Rider Exports Case Study

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A Company is a legal entity made up of an association of persons, be they natural, legal, or a mixture of both, for carrying on a commercial or industrial enterprise. It is an artificial person created under law with a perpetual succession and a common seal. The company taken for this project is a Garment Company named Rider Exports. Rider exports is a joint venture having the vision of bringing the company to gain new heights and carve a name in the industry with their efforts and team of professional managers and staff. Rider Exports deals with the manufacturing of clothes for Adidas, Reebok, Allen Solly, US Polo, Arrow to name a few. This company is fully equipped with all modernized and sophisticated machinery to undertake all the process…show more content…
Each product is subjected to strict quality control measures to ensure that only the best in terms of quality and design reaches the market. In order to carry out all these activities, the company incurs various expenses stated under the head overhead expenses. Overhead expense refers to an ongoing expense of operating a business. Overhead expense in a Riders Export involves expenses for fabrics, cuttings, trims, utilities, etc. Overhead expenses are all costs on the income statement except for direct labour, direct materials, and direct expenses. Overhead expenses also include accounting fees, advertising, insurance, interest, legal fees, labor burden, rent, repairs, supplies, taxes, telephone bills, travel…show more content…
Fixed expenses or costs are those that do not fluctuate with changes in production level or sales volume. Fixed Expenses of Riders Export include rent, insurance, amortisation, dues and subscriptions, equipment leases, payments on loans, depreciation, management salaries, and Variable expenses are those that respond directly and proportionately to changes in activity level or volume, such as raw materials, hourly production wages, sales commissions, inventory, packaging supplies, and shipping costs. Variable Expenses of Riders Export include Production supplies, Commissions, Credit card fees. Although fixed costs do not vary with changes in production or sales volume, they may change over time. As a result, fixed costs are sometimes called period costs. Some fixed costs are incurred at the discretion of a company's management, such as advertising and promotional expense, while others are not. Direct materials are those materials and supplies that are consumed during the manufacture of a product, and which are directly identified with that product. Direct Materials cost is the cost of direct materials which can be easily indentified with the unit of

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