Allocating resources and costs - Essay Example

Comments (0) Cite this document
This essay "Allocating resources and costs" dwells on the concept of allocating resources and costs. It is stated that allocation of resources can simply be described as the analysis of how scarce factors of production can be easily made available to the producers…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER93.8% of users find it useful
Allocating resources and costs
Read TextPreview

Extract of sample "Allocating resources and costs"

Allocating resources and costs Defining allocation of resources is not that easy in terms of its un-detailed nature, but it also relevant to understand that the backbone of health economist, health services researchers and potential business starters. Allocation of resources can simply be described as the analysis on how scarce factors of production can be easily made available to the producers while abundant goods and services are apportioned among consumers. Being a central theme in the economic market, the analysis takes into consideration the essential accounting costs, economic cost and opportunity costs among other resources and goods and services related costing methods.
The aim of resource allocation is mainly on health cost and policy makers who have great interest on enhancing the flow and transfer of knowledge that relates to both health sector services and business related services (Briggs, 2014). Economically considering laws of demand and supply, there will be no day when there is satisfaction when it comes to availability of sufficient resources that will allow possible means of improving health to be provided to people whom might need to benefit from their services. Whenever there is information regarding improvement in health sector resulting from allocation of scarce resources, there is always critical decision making process to be made on how resources should be allocated.
The relationship between resource allocation and cost is always reflected on pricing signals. To allocate scarce resources, the market economy highly depends on price signals which can only be projected by different costing methods. The relationship is that scarce resources have the potential to command higher costs than abundant resources. It therefore, means that, correct price signals guide users in the following ways; they will use scarce resources to command high cost on highly valued commodity while and uses low costs on lower valued commodities (2014). Therefore, it indicates that when costs are minimally or incorrectly projected, resources users will waste them by using scarce resource for lower valued purposes and leaving abundant resources underutilized. Resource allocation is as much as important as determining the correct costing method to be used during allocation.
Briggs, A. (2014). Rational allocation of resources available for healthcare: understanding cost effectiveness analyst. Journal Of The International AIDS Society, 17(4(Suppl 3). doi:10.7448/ias.17.4.19492 Read More
Cite this document
  • APA
  • MLA
(“Allocating resources and costs Essay Example | Topics and Well Written Essays - 250 words”, n.d.)
Allocating resources and costs Essay Example | Topics and Well Written Essays - 250 words. Retrieved from
(Allocating Resources and Costs Essay Example | Topics and Well Written Essays - 250 Words)
Allocating Resources and Costs Essay Example | Topics and Well Written Essays - 250 Words.
“Allocating Resources and Costs Essay Example | Topics and Well Written Essays - 250 Words”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Allocating resources and costs

Control costs

..., marketing and manufacturing team. However, each division does not possess separate HR, IT and finance department. These functional departments work for the entire organization as a whole and there lies the main issue. Through increasing expenses of these functional departments, cost of the product divisions also increases. Unlike the others, luxury division targets a different set of customers and caters into a different market. It has been found from the other players of the industry that luxury products are customized. Therefore, human resource required for the luxury division will need certain expertise and it may require high level of information technology to locate its potential customers and for...
3 Pages(750 words)Essay

Financial Costs

...between management accounting and financial costs in a firm enable the analysts in the company to draw a feasible periodic business plan (Codjia, 2012). Financial costs are significant to a company in the process of budget making. Allocation of funds during the preparation of the annual budget of a company requires an analysis of the financial costs so that the right amounts are injected to the various processes in the company (Codjia, 2012). The financial costs also enable the planners to detect the deficits in the financial plan before they take loans. It gives an analysis of the total capital input. Financial costs also help in...
5 Pages(1250 words)Research Paper


...? OVERHEAD COSTS In the manufacturing world, the demands of the s are increasing day by day. The company has to meet the demands of the customers by making profits out of it. To make profits, firm has to allocate the cost to each and every product effectively. The company must know how to control its overhead cost and assign it correctly to every product being manufactured. Overhead costs can be divided into two types: Manufacturing overhead Non-manufacturing overhead Manufacturing overhead is the indirect factory cost that is incurred when the product is being manufactured. The cost of direct labor, direct material and...
6 Pages(1500 words)Literature review

Allocating a Scarce Resource

...Allocating a Scarce Resource Abstract There are different issues surrounding the allocation of water, as used in farms in Kansas for irrigation purposes. This paper aims to identify the different claims made upon this limited resource. In addition, it is also the objective of this essay to present a discourse on where and why water should be allocated. Allocating A Scarce Resource 3 INTRODUCTION Water is one of the most important resources needed by man to survive. The uses of water are so various and enormous that its significance cannot be overemphasized. It is an alarming...
3 Pages(750 words)Assignment

'Estimating Project Costs'

.... Cost is also the most important parameter of exclusive concern for higher level management, accountant, customer and other stakeholders of project and cost estimation is also performed during project planning phase. Appropriate cost estimation is very crucial for the successful development and delivery of project. It shall not only facilitate all resources allocated to the project but also an important factor for the client concern. That’s why this is Project Managers core responsibility to come up with realistic cost estimation for project considering all factors and dependencies in mind so that client can be provided with exact...
4 Pages(1000 words)Assignment

Opportunity Costs

...Opportunity Costs Affiliation: Critical decisions must be made in allocation of resources, since human needs and wants surpass resource availability. Scarcity of resources directs resource allocation among the best uses, making it critical to choose among alternatives that depend on the same resources available. In this pursuit, the concept of opportunity cannot be avoided. Scarcity of resources holds it that one alternative choice will outperform the others, not because the other alternatives are not important but because choices have to made among the alternatives (Gerber, 2010)....
1 Pages(250 words)Essay

Allocating Merit Raises

...Allocating Merit Raise to Small The allocation of merit raises can be a difficult situation especially since making the decision without any form of checklist is recipe for bias and unfair cut deals. As such it is of sheer importance that in management one acquires skills and criterion to structure a merit raise based on either cost of living, merit raise rates or bonuses. Individual performance reviews are one basis for the merit raises. They are however subject to the employers’ discretion and are dictated by profitability of the enterprise and the economic forces. In light of this, this paper is an attempt to design a merit raise criteria for a professors in the Management Department...
2 Pages(500 words)Assignment

Allocating Fixed Costs

...Finance & Accounting Finance & Accounting Part I Costing systems help in ascertaining the cost of product with reference to the revenue that it generates. Usually there are two costing systems that are used to determine the product cost – Traditional costing and Activity based costing. Traditional costing system witnesses companies allocating their production costs only on the basis of the quantity of the production. The basic assumption is that volume of the goods produced is the only driver of the manufacturing costs. Contrastingly, Under the Activity based...
3 Pages(750 words)Essay

Allocating Merit Raises Situation

...Allocating Merit Raises Insert Insert s The has decided to give raises totaling $17,400 to the management department faculty. The evaluation of the job performance is based on three performance standards: Teaching, Research and Service. The professor’s professional responsibility is teaching and research therefore they are the most important to consider when evaluating. The highest rating member should receive a maximum raise of 5% of his current salary. Prof. Jones ranks him the best in job performance because he exceeds in teaching, far exceeds in research and also exceeds in service. He exceeds in his teaching because he has taught about 200 students per year. His research is superb because of the two books and over 30...
1 Pages(250 words)Essay


...Costs Part A: Wysocki Co pays its sales force a fixed salary plus a 5% commission on all sales. Explain why sales force costs would be considered a mixed cost. Mainly, these types of costs normally has both fixed and varying elements. The former represents a basic wage or a monthly salary, which a salesperson ought to earn irrespective of whether he or she has sold anything (Hansen, Mowen & Guan, 2009). The other element normally varies with sales’ volume or quantity, which a given salesperson has so far sold within a predetermined duration. Mixed cost illustration Y = q + bx Whereby q – fixed cost, b = varying element and x – extent of level activities. Part B: Among the fixed costs of Howarth Co. are depreciation and research... and...
1 Pages(250 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Allocating resources and costs for FREE!

Contact Us