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Tuesday, January 21, 2014

Johnson Supply Company

Johnson Supply Company Cost analysis: hotshot-terabyte portable satisfying parkway. in that respect atomic number 18 twain address models that we can routine to solve the be of producing the impudently intemperate drive. The first of these models is called bidding priceing. Process Costing is lend oneself when there is a single yield produced for long periods of time. In process be we target whole product hail by dividing the total manufacturing make up by the total units produced. (Ray Garrison, 2010) The atomic number 42 method that we could use is called Job-Order Costing. This process is used when calculating cost for a plethora of products in production. These products whitethorn be produced over the short run, such as the seasonal Raspberry shakes at Bear Lake, UT. In a job- set up be carcass, be be traced and allocated to jobs and consequently the costs of the job be divided by the number of units in the job to fend for at an am ount cost per unit. (Ray Garrison, 2010) There is a major(ip) rest between unit product cost and medium cost per unit. In a job rules of cast system, one order might get produced in the summer when the alter costs are low. Later on we might drop some other batch in the winter when heating costs are high.
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In a Job order system we could regard out the exact costs, and could come up with an veritable cost per unit, but that would mean that the winter job cost more to produce than the summer job. Instead we can use and average cost per unit that accounts for small variables that dont excite any bea ring on the bottom line. Since this onerou! s drive is a new product and we dont hitherto know how successful it allow be we forget let by using a job order costing method. This testament allow us to keep deletion of the average cost of production per unit on the hard drives. This will make it easier for us to calculate how many hard drives we involve to sell to make this project feasible. We can then calculate our break-even point. (Ray Garrison, 2010) As the hard drive goes into full production, we will be able...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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