Determination of Product Cost in a Steel Plant...

Determination of Product Cost in a Steel Plant The term ‘product cost’ means the amount of expenses [actual or notional] incurred on or attributable to the production of the specified product. Product cost refers to the costs used to produce the product. It is the measurement in monetary terms of the amount of resources used for the purpose of production of the product. For effective monitoring, specific product cost (cost per unit of product produced) is usually determined. A steel plant consists of several processes which are integrated. These processes produce many intermediate products as well as semi-finished and finished products. Many of intermediate products and semi-finished products along with all the finished products are saleable products. There are also a large number of by-products which are being produced from these processes. These by-products are used either internally within the plant or are being sold to different customers. In such a situation, the cost of the saleable products is determined in the steel plant in several stages. Each stage has a product for which the cost is determined. This product may be a saleable product or may be an intermediate product used as a raw material for the next stage. In case the intermediate product of a certain stage is the raw material for next stage then the determined cost of the product along with the cost of handling losses for the product is assigned to the next stage to the extent the product is consumed in the next stage. The product cost in a steel plant is determined the way it is done in any other manufacturing organization. The total cost of producing a product basically consists of two components (Fig 1) namely (i) fixed cost, and (ii) variable cost. Fig 1 Component of...

Staffing – A Function of Management...

Staffing – A Function of Management Staffing is a critical organizational function which consists of the process of acquiring, deploying, and retaining a workforce of sufficient quantity and quality to create positive impacts on the effectiveness of the organization.  It is one of the significant functions of the management. In an organization, it is the people which carry out the various jobs which are needed for its functioning. They are the most important resource of the organization. They supply the talent, skills, knowledge, and experience to achieve the organizational goals and objectives. In fact the performance of the organization largely depends on the quality of its people. Hence the staffing function of the management is an important function and it involves in the building of the organizational workforce. In staffing, the management is faced with the challenge of not only finding the right person for each job but also to match the personnel with the jobs identified and to provide for their long-range growth and welfare as members of the organization. Staffing is that part of the process of management which is concerned with acquiring, developing, employing, appraising, remunerating and retaining people so that right type of people are available at the right positions and at the right time in the organization. In the simplest terms, staffing in management is ‘putting people to jobs’. Staffing apparently cannot be done once and for all, since people are frequently leaving, getting fired, and retiring. Often too, the transformations in the organization generate new positions, and these must be filled. In fact, the process of staffing is also the never-ending process in the organization. The first step in the process of staffing is to understand the job requirements. It is concerned with determining two aspects namely (i)...