Chapter 7: Linde Flashcards Preview

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Flashcards in Chapter 7: Linde Deck (6)
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1
Q

Why product costing?

A
  • Based on given investments and assets, how do we maximise our profit?
  • Can we stop a plant and ship product from another plant?
  • Which product forms should we produce from a plant, if it is fully utilised?
  • Should we deliver a specific customer, although distant to source and low price?

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2
Q

Linde business model and implications for product costing

A
  • Tonnage
    • 15 years contracts
    • Limited implications due to contract
    • Needs globally consistent keys to be able to compare
  • Bulk
    • High importance for pricing, customers and market delivery definitions
    • Key for Inventory Valuation
  • Cylinder
    • Product mix decisions
    • Distribution optimization
3
Q

Market and competition change - impact on efficiency

A
4
Q

Cost categories in productivity calculation

A
5
Q

Concept of productivity calculation

A
6
Q

Understand margin development is key to understand operating profit bridge

A