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Please see the attachment for the questions that need to be responded too. There are two discussion question that needs to be answered. The minuium word requirement for both 200

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My original Post • Describe three (3) key concepts you consider most important in the total cost of ownership. Three concepts that are most important in the total cost of ownership are: Pretransition Cost-which identify the need, qualifying sources and adding supplier to internal systems. Transaction Cost- which is purchasing, inspection and administrative cost. Post-Transaction- which includes defective parts, repairs and maintenance. • Describe how price discounting would influence the understanding of purchasing as a profit center. Generally, price discounting facilitates retention of customers and also attracting new customers. This statement concludes that there will be an increase in sales hence an increase in profits. It also ensures constant sales even during the low seasons. • Explain what and how a small business can apply and benefit from the strategic cost management. Give at least two (2) examples Example of a cost management technique that can be used is reducing cost overheads. One of the moves that can be made to reduce overhead cost is reducing the number of workers hence decreasing salary expenses. The small business can also manage the costs effectively by adopting modern technology. Advanced modern technology is likely to increase the quality as well as the quantity of the products or services provided by the business. • Describe one (1) of your business negotiation experiences. Explain how your negotiation impacted directly and/or indirectly to the profit and/or the expense of your company or organization. If you do not have business negotiation experience, describe one (1) business negotiation experience you observed or learned about. I have witnessed many negotiations that businesses have made with their client and which resulted in increased profits while others resulted in losses. For example, there was a cleaning company that negotiated with a particular company in town and agreed to reduce the services by 20%. The experience resulted in a significant loss which causes the cleaning company to terminate the contract. The reason for the failure was due to an increase in overheads costs such as salaries and other materials that were used in cleaning which exceeded the amount earned. References: Langfield-Smith, K., Smith, D., Andon, P., Hilton, R., & Thorne, H. (2017). Management Accounting: Information for creating and managing value. McGraw-Hill Education Australia. Johnson, P., & Flynn, A. (n.d.). Purchasing and Supply Management (The Mcgraw-hill Series in Operations and Decision Sciences). Thank you for posting your initial post early in the discussion week. Can you provide some more detail in your three chosen concepts? What are each one, why are they important, and why do you consider them as key concepts? What is an example of each concept? Can you provide some detail in your section that discusses cost management? Can a company just reduce the number of employees and decrease their costs in order to lower prices? What concepts of total cost of ownership could be applied to reduce costs over the entire operation thus allowing products and services to have lower prices? I would like to think about this subject deeper than simply cutting human resources. Please also provide more information and detail about technology advancements and how it can be used to manage costs. For example, could a new technology cost more than originally thought? For example, Tesla cars are popular for not using fossil fuel but what if you live in a high electrical cost area? How much is it to repair a Tesla? For example, a cracked windshield in a Tesla costs thousands of dollars to replace. A failed battery in an electric car is very expensive to replace. Are the fuel savings really worth the high cost of paying to maintain the technology? Hello Class, Three (3) key concepts that are most important in the total cost of ownership are: Inspection, Testing, and Warranties. The government has the right to inspect not only the final product, but also anything along the way and, in fact, even before the work starts. It’s not only up to the government to make sure the work complies, but the contractor has the obligation too. A surprise government inspection is clearly allowed. All the work done under the contract can be inspected at any time and place, and the government can use any reasonable test to determine whether the work satisfies the contract requirements. Inspections and tests are paid for by the contractor. Government contracting assumes that the costs of inspections and tests are included in the contractor’s prices. And if the inspection does not go off at the time arranged, the contractor is responsible for any additional costs that the government incurs because the tests are rescheduled. (O’Connor, & Wangemann, 2013, p. 323). Under the warranty, the government has to prove that the contractor did it wrong and that the defect existed at the time it was accepted. The government must show that the contractor was given timely notice of the defect, the affected work was the contractor’s responsibility, and the government did not cause or contribute to the failure. The contractor isn’t necessary off the hook when the warranty expires. The contract clauses typically say that any remedies under the warranty clause are in addition to those given under the inspection clause. (O’Connor, & Wangemann, 2013, p. 323). Price discounting can influence the understanding of purchasing as a profit center due to risks associated with giving discounts. A company will set profits based on whatever it believes it can get after considering the cost of doing the work. If the market is highly competitive, the company will set an initial price based largely on what it believes its competitors would charge. It will then examine its own costs to do the job and decide whether the profit that would result is worth the effort. It will trim its estimated costs very closely and may set very narrow profit aspirations. It will then set an asking price intended to be just under its competition. The degree to which it will go depends very heavily on how much it needs the business. In extreme cases, the company may seek only to recover its variable costs and some part of its fixed cost. When a company goes to this extreme, it is losing money. (O’Connor, & Wangemann, 2013, p. 183). Price is a major factor in cost management. In order to control price, a business must first control costs. Therefore, small businesses can apply and benefit from the strategic cost management from proper cost accounting, and cost classifications. Cost accounting is a procedure which enables firms to keep track of the costs that apply to each individual contract or major task they undertake. It provides businesses a means to know which product lines are profitable or incur losses. It estimate the cost of work before actually undertaking it; It track the cost incurred for doing a specific work task; and it help the company decide whether or not to continue in certain product lines or services. For example, the government places a cost-reimbursement contract with a firm, it is important for the government to be sure that the costs billed to it are a direct outgrowth of the costs incurred for that government contract. One (1) major cost classification is: Variable, Fixed, and Semi-Variable costs. Variable costs are expenses that go up and down depending on the total volume of work. Labor and material costs incurred as a direct result of doing work are the most common examples of variable costs. Fixed costs remain pretty much the same regardless of the amount of production. Building rent is an example. The rent will remain the same whether the company is producing no work or 100 units. Semi-Variable Costs are costs that are partly fixed and partly variable, depending on the amount of production being done. For example, utility costs we will pay a certain fixed cost just to have electricity available, and we will pay that even if we don’t turn on a light bulb. (O’Connor, & Wangemann, 2013, p. 51-55). One (1) business negotiation experience I learned about: Let’s say that I am selling my house at an advertised price of $300,000. If you offer me anything close to my asking price, $290,000 for example, I will think that you have a lot more to spend. You have raised my expectations. I will kick myself, because I didn’t ask for $350,000 instead of $300,000. So even if I receive my full asking price, I may still be dissatisfied, “I should have asked for more.” Now, suppose your first offer is only $240,000 which is an extreme position relative to the $300,000 listing. I may abandon my hope of getting the asking price of $300,000. If we eventually settle at a price of $258,000, I will feel good because I succeeded in getting you to move up from $240,000. Think about this: I will be more satisfied with $258,000 than I would have been in the first scenario with $300,000. This is because of how you made your concessions. (Brodow, 2006, p. 82).
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Every organization would like to make the best out of each of the operations. Therefore,
there is a great need to ensure that the organization meets the best quality from the first to the last
stage of production. Thus the organization might bring about the assessment authorities who can
help perform the review of each stage of development. Secondly, the authorities or any other
interested government agency can have the access to the product in each state and can perfo...


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