254 words - 2 pages
The price and capacities of RAM and hard drive storage have come a long way in the past 30 years. Take for instance, in 1981 an 18MB hard drive cost $2500, today a 1TB hard drive costs $150. In 1990 RAM costs were $50 per MB and today one can purchase 2GB RAM for approximately $50.
that there is a strong exponential correlation in the capacity vs cost ratio, where r=0.9916. During the last 30 years the capacity per unit cost ratio has nearly doubled approximately every 14 months. The regression equation is given by:
Many TB+ drives have become available which recently broken the $0.10/GB boundary, whilst the next milestone being $0.01/GB or $10/TB. If historical trends continue, then 10
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of IAS 37 defines restructuring as follows:
[A] programme that is planned and controlled by management, and materially changes either:
a. the scope of a business undertaken by an entity; or b. the manner in which that business is conducted.
Under IFRSs, emphasis is placed on the recognition of the costs of the exit plan as a whole, whereas under ASC 420-10 in U.S. GAAP, each type of cost should be examined individually to determine when it should be accrued. As a result, there may be differences in timing of recognition of restructuring costs under IFRSs and U.S. GAAP.
Pharma has taken the following actions:
1. On December 15, 2014, Pharma issued a press
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1 What is the fundamental nature of the traveler’s dilemma? How does the traveler seek to minimize the risks involved in solving this dilemma?
Similar to many other situation, the traveler’s dilemma is a specific type of game in which two travelers make an effort to minimize their losses and maximize their benefits. It is also placed in a situation in which neither traveler gives any concerns about the other but still acknowledge one another. Therefore, the fundamental nature of the traveler’s dilemma is to reach an equilibrium in which each traveler is able to gain an equal amount of benefits and losses.
2 Describe the opportunity cost of the choices made by the traveler.
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TEORI KOS PENGELUARAN Pengenalan: Kos pengeluaran merujuk kepada jumlah perbelanjaan yang terlibat apabila firma menggunakan input untuk menghasilkan barang-barang dan perkhidmatan. Dalam proses pengeluaran hanya terdapat dua jenis kos pengeluaran iaitu kos tetap dan kos berubah. Ini bererti sama ada firma besar [spt TNB atau Maxis] atau firma kecil seperti penjual mee goreng hanya wujud dua kos. [ lain-lain seperti kos sut, kos berubah purata dsb. adalah merupakan konsep sahaja] KOS TETAP[TFC] Kos tetap adalah bayaran kepada penggunaan input tetap. Kos tetap adalah merupakan sejenis kos yang tidak bergantung kepada output. Ini bererti sama ada output meningkat atau menurun kos tetap adalah
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After hearing how much was budgeted for the lab costs for Signing Hills and Cordillera Ranch I thought we might be able to get a better price and cut some costs. Here some proposed costs and savings of changing labs. I don't know how the money works as far as how we pay the GBRA lab so my numbers might be off a bit. The sample costs for GBRA are off the website. Attached are the quotes I got with the costs for the two sets of samples for PCS lab.
Budgeted cost - $12,000 per year
Samples required : BOD, TSS, Ammonia and TSS (Mix Liquor)
Existing using GBRA Lab
Cost of samples off of GBRA Website = $109.00
Shipping cost - average of $35.00 per week
Total cost weekly
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University of Phoenix |
Cost Benefits Analysis |
BSA310/Paula Billups |
Sharon Link Mcknight |
Cost Benefits Analysis
Evaluating quantitatively whether to follow a course of action
Basic cost-benefit analysis is a moderately easy and extensively used method for determining whether to make a change. As it is named suggests using the technique simply add up the value of the benefits of a course of action, and subtract the costs associated with it.
Cost are either one-off or may be continuous. Benefits are most often received over time. We create this effect of time into our analysis by calculating a payback period. This is the time it takes for the
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Scenario One: Cost Club
Cost Club is administratively organized into regions, and each region develops their own operational policies as long as the low cost bottom line and reasonable customer service is maintained (University of Phoenix, 2012). There are several routine human resources issues that need to be addressed in the workplace. The first issue involves potential wrongful discharges at the Anderson Cost Club store. The second issue is assisting the regional CEO in reducing employee costs; addressing the use of independent contractors and temporary employees. The third issue involves determining if Cost Club is legally responsible in three separate situations because of
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MGT 6753 Industry Analysis
Low-Cost Carriers in Europe
Julian Geiger, Michael Schlottke, Marcus Schrade
Low-cost carriers in Europe
The market for low-cost carriers first emerged in the US with Pacific Southwest Airlines, pioneering the concept in 1949. The European market did not really develop until aviation deregulation came into effect in the 1990’s, making flights affordable for a wider range of customers. Building on the inclining demand for cheap flights mainly by private individuals (average annual growth of 9.4% for leisure travelers between 1996 and 2003 , Figure 2), the industry has experienced rapid growth since
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customer service and responsiveness. Warehouse personnel at MOP’s distribution center unloaded truckload shipments of products from manufacturers, and moved the cartons into designated storage locations until customers requested the items. Each day, after customer orders had been received, MOP personnel drove forklift trucks around the warehouse to accumulate the cartons of items and prepare them for shipment. MOP ordered supplies from many different manufacturers. It priced products to its end-use customers by first marking up the purchased product cost by 16% to cover the cost of warehousing, order processing, and freight. Then it added another 6% markup to cover the general, selling, and
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Five Forces: Analysis of the Low – Cost Airline Industry
Bargaining Power of Suppliers
• The supplier of airline companies is the fuel supplier, foods supplier, and aircraft supplier. There are few suppliers in the market
•Only 2 possible suppliers of planes – Boeing and Airbus
•Switching costs from one supplier to the other is high because all mechanics and pilots would have to be retrained.
•Price of aviation fuel is directly related to the cost of oil .
•Regional Airports have little bargaining power as they are heavily dependent on one airline
Bargaining Power of Customers
•Customers are price sensitive
•Switching to another airline is relatively simple and is not
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Cost-Volume-Profit (CVP) Analysis
Shanica N. Todd-Higgins
ACC/561 - ACCOUNTING
Instructor: DAVID DUREN
Schedule: 06/29/2015 - 08/03/2015
Campus: COLUMBIA SOUTH CAROLINA CAMPUS
Group ID: SCMBA0914
CVP - What If Analysis
Through research, according to Diane Wicks (2015), “Cost-volume-profit (CVP) analysis is used to assess the impact of potential changes in costs and volume on a company's operating profit and net profit. CVP analysis is also useful in making decisions regarding pricing of products, selection of product lines and utilization of production equipments. Additionally, CVP is at the heart of methods used for calculating the break-even point and sales levels necessary to
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Management of every entity aims at maximizing the returns and minimizing the costs. This is the fundamental aspect related to the project cost management. (Smith, 2014). This makes it clear that appropriate management style is important for an entity to prosper. There are various projects the management deals with simultaneously, but these are based on individual importance. The time and other resources to be allocated on a particular project depend on its individual importance.
So, if a project is significant, then the management would look into other matters related to cost and project completion. Managing cost for a project requires expertise, and most of the larger companies tend to
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Relationship between Marginal Cost and Marginal Revenue
Economics and Global Business Applications
October 23, 2013
Relationship between Marginal Cost and Marginal Revenue
This essay will explain the relationship between “Marginal Cost” and “Marginal Revenue”, as well as the importance that these concepts for the maximization of profits.
Profit Maximization Explanation
For Profit Maximization there are financial estimations that are utilized to figure out the impacts of generating one or more units in a preparation framework. Profits are maximized when marginal cost and marginal revenue are equal, something that all
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Subject: Memorandum- Cost of Capital and Capital Structure
I. Cost of Common Stock
The cost of common stock estimated varied widely between the three methods used. Under the CAPM approach, UPS had the lowest cost because it has the lowest beta coefficient, according to Value Line. Conversely, AAWW had the highest cost of common stock because its beta coefficient is almost twice that of UPS.
Under the DCF approach, UPS and AAWW were swapped with regard to having a higher cost of common stock. The factor that was primarily responsible for this swap was the dividend, because UPS pays a fairly large dividend and AAWW does not pay a dividend.
Under the Bond Yield
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Harvard Business School
Rev. March 18, 1998
Marriott Corporation: The Cost of Capital
In April 1988, Dan Cohrs, vice president of project finance at the Marriott Corporation, was
preparing his annual recommendations for the hurdle rates at each of the firm's three divisions.
Investment projects at Marriott were selected by discounting the appropriate cash flows by the
appropriate hurdle rate for each division.
In 1987, Marriott's sales grew by 24% and its return on equity stood at 22%. Sales and
earnings per share had doubled over the previous four years, and the operating strategy was aimed
at continuing this trend. Marriott's 1987 annual report stated:
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College Cost being affordable to all
One of the most important pieces to becoming a triumphant business woman/man may be receiving ‘college education’. A college degree may be perceived to be a necessity and may be slowly becoming an unreachable ambition for a number of people. Most consider college cost to have been rising and that the increasing rate may be outpacing that of most other costs. At the same time as the cost of college increases, families may have to alter their way of living to be providential enough to take their kids to most colleges. Alongside with how families’ lives vary, countless other problems may be produced in a variety of ways. The
432 words - 2 pages
University of Phoenix Material
Effects of Mass Media Worksheet
Write brief 250-to 300-word answers to each of the following:
Questions | Answers |
What were the major developments in the evolution of mass media during the 20th century? | The evolution of mass media during the 20th century has had major developments such as the telephone, television, radio, newspaper, and Morse code. Morse code was the fastest way for people to communicate by telegram before the telephone. Once the telephone came about it made communication between people much more convenient vs. waiting on a telegram. This then led to the invention of cell phone that made communication even better because now people
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The Programme of Action to Mitigate the Social Cost of Adjustment: Objectives and Assessment of Failures and Achievements.
List of Tables 1
1. Background of PAMSCAD 2
2. Objectives of PAMSCAD 3
a. Projects under PAMSCAD 4
3. Assessment of Success and Failure of PAMSCAD 5
b. Community Initiative Project 5
c. Employment Generation Project 6
d. Redeployment 7
e. Provision of Basic Needs and Services 10
f. Education Infrastructure 11
4. Conclusion 12
5. References 13
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This article will look at organ transplant and the role it has and is playing out in our society: will also look at the cost of this procedures and who is most likely to receive an organ. We will also look at how this procedure is done and if it is done in accordance with medial guidelines as well as how many are done on a monthly basis and who qualifies for that organ. Organ donation has become very important for people who have organ problems: in many cases it is a lifesaving tool which can prolong the life of people who are suffering from some kind of organ disease. As a Christian I believe if a life can be saved with the help of organ donation then I believe that it is ok however, we
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Case Study I Solution
The following cost items are needed before a schedule of cost of goods manufactured can be prepared:
Materials used in production:
Less Direct Labor Cost
Direct Materials Cost
Manufacturing Overhead Cost:
Direct Labor Cost/ Percentage of Conversion Cost:
628,571 rounded to nearest dollar
( this is total conversion cost)
100%-65% = 35%
Less Direct Labor Cost
Cost of Goods Manufactured:
Cost of Goods Available for Sale
Less: finished goods inventory, beginning
Cost of Goods Manufactured
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Fixed Costs, Variable Costs, and Break-Even Point
The highest meal minus the lowest meal = 4900-3500=1400
Highest cost minus the lowest cost= 26000-20500=5500
The variable cost could be the two answers from meals and cost divided by each other.
Variable cost =5500/1400=$3.92857142857 or $3.93
Fixed cost is total cost-variable cost.
So for July or the lowest meals and cost so 20500-(3500*3.93) so 3500*3.93=13755=20500-13755=6,745 Fixed cost 1 =6,745
To find BEP we need to know the formula which is Px=A+Bx
So in 10.3 and 10.5 tables of the reading the price per unit is 5.77 so
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COST CLASSIFICATION AND BEHAVIOUR.
Cost: Reflects a monetary measure of the resources sacrificed or forgone to achieve a benefit such as acquiring a good or service. The term has multiple meanings: Different types of costs are used in different situations. Costs are developed and used for some specific purposes. The way a cost is used is to be used will define the way it should be computed. Cost Object: Any activity for which a separate measurement of cost is required. Something for which we want to compute a cost e.g. Product Product Line Department Division Geographical Area Cost unit: Unit of Production / service in relation to which cost are ascertained the unit is what is most
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Production constraint of suppliers
To retain supplier good will
Economies of Scale in Procurement
Take advantage of Quantity Discounts
Cover time required for the procurement of materials
Meet variation in Production Demand
Reduce Transit Cost and Transit Times
Cater to Cyclical and Seasonal Demand
Long Lead and High demand items need to be held in Inventory
Satisfy customer Demand without time-lag
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In this homework assignment, you will be working through two crashing problems and four earned value problems. All the information you need is included within this Homework packet. Make sure you answer all parts of the questions in their entirety.
Once you have worked through the problems, please post your responses to the Drop Box. Please refer to the course syllabus for the due date.
1. Use the network diagram below and the additional information provided to answer the corresponding questions.
a) The crash cost per day per activity [5 points]
b) Which activities should be crashed to meet a project deadline of 10 days at minimum cost? What is the cost impact of crashing
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costing setup. Cost components are essential for controllers to determine the costs for manufactured items. This raises some questions. For instance, how much detail regarding product cost do you want to keep? And how will you maintain the master data on product cost, keeping the different cost Cost components are essential for variances within boundaries and to a minimum controllers to determine the costs for to keep the costs in line with reality? manufactured items. This article highlights key topics for managing Product Costing using JDE, while keeping the costing understandable. Although the scenarios used in the article all contain a manufacturing branch with different distribution
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Material purchases were $ 325,000
Direct Labor was $ 220,000
sales were $ 1,350,000
gross margin was 30% of sales
cost of goods available for sale was $ 1,020,000 at cost.
prime costs were $ 545,000 up to the time of the damage and that manufacturing overhead is 65% of conversion cost
Raw Materials, $ 41,000
Work in Process, $ 56,000
Finished Goods, $ 35,000
Determine the amount of cost in the Raw Materials
Work in Process, and Finished Goods Inventory as of the date of the storm
( Hint: You may wish to reconstruct the various schedules and statements that would have been affected by the company’s
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SIEMENS EMW (A) PROCESS – ORIENTED COSTING
The case brings out the fact that traditional cost accounting methods are misleading where there is diversity in the no of products manufactured. The case highlights the importance of Process-Oriented Costing approach.
The cost structure of the firm suggests that the production related and support related overheads form 33.0 and 26.0 percent of total costs. Since the firm manufactured almost 10,000 different types of motors, allocation of support related overhead costs can be crucial for the operation of the firm.
Table 1. Cost of base Motor and Special Components using Taditional Costing Method
| Traditional Costing Method
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more components and labors compared to other two products. Also, there are more variety in the types of flow controllers used in industry. Wilkerson raised flow controller prices by 10%, but there was no effect on demand.
Wilkerson’s existing cost system is a simple cost accounting system. According to the case, the overhead costs were allocated to products as the percentage of direct labor cost. Each unit of product was charged for labor cost and direct material. In addition, variable costs for this company were only direct material and direct labor costs. The problem for this existing cost system that the company is inappropriately allocating overhead cost to products. Due to this
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Costs in beginning work in process $ 200,000 $ 291,200
Costs added during the year 600,000 582,400
Total $800,000 873,600
Equivalent Units of Production 250,000 208,000
Cost per Equivalent Unit $3.20 $ 4.20
b. Costs transferred to finished goods
190,000 X ( $3.20
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20-1. Which of the following are factors of production? Output in a production function Productivity → Land, labor, capital, and entrepreneurship Implicit and explicit costs | 20-2. The period in which at least one input is fixed in quantity is the: Long run. Production run. → Short run. Investment decision. |
20-3. The change in total output associated with one additional unit of input is the: Opportunity cost of the output. Average productivity. → Marginal physical product. Marginal cost. | 20-4. If a firm could hire all the workers it wanted at a zero wage (i.e., the workers are volunteers), the firm should hire: Enough workers to produce the output where diminishing
496 words - 2 pages
Cost of Capital
NSKD Berhad is considering a project which costs RM2 million and interested in measuring its overall cost of capital. Tax rate charged 40%. One of component’s cost of capitals is cost of debt. The firm can raise unlimited amount will be selling RM1,000, 10 percent, 10 year bond on which semiannual interest payment will be made. An average of RM80 per bond would have to be given in selling that bond. For preference share, the firm can pay dividend 11 percent of this share at is RM10 per share par value. Flotation cost of RM0.50 should be included when to sell this share at RM10.10.
In ordinary equity, ordinary share for firm is currently selling for RM8.00 per share
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Profitability analysis framework
Volume Revenues Price Profitability Fixed Costs Variable
Terminology Revenue driver – any factor that causes a change in the total revenue of a product or service e.g. – volume of units sold, change in selling price how to measure volume? Differs by type of business – patient days for hospitals, “load” factor for airlines, sales per square feet for retailers Cost driver – any factor that causes a change in the total cost of a product or service e.g. - quality of materials, number of parts, skill of production workers, patients treated
More Terminology Variable cost – cost that changes in total in direct proportion to changes of a cost driver (e.g
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BGA1 Task 4 308.1.8-05,12
The weighted average cost of capital for this company is 9.48%.
Cost of capital is often used in net present value analysis as the discount rate, which is the rate that other investments would return that have similar risks. Cost of capital is the total of all of the actual costs of a company’s debts and equities. These costs include such factors as interest, tax expense, and equity costs. It is what percentage it costs the company to tie up its capital, so in order for an investment to be desirable, it must return a percentage greater than what it takes for the company to cover its capital costs. In a net present value analysis, the cost of capital is
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Management Accounting for Multinational Companies Solution to the Wilkerson Case Igor Baranov Executive Summary Taking into account the difference among product and high proportion of overheads, Wilkerson should abandon its existing cost system and move to activity-‐based costing. The profitability analysis indicates that the company earns healthy margins on pumps and valves. However, the margin of flow controllers at actual usage of capacity is negative. Wilkerson should consider action targeted at cost reduction (changes in flow controllers design or in their
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Managerial Perspective: 17-2
May 1, 2014
University of Phoenix
Case study 17-2 in Accounting: Tools for Business Decision Making asks the reader to analyze the Ideal Manufacturing Company as it decides to expand their services to outside agencies that want to use their tool in evaluating its costs using activity based costing, which is a two-step process to calculate overhead costs. The first step is to assign overhead costs to activity cost pools, instead of departments, as is the practice in traditional costing The second step is to use cost drivers to allocate overhead to the correlating activity. A cost driver is any factor which
1511 words - 7 pages
ROC Amstelland 297245
ROC Amstelland 297245
Unit 7 finacial m
Unit 7 finacial m
A) Describe different methods an organization can use to calculate a cost price
Cost-plus pricing - Set the price at your production cost, including both cost of goods and fixed costs at your current volume, plus a certain profit margin. For example, your widgets cost €40 in raw materials and production costs, and at sales volume, your fixed costs come to €40 per unit. Your total cost is €80 per unit. You decide that you want to operate at a 20% markup, so you add €20 to the cost and come up with a price of $80 per unit. So long as
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1. Functional-based and activity-based costing assigns costs to cost objects such as products and customers. Once costs are assigned to the cost object, the unit cost is calculated by dividing the total cost assigned to the units produced by the number of units produced.
2. Unit cost information is used to:
■ value inventory
■ determine cost of goods sold, which affects income
■ determine bids to give to potential customers
■ decide whether to make or buy a product
■ decide whether to accept or reject a special order
■ decide whether to keep or drop a product line
■ decide whether to
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Volkswagen is an automobile company that uses the German-based costing system. It was founded in 1937 and is the biggest German automaker in the world, as well as the second biggest automaker in the world. The annual financial statements of Volkswagen AG have been prepared in accordance with the provisions of the Handelsgesetzbuch (HGB – German Commercial Code).
The main function of costing systems is help companies determine the cost of a product related to the revenue it generates. Two of the more common costing systems used in business are traditional costing and activity-based costing. Traditional costing assigns manufacturing overhead based on the volume of a cost driver, such as
288 words - 2 pages
There are so many different ways to approach this, it almost becomes an art. If there was a button that could easily and accurately give us the portion of overhead to associate to each cost pool this process would be much easier. The nature of ABC model is to allow different approaches; time model equations are always different. There are different ways to solve for the same cost driver. The best way to be accurate is to try and isolate activities down to the component drivers. For instance, with deliveries we can further break that out into deliveries for desktop service and commercial delivery. Now if with commercial deliveries, if the cost was driven by expedites or overnight orders
1147 words - 5 pages
2-1 Basic Estimating Problem
Your company is installing a new piece of machining equipment and a robotic arm. Your manager asks for the project costs by cost category as well as the total amount. Given the following information, develop a base cost estimate by grouping costs by Equipment / Material (items 1 – 4), Installation / Labor (items 5 and 6), and Overhead (items 7-9).
1. Two pieces of equipment costing $ 15,000 and $ 35,000
2. Material required for electrical hook-up is 400 feet at $ 25 per foot
3. Controls for each piece of equipment are estimated at $ 600 each
4. Required start-up material is 3,700 pounds at $ 2.70 per pound
5. Company labor for installation requires two
1846 words - 8 pages
VALUE CHAIN ANALYSIS
A) Discussion of the core elements of a value chain. (8 marks)
B) Explanation of why an understanding of these elements is so important in managing costs and gaining or sustaining competitive advantage. Establish all important linkages in your answer. (12 marks)
The value chain analysis is a useful tool for defining a firm’s core competencies and the activities in which it can pursue a competitive advantage. The core elements of a value chain analysis are the primary and secondary activities and cost. Companies use these primary and support activities as "building blocks" to create a valuable product or service.
The Primary activities relate directly to the
573 words - 3 pages
Capital Budgeting Scenarios Paper
Capital Budgeting Scenarios Paper
The selected proposal to purchase a labor-saving piece of equipment that will last five years assumes the discount rate or the weighted average cost of capital is 10%. Since the labor content is at 12% of $10 million in annual sales, this can be noted as an annual labor cost of $1.2 million (10,000,000 x 0.12). The new piece of equipment is expected to save 20% of labor annually, resulting in a $240,000 reduction in cost each year over the next five years (1,200,000 x 0.20). The cost of the new piece of equipment is $200,000
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* The economic cost
The cost of a weak country leaving the Euro is significant. Consequences include sovereign default, corporate default, collapse of the banking system and collapse of international trade. There is little prospect of devaluation offering much assistance.
We estimate that a weak Euro country leaving the Euro would incur a cost of around EUR9,500 to EUR11,500 per person in the exiting country during the first year. That cost would then probably amount to EUR3,000 to EUR4,000 per person per year over subsequent years. That equates to a range of 40% to 50% of GDP in the first year.
* The economic cost
Were a stronger country such as Germany to leave the Euro
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1. Currently, two options are available for modernization of a pumping station in a water treatment facility. Option 1 is to install a pumping system which is more durable at a cost of $20,000. With this option, the system will require to be replaced every 15 years. The maintenance cost for this system runs at $4,000 every five years. Option 2 is to install a cheaper pumping system. It costs $12,000. However, the system must be replaced every 6 years. The maintenance cost for this system is $1,600 every 2 years. Compute the present worth capitalized cost for each option and decide which one would be to our advantage. The interest rate is at 7% per year.
2. For some interest rate
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Firm: Organisation that brings together FOP (land, labour, capital, entrepreneurship) to product goods and services for sale
Industry: group of firms that produce a single g/s (or related)
Explicit costs: payment made to outside suppliers of inputs
e.g. salaries/wages, raw material, overhead costs
implicit costs: do not involve direct payment of money, sacrifice of some alternative
e.g. salary forgone/interest forgone (factors are already owned by firm)
accounting cost: explicit cost
economic costs → opportunity cost to society (explicit + implicit costs)
traditional objective = profit maximization
profit = revenues – cost.
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The essential feature of decentralization in large firms is the creation of responsibility centers (e.g. cost, profit, or investment centers). The performance of these responsibility centers is evaluated on the basis of various accounting numbers, such as standard and actual cost, divisional profit or return on investment. A central role of the management accounting system therefore is to evaluate (i.e. attach a dollar figure to) the transactions between the different responsibility centers. Under the subject cost allocation we studied alternative methods to charge user departments for the services rendered by service departments (frequently cost