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Topic: Business
Number of pages / Number of words: 2 / 512
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The ‘order’ items will assume the set-up costs associated with an ‘order’ item and all other costs above the cost of good sold. Likewise, the sales and administration costs will be linked directly to the item that is sold.

To develop a baseline for our cost structure, it is proposed that interviews be used to determine the actual costs associated with each step in the order process both ‘volume’ and ‘order’ items...


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Once the actual amount of cost incurred to place certain orders is determined, it will be possible to allocate the cost based on the specific items ordered. Once accurate costing is available, the true operating profit will be realized. Through the study of the new operating profit values, true sales efficiency will become evident and the best profit centers will be identified...


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