ACCOUNTING

Accounting Analysis

[Name of the Institute]

 

 

 

 

                                    Accounting and Financial Analysis

Part A

Production costs (also called operating costs) are the costs needed to maintain production factory, production line or a given device. In a healthy company, such as Fox and Co. the difference between the revenue (sales proceeds or other sources) and the cost of production is the gross margin.

This means that the economic future of a company is connected: income (example products sold on the market and prices obtained) and the production costs of goods sold. While revenues, especially sales revenue, are connected to the business sector of the company, the production costs are closely related to the technical field.

Production costs have two opposites. The first is that you have to spend to produce; it means to produce a certain cost. The second is the need to keep costs to a level as low as possible and remove when not needed. This does not mean we should reduce or eliminate costs indiscriminately (Deming, 2000). This item includes the salaries of workers and employees whose work is identified directly with production operations. In highly mechanized processes, represents less than 10% of production costs. By cons, in many operations including labor may exceed 25% of production costs. The two variables that go into the creation of this position are the cost man-hours or man-years and the number of man-hours or the number of men / women needed.

Unfortunately, from the point of view of the industry it cannot afford (in practice) social support. Although it appears as a benefit to the industry, a cheap labor market does not automatically mean a competitive advantage. The current global trend is towards a reduction in payroll taxes (both on the part of the employee than the employer) at the same time as a means of increasing net wages ...