Making Managerial Decision

To: Senior Management group From: Gerald White and Accounting Team run across: Subject: A report pad an analysis of bes and recommendations for Omar caravanserais prospective sight, any strategic implications of recommendations made and practicable benefits of considering alternative wooing theories and models. 1. Analysis of be and Recommendations 1.1 Analysis of Costings below various methods In Appendices 1, 2, 3 and 4 is a spreadsheet detailing the data for Fast Clean Products flowing action, absorption be and marginal be for current production and the prospective caravan inn fix up, and division calculations for the prospective order. In this report we ordain be dealing with the fair(a) figures as the actual order figures may vary by 2%. The figures for in all possibilities can be found in the Appendices. 1.1.1 concentration Costing The average total cost of the Khan order under absorption cost is £446,107.82. 1.1.2 pe ripheral Costing The average cost of the Khan order under marginal costing is £300,000.00. 1.1.3 Contribution Costing The plowshare generated by the order is careful using various profit loading percentages including 10%, which is in short in use at Fast Clean Products. The contribution at this price is £190,718.

66 but changes with the price couch which will be discussed later. 1.2 Suitability of costing methods for the order In this section, the suitability of for each one costing method, with regard to the focusing ending as to whether or not take on the Khan special order, is discussed. 1.2.1 Absorption Costing Absorption costing would be suitable for us! e as the method includes all cost of production which makes it useful for price decisions. This is important in this case with Khan owning a string of supermarkets which compete intensely on costs. However, only variable costs are applicable for a special order decision suggesting that marginal costing may be more relevant at the current...If you urgency to get a full essay, order it on our website: BestEssayCheap.com

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