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Beginners Guide to Least Cost Method Homework Answers

by Jul 9, 2017Accounting

Understanding the least cost method becomes tough for beginners finding their way into accounting. However, there are many online sites that provide answers to those problems. Thus, you can start with allinitial stages of least cost method homework answers.

Know more about this method

The Least Cost method aims to derive initial feasible solution for transportation problems. Thus, the initial allocation starts with taking the valuation of the cell having the minimum cost. Therefore, you should choose the lower cost cell over the highest cost cell so that you can get the least transportation cost.

Choosing this method over North-west Corner means it will produce a favorable result. This happens because this method always considers shipping cost when forming the allocation. However, North-west corner method fails to give worthy results as it considers only availability and supply requirement.

Among all other five methods of feasible solution, this type provides best results. Developed first for electricity utility industry this helps in selecting a cost-effective method.This also helped in producing the increasing demand thus helping towards a better supply.

Advantages of least cost method homework answers

Therefore, Learning from the definition, you can understand that this method successfully derives the most accurate solution.However, it happens because while doing allocations transportation cost plays a major role.

In feasible solution, this method provides a simple and easy calculation. Therefore it becomes easy for accounting heads to understand transportation cost properly.Also, it takes very less time to obtain a solution.

Step-by-step analysis to solve the transportation problem

First, you need to select that particular cell having the lowest transportation cost. Always remember to select that cell which has the lowest value among all others in the transportation table. However, if the table does not show a unique minimum cost, you can choose the lowest value arbitrarily.

Therefore, moving on to the next step, you can allocate many possible units to that particular cell which you determined previously. And now, you need to eliminate that row where either capacity or requirement in exhausted.

Now, in next step of least cost method homework answers you need to adjust both capacity and requirement needed for the next allocation.

You need to keep on repeating all three previous steps for the table which you reduced. Students need to keep on doing this until each capacity gets exhausted to fill requirements in all separate destinations.

Aim of this method

Based on the cost-benefit analysis, this method aims towards minimizing the cost of ration.As well it keeps in mind not to hamper the nutrient requirements and productivity.

Aspects of least cost method homework answers

  1. It aims for incorporating non-conventional feed stuff
  2. Provides efficiency in productivity with minimal cost
  3. Speed and accuracy that computerized linear programming makes, saves time and labor
  4. Also, increases productivity of the firms
  5. Available chance of flexibility in a program as per any available quality resources
  6. Any person can use this method to increase productivity

Keep in mind the following point during evaluation

  1. Market availability of resources and its cost
  2. Capacity of production and storage
  3. Availability of non-conventional resources
  4. Availability of storage area for resources
  5. Movement of these resources from one part to another part of the country
  6. Price forecast based on support and remunerative prices

Points to note in Computer-Based Model

  • Maintain standards

When you are selecting resources, always go for the one having a low cost but more value. When you select a resource only by its price and overlooking its utility, it will cause damage to your final output. To meet demand one should not compromise with the supply structure. Therefore, if you always overlook the resource’s utility your reputation as a firm will go down.

  • Associative and additive effect

Students enrolling into new job roles in firms under nutrition and food category,should always keep in mind few points. Thus they should get authentic solutions during learning about least cost method homework answers.

Synergies of different ingredients sometimes cause an adverse effect. Therefore, to avoid digestive imbalance try to choose ingredients properly and not only by cost. Computerized data will only contain what you feed it. Therefore keep in mind the importance of the ingredients while putting in the data for evaluation mix.

  • Toxic material problem

Computer fails to identify the toxic material mixed with available resources. Students should know how to detoxify materials before taking into evaluation to meet the demand.

  • Density of resources

Quality and quantity should always utilize after balancing. To decide the cost one should keep in mind the quantity as well. And to keep the cost low should not compromise with the quantity needed for production. Computerized model tends to fulfill the price requirement and thus can opt for low quantities. Therefore, manually putting the quantity by using proper knowledge and skills, balancing becomes easy.

  • Computers do not judge

It is you who will put all the data. Computer only makes the evaluation according to the data put by the user. Therefore, carefully analyze the resources before sending it for evaluation. Computers cannot judge the amount or required number of the transportation facility to meet certain demand. So, you should understand the units before putting it into the computer.

Sites providing least cost method homework answers guide you through the solutions. They always take you through effective formulas and evaluation to know more about the subject. Thus, students can understand the best possible ways for evaluation of problems in firms that fight to meet demand.