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The price of a product or service is defined as cost plus profit, whereas cost can be broken down further into direct cost and indirect cost. [1] As a business has virtually no influence on indirect cost, a cost reduction oriented cost breakdown analysis focuses rather on factors contributing to direct cost.
If is the cost of setting up a batch, is the annual demand, is the daily rate at which inventory is demanded, is the inventory holding cost per unit per annum, and is the rate of production per annum, the total cost function () is calculated as follows: [13]
Glycol chillers are a specific kind of refrigeration system, often used to cool a variety of liquids, including alcohol and other beverages. Using a chiller allows producers to lower the temperature of the product dramatically over a short period of time, depending on the production needs.
Common absorption refrigerators use a refrigerant with a very low boiling point (less than −18 °C (0 °F)) just like compressor refrigerators.Compression refrigerators typically use an HCFC or HFC, while absorption refrigerators typically use ammonia or water and need at least a second fluid able to absorb the coolant, the absorbent, respectively water (for ammonia) or brine (for water).
The heat pump itself can be improved by increasing the size of the internal heat exchangers, which in turn increases the efficiency (and the cost) relative to the power of the compressor, and also by reducing the system's internal temperature gap over the compressor. Obviously, this latter measure makes some heat pumps unsuitable to produce ...
The latter utilize cost drivers to attach activity costs to outputs. [1] The Institute of Cost Accountants of India says, ABC systems calculate the costs of individual activities and assign costs to cost objects such as products and services on the basis of the activities undertaken to produce each product or services. It accurately identifies ...
In marketing, carrying cost, carrying cost of inventory or holding cost refers to the total cost of holding inventory. This includes warehousing costs such as rent, utilities and salaries, financial costs such as opportunity cost , and inventory costs related to perishability, shrinkage , and insurance. [ 1 ]
Fig.1 Schematic diagram of a Stirling cooler. The system has one piston at ambient temperature T a and one piston at low temperature T L. The basic type of Stirling-type cooler is depicted in Fig.1. It consists of (from left to right): a piston; a compression space and heat exchanger (all at ambient temperature T a) a regenerator; a heat exchanger