Costs After Dropping

Costs After Dropping - Costs After Table 1.4 Dropping Each...

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Table 1.4 Costs After Dropping Each time Bridgeton industries decides to outsource/drop a product there are costs associated with their decision. To completely understand the consequences of dropping a product line it is helpful to look at the costs of dropping the Mufflers and Oil Pans. With this cost knowledge, it is possible to extrapolate, a reasonable forecast of a 1990 Model Year without Manifolds. In the analysis of the ACF cost structure from year to year, this paper will start off looking at each individual cost account. Each account from this micro perspective appears to correlate differently with the dropping of Muffler/Exhausts and Oil Pans. Direct Materials The overall upward trend of direct material costs appears to be slightly affected by dropped product lines from looking at Table 1.1. The fuel tanks Direct materials decreases by .76 percentage points following the decision to drop Mufflers and Oil pans then rebounds to .2 percentage points above its original value. Further trends reinforce the notion that direct material costs are affected by ACF’s strategic decisions. Table 1.1
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Costs After Dropping - Costs After Table 1.4 Dropping Each...

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