Get Budgeting, Costing and Estimating for the Injection Moulding PDF

By Peter Jones

"These subject matters are the resource of a lot confusion within the plastics and from the study conducted via the writer, there doesn't seem to be any form of authoritative released paintings that addresses those subject matters. This ebook addresses those issues head-on to provide an explanation for intimately all of the phases concerned from budgeting to the ultimate estimate. This publication discusses and defines the several tools of budgeting, costing and estimating which are commonly used in the injection moulding undefined. which will determine the costing process, the working expenditures first must be pointed out and quantified by way of the cheap. in keeping with the finances, a costing approach can then be built that may be utilized to figure out the producing rate of every product an organization manufactures. The underlying topic of this e-book is the maximisation of gains in the course of the regulate of prices. therefore, emphasis is put on making sure the certainty of costing and estimating types via dialogue and examples. This publication can be of substantial worth to managers of injection moulding businesses, to Accountants who paintings in those businesses and clients of the apparatus who could have to a few of the costing and budgeting for brand new projects."

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Sample text

For example, if 200,000 parts were sold we could expect the profit to increase to approximately £60,000. 3) where P = profit and Nv = different number of items sold, chosen for the analysis. 4) are powerful results allowing other variables to be established once the break-even condition is known, for example establishing what the variable cost will be for a given level of profit. Another useful result is writing: C  S V where C is the contribution since C = sales minus variable costs. 4 Machine Hourly Rates This method of costing is frequently used where the majority of production is machine based.

Draw a line from the origin through point C and continue it a little further. 8 7. Draw another line horizontally from point B at a distance up the sales/costs axis representing the total costs (variable + fixed costs) – in this case £173,000. Where this line intersects the vertical line already drawn we obtain point D. 8. Now draw a line from point F through point D and extend it a little further. 9. The break-even point is the intersection of these two lines at E. The figures obtained from the graph give a reasonable estimate but, of course, will depend upon the accuracy with which the graph has been drawn and interpreted.

Can be allocated by the turnover of the product or by product volume. The variable costs can then be allocated on a rate per item basis. 5. These results are added to the manufacturing costs per unit plus a profit element if one has not already been included. 3 Percentage of the Manufacturing Cost This system is used where the products are of a similar nature or a similar price. In this case it should be relatively straightforward to establish a fixed percentage to add on for administration and selling costs.

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