Engineering Partners

I.Engineering Partners Accounting and Costing Approach Engineering Partners design and adjust medical diagnostic equipment. Because of their niche and high quality, Engineering Partners ar able to set their products pricing based on what the grocery store allows. It is estimated that 15% of the selling costs c everywhere cost of gross sales and the other 85% argon for overheads. Costs are non up-to-dately employ to set product selling footing so it is not possible for Engineering Partners to calculate the profit strength all(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 flow rate system The current pricing intent 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 Partners is not a ble to identify where money 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 datelines 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 network that could be made. There is no clear incentive for distributively business unit to control costs. Engineering Partners could consider designing productivity measurements for each eye socket for example, R&D widening could be measured on estimated future value of awarded patents, and market/business development activities could be measured by the time spent establishing a new office, or by headcount required to maintain a given le vel of activity. These measures, piece of! music still not providing a detailed cost allocation, would at least create infixed benchmarks...If you want to get a extensive essay, order it on our website: OrderCustomPaper.com

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