Suppose you are the manager of ABC Clothing Ltd. It comes to your knowledge that postal expenses have increased by 15% over the standard price and cost of labour and raw materials has increased by 3%. Which of the two situations is more critical according to you?

Open in App

Solution

There are two situations which is more critical-
a)- increase in labour cost.
b)-increase in price of raw materials

Suggest Corrections

Similar questions

You are the manager of a tyre manufacturing company. If it is reported to you that postal expenses have increased by 20% and the cost of raw materials by 2%, which of the two deviations is more critical to you. Give reason.

Q. You are a manager in a car manufacturing company. It is reported that postal expenses have increased by 10% and cost of raw material is increased by 2% which of the two deviations is more critical to you? It is related to which concept of controlling? Explain it.

You are a manager in a car manufacturing company. It is reported that postal expenses have increased by 10% and the cost of raw material is increased by 2%. This concept is related to ___

Q. If the labour cost

20 %

of the cost of production and raw material cost

10 %

of the cost of production and the price on which article is sold is

20 %

above the cost of production. If the price of labour is increased by

40 %

and the price of raw material increased by

20 %

and rest other expenditure of cost remain constant. The industry thus decide to increase the selling price by

10 %

. Find the new profit percent ?

In order to maximise the profit margins, the board of directors of 'Gamma Ltd' has decided to cut down the cost of production, by using low-quality raw materials, low paid children and women labourers, increasing working hours for employees and discontinuing waste management. A group of labourers opposed the management for less wages paid to them. They are terminated from the organisation. Enumerate the values that a qualified management should adhere to.

Join BYJU'S Learning Program

Suppose you are the manager of ABC Clothing Ltd. It comes to your knowledge that postal expenses have increased by 15% over the standard price and cost of labour and raw materials has increased by 3%. Which of the two situations is more critical according to you?

There are two situations which is more critical-a)- increase in labour cost.b)-increase in price of raw materials

There are two situations which is more critical-
a)- increase in labour cost.
b)-increase in price of raw materials