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    manasisalvi08
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    The document analyzes the cost impact of switching to more sustainable packaging for wired earphones. Currently, plastic makes up 40% of the packaging and costs Rs.12/box, while sustainable options are Rs.15.8-18/box, increasing costs by 6%. While exact costs for the company studied are unknown and sourcing details not provided, past studies show sustainable packaging can be economically feasible through reuse of transport containers, reducing overall costs over time despite initial higher per-product costs.

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    Costing concepts

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    costing

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    The document analyzes the cost impact of switching to more sustainable packaging for wired earphones. Currently, plastic makes up 40% of the packaging and costs Rs.12/box, while sustainable options are Rs.15.8-18/box, increasing costs by 6%. While exact costs for the company studied are unknown and sourcing details not provided, past studies show sustainable packaging can be economically feasible through reuse of transport containers, reducing overall costs over time despite initial higher per-product costs.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    5 views1 page

    Costing

    Uploaded by

    manasisalvi08
    The document analyzes the cost impact of switching to more sustainable packaging for wired earphones. Currently, plastic makes up 40% of the packaging and costs Rs.12/box, while sustainable options are Rs.15.8-18/box, increasing costs by 6%. While exact costs for the company studied are unknown and sourcing details not provided, past studies show sustainable packaging can be economically feasible through reuse of transport containers, reducing overall costs over time despite initial higher per-product costs.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 1

    https://www.sciencedirect.

    com/science/article/pii/S2590289X20300086

    40% plastic

    50% paper

    Out of this, 20% plastic can be replaced with degradable options.

    Rs.12 / box is available in open market. Rs.15.8-Rs.18/box sustainable options are available for
    packaging.

    Assuming wired earphones cost Rs.100/piece to manufacture. Packing cost form 10% of product
    cost. Sustainable packing will form 16% of product cost. This is 6% increase in packaging cost.

    Gap in this analysis is that:

    1. exact cost elements for Boat’s packaging are not available.


    2. sourcing of packaging material is not available.

    After using sustainable packaging, as per study conducted on using reusable LCD panel transporter,
    it is economically feasible. The sustainable packaging may increase overall cost for Boat by 6% but
    the reuse of same transporting containers or packaging can reduce overall cost however not behind
    per product produced. The costing will also not include imputed appreciation cost which is usually
    derived after a certain period of time.

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