Engineering Partners

I.Engineering Partners Accounting and Costing Approach Engineering Partners design and commemorate medical diagnostic equipment. Because of their niche and high quality, Engineering Partners ar able to set their products pricing based on what the food product allows. It is estimated that 15% of the selling costs coer cost of gross revenue and the other 85% are for overheads. Costs are non up-to-dately apply to set product selling footing so it is non possible for Engineering Partners to calculate the profit strength individually product. Research and Development costs and Marketing expenses contribute to a variety of different products and are not allocated on a per project basis. II.Strengths of up-to-date system The current pricing aim allows the company to be very flexible in go discounts and incentives to assure continued business with brisk and existing customers. III.Weaknesses of current system Engineering Partners is not able to id entify where property is being spent. This exposure presents a lack of manoeuver over expenditures and limits the ability of Engineering Partners to identify inefficiencies. Currently there is such(prenominal) a disconnect in cartridge cliplines that Engineering Partners could make a serial publication of bad decisions with overhead spending and not see the disconfirming results for years.

Also, there is always the possibility that the products are actually priced in addition low, and the company is ignoring substantial net that could be made. There is no clear incentive for each business unit to control costs. Engineering Partners could consider pattern producti vity measurements for each eye socket for ! example, R&D turnout could be measured on estimated future value of awarded patents, and merchandise/business development activities could be measured by the time spent establishing a new office, or by headcount required to maintain a given level of activity. These measures, season still not providing a detailed cost allocation, would at least create infixed benchmarks...If you want to get a amply essay, order it on our website: OrderEssay.net

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