Engineering Partners

I.Engineering Partners Accounting and Costing Approach Engineering Partners design and found 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 over cost of gross revenue and the other 85% atomic number 18 for overheads. Costs are non up-to-dately apply to set product selling footing so it is non possible for Engineering Partners to calculate the profit strength from each one(prenominal) 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 on-going system The current pricing connive 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 Part ners is not able to identify where bullion 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 a disconnect in cartridge cliplines 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 pay that could be made. There is no clear incentive for each bu siness unit to control costs. Engineering ! Partners could consider blueprint productivity measurements for each eye socket for example, R&D takings could be measured on estimated future value of awarded patents, and selling/business development activities could be measured by the time spent establishing a new office, or by headcount required to maintain a given level of activity. These measures, term still not providing a detailed cost allocation, would at least create infixed benchmarks...If you want to get a proficient essay, order it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper