Relationship Between Production And Costs At The Point Of View Of Managers

Relationship between production and costs at the point of view of managers

Introduction

In this work I will talk about any relationship that is both in the aspect of production and cost them from the point of view of the manager of the companies that are in front of the front line or those of high hierarchy. Among many factors that are going to be seen as such the relationship that exists with short -term costs compared to when long -term costs are discussed, and in which the effects and relevance can be differentiated. You will also be talking about concepts about long and short term efficiency. How the curves of which are designed by management are compared. I will also give certain perspectives thus giving examples of the different applications. As well as the role of a manager in a company that can be both a failure and also a success for the company.

Developing

The production in the management aspect must be completely defined and in every detail in the company so that this comes to work, the concept of each of the applications used by the management, which is important, since they are important since they are going tosay the success of the company or the failure of the company. When in a company there is production here you can say that there are several mixes of elements that are used in order to create new forms and the company can be directed for the good of its administration.

This should be understood as the result of the activities that have as a vision can make the profits both in the present and in the future, while companies or companies change their transformation what I mean is this process of changesand transformations are a great important factor in the company or company and as such its production that make large products of good quality will be throughout excellent quality and will have a good prestige in their work which will lead to theConsumer through these products, Robbins & Culter (2014).

In these production concepts there are four areas that are important and main which a manager must investigate and know. To mention a concept would be that of capital, this represents the investments that is to say the movement of the dollar or the currency in exports and also in the imports of the profits that are going to be the place where the company is. Another would be the land and here I mean infrastructure such as airports, highway etc … There is also the ability of the manager in the companies and finally the work would be which represents training as training given to employees as well asthe managers.

Robbins & Culter (2014), defines efficiency as “obtaining the best results from the least amount of resources” what it means is that within companies you have to perform everything in the best way so that then the results can be achievedthat the company wants to achieve, thus using less amount of human resources because this company can meet the goal or the needs they have. As such this is the result of knowing how to handle each productivity resource that is at the time.

The efficiency that is in the short term, is when companies begin to use their resources in a very efficient way giving results which can be observed within the companies, because it looks how unemployment decreases. Companies are satisfied when they establish goals at that is that efficiency occurs, which is divided into two types. One of them is technical efficiency which is direct result when the company wants to produce services that are at minor costs.

The other is the allocative efficiency in this is when you want to produce those services that have a greater demand. This efficiency that is long -term when its production factor increases even if resources are used in the inefficient way but if we see the objective is to have their mints that are already established as close as I can, Robbins (2014).

As we see the production factors that are in the short term, this can be described as a fixed component, which cannot be changed what describes it as a greater period of time, which means that one of one ofproduction factors. If we compare the production factors that are in the long term, this are different or modified, which means that it is a much shorter period of time and the amounts of the production factors that have the term are changed.

There is a very close relationship with the production and costs that are short and the long -term costs. The short -term cost and production have a very close relationship with respect to their operation which is directed by managers and this is reflected in companies, both in their operation and in the economy. When there are costs that are variable in their production level, the more units they have and produce the greater the cost. COBO, FR, TORRES, V. Machado, and and Fraga, M. (2012). Says fixed costs are those that do not change with the level of production, regardless of how many units can occur, it cost them always to do the same.

The concepts concept of isocostos curves comparing it to the isocuantas curve, which reflects decision making from the management point of view. The isocoste or isocuantas curve These curve are related to different combinations of production factors at certain times that can be done in the short term or in the short term.

The isocounta curve is represented by several combinations of factors either by work as well as capital among others. With this it allows production to have a production level which can measure when it comes to specific products that are as such from the company. This also indicates that production gets to have greater amounts in terms of the company in general of the company. The advantage of this is that you can have a scrutiny of each resource of the productions referring to the capital which are prices.

Mentioning some advantages of the local market could mention the following: Creating a direct marketing This means raising the techniques that are present that managers used to develop and evolve. Another advantage is to carry the message when several instruments are used, this is a great advantage because it can reach the client and this customer to another customer either in its geographical location obviously with a study and an analysis that can impact the consumer. It would also be to use the great innovation that exists nowcompany wants to sell and can also reach large amounts of consumers at the same time.

The disadvantage of the local market would be: the lack of bases of the data that are reliable, often in the database there are analysis and studies that are lacking of credibility and are not reliable because it has no arguments that concretize it. It would also be the lack of professionalism this is something negative when there is no seriousness, the image of one represents the company and impacts and many times for the bad behavior of some people in the companies is to create a negative image of the company. The increase in the cost of many companies is also a disadvantage in the aspect of the costs they use as mail or telephone lines.

The advantages of international trade between them would be: exporting products This would be an advantage since being able to export internationally has a connection that will help the manager can carry their services or products to other places that are not local. It would also be to improve people’s quality of life this will give each inhabitant of some places or territories to see an increase in the employment rate, as well as the possibility that the management can be overcome. Another is to open to new markets thus promoting the development of countries to benefit the people.

The disadvantage of international trade a serious. Also the damage of goods at another disadvantage since when making large shipments sales can get too slow for their high prices. Another disadvantage could be the interests which are lower in national products, I explain when one gives products that are of excellent quality those countries that are found as origin this can affect the consumption of products that are local, which will lead to someNegative effects.

conclusion

The manager does not matter what level, these managers must take into account any production and all the costs of the types of services they give, so that every local and international market can impact with each of their products and theirservices. The productions of the services must be analyzed before making some execution so that the resources of the companies and also their profits are maximized. I understand that there is always an analysis or study of the market that wants to reach so that the product that must be produced and placed in the market can be known so that it can be accepted in the best way for the benefit of the company. I understand that innovation in companies in what is today in a trend and keep this company in competition with the new trends. These isocostes and isocount curves are part of a way to maximize companies productions.