Centre And Then Compare Their Efficiency Essay -- Variable cost, Costs,

ï‚ § Market based transfer pricing – In this case Country A charges Country B according to the market price. Therefore, the manager’s performance is comparable as both have opportunity to make profit. ï‚ § Negotiated Transfer Pricing – Here the prices are negotiated, keeping profit margin for each of them. In this case they are also comparable. ï‚ § Full cost transfer pricing – In this case, the suppliers do not keep profit for their division, instead full cost is transferred to another department and the final profit is made by the last department. Thus, the profit centres are not comparable to each other. ï‚ § International transfer pricing – Since we know they trade among each other across borders also, they also need to be aware of taxation rates, currency rates, transportation costs and local suppliers in different countries in order to set prices. Here, each portfolio cannot be compared based on profit margins. c) Improves efficiency and speed of decision making: As the profit centre managers have authority to decide on their suppliers, customers, selling prices, etc, they have the opportunity to perform tasks at a faster pace and increased efficiency. d) No risk of reduced profitability: Revenue centre managers are only responsible for generating sales, and they do it at the cost of reduced profitability, but profit centre managers generate revenue making sure profits are earned. 6.2 Now let us discuss the Drawbacks of the profit centre managers: a) Unable to make capital investments: Profit centre managers are not authorized to make investment decisions; resulting in loosing opportunity to make profitable investment in specif... ... middle of paper ... ... 20 Unit variable cost of buying 7 15 20 24 (4) 1 3 4 Annual requirements (units) 3000 4000 5000 6000 So, Extra Variable Cost of Buying (12000) 4000 15000 24000 Fixed Cost of Buying 1000 2000 3000 4000 Extra total cost of buying (13000) 2000 12000 20000 Assuming that fixed cost will remain constant whether or not the company buys or makes the products, the relevant cost of manufacture will be considered the variable cost. In this circumstance, the company should only buy products if the

Green Computing Case Study Example | Topics and Well Written Essays - 500 words

Green Computing - Case Study Example The software component shall also look at aspects and areas of conserving energy. The project will be implemented as part of the larger organizational strategy and policy of the company. As part of the objectives of the project, all staff are expected to receive a very high level of education and awareness on how they can, on an individual basis apply basic rules and principles on the effective and efficient use of information systems. The training is expected to be part of the skills and knowledge of all existing staff as well as new staff. Much of the desire to go green in computing will come with the use of the right IT tools that have been passed for efficiency and effectiveness. To this end, there will be an outsourcing exercise to replace all existing IT tools that cannot guarantee this purpose. This is going to be the major task involved in the green computing project. As there continue to be an enlightened awareness among the public on the need to protect the environment towards future preservation, more and more people are becoming inclined on the need to do business with companies that guarantee environment protection (Perry, 2008). It is therefore an objective of the project to help raise a competitive advantage (Risk Management Guidelines, 2004) for the company by the close of the project. The success of projects is best tested when they achieve the objectives for which they are carried out (Perry, 2008). A very basic success criterion that will be used to measure the impact of the project shall therefore be a project objective scorecard or checklist, which shall be marked after six months to determine the areas of achievement and areas of failure. A very basic approach that will be used in managing the project shall be a delegation and decentralized approach whereby there shall be various divisions among the departments of the company. Under each of these divisions, there shall be a head, to who members of the

Multistate Regulation Essay Example | Topics and Well Written Essays - 500 words

Multistate Regulation - Essay Example g practice is expanded on a daily basis through technology, and the new modalities in place that encourage the practice by nurses, wherever they are, or might go (Hann, 2007). This paper will examine the pros and cons of multistate regulation on the health care fraternity, and what it means to have rules in place to regulate the profession over state lines. Once one is a licensed medical practitioner, it is their right to practice their profession in any state they want to practice. This is one advantage brought on by the multistate regulation. If a medical practitioner is willing to conduct their business electronically, or physically, it is their right to do so, provided the licensing board in their state has approved of their practice (Hann, 2007). Also, if their practice is in agreement with the procedures and guidelines of the state in which they want to practice. Under mutual recognition, the multistate regulation ensures that medical practitioners may practice their profession across state lines (Hann, 2007). This is if there are no restrictions. Another advantage of the multistate regulation is the creation of diverse experiences. The nursing profession essentially benefits from the enhancement of opportunities created through regulation. It is imperative that medical practitioners get the exposure from different areas so as to bring diversification to the table. This is possible through multistate regulation policies. Health insurance companies are incurring tremendous losses as they tend to obey the different guidelines in the respective state (Milstead, 2013). This is a different scenario present, because, if these insurance companies would comply with a single regulatory body, it would be easier to conduct business. They would incur fewer costs by getting compliance from a single body, than multiple regulatory standards, which each state requires. The costs incurred drive up a company’s expenses, which are unnecessary. If the insurance companies