Outsourcing helps emerging economies by providing more jobs for their country. A large corporation may decide to outsource their manufacturing in order to save hundreds of thousands of dollars and sometimes millions. The value of the currency is what will make the largest impact on a corporation. It would cost one tenth of the normal labor wages to manufacture in a country such as India versus manufacturing in the United States. The wages the corporation will be paying the local people in India will be equivalent to what the US workers would have made but cost a lot less to do it. Many people in the United States frown on corporations that outsource. I personally do not see it as a negative; however the loss of jobs from the corporation leaving the country could cause some issues. This is where corporate outsourcing may or may not help them develop country it is leaving.
At first glance it seems the corporation is costing the developed country or let’s says the United States, thousands of jobs. Americans will begin thinking that these thousands of people are now left without a job but then the corporation hires thousands of non-Americans. I can see how this can be bad PR in the United States. There are a lot statistics and research’s that support outsourcing for the developed country. Many say that the re-movement of the corporation will open up doors for the employees left behind. In fact the majority of jobs in the United States is created by small businesses and the outsourcing will provide a much lower price of products to sell which also combats national inflation. Patrick Dixon form Global Change stated that “research shows some of the new economic activity generated in developing countries by outsourcing will generate new demand for goods and services in the country where the jobs have moved from the developed countries. It has been estimated that every dollar that US corporations spend on outsourcing to India gets $0.33 cents and the US economy benefits by $1.14.”
Job costing and process costing are very similar in what they do. Both systems record the costs involved in the making of products. however a specific job like making a chair in a furniture store would compile a list of cost using job costing. All the costs involved making the chair including all screws paint and materials used to make the chair will be listed in the job costing. Process costing provides detailed information for management and helps determine if the product is financially successful or not. The process costing system is used for larger jobs and account items over the entire time it took to fulfill the job. For example, the process of making gasoline will take a longer period of time and requires materials to be used during the entire time for the large amount. Materials needed to make the gasoline will be compiled on the process costing list.
Disadvantages for job costing is that the detailed information provided for job costing records are down to the details for the specific job. This record keeping is very time consuming. Process costing is simplified and less time consuming compared to job costing. The process costing is more suited for keeping track of departments or groups rather than detailed information on single products.
Competitive pricing will always be a concern. In my view and understanding, the customer is the most important part of a business. A happy customer will return and be a repeat customer. If a product is overpriced the business may lose the customer, so pricing the product close to what the market suggest the product should be priced is imperative. Comparable prices with some sort of extra value can help the business thrive with a unique way to present the product.