related) Explicit costs: payment made to outside suppliers of inputs e.g. salaries/wages, raw material, overhead costs implicit costs: do not involve direct payment of money, sacrifice of some alternative e.g. salary forgone/interest forgone (factors are already owned by firm) accounting cost: explicit cost economic costs → opportunity cost to society (explicit + implicit costs) traditional objective = profit maximization profit = revenues – cost. Non traditional objectives
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naturally and supply can changes based on growing conditions, they are a commodity, resulting in price fluctuations depending on demand and the health of the crop in a growing season. The commodity nature of these ingredients, effects the way in which cost are accounted for. In this small brewing company, the direct labor consists of eight employees that help with brewing and packaging process and two mangers responsible for production process. In the packaging process components to consider as direct
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when something is wrong (too late) * Those in U.S. don’t think much about it * Market-directed macro-marketing system is working pretty well * Trade-offs of costs, service, and sales * Most people want the best service at the lowest prices (not possible) * IT has lead to improve d service levels and lower costs * Better information makes logistics easier to coordinate Physical Distribution Concept Focuses on the Whole Distribution System Physical Distribution Concept: says
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Prorated and End in association with costs? Start – cost applied at the beginning of the task Prorated – cost applied as work is completed End – cost applied when the task is completed 4) Give a real-world example of the difference between a fixed cost and a cost per use? Give a real-world example of the difference between a fixed cost and a cost per use? Fixed Cost: (buy equipment) company bids $500 to clean carpet, cost of airline ticket… Cost Per Use: (rent equipment) Hourly rate
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that, it leads to many environment issues from exploiting petrol-oil resources and US needs more oil from Iran, causing the economics unbalanced in the world and the purchasing of petrol-oil is increased, therefore, demands exceed the supplies. The cost of petrol-oil consumes a lot in US economy and makes a little change to the world economy as well. The US government has to take responsible for this case and they find many properly approach to cope with these difficulties by way of negotiations,
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Case 1: Appliance maker The challenge Senior executives at a large, low-cost manufacturer of appliances and white goods were concerned about the sluggish performance of the company’s household fan business. It had long been among the top leading players in the company’s home country—an emerging market—but was now losing domestic share in two important, and fiercely competitive, product categories. The company’s leaders suspected that a stagnant product portfolio was partly to blame; they had been
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This will get it from a number of goals that must be done to ensure the high quality food restaurant been serf on mobile unite. To perform these procedures will be based on performance objectives. First, choosing to sell food will be based on the cost and quality of the food. Adam's team decided to make pasta with meatballs that are quick to make, however, the team Jenna, opts for "Scot pop", which is a traditional Scottish dish, that although the price of meat is expensive, will high quality and
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EBIT RM73 million with margins of 13.7% – Net income RM161 with margins of 30.1% 25th consecutive quarter of profitability – the only LCC in Asia that is making money – one of the few airlines that managed to grow profits in the period Lowest cost airline in the world at 3.30 US cents / ASK – despite fuel prices gaining by 43% year on year Disciplined growth – Group fleet size of 72 (end of March 2008) – capacity growth of 36% and passenger growth of 21% YoY 3 Key Highlights for
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the following question(s). | | |Wood Manufacturing is a small textile manufacturer using machine-hours as the single, plant-wide predetermined cost driver rate to | | |allocate manufacturing overhead costs to the various jobs contracted during the year. The following estimates are provided for the | | |coming year for the company and for the Winfield High School band jacket job:
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350,000 Gross Margin 30% Cost of Goods Available for Sale $1,020,000 Prime Costs $545,000 Manufacturer Overhead 65% of Conversion cost Direct Materials $325,000 Beginning Inventory numbers: Raw Materials $41,000 Works in Process $56,000 Finished Goods $35,000 Formulas: Prime cost = Direct Materials cost + Direct Labor cost Conversion cost = Direct Labor cost + Manufacturing overhead cost (65% conversion) Prime cost = 325,000 + $220,000 545,000
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