeping an eye on the cost per unit each day. Using the accounting programs involved in process costing, a manager can figure out where in the process the item 's per unit cost is going up. This way a single manager or a team of managers can monitor millions of units being produced without needing to check on each department unless a problem comes up. By the same token, these numbers need to be watched diligently, as a change of even a fraction of a cent can cost thousands of dollars quite quickly.

In general, cost means the amount of expenditure (actual or notional) incurred on, or attributable to a given thing.