Guide: Instructions for case analysis or articles 1. Summary: what is a main con

Question

Guide: Instructions for case analysis or articles

1. Summary: what is a main concept in the case or article?

2. When you read this article you may be able to:

i. Apply the concepts of Standard Costing, Operational Performance Measures, and the Balanced Scorecard.

ii. Identify the concepts of Standard Costing, Operational Performance Measures, and the Balanced Scorecard

3. Possible solutions to such situations (applying the lesson of the day).

4. Select one possible solution to the case. Explanation for how you select this solution (the best alternative is not always feasible to resolve the central or primary situation presented in the case or article).

5. Reflexive analysis on developments in the case or article. You can use other references that approach the situation raised in this case or article from other perspectives.

6. Conclusion or recommendation.

7. If the case has questions, answer them.

Article Reference: Cost of production at business unit in aquaculture industry: Study at aquafarm nusantara company.

Explanation / Answer

ans 1) The maon concept is cost of production calculated in aquaculture industry and how it's different than in any other manufacturing industry.

Ans 2) Yes, we can apply those concepts of Standard Costing, Operational Performance Measures, and the Balanced Scorecard. standard costing is that practise wherein actuals cost of productions are substituted by standard cost which are calculated through a scientific process in the company. Operational performance measure is to measure the effiicency of the processes. Balane scorecard is basically an alignment of all the business processes to the business goals, and vision, to achoeve the overall business objective.

ans 3) Usage of marginal costing, abc system along with std costing may help, target costing can also be adopted when the company faces stiff competition.

Ans 4) Here I believe there has to be a shift in the process of calculation of cost and calculating profit thereafter. first of all I belileve that the company should practise the marginal costing through which company cam mainly focuse on the varibale cost and if they will have more focus on the cvariable cost, they can control the variable cost hence the overall cost will be lessor, and fixed cost can be recovered quickly when variable cost is lessor, secondly i found that there should activity based costing system while allocating the overheads.

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