Job Prime Cost - Case Study Example

The gasoline we purchase majorly includes the cost of Crude oil , the refining , marketing and distribution and the taxes.... 1.... Analyze Marathon's product process and determine which phase is open to the greatest number of efficiency improvements.... Explain your rationale.... If we list down the top crude oil refineries of the United States of America than Marathon will be amongst the top leaders....

A cost object is any activity or part of an organisation for which a separate determination of costs is required.... A cost unit is a unit of product, service or time (or a combination of them) in relation to which costs may be ascertained or expressed.... Costs can be classified (1) by the nature of the cost items, (2) with respect to the accounting period, (3) by their tendency to vary with the level of activity, (4) by their relation to the product (product costing), and (5) for analysis or decision making (Datar, Horngren, & Foster 1999, p....

From the paper "Different cost Concepts" it is clear that one important aspect should be kept into perspective, and that is factors such as the fluctuation in interest rate, sales price, etc makes an impact on the overall assessment of this analysis.... The variable cost per unit is fixed for a specific level of production or cost.... hereas Direct cost are those cost which can be traced to a specific cost objective or costs which is easily traceable by per unit and allocated through cost centers....

The Columbia Encyclopedia defines The Consumer Price Index (CPI), as a measurement of the cost of living prepared by the U.... Changes are compared to prices in a previously selected base year, from which figures the percentage increase or decrease in the cost of living can be calculated.... In addition to changes over time, such analyses must also consider regional variations in the cost of living, and the relative weighting of the components of the index must be reappraised periodically....

nbsp;  The cost of direct materials has increased over the years meaning that this could have caused an increase in the cost of production for a unit.... Job order costing is used where each job is unique and requires special attention, therefore this is the best method to be used by Sidcup limited because each order is different in production, the problem faced by this company is that the determination of cost of labor used and materials used, the method used is inappropriate....

The paper "Making a Major Purchase" states that in general, if the buyer has been recently retrenched due to the cost-saving measures he or she previously worked for, it not advisable to make any significant purchases until he or she finds a new job.... To illustrate further these economic principles, let us assume that the buyer is a typical middle class with a regular job and regular income that making a purchase would require a serious evaluation on his or her part....

Therefore, the cost is high and comes in multiple forms that range from the environment to the job market.... he transfer of jobs to lower cost countries would lead to mass displacement of people (Jie, n.... As a result, jobs for many workers would be secured, and the cost of life will not be elevated.... The High Price of “Free Trade” NAFTA's failure has cost the United Statesjobs across the nation.... They should do so by regulating the disposal of waste and ensure job security....

hese were two main broad categories of cost.... Therefore, expert cost accountants have come up with a new category of cost called semi-variable costs.... Home Improvements and Extension, who earn a basic fixed wage and then they are paid commission, the salaries paid to these workers can classify as semi-variable cost....