Gujarat-Ambuja - Main

Gujarat-Ambuja - Main - Cost of Production Types of costs...

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Cost of Production
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Types of costs Mainly 2 types of costs Fixed costs Variable Costs Other costs Long run average costs Long run marginal costs
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Classification of Costs
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Cost Curves for a Firm Output Cost ($ per year) 100 200 300 400 0 1 2 3 4 5 6 7 8 9 10 11 12 13 VC Variable cost increases with production and the rate varies with decreasing returns. TC Total cost is the vertical sum of FC and VC. FC 50 Fixed cost does not vary with output
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The Learning Curve Measures the percentage decrease in additional labor cost each time output doubles. An “80 percent” learning curve implies that the labor costs associated with the incremental output will decrease to 80% of their previous level.
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Economies of Scale Cost advantages that a business obtains due to expansion. Situation in which output can be doubled for less than a doubling of cost. economies of scale refer to a firm's costs
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Increasing Return to Scale Output more than doubles when quantities of all Inputs are doubled returns to scale describe the relationship between inputs and outputs in a long-run (all inputs variable) production function.
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Gujarat Ambuja – Cost Leader - A Concrete Story….
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Team Members Venkatesh Iyengar Tushar Khatri Bhavi Parikh Devansh Vajani Shelomon correa Anshul Holani
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Bhavna Arora Nupur Agnihotri Ankita Prakash Vaibhav Servaiya Yashaswini Kankagiri Ankit Shah
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Overview Introduction Background Note Indian Cement Industry Manufacturing Process Total Cost Management Logistics Order Processing Systems Inventory Management
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In 2004 GACL was the third largest producer of cement in India Widely considered to be the lowest cost producer Believed in doing things in innovative and unconventional ways. Pioneered in various cost cutting measures.
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This note was uploaded on 01/27/2012 for the course ECONOMICS SLEC501 taught by Professor Smohe during the Spring '11 term at IBS DE.

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Gujarat-Ambuja - Main - Cost of Production Types of costs...

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