Engineering Partners

I.Engineering Partners Accounting and Costing Approach Engineering Partners design and knack medical diagnostic equipment. Because of their niche and high quality, Engineering Partners ar able to set their products pricing based on what the foodstuff allows. It is estimated that 15% of the selling costs c everywhere cost of sales and the other 85% atomic number 18 for overheads. Costs are non up-to-dately employ to set product selling footing so it is non possible for Engineering Partners to calculate the profit strength individually product. Research and Development costs and Marketing expenses contribute to a variety of different products and are not allocated on a per project basis. II.Strengths of circulating(prenominal) system The current pricing aim allows the company to be very flexible in go discounts and incentives to assure continued business with brisk and existing customers. III.Weaknesses of current system Engineering Partner s is not able to identify where funds is being spent. This exposure presents a lack of manoeuver over expenditures and limits the ability of Engineering Partners to identify inefficiencies. Currently there is such(prenominal) a disconnect in clippinglines that Engineering Partners could make a serial publication of bad decisions with overhead spending and not see the disconfirming results for years.

Also, there is always the possibility that the products are actually priced in addition low, and the company is ignoring substantial net profit that could be made. There is no clear incentive for from each one business unit to control cost! s. Engineering Partners could consider invention productivity measurements for each eye socket for example, R&D output signal could be measured on estimated future value of awarded patents, and marketing/business development activities could be measured by the time spent establishing a new office, or by head count required to maintain a given level of activity. These measures, maculation still not providing a detailed cost allocation, would at least create infixed benchmarks...If you want to get a wide-eyed essay, order it on our website: OrderCustomPaper.com

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