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  • Vertical Integration A Firm
    1,180 words
    ADVANTAGES OF VERTICAL INTEGRATION It leads to reduction of transportation costs as the common ownership results in closer geographic proximity. The transaction costs can be controlled if a firm acquires the other firms in the vertical chain, then one division of the same company will transfer goods to other divisions. So, transaction costs in form of transport, cost of negotiation, cost of control etc. will be eliminated. The overall average cost of the firm will decrease because if the divisio...
  • Supply 1 The Rubber Supply In Japan
    743 words
    Supply 1 The rubber supply in Japan is at an all time low. The article chosen discusses how the low supplies of rubber are not typical for the time of year. Tokyo rubber or TOCOM is the Tokyo Commodity Exchange which regulates the rubber market in Japan. A rally was held recently which was the largest in years because of the concerns about low supplies and historically low rubber stocks. The benchmark December rubber contract on the Tokyo Commodity Exchange rose as high as 169.2 yen per kg, the ...
  • Cost Accounting Activity
    517 words
    Persuasive Essay Thesis Statement: The key opportunities will be changing processes to reduce the delivered cost of materiel through cost accounting, imbedded cost and cash flow. I. Cost Accounting. activity-based costing B. end product. expenditures II. Imbedded CostA. customers. quality control. paying back invisible costs. Cash Flow. timely accounts payable cycle. supply replenishment C. reduced costs Conclusion: The core of the materiels management strategic plan will be providing the inform...
  • Discretionary Costs Need
    1,117 words
    On page 92 of our text it says that committed costs are costs arising from the possession of facilities, equipment, and a basic organization. Discretionary costs are determined by management as part of the periodic planning process in order to meet the organization's goals. They have no obvious relationship with levels of capacity or output activity. Therefore my assumptions of Committed and Discretionary costs are as follows. Committed Costs Discretionary Costs Administrator $60,000 Assistant $...
  • Excellent Supply Chain Management System
    1,735 words
    To balance the customers' demands with the need for profitable growth, many companies have moved aggressively to improve supply chain management. Their efforts reflect what I feel are the seven most important steps in supply chain management. These steps can enhance revenue, control costs and asset utilization as well as customer satisfaction. In this paper I will discuss what I think are the most important factors to create and run an excellent supply chain management system. The first step is ...
  • Continuous Supply Of Low Cost
    316 words
    Some of the key characteristics of aluminium production technology are - Economies of scale: Alumina refining and aluminium smelting operations are influenced by economies of scale. The minimum economic size of an alumina refinery is around 1 mtp a, and that of a smelter unit is 250,000 tpa. Refining operations are influenced more by economies of scale, as refining is a continuous process. - High capital intensity: Alumina refining and aluminium smelting are highly capital intensive. A new refin...

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