Allocated costs

Static and Flexible Budgets Overhead cost can significantly affect the profitability of a projec t and is the only cost outside the control of the project manager. The project is expected to contribute a definite amount toward the expenses of the company and will be charged this amount even if the production rate is zero. This is the fixecTcomponent of the overhead cost and will include directly allocable costs such as depreciation and a proportion of general costs such as office salaries and heating. 

Financial performance of the various farm enterprises the method is to allocate costs to each separate enterprise, so that these can be compared with sales figures and also show how well each enterprise has performed. Are the pigs doing better than the sheep, and what about the hens ... 

Recognizing the central importance of competitiveness concerns, in 2004 the Carbon Trust conducted a pioneering study on the competitiveness impacts of the ELF ETS.1 Building upon this work, in 2005 the Carbon Trust sponsored an international collaborative study with the European research network Climate Strategies, led by our Chief Economist, Michael Grubb. The work aimed both to build upon our earlier study, and add to this much deeper analysis of the issues surrounding allowance allocation, costs and incentives. The full results are presented in this special issue of Climate Policy. 

Those purchasing C02 storage will take into account the proximity and capacity of the storage site. Buyers and sellers will allocate costs for site characterization, leakage monitoring, and liability insurance. 

This paper has addressed the optimal periodic scheduling of an industrial batch plant from a new perspective. The aim has been to select a convenient number of equipment units so as to rninirnize the total equipment allocation cost and hence achieve a trade-off between a low makespan and high free capacity. A decomposition method based on a Resource-Task Network discrete-time formulation has been proposed that, when compared to the solution of the full problem, was able to reduce the total computational effort by one order of magnitude without severely compromising optimality. 

In developing profitability comparisons, the method of allocating costs to products that are made in the same equipment or location poses problems. 

Raw materials Unit Quantity per year Unit cust, Allocated costs, /yr per ttsdit of product... 

For each overhead department, it is necessary to define the particular activities that drive the functions within that department. For example, in 1999 the purchasing department (see panel A of Table 7) incurred total costs of 5 million. Cost drivers were the purchasing of raw materials, the purchasing of components, and vendor relations. Appropriate allocation measures for these activities are the number of orders for purchasing, and the number of vendors for vendor relations. Levels of those activities for each auto model are indicated in panel B. In turn, these levels lead to the total allocated costs for each auto model in panel C. 

Total cost for initial catalyst charges Total bare-module investment, TBM Cost of site preparation Cost of service facilities Allocated costs for utility plants and related facilities... 

Allocated costs, Cgnoo nre included to provide or upgrade off-site utility plants (steam, electricity, cooling water, process water, boiler feed water, leMgeration, inert gas, fuels, etc.) and related facilities for liquid waste disposal, solids waste disposal, off-gas treatment, and wastewater treatment. Some typical capital investment costs for utility plants, estimated by Busche (1995), are shown in Table 16.12. Cogeneration plants can provide both steam and electricity by burning a fuel. When utilities, such as electricity, are purchased firom vendors at so many cents per kilowatt-hour, that cost includes the vendor investment cost. Thus, a capital cost for the plant is then not included in the capital cost estimate. 

Allocated costs for utility plants and related facilities 15.45... 

The following are the major units in a chemical plant. Evaluate the bare-module cost for each unit and for the entire process. Assuming no allocated costs for utilities and related facilities, estimate the direct permanent investment, the total depreciable capital, and the total permanent investment for the process. 

Allocated costs for utilities and related facilities, Cauoc Cost of contingencies 18% of Cdpi... 

A process, projected to have a total depreciable capital, Cxoc. of 90 million, with no allocated costs for off-site utilities, is to be installed over a 3-yr period (1997-1999). Just prior to startup, 40 million of working capital is required. At 90% of production capacity (projected for the third and subsequent operating years), sales revenues, S, are projected to be 150 million/yr and the total annual production... 

Cost of Site Preparations 5.0% of Total Bare Module Costs Cost of Service Facilities 5.0% of Total Bare Module Costs Allocated Costs for utility plants and related facilities 0... 

Direct Plant 8.00% of Total Depreciable Capital, lessl.18 times the Allocated Costs for Utilily Plartts and Related Facilities Allocated Plant 6.00% of 1.18 times the Allocated Costs for Utilily Plants and Related Facilities... 

Allocated Costs for utility plants and related facllltle 0 ... 

The use of allocations has been the principal reason that a conventional accounting statement was wanting. Accounting systems use allocations as shortcuts to ensure that the costs of production are fully absorbed. Most of the allocated costs fall into the category of indirect cost and become part of the cost of goods sold, as shown in Table 27.1. Direct costs are those that, in a manufacturing company, are part of the bill of material and are based on standards for labor and material. These direct costs are... 

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