Analysis of Liquid Chemical Company Case
Not what you're looking for?
Please help check and correct my accounting problems:
Analysis of
Case Liquid Chemical Company
Questions and Problems for Consideration
1. Given the two alternatives do the work inside or subcontract it to Packages Ltd?
2. What are the advantages of one alternative over the other?
3. Which action would you favor?
Please see attached.
Purchase this Solution
Solution Summary
The solution presents an analysis of make or buy decision in the Liquid Chemical Company
Solution Preview
Let us see what are the sunk costs and what are the allocated costs ( costs which will not chnage even if the plant is closed) and then get the actual cost of operation of the plant and compare with the outside quotation.
1. Material - If we produce in house, material will be required. It is in 2 parts, 100,000 other and 40,000 GHL. The other material will be 100,000. GHL was bought at 1000 per ton and can be sold today at 800 a ton. The costing would be at 1000 a ton. If we sell it we can realize 800 a ton, therefore the realization cost should be used in the calculation. If we are using 40,000 at 100 a ton, at 800 a ton it will be 32,000. The total material cost to be taken is ...
Purchase this Solution
Free BrainMass Quizzes
Writing Business Plans
This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.
Paradigms and Frameworks of Management Research
This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.
Basics of corporate finance
These questions will test you on your knowledge of finance.
Team Development Strategies
This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.
Employee Orientation
Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.