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Essay's paper info
| Topic: |
Business
|
| Number of pages / Number of words: |
4 / 865 |
Essay's paper body
How does the new system work?
The new system works by doing the following:
Eliminate financial accounting categories that are not meaningful
As much as possible, allocating costs on a per-customer/per-order basis.
As much as possible, allocating costs on a production volume basis.
The features of the new system include:
Reporting the cost structure (and profitability) on a per sales order basis
Reporting the cost structure (and profitability) on a per customer basis
The new system's effectiveness is limited by the following:
It does not focus and highlight inefficiencies in inventory
It does not focus and highlight inefficiencies in production processes
2...
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Consider a product line with a 50% gross margin
a)
Order A = (2,000 * 50%) ? 750 = 250 SEK (profit)
Order B = (2,000 * 50%) ? 2,250 = -1,250 SEK (loss)
b)
Customer A = (160,000 * 50%) ? (3 * 2,250)
= 80,000 ? 6,750
= 73,250 SEK (profit), which is 24,416.66 SEK profit margin per order
Customer B = (160,000 * 50%) ? (6 * 750 + 22 * 2,250)
= 80,000 ? (4,500 + 49,500)
= 26,000 SEK (profit), which is 928...
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General points of the essay
Accounting System Controls
Accounting System
Concept of Financial System
Create A System That Simply Works!
Financial System
Indian Financial System
Online Food Order system
Reasons why people believe that the market system is the best method of allocating resources in an economy.
Role Of The U.S. Financial System
Role Of Us Financial System
US Financial System
COMPARISON OF ACCOUNTING SYSTEM
Role Of The Us Financial System
Accounting Information System
Implementing A Cad System To Reduce Costs
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