Costing Technique Of Brunei LNG Samples †MyAssignmenthelp.com

Question: Discuss about the Costing Technique Of Brunei LNG. Answer: Introduction The paper mainly focuses on the costing technique that is mainly used by the real business for achieving proper performance within the company. According to Neyestani (2017), Costing techniques are generally defined as a method that is used for ascertaining cost for various decision making procedures. The costing techniques are generally applied to make appraisals as well as for ascertaining different types of purchasing performance. It is found that there are numerous techniques of costing which mainly includes marginal costing, direct costing, absorption costing, uniform costing, system costing, historical costing, continuous costing, standard costing as well as post costing method (Abdullah, Jadhav and Borhade, 2014). The organization Brunei LNG which is one the manufacturing industry utilizes Marginal costing technique in order to manage the performance of the organization. In addition to this, it is identified that the paper discusses some of the significant decision making tech niques that is helpful in enhancingperformance management while dealing with number of risks as well as uncertainties. Application The manufacturing industry Brunei LNG utilizes Marginal Costing technique for enhancing as well as managing the operation of the organization. It is identified that marginal costing is a technique in which allocation of production to expenditure is mainly restricted to number of expenses that mainly occurs as a result of production that is materials, direct expenses, labors as well as variable overheads (Biz et al., 2015). In this technique of costing, fixed overheads are generally excluded in situations where the production of the company generally varies as it can give some misleading results. It is identified that this technique is quite useful in various manufacturing industries like Brunei LNG. The marginal cost is also referred as a method of cost accounting as well as decision making that is very much simple to understand. The costing technique mainly helps in reflecting the relationship that generally exists between price, cost as well as volume (Jayeola Onou, 2014). It is identified that by utilizing the Marginal Costing technique, the manufacturing industry Brunei LNG gets number of advantages that mainly includes: Reliable decision making: The marginal costing technique is helpful in measuring reliable decision that is made by the manufacturing organization Brunei LNG. Easy to operate: It is identified that the marginal technique is quite simple to understand as well as can be easily operated. This is considered as one of the biggest advantage of the manufacturing company Brunei LNG (Abdullah, Jadhav Borhade, 2014). The main reason behind the simple operation is that the fixed cost is not included within the cost of production. Relative contribution to profit: The industry makes relative contribution to profit that is generally made by each number of products that is mainly reflected where the sales efforts can be contracted. Take short run tactical decision: It is identified that the manufacturing industry can be able to take short run tactical decisions with the help of information that is related with marginal costing. Evaluation Proper decision making techniques are used in real business for enhancing the performance of the company when themanagement of the company is dealing with number of risks as well as uncertainties (Mardani, Jusoh Zavadskas, 2015). There are number of decision making techniques that can be utilized by the real organizations. The decision making techniques includes: Decision matrix: It is identified that a decision matrix is mainly utilized for evaluating number of options of decisions. Multivoting: This is generally utilized when numbers of people are generally involved in various decision making procedure (Mardani et al., 2015) Pareto analysis: This is the technique that is utilized when large numbers of decisions are generally made within the real business. This generally helps in prioritizing decisions from various economic perspectives. Cost- benefits analysis: This is considered as one of the decision making technique that is used while weighing the financial ramifications of number of possible alternatives (Broderick, Duggan Redfern, 2017). Conjoint analysis: This is one of the decision making techniques that is mainly utilized by various business leaders in order to determine number of consumer preferences for making proper decisions. SWOT analysis: SWOT analysis mainly stands for strengths, weaknesses, opportunities as well as threats that generally assist in assessing various planning tools. PEST analysis: PEST analysis is defined as an acronym for political, social, economic, social as well as technological factor that helps in improving decision making as well as time by analyzing number of external factors (Rardin Rardin, 2016). It is identified that Pareto analysis can be utilize for enhancing the performancemanagement when dealing with number of risks as well as uncertainties within the organization. It is identified that this technique of decision making is utilized by the organization as with the help of this technique large number of decisions that are required to be made by the organization can be properly prioritized as per their need (Mardani, Jusoh Zavadskas, 2015). The organization need to take the most important decision as per their prioritization so that the performance of the organization cannot get reduced during the rise of risks as well as uncertainties. It is identified that Pareto analysis helps in enhancing the organizational efficiency, assists in improving problem solving skills, assists in as well as improving decision making capability. The risks as well as problems that generally occur within the organization can be easily solved by conducting Pareto analysis as it helps in enabling the organization to organize the various work related issues into number of cohesive facts (Rardin Rardin, 2016). With proper focus on resolving the problems that are associated with the organization must be properly documented with the help of Pareto analysis so that the documentation will be helpful in enabling better preparation as well as improvement in decision making for various future changes. References Abdullah, Y. H., Jadhav, K. D., Borhade, S. (2014). The Effect of Applying Activity Based Costing Technique on Financial Performance of Service Industry: A Case Study of Levare Consultants Pvt. 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Multiple criteria decision-making techniques and their applicationsa review of the literature from 2000 to 2014.Economic Research-Ekonomska IstraÃ… ¾ivanja,28(1), 516-571. Neyestani, B. (2017). Quality Costing Technique: An Appropriate Financial Indicator for Reducing Costs and Improving Quality in the Organizations. Rardin, R. L., Rardin, R. L. (2016).Optimization in operations research(p. 919). Prentice Hall.