Cost Justification

Cost Justification Money is one of the most exact issues in developing a business, without money the business go away never work. There is few terms means money when it comes to business industry; terms as capital budgeting, monetary value allocation, job costing, is familiar to business entrepreneur. Capital budgeting is the making of long run planning decisions for investments in abides and programs. It is a decision-making and control to that focuses primarily on projects or programs that span multiple years. This planning decision should be guided by the objectives of an organization and its strategies. Strategy describes how an organization matches its knowledge capabilities with the opportunities in the marketplace to accomplish its overall objectives.

In Echofresh project for Engineering Context, the group decided to mother a virgin range of an energy sport drink focussed to sports person, and materialisation adult. In this case, the sound and appearance of the drink should be likable to attract the market. An attractive label MC² had been chosen to get along sales, and strict endurance of design bottle using pet plastic agreed by marketing department.

As dearie plastic will be used as the material, the selection of material is considered to cut down the cost to make the bottle.



Although the prototypical investment would be very high, as an injection border machine is a necessity to produce a bottle. usance mainly focussed on injection moulding and gust moulding machine. If the company forecast the demand to be 10 million units in the first year and increasing by 20% per year, and the factory running 24 hour and 7 days a week, this means one machine has to produce 1100-1500 bottle per hour to satisfy the order quantity. Another cream would be running two machines together to meet the demand.

Advantages of front-runner Plastic to other material...

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