...Rich Manufacturing So many firms use cost-plus pricing for supply contracts because it is the easiest method in order to calculate cost and eliminate error. Most of the time when firms are working with numbers, they must find ways that are efficient and not time consuming. What managers do is simply target a rate of return thus saving time and increase efficiency. In fact, it can be more useful in some occasions than others. As stated by Brickley, Smith, and Zimmerman (2009), “cost-plus pricing is more useful when the rate of return that yields the profit-maximizing price on the product is relatively stable over the relevant range of cost variation for a given product and varies little across a related set of products. (p. 212). One of the potential problems I envision with cost-plus pricing is the attention to consumer demand. For cost-plus pricing, this aspect is very much ignored. According to Brickley, Smith and Zimmerman (2009), cost-plus pricing ignores the rise in costs and neglects how the price sensitivity of consumers. Disregarding demand can be detrimental to a company and is a crucial factor. “If demand is slow, then the mark-up percentage may be lower in order to lure in customers. On the other hand, if demand for the product is high and economic conditions are good, then the mark-up percentage may be higher as the company feels they can get the higher price for their product” (Peavler, 2013). Both of these factors demand and pricing, are critical to increasing...
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...Managerial Decisions: Rich Manufacturing 1) Cost plus pricing is used by many companies for various reasons. Companies first “calculate average total cost and then mark up the price to yield a target rate of return.” (Brickly, Smith, Zimmerman, p. 211). Companies use this approach to protect themselves from increase in production costs by adding their desired rate of return. This approach is also used by many companies because of its simplicity. With supply contracts, it guarantees reimbursement of cost and producing profit with no risk of loss. (Accountingtools.com, para. 2). 2) Potential problem with using cost plus pricing is that it ignores marginal cost and price sensitivity of customers. (Brickly, Smith, Zimmerman, p. 211). Price sensitivity is essential to pricing strategy in order to maximize profit. In addition, cost plus pricing is not responsive to market changes. (Magloff, para. 6). When customer demand and competition are not considered, companies can end up pricing their product too low where competition takes away potential profits or end up earning low profits by pricing their product too high. (Accountingtools.com, para. 3). Another problem with cost plus pricing is that it does not encourage supplier to limit expenditures. Hence, suppliers will have no incentive to reduce production costs. (Accountingtools.com, para. 3). 3) In this case, Gina should not contest the price increase because the current contract states that Rich manufacturing will pay production...
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...Setting Tuition and Financial Aid by Ronald J. Sanders HCM-540, MBOL5, Health Care Organization Instructor: Wenyuan Teng Saint Leo University Distance Learning November 3, 2013 Abstract A college board in Pennsylvania has increased its tuition and fees to the amount of $23,460; a 17.6 increase from the previous year. An increase of 200 additional students inquired to further their education at the college than the prior year. Most college presidents would attribute this to students believing the college is better if the cost is more. Like other major colleges such as Rice University, University of Richmond and University of Notre Dame, the perception is students of prestigious schools believe costs are related to a better education. To contrast this, 10 years ago, North Carolina Wesleyan College reduced it cost of tuition and fees by 22 percent and watched its number student application fall. Recommendations to resolve the school’s cash flow problems may include the future increase of tuition and fees. This case study deals with the managerial decision of setting tuition and financial. Many factors are associated with demand and price elasticity of demand. There is an economic relationship between demand and price? After reading this paper, student will have a better understanding of those things that may affect tuition and fees for colleges. Introduction An individual can demand so many things. The concept of demand can be easily explained. Every...
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...Chapter 5: Analyzing Managerial Decisions: Rich Manufacturing John Davis October 26, 2013 Case: Analyzing Managerial Decisions: Rich Manufacturing Writing Task: 1. Why do many firms use cost-plus for supply contracts? 2. What potential problems do you envision with cost-plus pricing? 3. Should Gina contest the price increase? Explain. 4. Is the increase more likely to be justified in the short run or the long run? Explain. 5. How will a $3 increase in the price of machine parts affect Gina’s own production decisions? Why do many firms use cost-plus for supply contracts? “Firms that use the technique calculate the total cost and then mark up the price to yield a target rate of return” (Brickley et al, 2009, p 211). “Often information on marginal revenue and marginal cost is difficult to obtain with precision, making it impossible to exactly determine the point of profit maximization. By using cost-plus pricing, you can simply include a desired rate of return in the mark-up” (Graham, 2013). The primary purpose is so highly used by firms is the ease. You do not have to be as accurate with your estimates, and you need to have knowledge of the market. Knowledge of the market will lead to the appropriate requirement for the actual cost of the product. What potential problems do you envision with cost-plus pricing? The potential problem with “cost-plus pricing is it focuses on average rather than marginal cost. Because profit maximization requires marginal cost...
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...SUCCESS QUOTES Your Ultimate Inspirational Guide By Patric Chan “Enrich Your Mind, Unleash Your Potential. Success Begins Within You.” http://www.esuccessmastery.com * Anthony Robbins * Dale Carnegie * Dr. Stephen Covey * Brian Tracy * Jim Rohn * * Napoleon Hill * Mark Victor Hansen * Robert Kiyosaki * Brought to you by : Noel Hynes http://ebookdirectory.com Congratulations on taking the first step toward achieving success!! Why I wrote and compiled this ebook ... Because I know how you feel. The burning desire for success and the determination you have to achieve it. The rich knowledge and resources provided in this ebook had been read personally by me, and I had benefited from it. I guess, all the featured successful men in the ebook don’t have to be introduced anymore as I’ll assume that you would have heard of them. If you do not know about them yet, just type their name in the search engine and you will find them. I will only recommend authors and coaches whom I know from my personal experience who are successful and inspirational. If you sell the product in which you believe in or you have benefited from personally, you will be a very successful person. I’ll always prefer to promote the products/services that I had used, reviewed, joined or read before. We live in abundance of wealth today. There is no limit to our earnings; we have the capacity to earn extraordinary income if we are determined to achieve it. What is most important is how we deliver our...
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...Books in the Rich Dad Series Rich Dad Poor Dad What the Rich Teach Their Kids About Money That the Poor and Middle Classes Do Not Rich Dad’s CASHFLOW Quadrant Rich Dad’s Guide to Financial Freedom Rich Dad’s Guide to Investing What the Rich Invest in That the Poor and Middle Classes Do Not Rich Dad’s Rich Kid Smart Kid Give Your Child a Financial Head-Start Rich Dad’s Retire Young Retire Rich How to Get Rich Quickly and Stay Rich Forever Rich Dad’s Prophecy Why the Biggest Stock Market Crash in History Is Still Coming… and How You Can Prepare Yourself and Profit from It! Rich Dad’s Success Stories Real-Life Success Stories from Real-Life People Who Followed the Rich Dad Lesson The Business School for People Who Like Helping People The Eight Hidden Values of a Network Marketing Business Rich Dad’s Guide to Becoming Rich Without Cutting Up Your Credit Cards Turn “Bad Credit” into “Good Credit” Rich Dad Poor Dad for Teens The Secrets About Money—That You Don’t Learn in School! Rich Dad’s Before You Quit Your Job 10 Real-Life Lessons Every Entrepreneur Should Know About Building a Multimillion-Dollar Business Why We Want You to Be Rich by Robert Kiyosaki and Donald Trump Provide Insight on How to Improve Your Financial Future Rich Dad’s Increase Your Financial IQ How to Get Smarter with Your Money Rich Woman: A Book on Investing for Women How to Take Charge of Your Money and Your Life Conspiracy of the Rich: The 8 New Rules...
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...Kiyosaki was taught that financial intelligence is the way to be rich. People today are desire money and are afraid of not having money; they spend their lives working for money. Kiyosaki says we need to have money work for us. Kiyosaki wanted to grow up not having to live in the “rat race”. He wanted to be able to go where he wanted to go, do the things he wanted to do, to not have anything holding him down, and that is why he strived to become “rich”. This book is for of guide lines that Kiyosaki used or experienced and he wants others to learn from. The first chapter Rich Dad Poor Dad is where Kiyosaki introduces his two fathers. He says, “one was highly educated and intelligent;… [and the other] never finished the eighth grade.” Both his fathers were strong and influential, and both were successful in their careers; but one struggled financially all his life and the other became one of the richest men in Hawaii. Kiyosaki was glad to have two fathers to learn from learned from. He was able to see the point of view of both the poor and the rich. Even though the time he started learning from them when he was nine years-old the rich dad was not yet rich and the poor dad not yet poor. At the age of nine Kiyosaki started listening to his rich dad. Rich dad taught six main lessons. The second chapter was the first lesson, The Rich Don’t Work for Money. Kiyosaki asked both dads if they could teach him how to get rich. Poor dad, Kiyosaki’s dad, responded that you need to make money...
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...Here are several personalities that had been instrumental to my seeking financial stability and success. Eugenio Isabelo Tomas Reyes Sanchez Jr. or widely known as Bo Sanchez is an author, entrepreneur, preacher, celebrity and lay evangelist in the Philippines. Bo Sanchez was only 12 years old when he attended his first prayer meeting. He gave his first talk a few weeks after that – in the midst of mostly family members. The elder who asked him to give the talk had received a prophecy that Bo will preach to thousands. That has come to pass. Bo has also become a national bestselling author and winner of The Ten Oustanding Young Men (TOYM) for 2006. In 2007, he received the Serviam Award, the highest award of the Catholic Mass Media Awards, as well as the Golden Gavel Award by the Toastmasters International, the highest award given to non-Toastmasters for public speaking. On the other hand, Bo founded the Light of Jesus (LOJ) Family in 1980, and continues to provide direction and leadership to LOJ, envisioning 1000 Feasts all over the world. (The Feast is how the LOJ prayer meetings are called.) The Light of Jesus Family has helped Bo start various independent ministries, beneficiaries of Kerygma Conference. These include Anawim Lay Missions, a home for the abandoned elderly; Grace to Be Born, a halfway house for women in crisis; Tahanan ng Pagmamahal, an orphanage; Pag-asa ng Pamilya Scholarship Foundation; He Cares Foundation, which helps streetkids; the Light of Jesus Counseling...
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...Verania, Angelica M. BSA 2-10 ECON 2013 Prof. Aileen Camba “Rich Dad Poor Dad” Summary Robert Kiyosaki has two fathers, one is his poor dad and the other one is his rich dad. His educated dad whom he calls his poor dad is his biological father and his rich dad is Mike‟s, his best friend, father. Both have their own perspective about money and both have different principles in life. As a kid, Robert wanted to know how to get rich because they were tired of other kids not wanting to play with them because they were 'poor kids'. His educated dad told him to learn how to make money. Since he was still a kid that time, he and his best friend Mike came up with a plan of literally making their own money. His educated dad and suggested to seek for Mike‟s father, his rich dad, help because he, himself, doesn‟t know how to make money. This is the start of their journey to becoming rich. There are 6 lessons that are emphasized in this book. Lesson #1: The Rich Don‟t Work for Money Lesson #2: Why Teach Financial Literacy? Lesson #3: Mind Your Own Business Lesson #4: The History of Taxes and the Power of Corporations Lesson #5: The Rich Invent Money Lesson #6: Work to Learn – Don‟t Work for Money The Rich Don’t Work for Money This chapter shows why the poor and middle class don‟t get rich. It is because they keep on working for money, fear and greed cause ignorance and poverty. We were taught of getting a secure and safe job meaning, working for money. Their fear of having no money...
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...Chapter 4 of Rich Dad Poor Dad, by Robert Kiyosaki, continues to reinforce the idea that the rich and the poor think differently. In chapter four, titled “The History of Taxes and the Power of Corporations,” Mr. Kiyosaki discusses the power of the corporation, and how the rich have learned to use the corporation to hide their money. Through a variety of charts he shows how the cash flows through business versus how cash flows through the poor and middle class. Corporations spend their money and then pay taxes on what is left, where the poor pay taxes and they what is left they spend on other things. Robert continues to drill the idea of developing your financial IQ in order to break the rat race and escape the machine that sucks you into the work force. He says being ignorant gets you bullied, and if you were to learn you may stand a chance. Robert actually wrote an entire book on raising your financial IQ, although I think you would be better off going through a professional educator, he makes several good points in the book. One point that I like from this chapter, and actually is driven home by this current election campaign, is the idea that the more you tax the rich, the less willing they will be to create jobs. For the 2012 election, you have one candidate that wants to bring down taxes on the rich so they create more jobs, and in turn, return more money to the government in taxes. The other candidate wants to increase taxes on the rich, which will make the rich just find...
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...people think about and deal with money vs. how the middle class and poor deal with money. He outlines his thoughts in what he calls, the Five Financial IQs. According to Kiyosaki it is not money but knowledge that makes one rich (pg 200). Robert Kiyosaki was born April 8, 1947 to a middle class family. Kiyosaki is an investor, businessman, self-help author and motivational speaker. Along with being a successful author, he is also the creator of the Rich Dad brand, as well as a real estate mogul owning millions of dollars in real estate assets. Kiyosaki is best known for his “Rich Dad Poor Dad” book and other materials published and found on the top 10 best-seller lists of The Wall Street Journal, USA Today and the New York Times. Before becoming a best selling author he began his career as a salesman for the Xerox Corporation a company that sells copy machines. In his popular book “Rich Dad Poor Dad” he illustrates the many lessons he received from his rich dad growing up. He explains about the relationship with his real dad a teacher who later ran for a political office who came to be known as his poor dad. His rich dad was his best friends father who ended up being one of the wealthiest men in his home state of Hawaii. The lessons he received from his rich dad are the lessons that...
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...What is entrepreneurship? Entrepreneurship is the process of starting a business. An entrepreneur develops a business plan and is fully responsible for the company’s survival. He or she is in charge of resources or manpower, if any. What are the qualities of an entrepreneur? They are leadership, innovation in business and willing to take risks. They are willing to take on additional risks despite dealing with uncertainty. A risk taker, I would say. A good example of a successful entrepreneur would be Robert Kiyosaki, the author of Rich Dad Poor Dad. In his book, he taught about advocates financial independence and building wealth through various means such as investing and owning businesses. By reading his book, you are able to increase your financial intelligence. You can read his book to get a head start on entrepreneurship. As quoted from Rich Dad Poor Dad, “Winners are not afraid of losing. But losers are. Failure is part of the process of success. People who avoid failure also avoid success.” We must not be afraid to try. If we do not try, we do not know if we will be successful. There is a chance we might fail. But think of the positive side, there is a chance we will succeed. Positive mindset is very important being an entrepreneurship. By going into entrepreneurship, you let money work for money instead of you working for money. It takes a lot of courage to start but once you are willing to work hard, your efforts would be paid off. Thank...
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... the dreaded vaccination was needed. Francie needed to calm Neeley's nerves before going and they decided to make mud pies. The children's parents were both at work and hadn't known they needed washing up, so the kids went for their vaccinations covered in dirt, earning nasty comments from doctors assuming they looked as they did because they were poor. "Filth, filth, filth, morning to night. I know they're poor but they could wash" a doctor had said thinking Francie, who sat right next to him, was also too stupid to undertsnad he was insulting her. She had learned to stand up for herself against those who hadn't known her and made assumptions. School was meant to be thrilling, but with the cruelity of the students and favoritism of the rich kids, it was anything but a nice smooth ride. This made coming accross a nicer school a bit further away seem like a dream. After finding loop holes, Johnny helped Francie fake an address in order to attend the school, proving later that all was worth it. the school was large and held many kids, none of which were horribly mean. As Francie had said earlier "Poor people have a passion for huge quantities of things", page 39, and as she admired the large groups of people like herself, this quote showed true. By this time the Nolans had moved twice and had found the apartment they planned on staying in for good. They moved quickly after an incident involving Katie's sister Sissy, yet, after all had blown over Sissy managed her way back into...
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...Throughout the history of man, every person has had the same question. How can I become rich? Some may deny the want and for some even need to become rich, but there is no denying it. At some point we all fantasize about what would happen if one was to win the lottery of inherit a large sum of money. Wouldn’t that be great! I’m sure if you asked these same people what they would do with the money one they acquired it you would begin to see a trend; new car, new house or maybe even a boat! From only a select few would you hear a response such as stocks, bonds or real estate. These select few are the ones who will truly be rich someday. The vast majority of the population will spend countless hours online, in the library and talking to others with similar ideas of their latest and greatest “get rich quick” scheme. If only they would put the same effort into actually learning keys to success and reading literature that is actually worth the time you put into it more people would end up living how they always dreamed. For many, that’s all being rich will ever be, a dream. But then there are those who see no other option; they read books, take classes and immerse themselves in knowledge to try and gain an upper hand but even out of these few there are even less that will actually succeed in actually fulfilling their dream of becoming rich. However, there is hope, but only if you put in the work. The book Rich Dad, Poor Dad by Robert T. Kiyosaki is a great place to start. It provides a solid...
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...Rich Dad, Poor Dad is the story of author Robert Kiyosaki's upbringing and his two fathers, one rich father (not biological) and one poor father (biological). He was forced to choose between following in the footsteps of his poor father – a highly educated government worker – or his rich father – an entrepreneur who never graduated high school. In the end he decided to learn from his rich dad.The book focuses mostly on the education and financial advice Kiyosaki learned from his rich dad. His rich father was able to create a multi-million dollar empire from virtually nothing, using his financial knowledge and the power of his imagination. The book gives basic lessons which combine the teachings of Kiyosaki's rich dad with experiences from his own life.One of which is the importance of improving your financial IQ and financial literacy,(skills the author believes is absent from the current education system). The book also shows how the rich don't work for money, they make money work for them. They acquire assets rather than liabilities. The author emphasises the importance of being able to differentiate between an asset and a liability. He states that in order to be truly wealthy, your asset must be large enough to offset your living expenses. He explained about the misconception of a high income meaning wealth, but in reality a strong asset column is what is needed. Higher incomes often lead to higher expenses, higher taxes, and more debt. The author (Kiyosaki) eliminates...
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