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Costing analysis is paramount in the ordering process. It will determine the organization’s progress in terms of items to be acquired, the quality to be attained, the duration for delivery process and final corporate returns to be anticipated (Pty Ltd, 2010). In executing this process, I will adopt the following procedures:
a) Identifying The Business Type
Each business that one is involved upon has unique salient features and demands; especially the way the said business entity operates! This will obviously call for a distinct method of ordering process in determining the job costing procedure. If for example I am engaged in commercial business like a marketing enterprise, my ordering demands will entail: the client’s trading name, trade mark, company’s trading activity, past records, both financial and none financial items and finally the rate of charges offered (Pty Ltd, 2010).
b) Determination Of Fixed Costs Associated (F.C)
When conducting my order for the requirements, it will be foolhardy to imagine that there is no fixed cost that may emerge. Any business entity must operate within a geographical enclosure. It will be prudent to ascertain the present or future charges that will not vary with the business activities (Pty Ltd, 2010). These, for example, land rates if I decide to build the firm on the acquired piece of land. The order sheet must contain the charges of such items.
c) Consideration Of Variable Costs (V.C)
Consequently, as illustrated above, lease or rent rates must be thoroughly considered when I feel like holding my activities on a temporal basis. The service provider or the product supplier has to avail records pertaining to variable costs which will later be contrasted against the actual charge sheet once the goods or services are delivered.
d) A Check On The Semi-Variable Costs (S.V.C)
These are costs that intermittently change with the level of enterprise activity. In most cases telephone bills are some of the items that are of such nature. It has a variable component; for example, call rates; and a fixed component like rent rates. It is worth to note that these are some of the items that will never miss any charge sheet of an order that caters for activities of a business of this nature! I will therefore give an order that reflects costs of this look for proper accounting and costing purposes.
The Order Steps
I) Making Oral Enquiry
I will involve the office of Corporate Affairs and Public Relations to find the necessary information in regard to the products or services offered by the company of interest (Pty Ltd, 2010). The enquiry will be made through telephone by the relevant officer within the department. Feedback will be communicated to me via on-line services clearly illustrating the items and the requirements of each.
II) Giving Directive to Purchasing and Procurement Department
My next move will be to direct the above relevant department to order for definite products or services that are relevant to the company’s demands for thorough perusal before the actual order is issued. The personnel in charge must act meticulously and swiftly in order to cut down on-time costs.
III) Feedback Receipt
The Procurement Department through the section’s communications officer will report to me the final feedback from the supplier. I will subsequently go through the relevant documents provided, for example, the availed catalogues. The catalogues will have to prove the relevant quality and designs needed, for example, for computer models (Pty Ltd, 2010). The relevance in terms of purpose, cost and other nitty-gritty items will also be looked at to ensure that no stone is left unturned!
IV) Issuance of Order Form
The Department of Purchasing and Procurement will then organize for triplicate order book. The department will forward the order forms to the supplier with the relevant items that the company is interested upon. The supplier will then promptly delivers products ordered, accompanying each with a charge sheet to be used for verification of anomalies. Initial payment upon satisfaction will be done by the Finance Department.
V) Product/Service Delivery
I would opt for a low-cost transport system based on the prior information provided on the catalogues. My key concern will be on how to optimize the enjoyment of incentives provided by supplier; for example, delivery discounts. Upon arrival, each product will be checked against the retained duplicates of the order form. The original form will have been forwarded to the supplier purposely for the avoidance of confusion.
VI) Stock-Taking Process
The above process will help in ascertaining the actual quantity of the products delivered. It will also ensure the status of the quality provided by the supplying firm. Stock taking process will unearth the concealed defects within the products delivered! It is therefore a vital tool that painstakingly purposes for achievement of the value required. The Department of the Human Resources and Procurement will liaise for appointment of suitable personnel to conduct this exercise. The exercise will entail both manual and electronic counting where necessary.
VII) Final Payment and Closure of the Order Process
Upon thorough and satisfactory inspection, thereby indicating no anomalies, the Finance Department will be authorized to clear the remaining arrears, hence closing the chapter in this activity. The relevant departments will then be allowed to acquire the relevant products for their use through the departmental heads. Departments like Production can then take the raw materials for their operations (Pty Ltd, 2010). The ordering process will be deemed closed by countersigning the relevant documents by the relevant officers involved in this process.