Fixed Costs Essays (Examples)

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Production and Cost Fixed Cost

Words: 1789 Length: 6 Pages Document Type: Essay Paper #: 12577118

There is a fixed amount of output possible for any given investment in production capacity, at all possible costs, and if we plot all the potential scales of output against the resulting average cost per unit of production, the result is a long run average total cost curve (LRATC). These economies and diseconomies of scale cause the LRAC to fall from a high origin to a minimum point, and then (theoretically) eventually begin to rise, where there is a minimum where slope is zero. This is the optimum enterprise scale (Petroff, 2002 n. pag.). Each combination of output and average per-unit cost represents a discrete, short-term, short-run ATC curve for that level of production, and optimum firm size is the SRATC curve where unit cost is minimal (7 units at 32$ each, in Table 6), the MC cost curve crosses both LRATC and SRATC, no other firms enter to capture…… [Read More]

Works Cited

Ben-Akiva, Moshe (2008). 'Theory of the Firm.' OpenCourse Ware, Massachussetts

Institute of Technology, Cambridge Mass. Online (March 16, 2011):  http://ocw.mit.edu/courses/civil-and-environmental-engineering/1-201j-transportation-systems-analysis-demand-and-economics-fall-2008/lecture-notes/MIT1_201JF08_lec09.pdf 

Bober, Stanley (2001). Alternative Principles of Economics M.E. Sharpe, New York.

Braff, Allan (1969). Microeconomic Analysis. John Wiley & Sons, Inc., New York.
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Costing & Pricing Costing Decisions

Words: 1535 Length: 5 Pages Document Type: Essay Paper #: 97119816

Joint costing systems should bear in mind the legal constraints on the use of such systems, and should provide accurate information to managers in order to be most useful in the managerial accounting context.

Firms need to remain competitive, which indicates that the market will set prices to some degree. This implies that firms can make better decisions with respect to what projects/products they wish to pursue by understanding the cost structure of the product. If the product is not viable at the cost at which it can be produced, then the firm can improve profitability by dumping the product.

orks Cited:

Banham, R. (2000). Off target? CFO Magazine. Retrieved April 5, 2011 from http://www.cfo.com/article.cfm/2990860/c_3046531?f=magazine_alsoinside

Frederick, S. (2011).

The persuasive power of opportunity costs. Harvard Business Review. Retrieved April 5, 2011 from http://hbr.org/2011/01/column-the-persuasive-power-of-opportunity-costs/ar/1

Katz, D. (2002). Activity-based costing (ABC). CFO Magazine. Retrieved April 5, 2011 from http://www.cfo.com/article.cfm/3007694

McKinsey & Co.…… [Read More]

Works Cited:

Banham, R. (2000). Off target? CFO Magazine. Retrieved April 5, 2011 from http://www.cfo.com/article.cfm/2990860/c_3046531?f=magazine_alsoinside

Frederick, S. (2011).

The persuasive power of opportunity costs. Harvard Business Review. Retrieved April 5, 2011 from http://hbr.org/2011/01/column-the-persuasive-power-of-opportunity-costs/ar/1

Katz, D. (2002). Activity-based costing (ABC). CFO Magazine. Retrieved April 5, 2011 from http://www.cfo.com/article.cfm/3007694
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Costing the Analysis Is Based

Words: 2854 Length: 10 Pages Document Type: Essay Paper #: 67582377

Dibsa should turn towards the market-based pricing strategy, which sees the implementation of competitive prices for the 3-in-1 Lawnmower. The selection of this combination of strategies would generate several impacts upon the company, but most of them would be obvious at product lifecycle level. In this order of ideas:

The sales revenues would be significantly high throughout the first six months and they would allow the company to cover for the large costs incurred in the manufacturing of the product as well as register profits; they would however decrease with the implementation of the market pricing strategy and the 3-in-1 Lawnmower would metamorphose from a star product into a cash cow

The costs incurred in the manufacturing of the new lawnmower have already begun to decrease and will continue to do so; the actual impact of the pricing strategy is limited, with the specification however that these costs will not…… [Read More]

References:

Berman, K., Knight, J., Case, J., 2006, Financial Intelligence: A Manager's Guide to Knowing what the Numbers Really Mean, Harvard Business Press

Bolander, S.F., Gooding, C.W., Mister, W.G., 1999, Transfer Pricing Strategies and Lot Sizing Decisions, Journal of Managerial Issues, Vol. 11

Drudy, C., 2004, Management and Cost Accounting, 6th Edition, Cengage Learning EMEA

Goetz, Jr., J.F., 1985, the Pricing Decision: A Service Industry's Experience, Journal of Small Business Management, Vol. 23
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Cost Volume Profit Analysis the

Words: 635 Length: 2 Pages Document Type: Essay Paper #: 77045369


CVP is very useful for small business also because the analysis takes
into consideration variables like eturn on Investment, or Customer
Acquisition Cost. This analysis allows the company to determine what the
maximum profit volume can be, and how the above mentioned variables can be
changed in order to become successful.
CVP analysis is also able to determine the results of media campaigns,
especially for small business, where results are more visible and can be
observed after a shorter period of time. Furthermore, these results can be
translated into a successful company strategy, given the fact that the
strategy would be based on verified results. In relation to this, market
share can increase due to such a strategy.
For small business, CVP analysis is also used in establishing the
company's budget for certain activities. The analysis is able to provide a
flexible budget variant, which is exactly what a small…… [Read More]

Reference list:
1. Cost Volume Profit Analysis (2008). Business Owner's Toolkit.
Retrieved May 14, 2008 from
http://www.toolkit.com/smallbusinessguide/sbg.aspx?nid=P0675
00.
2. CVP Analysis (2008). Wikipedia, the free encyclopedia.
Retrieved May 14, 2008 from
http://en.wikipedia.org/wiki/CVPanalysis.
3. Kee, Robert (2007). Cost volume profit analysis incorporating
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Cost Behavior

Words: 578 Length: 2 Pages Document Type: Essay Paper #: 35720018

Behavior

There are some differences between the income statements when compiled under absorption costing and under contribution margin. In this instance, the basic income statement is compiled without knowing the costs that go into the absorption costing. One of the differences is that absorption costing reflects the costs of all the activities that go into the production of the good. So when you have an income statement produced under absorption costing it will look as follows:

evenue

COGS

Gross Profit

SGA Exp

Net Income

The fixed costs are $800,000, so the contribution margin income statement would be as follows:

evenue

COGS

Gross Profit

Fixed Costs

Net income

350000

For the next quarter, if production is 50,000 units, the absorption statement would be:

evenue

2500000

COGS

1800000

Gross Profit

700000

SGA Exp

350000

Net Income

350000

This statement reflects the fact that 50,000 units were produced, which is double the expected…… [Read More]

References

Investopedia. (2013). Definition of absorption costing. Investopedia. Retrieved December 23, 2013 from  http://www.investopedia.com/terms/a/absorptioncosting.asp 

Taylor, E. (2013). Disadvantages of absorption costing for a company. Houston Chronicle. Retrieved December 23, 2013 from  http://smallbusiness.chron.com/disadvantages-absorption-costing-company-22732.html
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Cost Accounting for SleepEase Ltd

Words: 2005 Length: 8 Pages Document Type: Essay Paper #: 75749556

Managerial Accounting for Sleepease Ltd.

"Identify, discuss and critically evaluate the advantages and problems of using the following costing methods for internal reporting purposes":

absorption costing; marginal costing.

"Refer to the Sleepease case as and when necessary"

absorption costing

The absorption costing is the type of managerial costing where both the variable and fixed costs are charged to process or product. Thus, "absorption costing is a method for appraising or valuing a firm's total inventory by including all manufacturing costs as product costs, regardless of whether they are variable or fixed and therefore it is frequently referred as the full cost method." (Nawaz, 2013 p 50).

Accordingly, the company will be able to determine costs of a product after determining both the variable costs and fixed costs. Sleepease will derive several benefits from using the absorption costing for the production of their product.

First, the absorption costing will assist the…… [Read More]

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Cost Analysis Categorical Descriptions and

Words: 565 Length: 2 Pages Document Type: Essay Paper #: 41604159

The raw materials needed as ingredients for detergents require extraction from natural resources, and extraction costs increase as the amounts needed rise. This means that it costs more to use more materials and thus produce more detergent, making materials a variable cost. The factory where the ingredients are mixed into detergent, however, would cost roughly the same to build whether the plan was to produce 100 or 10,000 units per day -- as this cost does not increase as production increases, it is a fixed manufacturing cost. Energy is semi-variable, in that it would require a significant amount of energy for the factory to operate at all, even if it was only producing one box of detergent a day. At the same time, the factory would certainly use less energy producing 100 boxes than it would producing 10,000.

The total cost of producing laundry detergent takes all of these costs…… [Read More]

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Fixed Income Securities Common Stock

Words: 786 Length: 2 Pages Document Type: Essay Paper #: 40976456

Such events are usually difficult, slow, and distasteful processes. Figuring out whether bond obligations are likely to be fulfilled by issuers is best left to bond investment specialists.

Securities pricing is the bond market is complex and different from the stock market. hile a firm usually has only one kind of common stock, it could have dozens or even hundreds of different outstanding bond obligations. Setting current bond prices is complex. Few individual investors have the required skill, knowledge, information, and experience to make such assessments.

For individual investors it is much more straightforward simply to hold bonds through a bond fund. Once a bond fund establishes its "style" for the type, maturity, and quality of bonds it will hold, it selects and purchases bonds with an eye toward maintaining that style. Maintaining targeted maturity is relatively straightforward. Determining investment quality is less straightforward, but bond mutual funds have analysts…… [Read More]

Works Cited

Vanguard. (2011). Bond Yields. Retrieved December 2, 2012 from http://personal.vanguard.com/us/FundsBondsMarketSummaryTable nvestopedia. (2011). Fixed Income Portfolio. Retrieved December 2, 2012 from  http://www.investopedia.com/articles/bonds/07/fiportfolio.asp?viewed=1
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Accounting Assessment of Costs and

Words: 1275 Length: 3 Pages Document Type: Essay Paper #: 95779138

One example has been the printer market; firms will often subsidize the printers that are sold, with the aim of creating long-term profits by the ongoing sale of the printer cartridges (Thompson, 2007). The cellular telephone market also operates in a similar manner, with mobile phone service suppliers subsidizing the cost of the handsets in order to gain a contract from a customer, the cost of the subsidy is offset against the profit that will be gained on the service contract. Therefore, the firm will need to look at the impact that ending production may have on the sale of other goods. However unless there is a complimentary item then it would appear some changes may need to take place.

If there is a loss with the fixed costs of $1,000,000 it is will be expected that higher fixed costs will increase the loss.

Assessment with fixed costs at $3,000,000…… [Read More]

References

Gillespie a, (2010), Business Economics, Oxford, Oxford University Press

Seal, Will; Garrison, Ray H; Noreen Eric W, (2011), Management Accounting, McGraw-Hill Higher Education

Thompson JL, (2007), Strategic Management; Awareness and Change, London, Thompson Business Press.
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Microeconomics Economic Costs Are Both the Direct

Words: 704 Length: 3 Pages Document Type: Essay Paper #: 53736646

Microeconomics

Economic costs are both the direct costs and the opportunity costs of a decision. There are a number of types of costs that are discussed in economics disciplines. These can be direct and indirect costs, but more common costs are things like marginal costs. These are the added cost associated with an increase in output. Microeconomics often focuses on things like marginal cost, and uses the economic cost concept to analyze individual purchase decisions. For example, we can deduce that while a degree might cost $40,000, it also carries with it an opportunity cost related to how much could have been earned flipping burgers during those four years. The economic cost of the degree therefore might be closer to $50,000. The concept of economic costs is often applied to production situations, where firms must make decisions about pricing an production levels based on analysis of the different types of…… [Read More]

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Overhead Costs and Various Methods in Which

Words: 1796 Length: 6 Pages Document Type: Essay Paper #: 12478695

overhead costs and various methods in which the overhead costs are classified.

Ehrhard righam, a renowned author, states that a business cannot consider all kind of money that it earns as profits. The reason for not calling the entire amount "profit" is that the business has to pay expenses for carrying out business activities and processes. These expenses are regarded as the operating costs. (rirgham, 2008) International Accounting Standards oard states that the most common type of overhead costs includes maintenance, production expenses and salaries. It is a common practice of businesses to track their gross income and net incomes. The two figures represent different values. Gross income is usually of a larger amount and consists of all the money a particular business takes in. (International Accounting Standards oard, 2008)

The nature of business decides the type of overhead costs that a business will have to pay. Some businesses have…… [Read More]

Bibliography:

1. Ball, Rawlins, "International Financial Reporting Standards (IFRS): pros and cons for investors." Accounting and Business Research. (2003)

2. Benninger, Lowe (1954). "Development of Cost Accounting Concepts and Principles: Role of the Committee on Cost Accounting Concepts and Standards." The Accounting Review (American Accounting Association): 27 -- 37

3. Barry J. Epstein, Eva K. Jermakowicz. Interpretation and Application of International Financial Reporting Standards (2007)

4. Cherrington, J. Owen, et al. Cost and Managerial Accounting. Dubuque, IA: Wm. C. Brown Publishers, 1985.
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Economics Discussions Production Costs Postal Service USPS

Words: 870 Length: 3 Pages Document Type: Essay Paper #: 65287506

Economics Discussions

Production Costs

Postal Service (USPS) operates at a loss but its closest competitors -- UPS and FedEx -- both operate at a profit. Suggest how fixed costs have contributed to the situation of the USPS. Provide support for your response.

I would suspect that the fixed costs of contributing to employee's retirement funds (Risk Analysis Research Center, 2009, p. 4) and also their restriction from closing local offices (Slentz and McCann, 2009, p. 12) contributes to higher fixed cost at USPS than FedEx because FedEx is not unionized and while UPS is unionized, and thus experiences a fixed cost that is incurred to the level of union contracts, those contracts are more negotiable for UPS than USPS, and nonexistent or fluid for FedEx. Furthermore while union contracts probably affect the rate of closure for physical facilities for UPS, this would probably be more negotiable than for USPS and…… [Read More]

Lemon Law

5. From the e-Activity, compare and contrast the lemon law in two different states and analyze which offers the best protection for the consumer. Suggest what both states could do to improve their laws. Provide support for your response.

The California and Alaska Lemon Laws are largely the same except the California law (State of California Department of Justice 2012) restricts replacement / compensation to vehicles driven under 18,000 miles within the warranty period but the Alaska law (Carlemon.com, n.d.) does not restrict the warranty period by number of miles driven. All states could benefit from a uniform definition of "reasonable attempt" to replace or refund, which depends upon, and thus also entails, a standardization
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Product Costing Systems ABC Job Costing Put

Words: 2219 Length: 8 Pages Document Type: Essay Paper #: 8558790

Product Costing systems (ABC, job costing, put costing, .) advanced topic managerial accounting the thesis statemenit a position body paper show evidence support position. The paper discuss opposite point view discuss position valid.

Product costing systems

Product costing system is a management tool which identifies the actual cost of producing each product. It identifies the profits and loss which can be gained or incurred on each product, hence giving companies the opportunity of identifying and promoting of profitable product while dropping, re-pricing or redesigning of unprofitable products Brierley, 2008.

Product costing is a highly sensitive area for managerial accountants, recently, most of them have changed their focus such that they give their attention to appropriate treatment costs which are directly associated with resources that are committed to support activities, which within the company do not vary proportionally to production once the initial capacities have been set. In such as an…… [Read More]

References

Brierley, J.A. (2008). Toward an Understanding of the Sophistication of Product Costing Systems. [Article]. Journal of Management Accounting Research, 20, 61-78.

Brierley, J.A. (2010). The determinants of overhead assignment sophistication in product costing systems. [Article]. Journal of Corporate Accounting & Finance (Wiley), 21(4), 69-75. doi: 10.1002/jcaf.20597

Brierley, J.A. (2011). A Comparison of the Product Costing Practices of Large and Small- to Medium-Sized Enterprises: A Survey of British Manufacturing Firms. [Article]. International Journal of Management, 28(4), 184-193.

Drudy, & M. Tayles. (2005). The British Accounting Review Explicating the design of overhead absorption procedures in UK organizations, 37(1), 47 -- 84.
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Starbucks Costing Process Costing at

Words: 1164 Length: 4 Pages Document Type: Essay Paper #: 81914808

The work and materials required to make and serve regular coffee is considerably different than the work involved in making and serving a venti half-caf mocha-vanilla soy frappucino, for instance, and though some long-term regularity would be expected in the number of each drain that is ordered estimating costs based on a time scale for this area of operations would be cumbersome and inaccurate. Using the job order costing method and determining how much the materials and labor cost for each type of drink (or, in the case of coffee, the cost for making a single batch of the drink), and thus more accurate prices can be set that reflect the company's costs and allow it to continue making a profit (and frappucinos). By utilizing both costing methods as appropriate, then, Starbucks can place itself in a more advantageous position regarding cash flow in and out of the business.

Benefits…… [Read More]

References

Hortens, J. (n.d.). Job order vs. process costing. Accessed 14 May 2012.  http://faculty.mdc.edu/jhortens/ACG%202071/transparenciesm02.pdf 

Ingram, D. (2012). Advantages & Disadvantages of Job Order Costing & Process Costing. Accessed 14 May 2012.  http://smallbusiness.chron.com/advantages-disadvantages-job-order-costing-process-costing-3082.html 

Starbucks. (2012). Accessed 14 May 2012.  http://www.starbucks.com/ 

JOB ORDER COSTING
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Economic Costs Are Different From Accounting Costs

Words: 1398 Length: 5 Pages Document Type: Essay Paper #: 6603185

economic costs are different from accounting costs and why a firm might still operate even when there is a loss.

The best way to describe the differnce between economic costs and accounting costs is to break down the economic costs into explicit and implicit costs. 'Explicit costs" are all of those circumstances that require specific outlay of money such as paying employees, paying rent and utility bills.

"Implicit costs" on the other hand are those opportunities and potential profit or loss that oen may have made hade one gone in another direction, but due to having absorbed oneself in one's present business one had to forego. An example of this may be someone deciding not to look for a conventional job in order to start his own home business over the web. The conventional opportunity may have provided him with a certain profit that he now has to forgo being…… [Read More]

Rittenberg Libby and T. Tregarthen. (2009). Chapter 8: Production and Costs. Sections 1-4 Principles of Microeconomics. FlatworldKnowledge.com. Retrieved September 2, 2011 from: click here

Rittenberg Libby and T. Tregarthen. (2009). Chapter 12: Wages and Employment in Perfect Competition. Sections 1-4. FlatworldKnowledge.com. Retrieved September 2, 2011 from: click hereMarket & Market System. 'Perfect competition'. Tutor2U. Available at: http://tutor2u.net/economics/revision-notes/a2-micro-perfect-competition.html

Vargas, L. (2001). "Maquiladoras: Impact on Texas Border Cities," in The Border Economy, Federal Reserve Bank of Dallas. Retrieved on February 18, 2011 from: http://www.dallasfed.org/research/border/tbe_vargas.html
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Profit Analysis and Costing for the 21st

Words: 855 Length: 3 Pages Document Type: Essay Paper #: 7948180

Profit Analysis and Costing for the 21st Century

Value costing is about looking at the different aspects of a business paying particular attention to the opportunity cost they represent, how much they are likely to financially benefit a firm, and how much they are likely to cost it. Through this analysis, it is possible to determine the parts of the business that function the most efficiently and locate the parts that do not.

It is thought that value costing is no longer relevant because business has become far more complex than the traditional format, and with the rise of the internet and the increase in ebusiness, more and more factors must be added to the equation. It is also though that this form of costing is not only too simplistic, but takes too long to put into practice, and harder still to gain any meaningful results from. Value costing tries…… [Read More]

References

Stratton, W.O; Descroches, D.; Lawson, R.A.; Hatch, T. (2009) "Activity-Based Costing: Is it Still Relevan?" Management Accounting Quarterly

Cost-Volume-Profit Analysis (2004) Retrieved June 20th, 2011 from: www.wiley.com/college/sc/eldenburg

Luther, R.; O'Donovan, B (1998) "Cost Volume Profit Analysis and the Theory of Constraints" Journal of Cost Management: 16-21

Gupta, K.M; Gunasekaran, A. (2005) "Costing in New Enterprise Environment: A Challenge for Managerial Accounting Researchers and Practitioners" Managerial Auditing Journal Vol.20 Iss. 4
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absorption versus marginal costing at Sleepease

Words: 2417 Length: 8 Pages Document Type: Essay Paper #: 30816070

Managerial accounting, there are different types of costing that can be used. Each method of costing has its advantages and disadvantages in different situations. It must be remembered, when determining what the best type of costing method is, that the objective of managerial accounting is to deliver useful information that can assist in managerial decision-making. Thus, managerial accounting matters to the extent that it can help to deliver on overall organizational objectives by providing strategic or tactical insights (Investopedia, 2016).

There are two major costing methods -- absorption costing and marginal costing. Absorption costing is a system of cost accounting that seeks to accumulate the different costs associated with the production process, and portion these out to different products. So the costs would be broken out into direct materials, direct labor, variable overhead and fixed overhead, rather than the convention categories in financial accounting. Using absorption costing has a few…… [Read More]

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Pricing Strategies Price and Cost Variables Are

Words: 991 Length: 3 Pages Document Type: Essay Paper #: 23077255

Pricing Strategies

Price and cost variables are not fixed. At times, there are some fixed elements to these costs but in many instances these costs are subject to fluctuation. These fluctuations can derive from changes in buying power, changes in commodity prices and other considerations. Likewise, forces in the external environment can bring about changes in the prices the firm can charge. hen uncertain variables are fixed, the company can find that margins do not hold as expected, which can compromise profit. In addition, the price can be set on the basis of variables on the assumption that the costs are relatively fixed. hen these costs provide not to be fixed, the price does not deliver a strong enough margin. The impacts of these types of decisions can be far-reaching. Firms can decide to enter markets that are not profitable, and make decisions with respect to their product line-ups on…… [Read More]

Works Cited:

NetMBA.com (2010). Pricing strategy. NetMBA.com. Retrieved February 25, 2011 from  http://www.netmba.com/marketing/pricing/ 

Goetz,

J. (1985). The pricing decision: A service industry's experience. Journal of Small Business Management. Retrieved February 25, 2011 from http://www.questia.com/googleScholar.qst?docId=5001688166

Hurwich, M. (no date). The pricing decision -- who makes it and who makes it work? SPMG. Retrieved February 25, 2011 from http://www.pricingexperts.net/The_pricing_decision_who_makes_it.pdf
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Absorption Costing Is a Costing Method Which

Words: 632 Length: 2 Pages Document Type: Essay Paper #: 73760823

Absorption costing is a costing method which treats all costs of production as product costs without considering whether these costs are variable or fixed (AccountingforManagement, 2013). Under the absorption costing method the cost of a unit product comprises direct materials, direct labor, and both variable and fixed overhead. This costing method allocates a portion of fixed manufacturing cost to each unit of a product along with the variable manufacturing cost (AccountingforManagement, 2013). It includes all costs of production as product cost. That is why it is often called a full costing method.

Under variable costing costs of production varying with output are treated as product costs. Product costs under this costing method therefore include costs of direct material, direct labor, and variable portion of manufacturing overhead. Fixed manufacturing cost does not therefore fall under product costs (AccountingforManagement, 2013). It is nevertheless, treated as period cost and just like selling and…… [Read More]

References List

AccountingforManagement. (2013). Variable Costing vs. Absorption Costing. Retrieved from http://www.accountingformanagement.org/variable-vs.-absorption-costing/

Daphne, A. (2013). Why Variable Costing is not allowed with GAAP. Retrieved from  http://www.ehow.com/info_8790382_variable-costing-not-allowed-gaap.html 

Johnston, K. (2013). GAAP & Absorption vs. Variable Costing and Tax Implications. The Houston Chronicle.
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Categories of Cost Can Be Divided Into

Words: 628 Length: 2 Pages Document Type: Essay Paper #: 10872168

Categories of Cost

Cost can be divided into following six categories:

Variable Costs

Fixed Costs

Semi-Variable or Mixed Costs

Total Production Costs

Direct Costs

Indirect Costs (Overhead)

Variable Costs: Variable costs are those costs that change with number of units produced or volume of production (Jackson, Sawyers and Jenkins, 2009). These are also called as the product costs as they vary with each unit of production. Some of the variable costs that changes with the production level include materials, labor and shipping.

Fixed Costs: Fixed cost is the costs that is not affected by the volume of production and remains the same, regardless of the number of units produced. It is also called as period costs which is the name derived by its ability of being occurring over a particular period. Examples include: ent, business licenses etc.

Semi-Variable or Mixed Manufacturing Costs: Semi- Variable or a mixed cost has components…… [Read More]

References

Drury, C. (2008). Management and Cost Accounting, Seventh Edition, South Western Cengage Learning.

Jackson, S., Sawyers, R. And Jenkins, J. (2009). Managerial Accounting, A Focus on Ethical Decision

Making, Fifth Edition, South Western Cengage Learning.

Yoe, C. (2012). Principles of Risk Analysis, Decision Making under Uncertainty. CRC Press, Taylor and Francis Group.
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Absorption Costing Method and Why In This

Words: 381 Length: 1 Pages Document Type: Essay Paper #: 57369209

absorption costing method, and why?

In this case, the absorption method would be the best choice due to the way the method incorporates only the overhead. The overhead is allocated to the 80,000 units sold. The variable method normally counts fixed overhead as a period expense. This means that the fixed overhead during this period is calculated on the basis of the 95,000 units made. This calcuation method would be used if the absorption method is chosen. The absorption method is only utilized to calculate fixed overhead on the basis of the 80,000 units sold. The method also provides management a more precise picture of the profitability of the fishing lures. Therefore, making the absorption costing method optimal.

• What are the benefits of the two methods?

Under absorption costing system, the product cost consists of all variable including fixed manufacturing costs. When variable costing system is utilized, the fixed…… [Read More]

References

Horngren, C. (1981). Introduction to Management Accounting. Englewood Cliffs, N.J: Prentice Hall.

Izar, R., & Hontoir, J. (2000). Accounting, Costing, and Management. Oxford: Oxford University.

Riahi-Belkaoui, A. (1991). Handbook of Cost Accounting Theory and Techniques. New York: Quorum Books.
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Activity Based Costing

Words: 2492 Length: 8 Pages Document Type: Essay Paper #: 59770999

Activity-based costing (ABC) employs numerous cost groups, organized by activity, in the allocation of overhead costs. The conception is that activities are necessitated to generate products, basically activities, such as procuring materials, setting up machinery, assembling products, and scrutinizing finished products. It is imperative to note that these activities can be expenses and therefore the cost of activities ought to be apportioned to products on the basis of how the products use the activities. The costs are placed on the products on the basis of the use of individual products for every activity (Hansen et al., 2007). In the traditional product costing system, to begin with, costs are not linked or mapped out to activities but they are rather traced to a unit within the organization, for instance a department or a division, and thereafter to products. This implies that in the traditional and ABC costing systems, the second as…… [Read More]

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Sunk and Opportunity Costs Sunk

Words: 722 Length: 2 Pages Document Type: Essay Paper #: 30719967

If your next-best alternative to seeing the movie is reading the book, then the opportunity cost of seeing the movie is the money spent and the pleasure you forgo by not reading the book. The word opportunity in opportunity cost is actually redundant. The cost of using something is already the value of the highest-valued alternative use. Nevertheless, as contract lawyers and airplane pilots know, redundancy can be a virtue. In this case, its virtue is to remind us that the cost of using a resource arises from the value of what it could be used for instead. (Henderson, 2002)

Opportunity costs refer to the costs associated with giving up an opportunity. They are relevant in the marketing of digital products when one considers the value lost to the company when giving away a product free. Since digital goods primarily consist of fixed costs and often have zero marginal costs…… [Read More]

References

Henderson, D.R. (2002). Opportunity Cost. The Concise Encyclopedia of Economics,. Retrieved 12/2/07, at  http://www.econlib.org 

Pietersz, G. (2007). Sunk Cost. Money Terms, p.1. Retrieved 12/02/07, at  http://moneyterms.co.uk/sunk-costs/ 

Staff, (2004). Sunk Cost Definition.,. Retrieved 12/02/07, at  http://learnthat.com 

Staff, (2004). Opportunity Costs Definitions. Retrieved 12/02/07, at
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TCM Management Accounting Costing Techniques

Words: 984 Length: 3 Pages Document Type: Essay Paper #: 2804100

"The nature of crop and livestock life-cycles means there are fewer and more significant opportunities to intervene, as opposed to the continual tinkering that can occur in a factory" (Ross 2008, p.42).

However, Jack believes that inadequate record-keeping may also be to blame for farmer's reluctance to use TCM in the industry. Even if TCM must be modified for agriculture, this does not negate its applicability. Farmers must learn how to make TCM work for them. Certain factors make it more difficult to identify target prices and costs, but they are not reasons to avoid implementing TCM. Rather, using TCM could encourage farmer to adopt more innovative practices and help to manage risks inherent in this industry. Jack believes that the resistance to TCM is more endemic to the culture of the agricultural industry than due to real problems with its use in agriculture.

The formula for TCM is fairly…… [Read More]

Works Cited

Ross, L. (2008, October). Target cost management. Financial Management, 42-43. Retrieved

July 4, 2009, from ABI/INFORM Global. (Document ID: 1596572181).
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AT& T Cost and Price Cost and Price

Words: 1128 Length: 4 Pages Document Type: Essay Paper #: 6613715

AT&T Cost and Price

Cost and Price Analysis -- AT&T

Company Overview

The AT&T Government Solutions business is currently headquartered in Oakton, VA and is composed of over four thousand scientists, engineers, and analysts; many of which have already obtained the needed security clearance to work more sensitive projects (AT&T Government, 2012). The company's niche is focused on providing a range of IT managed solutions that include network leadership in voice, data, video, and managed services. The company previously operated under the name GRC International which was originally founded in 1961 (Bloomberg Business, 2012). However the name was changed to AT&T Government Solutions, Inc. In March of 2000 and operates as a subsidiary of AT&T Inc.

AT&T Government Solutions received a majority of its work from the defense industry in 2011 which represented close to three hundred eighty million dollars' worth of revenue. By contrast, the civilian sector represented nearly…… [Read More]

Works Cited

AT&T Government. (2012). About AT&T Government Solutions. Retrieved from AT&T Government:  http://www.corp.att.com/gov/about_ags/ 

Bloomberg Business. (2012). Company Overview of AT&T Government Solutions, Inc. Retrieved from Bloomberg Business: http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=111209

Booz Allen. (2012, Feburary 7). U.S. Government Omnibus Network Enterprise (USG ONE). Retrieved from Booz Allen: http://www.boozallen.com/media/file/02.078.12-usg-one.pdf

Fisher, J., & Peters, R. (2010). Using Stock Returns to Identify Government Spending Shocks. The Economic Journal, 414-436.
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Production and Cost Analysis Discuss it and

Words: 680 Length: 2 Pages Document Type: Essay Paper #: 47071503

Production and cost analysis: discuss it and how we use it.

In any business, there are a number of tools firms will use to increase productivity and improve their profit margins. These are designed to provide them with a strategic advantage and objectively tell them how to deal with critical weaknesses. However, in order to receive the long-term benefits they must utilize specific tools to protect market share and reach out to a larger segment of customers. (Trujillo, 2008) (Taylor, 2008) (Jain, 2010)

Two areas that are often utilized during the process are production and cost analysis. To fully understand how they are applied requires carefully examining each one and the way they are used by firms. Together, these elements will offer specific insights as to how organizations are able to remain competitive and adjust with critical challenges they are facing inside the marketplace. (Trujillo, 2008) (Taylor, 2008) (Jain, 2010)…… [Read More]

References

Hira, R. (2008). Outsourcing America. New York, NY: Amacom.

Jain, T. (2010). Macro Economics and Basic Mathematics. New Dehli: Vilma Publications.

Taylor, J. (2008). Economics. New York, NY: Hougton Mifflin.

Trujillo, L. (2003). Production and Cost Functions. Hoboken, NJ: Wiley.
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Guillermo Cost Relationship Cost Relationships

Words: 926 Length: 3 Pages Document Type: Essay Paper #: 26301126



By focusing measurement on cycle time, productivity, quality and profitability, Guillermo will have better information that can help guide his decision-making with respect to the different strategic choices with which he is faced. If he chooses to continue making furniture, he will be better equipped to improve his processes in the future as this information forms the basis of a much stronger control system than is currently utilized at Guillermo.

Break-Even Analysis

The markets for the retardant and the coating have not yet been established. Guillermo has cost figures but has little idea of how much he can sell these products for on the market. A conservative assumption is a 50% markup but still a conservative figure. Sales figures are also going to be based on the annual production capacity. The market is assumed to be much greater than capacity, as the capacity is underdeveloped at Guillermo currently. Sales figures…… [Read More]

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Rising Health Care Costs -

Words: 3279 Length: 11 Pages Document Type: Essay Paper #: 66596723

Because of these types of figures, it should come as no surprise that economists and others that analyze this type of issue are greatly interested in what type of role benefits play within the labor market.

Utilizing a simple theory of the labor market indicates that employers are generally concerned regarding the level of total worker compensation as opposed to the division between the wages that they actually pay and other compensation such as benefits. However, looking at this so simply ignores many of the important differences between benefits and wages. Generally it has been asserted that benefits represent what are called quasi-fixed costs, which means that they do not vary with the number of hours that are worked as wages do but rather they vary instead with the number of workers at the company. Because of this, what type of structure employee compensation packages have often influences the demand…… [Read More]

Ehrenberg, R.G. & Smith, R.S. 1994. Modern Labor Economics. New York: Harper Collins.

Buchmueller, T.C. 1999. Comparing benefit costs for full-time and part-time workers. Monthly Labor Review.

Buchmueller, 1999.
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Reducing Burn Care Unit Operating Costs

Words: 3630 Length: 18 Pages Document Type: Essay Paper #: 99040723

Strategic Recommendations for a Reduction of Operating Costs for Burn Care Unit

Burn Care Unit is a healthcare organization operating the 40-bed unit. Since its formation, Burn Care Unit business has been profitable with an increase in revenues, however, the organization has faced challenges in recruiting the professional nurses, which forces them to adopt the Baylor plan. The plan is an overtime policy that adopts 36 hours pay for nurses who work for 24 hours on the weekend. Nurses who work for 60 hours in the weekdays are paid the equivalent of 70 hours. However, the company has recorded high cost of operations because of the policy. Moreover, Burn Care has incurred $800,000 in nurses' payrolls because of the Baylor plan, and based on the recent increase in the costs of operations, the accountant has suggested that the CEO should discontinue the Baylor Plan to reduce the costs of operations.…… [Read More]

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Labor Cost Management Let Us

Words: 580 Length: 2 Pages Document Type: Essay Paper #: 48199635

(ILO Report, 2006)

In reality the global opportunities are now making employees seek independence. While on one hand the employers look out for more flexibility and accommodative modes of production from employees while on the other hand the collective representation and bargaining power of employees post globalization is wanting. Added to that, the casual labor, seasonal employment and specific purpose contract-based employment have come in vogue. The boundary between the traditional employer and the employee is slowly getting blurred. (Dundon; Rollinson, 2004) This may not be so in the food and beverages section, but youth look to better jobs and employment in other areas and systems. Those who are then available are costly.

In such a scenario, the following are the facts:

Firstly, the food section needs to be outsourced and the system can be created where the chefs, and the other employees form a small firm and source the…… [Read More]

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Coca-Cola Low Cost Differentiation Preemptive

Words: 796 Length: 3 Pages Document Type: Essay Paper #: 29099307

This provides tremendous opportunity to build market share without significant increases in infrastructure. The downside of these markets is that they tend to be less efficient, because fixed costs are higher in relation to revenues. The company can win in such markets, however, if it uses its globally powerful brand to gain a stronger presence in underserved markets, thereby pre-empting rival firms from entering these markets. ith Coca-Cola establishing market share, it will be all the more difficult for other companies to match the distribution clout and brand loyalty that Coca-Cola can build up.

In every market, competition remains a serious threat. Economies of scale can help the company in two ways. The first is that it improves margins, leaving more money left over for marketing efforts. The second is that there is often price competition in competitive markets. ith better economies of scale, Coca-Cola can withstand price wars long…… [Read More]

Works Cited:

QuickMBA. (2012). Competitive advantage. QuickMBA.com. Retrieved March 9, 2012 from  http://www.quickmba.com/strategy/competitive-advantage/ 

QuickMBA. (2012). Porter's generic strategies. QuickMBA.com. Retrieved March 9, 2012 from  http://www.quickmba.com/strategy/generic.shtml
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Using Relevant Costs to Calculate Overhead

Words: 1687 Length: 6 Pages Document Type: Essay Paper #: 82678030

Accounting

This accounting report is intended to emphasize the importance of the role of a management accountant in business operational and financial decisions. The focus on two companies engaging in different lines of business with disparate concerns, questions, and issues provides a basis for the reader to understand specific instances in which a management accountant can play a pivotal role in the success of an enterprise. W. White Chemicals was perplexed about their loss of market share and a small drop in revenue. When the executives came together to discuss the problems, they each had a different opinion about the source of the problem and the possible solutions. The management accountant was able to demonstrate how a change from the traditional accounting system the company was using to an activity-based system would help the team interpret the market situation and get a handle on the actual, rather than the obfuscated,…… [Read More]

Bibliography

Fontinelle, A. (2014). What management accountants do. Investopedia. Retrieved from http://www.investopedia.com/articles/professionals/041713/what-management-accountants-do.asp

Appendices

6

PART A
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Accounting Finance Operating Leverage the Cost

Words: 3037 Length: 9 Pages Document Type: Essay Paper #: 75760323

Leverage permits superior possible returns to the investor than otherwise would have been obtainable but the probable for loss is in addition superior, since the investment becomes valueless, the loan principal and all accumulated interest on the loan still need to be paid back (Kotarski, 2009).

In monetary economics it has been projected for a long time that financial capital is put into a company each time the probable return of the investment lies beyond the opportunity cost of capital. Opportunity costs point to the worth that would have been produced by another utilization of capital. In the monetary markets opportunity cost of capital matches up to the yield of an investment with a related danger. A corporation generates worth when it utilizes capital more resourcefully than the market. In order to figure out if and how much worth has been produced, the yield of the capital utilized by the…… [Read More]

References

Combined Effect of Operating Leverage and Financial Leverage. (2009). Retrieved January 27,

2011, from Web site: http://www.articlesbase.com/finance-articles/combined-effect-of-operating-leverage-and-financial-leverage-973967.html

Kotarski, K. (2009). Structural Imbalances and Financial Crises Proliferation. Politicka Misao:

Croatian Political Science Review, 46(3), 69-90. Retrieved from EBSCOhost.
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Productivity and Cost

Words: 1104 Length: 3 Pages Document Type: Essay Paper #: 35438539

Law of Marginal Productivity comes to Macy's

In theory, the more demand there is for a good or service, the more a producer wishes to provide this good, and that producing in bulk lowers costs. Even when consumer demand is down, a supplier can also produce more, in the hopes of defraying a decrease in price with a bulk increase in sales. However, certain costs of production are fixed. In other words, the Law of Marginal Productivity holds constant. This economic law states, namely that "when the technology of production and some of the inputs are held constant and the quantity of a variable input increases continually, the marginal productivity of the variable input will eventually decline." (King, 2004)

This law is perhaps most obviously evidenced in agriculture or conventional factory production, where even if there is an increased demand for grapes, putting more and more workers onto the field…… [Read More]

Works Cited

"Company News: Macquarie & Regency to Buy 101 Shopping Centers." (16 Feb 2005) Business Financial Desk. The New York Times. Retrieved 1 Mar 2005 at http://query.nytimes.com/gst/fullpage.html?res=9B04E5DD133AF935A25751C0A9639C8B63& fta=y

King, William (2004) "Law of Diminishing Returns." Economics. Drexel University. Retrieved 1 Mar 2005 at http://william-king.www.drexel.edu/top/prin/txt/MPCh/firm8a.html

Rozhon, Tracey (2 Mar 2005) "No Longer the Queens of the Mall, Department Stores Try Makeovers." The New York Times. Retrieved 1 Mar 2005 at http://www.nytimes.com/2005/03/01/business/01shop.html?
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Bicycle Helmets Reduce Social Cost

Words: 2458 Length: 5 Pages Document Type: Essay Paper #: 44338639

The third controllable cost is storage and delivery, which depends on program scope independent of which professional educates the consumer.

d. Unrecoverable expenses if the activity is not implemented include the cost of preventable traumatic head injuries borne by the total health care insurance consumer pool whether cyclists are insured or not; the direct E costs attempting to prevent one traumatic head injury from becoming catastrophic (death); the foregone potential earnings that would be generated were one child not killed before they could finish their career, and the public cost from obesity prevented by cycling. As with variable costs, the actual savings will depend on the variable factors discussed above. Likewise, without predicting exactly how many traumatic head injuries would be prevented by helmet use or not, this budget estimates what those savings would be if one catastrophic head injury were prevented in such a way.

3. We estimate the…… [Read More]

References

Blake, G., Velikonja, D., Pepper, V., Jilderda, I., and Georgieou, G. (2008, June). Evaluating an in-school injury prevention programme's effect on children's helmet wearing habits. Brain Injury. 22(6). pp. 501 -- 507. Retrieved from www.ncbi.nlm.nih.gov/pubmed/18465391

Commission de la Securite des Consommateurs (2006, March). Recommendation (summary) on the prevention of head injuries when cycling 03/06. Legal notice. Retrieved from http://www.securiteconso.org/notice517.html?id_article=517

Moyes, S. (2007). Changing pattern of child bicycle injury in the Bay of Plenty, New Zealand.

Journal of Paediatrics and Child Health, 43. pp. 486 -- 488. Retrieved from doi:10.1111/j.1440-1754.2007.01117.x
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How to Manage Costs in the Manufacturing Process

Words: 746 Length: 2 Pages Document Type: Essay Paper #: 15854596

iordan Manufacturing, a company that is wholly owned by iordan Industries, a Fortune 1000 enterprise specializes in the field of plastic injection molding. The business is unique due primarily to iordan extensive knowledge and expertise with plastic moldings. Innovations in plastic and its uses have created greater demand for iordan products. Namely, innovations in bottling, auto manufacturing, and National Defense have created an environment for robust growth. Its products currently include plastic beverage containers produced at its plant in Albany, Georgia, custom plastic parts produced at its plant in Pontiac, Michigan, and plastic fan parts produced at its facilities in Hangzhou, China. iordan's major customers are automotive parts manufacturers, aircraft manufacturers, the Department of Defense, beverage makers and bottlers, and appliance manufacturers.

iordan's Manufacturing Initiatives

iordan forecasts production using an average of the past three years sales. The average is used to help eliminate excessively low or high volumes of…… [Read More]

References:

Cash Conversion Cycle (CCC) Definition -- Investopedia. (2014, January 9). Retrieved from Investopedia - Educating the world about finance: http://www.investopedia.com/terms/c/cashconversioncycle.asp

Chase, R. B., & Jacobs, F. R. (2011). Operations and Supply Chain Management, 13e. Boston: McGraw-Hill Irwin.

Fax Sent From Robert Lord To Mark Neitzel. (2014, January 10). Retrieved from Riordan Mfg.: Home: http://ecampus.phoenix.edu/secure/aapd/CIST/VOP/Business/Riordan/docs/Operations/RioChinaFax001a.pdf
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Department of Efficiency and Cost of Production

Words: 645 Length: 2 Pages Document Type: Essay Paper #: 37613353

Efficiency and Cost of Production

Production efficiency is defined as the level at which a company is no longer capable of producing additional amounts of a commodity or good devoid of lowering the level of production of another product. Efficiency in production is attained and realized when a product is manufactured and formed at its least average total cost. It outlines sufficient production devoid of wasting important resources (Investopedia, 2016). In delineation, economies of scale are the factors that make the average cost of commodity production and manufacture to decrease as the volume of its output rises (The Economist, 2008). Internal economies of scale are cost savings that accrue to a company irrespective of the market, industry or setting in which it operates. On the other hand, external economies of scale are those that profit a company owing to the manner in which its industry is organized (The Economist, 2008).…… [Read More]

References

The Economist. (2008). Economies of scale and scope. Retrieved 24 August 2016 from:  http://www.economist.com/ node/12446567

Carlino, G. A. (2012). Economies of scale in manufacturing location: theory and measure (Vol. 12). Springer Science & Business Media.

Investopedia. (2016). Production Efficiency. Retrieved 24 August 2016 from: http://www.investopedia.com/terms/p/production_efficiency.asp
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Standard-Based Costing and Performance Measures for Today's Manufacturing Environment

Words: 2044 Length: 6 Pages Document Type: Essay Paper #: 16436011

STANDARD-ASED COSTING AND PERFORMANCE MEASURES FOR TODAY'S MANUFACTURING ENVIRONMENT

This paper outlines the various defect of the standard-based costing method and how they do not effectively measure manufacturing environment of today. It has 8 sources in Turabian style.

Cost control is needed by businesses to plan the actual cost it might incur on the production of certain commodities. The budget is an overall costing system but sub-division is needed if and when the company requires detailed cost structure of the department. This is necessary for achieving the overall goals of the organization.

In production organizations, such as manufacturing companies, the basic concern of the management is to have smooth operations with the least cost possible. There the existence of cost is measured by the tangible output each component of the department produces. Income is compared to the cost incurred. A system that is set for measuring the performance level of…… [Read More]

Bibliography

Davies, Ieuan, 03-01-1997. Are we going in the right direction? (production management techniques). Vol. 75, Management Accounting (British), pp 52(1). Lucas, Mike, Standard costing and its role in today's manufacturing environment.. Vol. 75, Management Accounting (British), 04-01-1997, pp 32(3).

Bear, Robert; Mills, Roger; Schmid, Felix, 12-01-1994. Product costing in advanced technology environments. (cost accounting in manufacturing environments). Vol. 72, Management Accounting (British), pp 20(3).

Lucas, Mike, 04-01-1997. Standard costing and its role in today's manufacturing environment.. Vol. 75, Management Accounting (British), pp 32(3).

Dugdale, David; Jones, Colwyn, 05-01-1996. Accounting for throughput.(part 2, practice). Vol. 74, Management Accounting (British), pp 38(5).
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Business 315 and Analyzing Direct Costs Analyzing

Words: 625 Length: 2 Pages Document Type: Essay Paper #: 45138494

Business 315 and Analyzing Direct Costs

Analyzing Costs

It is crucial for an organization to properly calculate semi-variable costs in order to allocate indirect and direct costs. These costs govern over direct materials, which are "materials that physically become part of a product or service and therefore are clearly indentified with specific outputs or service" (Thompson 2011). Semi-variable costs change often, depending on the volume of the output. These mixed costs are associated with both fixed and variable elements to production. These costs are often broken up using the cost-volume formula which takes into account activity measures like labor as well as the fixed costs and variable unit rate. This helps an organization then outline indirect costs, which are those costs that are unable to be specifically outlined or traced according to a corresponding cost object (Thompson 2011). Essentially, indirect costs are associated with activities of an organization or enterprise…… [Read More]

References

Ruth, James. (2012). Overview of cost definitions and costing methods. World Bank Group. Web.  http://siteresources.worldbank.org/INTPRS1/Resources/383606-1201883571938/Cost_Definitions_and_Methods.pdf 

Thompson, Fred. (2011). Cost measurement and analysis. Willamette University. Web.  http://www.willamette.edu/~fthompso/pubfin/Cost_Analysis.html
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Feasible the Full Cost Structure Must Be

Words: 717 Length: 3 Pages Document Type: Essay Paper #: 44164612

feasible, the full cost structure must be analyzed. The best way to make this determination is by starting with the retail price and working backwards. Ultimately, what we need to know is whether or not the order will generate sufficient contribution to fixed costs in order to be profitable. The fixed costs are known, at $8 per unit. Thus, the contribution margin needs to be higher than 8% for this order to be viable on a financial basis. The questions will be addressed on an individual basis.

This question makes no sense. There is a verb missing: "Will you be able to the requirements…"

These wallets should be imported from China because that is where our production facility is located. There is nothing in the case that would indicate a choice between locations of production.

Handle? This verb is vague -- what is meant by "handle"? A professional writer should…… [Read More]

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Accounting Important Success Firm What Methods Cost

Words: 960 Length: 3 Pages Document Type: Essay Paper #: 40102732

accounting important success firm? What methods cost accounting ? The paper (a) identify main issues chosen area, (b) reference learning occurred, (c) build class activities incidents facilitated learning understanding, (d) present specific current / future applications relevance typical workplace.

Cost accounting -- definition, importance, methods

The modern day society is constantly presenting the economic agent with more numerous and more pressing challenges. In order to face them and emerge as a competitive institution, firms develop and implement a wide array of strategies, such as creating customer value, developing the skills of the staff members, establishing strategic partnerships or creating financial stability and accountability. One specific means in this endeavor is represented by cost accounting, which represents a key to organizational success. The current project focuses on the identification of the reasons as to why cost accounting is important to organizational success. A secondary research objective is that of pin pointing…… [Read More]

References:

Pizzey, A., 1989, Cost and management accounting: an introduction for students, 3rd Edition, SAGE

2009, Cost accounting definition, Accounting for Management, http://www.accountingformanagement.com/cost_accounting_definition.htm last accessed on January 26, 2011

2010, Activity based accounting, Accounting Coach, http://www.accountingcoach.com/online-accounting-course/35Xpg01.html last accessed on January 26, 2011

2010, Cost accounting, Investopedia,  http://www.investopedia.com/terms/c/cost-accounting.asp  last accessed on January 26, 2011
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Budgeting and Cost Control in Healthcare

Words: 3341 Length: 13 Pages Document Type: Essay Paper #: 45091812

udgeting and Cost Control in Healthcare

One of the most critical issues facing healthcare facilities and organizations is the rapidly increasing cost of providing services. Cost control and budgetary issues are the first consideration for many healthcare facilities. According to statistics, the "single most important thing on the minds of healthcare decision makers is cost management and containment." (Lawson, 2004). In fact, more than 95% of respondents to a survey concluded that cost containment and budgetary issues were among the most pressing issues in the healthcare industry. Yet budgetary issues within the world of healthcare are among the most difficult to address, as most healthcare facilities vary greatly in the level of services they provide to consumers, and the amount of resources readily available to serve those consumers.

Healthcare facilities face increasingly and rapidly rising costs in the face of a poor economy and rising costs associated with providing healthcare…… [Read More]

Bibliography

Berger, Steven. (1999). "The fundamentals of healthcare financial management" Boston: McGraw Hill.

Lawson. (2003). "Taking Action to Control Costs: Healthcare Financial Management." Retrieved February 20, 2004:

Medlink. (2004). "Cost Analysis and Control for Healthcare Facilities."

Available:
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Economic Analysis of the Operating Cost That

Words: 4358 Length: 16 Pages Document Type: Essay Paper #: 6894998

economic analysis of the operating cost that are incurred in the running of a metro station. The paper also reveals the variables that are tied to the cost efficiency of the whole process of running a metro station. The cost of operating the stations is however grouped under the semi-fixed costs that are involved. This is because these costs do not vary proportionately with the output of the metro business. This paper seeks to shed light on some of the main factors that affect these costs. Empirical analysis reveals that very strong system specific factors influences costs but it is worth mentioning that there are other station specific details that also influences the costs. These include the number of platforms in the station, the length of the passageways, the interchange demand, availability of toilet facilities etc.We also discover that presence of air-conditioning has a great effect in the propulsion of…… [Read More]

Bibliography

Bookbinder, J., and W. Qu. "Comparing the performance of Major American

Railroads." Transportation Research Forum

Cantos, P.,Pastor J, and Serrano L. "Cost and revenue inefficiencies in the European railways." International Journal of Transport Economic (2002)

Caves, D.W.,Christensen ., L.R., and Swanson J.A.. "Economic performance in regulated and unregulated environments: A comparison of U.S. And Canadian railways." The Quarterly Journal of Economics (1981)
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Nash Equliibrium Elasticity Opportunity Cost

Words: 951 Length: 3 Pages Document Type: Essay Paper #: 65196891

Managerial Economics

The concept of opportunity cost reflects that when an asset is used, that asset cannot be used for something else. So if she chooses to buy a new car, the resources used to make that purchase cannot be utilized anywhere else. This is particularly important when resources are scarce. In her case, she needs to think about what the decision is. Is the choice between a new car and a used one? Is it a choice between living in an outer suburb with lower rent and a new car, or a hip inner city neighborhood with higher rent and no new car? A new car usually represents some sort of trade-off, and Stella needs to think about what those trade-offs are before committing to this purchase.

The table of total costs is as follows:

Method

Drivers

Cost

Machines

Cost

Total Cost

Driver cost

Machine cost

This shows that…… [Read More]

References

BIS (2015). Pricing your product or service. Business Info. Retrieved November 14, 2015 from http://www.nibusinessinfo.co.uk/content/covering-fixed-and-variable-costs

Investopedia (2015). Opportunity cost. Investopedia. Retrieved November 14, 2015 from http://www.investopedia.com/terms/o/opportunitycost.asp

Langevoort, D. (2002). The organizational psychology of hyper-competition: Corporate irresponsibility and the lessons of Enron. Georgetown University Law Center. Retrieved November 14, 2015 from http://scholarship.law.georgetown.edu/cgi/viewcontent.cgi?article=1142&context=facpub

Net Market Share.com (2015). Desktop operating system market share. Net Market Share.com. Retrieved November 14, 2015 from http://www.netmarketshare.com/operating-system-market-share.aspx?qprid=10&qpcustomd=0
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Cost Behavior

Words: 442 Length: 2 Pages Document Type: Essay Paper #: 80330936

Behavior

This particular analysis will rely on the financial data of FedEx and UPS for the financial years ended 31st May 2013 and 31st May 2012; and 31st Dec 2012 and 31st Dec 2011 respectively.

FedEx and UPS Comparison -- Selected Balance Sheet and Income Statement Items

FedEx

UPS

(in millions)

(in millions)

% Change

(in millions)

(in millions)

% Change

Revenues

Cost of Goods Sold

Accounts Receivable

Accounts Payable

Inventory

From the figures above, it is clear that FedEx outperformed UPS on a number of fronts. This is particularly the case with regard to the revenues the company managed to rake in, in comparison to those of UPS. Within the two years under consideration, FedEx was able to increase its total revenues by of 3.77%. When it comes to UPS, its financial statements within the last two years show a revenue increase of 1.92%. It is therefore clear that…… [Read More]

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Cost Benefits of Forward Reverse Logistics

Words: 1827 Length: 5 Pages Document Type: Essay Paper #: 76882505

moves any sort of raw material, products or shipments in general, the subject of logistics is a very important one. Whether one is speaking of forward logistics or reverse logistics, there should be a fairly constant amount of cost/benefit analysis used and harnessed so as to maximize profit and logistical capacity. Indeed, there is almost always more than one way to do something form a logistical standpoint but the benefits of each method as well as the costs should always be assessed to make sure the proper method is used. Both cost and benefits need to be taken into full account because both matter a great deal.

Logistics Cost/Benefit

Some people might be confused by forward logistics as compared to reverse logistics. However, the subjects are actually fairly easy to absorb and interpret with the proper definition. Products and materials, even if slightly compromised, typically retain their value even if…… [Read More]

References

Choudhary, A., Sarkar, S., Settur, S., & Tiwari, M. (2015). A carbon market sensitive optimization model for integrated forward -- reverse logistics. International Journal Of Production Economics, 164433-444. doi:10.1016/j.ijpe.2014.08.015

Hatefi, S., Jolai, F., Torabi, S., & Tavakkoli-Moghaddam, R. (2015). A credibility-constrained programming for reliable forward -- reverse logistics network design under uncertainty and facility disruptions. International Journal Of Computer Integrated Manufacturing, 28(6),

664-678.

Kim, T., Goyal, S., & Kim, C. (2013). Lot-streaming policy for forward-reverse logistics with recovery capacity investment. International Journal Of Advanced Manufacturing
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Cost Aspects of Project Management

Words: 744 Length: 2 Pages Document Type: Essay Paper #: 97445889

Controlling Costs

The question does offer some good ideas and thoughts to keep in mind when it comes to controlling costs. Indeed, having internal employees as opposed to external employees like contractors and the like that cannot be directly controlled in all aspects by the project management team is usually advantageous. However, these exterior employees and their associated costs can be controlled via an agreed price in advance that will not vary based on the acumen (or lack thereof) of the people working on the project unless something unforeseeable changes or is revealed. In that case, the costs are going to go up regardless of whether the costs are internal or external.

As it relates to electricity being a "hidden cost," it has to be expected that a construction project that uses any electricity from the site/client itself is going to cost money. As such, there should be an expected…… [Read More]

References

PMI. (2013). A Guide to the Project Management Body of Knowledge: PMBOK (R) Guide (5th

ed., pp. 1-589). New York: Project Management Institute.

Rodriguez, F. (2010). Impact of revenue recognition methods in project cost control through earned value. PMI Virtual Library. Retrieved from http://pmqlinkedin.files.wordpress.com/2010/07/impact-of-revenue-recognition-methods-

in-project-cost-control-through-earned-value.pdf
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Absorption Costing the Financial Results for Starbucks

Words: 502 Length: 2 Pages Document Type: Essay Paper #: 44741772

Absorption Costing

The financial results for Starbucks and McDonalds over the past couple of years are as follows:

Starbucks

McDonalds

% Change

% Change

Revenue

COGS

AR

Inventory

This analysis shows that Starbucks has seen its revenues grow faster than its cost of goods sold, which is normally taken as an encouraging sign. When firms are able to grow their margins, they are able to have better bottom line profitability, and it also shows that the company's market power is improving. For McDonalds, the COGS grew at a slightly faster rate than the revenues. This means that to a minor extent, McDonalds was less able than Starbucks to pass along cost increases in factor inputs than Starbucks was last year.

An interesting point of analysis is that Starbucks saw all of its balance sheet line items increase much more quickly last year than the revenue or COGS. The receivables, payables…… [Read More]

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Sow Cost Estimate Statement of Work Date

Words: 785 Length: 3 Pages Document Type: Essay Paper #: 82734547

SOW Cost Estimate

Statement of Work

[Date published]

[Presenter's name]

Time and materials

Client's administrator

Relocation of Office Headquarter

Engagement duration

Begin date

eb' 2012

End date

eb' 2012

Schedule of rates [Include fixed-rate costs for items such as equipment and hourly rates for employee time and service.]

Item description

Delivery schedule

(Business days)

Cost

(estimate)

desks (with associated chairs)

day- 1st eb 2012

day- 1st eb 2012

Coffee Tables

day- 2nd eb 2012

Armchairs

Small Items (120 X 160 boxes)

rames

day 3rd eb 2012

Computers (with monitors)

day- 1st eb 2012

Payment terms

Phase

Completion date

Payments due

Phase 1 -- Movement of urniture and Computers

2nd eb 2012

$965

Phase 2 -- Movement of rames and Small Items

3rd eb 2012

$350

Phase 3- Cleaning, Organizing and Arranging relocated items at new premesis

4th eb 2012

$100

Statement of work

Assumptions

ollowing assumptions are to be made…… [Read More]

Full name

3/2/2012 Statement of Work Page 2

3/2/2012 Statement of Work Page 5
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Toyota Cost Allocation of the

Words: 314 Length: 1 Pages Document Type: Essay Paper #: 95481648

Accordingly, Hanson (2009) reports that "while Toyota does have an 'initial allocation for the United States', very strong demand from Japan may cause the company to 'review its sales plan and reallocate the production plan'." (Hanson, 1)

In this case, the sales plan denotes an unallocated cost that may demand a change in financing with the shift of focus to a new market. Another issue cited is the relative shortage in availability of specialized batteries required for the vehicle as Toyota works toward the construction of its own battery production facility. This project represents a convergence of allocated funds and nonallocated costs encountered during the process of construction and facility development.

orks Cited:

Hanson, R. (2009). Toyota may cut back U.S. Prius allocation as demand in Japan soars. Motor Authority. Online at http://www.motorauthority.com/blog/1033294_toyota-may-cut-back-u-s-prius-allocation-as-demand-in-japan-soars… [Read More]

Works Cited:

Hanson, R. (2009). Toyota may cut back U.S. Prius allocation as demand in Japan soars. Motor Authority. Online at http://www.motorauthority.com/blog/1033294_toyota-may-cut-back-u-s-prius-allocation-as-demand-in-japan-soars
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Price-Reduction of Long Haul Fixed-Line

Words: 7630 Length: 18 Pages Document Type: Essay Paper #: 94053546

To avoid repeating negative historical experiences, regulatory regimes need to block the control and domination by networks/platforms. In the report, "Infrastructure and Development: A Critical Appraisal of the Macro Level Literature," Stephane Straub (2007) reported that at times, in some developing companies, "the hope of getting a fixed-line installed is a distant and costly dream" (p. 4). Meantime, the primary option for the individuals waiting for fixed-line telecommunications services would likely be having to us a much too expensive cell phone.

In 2010, much of the fixed-line telecom industry faces growing threats from cable and wireless service competitors.

As the writer of the quote introducing the study section pointed out, more firms are realizing "a cellular wireless solution" generally provides "more stability than the usual wired connections… [and serves as] a valuable asset built for the long haul" ("Lincolnshire Drainage Board…," 2010, ¶ 9). In the book, Integration in Asia…… [Read More]

REFERENCES

Ahmadnezhad, E. (2009). Research Design Mixed Methods. PPt; Tehran University of Medical

Sciences. Retrieved February 22, 2010 from www.pitt.edu/~super4/36011

37001/36411.ppt

Campbell, D.J. & Craig, T. (2005). Organisations and the business environment. Oxford, UK:
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Federal Contracting Benefits and Drawbacks of Cost

Words: 985 Length: 4 Pages Document Type: Essay Paper #: 56399089

Federal Contracting: enefits and Drawbacks of Cost Reimbursement Contracts

The objective of this study is to examine the pros and cons of cost-reimbursement contracts from the view of the federal contractor and to discuss which elements of cost-reimbursement contracts tend to produce the biggest troubles for contractors and explain why.

Cost-Reimbursement Compared to Fixed-Price Contract

Cost-reimbursement or cost-plus is reported as a contract "where a contractor is paid for all of its allowed expenses to a set limit plus additional payment to allow for a profit." (GovWin, 2010, p.1) Cost-reimbursement contracts can be contrasted with fixed-price contracts, which are reported to be such that the contractors "are paid a negotiated amount regardless of incurred expenses." (GovWin, 2010, p.1) Fixed-price contracts make provision of payment of the allowable costs that are incurred in performance of a contract "to the extent prescribed in the contract." (GovWin, 2010, p.1)

In the fixed-price contracts,…… [Read More]

Bibliography

Cost-Reimbursement Contracts (2011) GovWin.com. 18 Oct 2010. Retrieved from: http://govwin.com/knowledge/cost-reimbursement

Philpott, D. And Cook, SP (2010) Managing Cost Reimbursable Contracts. Government Training, Inc. Retrieved from:  http://governmenttraininginc.com/pdfs/Cost-Reimbursable-TOC-Excerpt.pdf 

Title 48: Federal Acquisition Regulations System. Part 1516 -- Types of Contracts. Subpart 1516.3 -- Cost-Reimbursement Contracts. (2012) e-CFR Data 7 Sept 2012. Retrieved from: http://ecfr.gpoaccess.gov/cgi/t/text/text-idx?c=ecfr&rgn=div6&view=text&node=48:6.0.1.3.13.1&idno=48
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Finance Cost of Capital the Capital Which

Words: 807 Length: 2 Pages Document Type: Essay Paper #: 39569548

Finance

Cost of Capital

The capital which is used by a firm, and shown n the balance can be divided into two main classifications; debt and equity. When a firm assesses its total cost of capital, this will usually be calculated on a weighted basis, using the costs of the different types of capital (Elliott and Elliott, 2011). An understanding of this can be appreciated by looking at some of the main sources of capital and the costs associated with each type of capital.

Debt

One of the most common forms of capital is debt. Debt is capital that is obtained through borrowing. There are many kinds of debt, which may include long-term debt such as structured loans from banks or other financial institutions, and short-term debt, such as overdraft facilities and credit agreements with suppliers. The cost of debt is relativity simply to calculate, with most debts having an…… [Read More]

References

Collins, Bill; Mckeith, John (2009), Financial Accounting and Reporting, McGraw-Hill Higher Education

Elliott B, Elliott J, (2011), Financial Accounting and Reporting, London, Prentice Hall

Hillier, David; Ross, Stephen A.; Westerfield, Randolph W; Jaffe, Jeffrey, (2010), Corporate Finance, McGraw-Hill Higher Education

 

 

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