Presentation on theme: "ME 2605 -Performance and Cost analysis AMRISH GUPTA LI HONG RAMESH KHANAL XIONG JIE INTEC ENTERPRISES."— Presentation transcript:
ME 2605 -Performance and Cost analysis AMRISH GUPTA LI HONG RAMESH KHANAL XIONG JIE INTEC ENTERPRISES
Product portfolio Value Chain Milk Can Kitchen Utensil Pump&Motors Agriculture Equipment Research and Development Procurement Assembly Quality Control PRODUCTION Selling & administration Fasteners Cost centre, profit center, invest centre
Managerial Strategy Price taker facing long term product-mix decisions –Activity based profitability analysis essential. Target costing –non-customized high sales volume products. –Price dominates markets.
Second Stage AllocationFirst Stage Allocation Traditional approach