understanding about cost accounting. This paper will discuss: Why is cost accounting so important to the success of the firm; what are the various methods of cost accounting and how are they used; how does an operating budget work to discipline a firm’s management; what are the elements of a budget; how are budgets constructed; what is variance analysis and how it is used. Cost accounting can be described as the process of accumulating‚ measuring‚ analyzing‚ interpreting and reporting cost information
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CHAPTER 6 COST BEHAVIOR TYPES OF COST BEHAVIOR PATTERNS 1. Variable Cost 2. Fixed Cost 3. Mixed / Semi-variable Cost Cost Structure – the relative proportion of fixed‚ variable‚ and mixed costs found within an organization or firm. 1. Variable Cost - its total dollar amount varies in direct proportion to changes in the activity level. Example: Number of Trucks Radiator Cost per Total Radiator
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relationships‚ costs and rewards play an influential role in our decision making process‚ where we determine whether we are going to continue engaging in a relationship or choose to terminate it‚ as explained in Doctor Lobel’s lecture on close relationships. This is a component of the social exchange theory that suggests humans are rational beings who evaluate each of their relationship’s worth based on an analysis of benefits and disadvantages. In the bigger picture‚ the theory of a cost-reward system
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Prejudice can be defined in one of several ways. There is an intellectual as well as a behavioral aspect to the concept of prejudice. Prejudice encompasses negative thoughts and feelings that a person has toward another person. Thoughts and feelings linked to prejudice are generally not based upon the experience the individual‚ but rather the prevailing thoughts and attitudes of the society within which the individual has been socialized. These thoughts and feelings may also have an impact on the
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historical cost accounting still widely and continuously to be used by most companies in their accounting. Conversely‚ reporting current cost in accounting are recommended rather than historical cost as it is the fair value reported in the current year would be beneficial to the firm and the shareholders of the company. 2.0 Historical Cost Accounting and Benefits of Current Cost 2.1 Introduction to Historical Cost‚ Disadvantages and Advantages of Historical Cost The historical cost accounting is
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The Cost Of Living The Subsidies is mean that the sum of money that give from government for support the people that live in that country so that the price of a commodity or service may remain low or competitive. For example‚ our country‚ Malaysia ‚the government also give the subsidies like every people in our country can take a sum of money for help the family that got financial problem‚ for student in secondary school‚ they can get about Rm50 to buy their books for study‚ a family or the eldest
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Cost Classifications and Estimation 2.0 Introduction Cost classification may be defined as ‘the arrangement of cost items in a logical sequence having regard to their nature and purpose to be fulfilled’. The term cost must be qualified when in use in order that its precise meaning is established in a particular situation; however‚ cost refers to the amount of resources that have been diverted from other uses or sacrificed so as to achieve the desired objective. But the term is used to refer to
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Cost/Benefit Analysis Evaluating Quantitatively Whether to Follow a Course of Action You may have been intensely creative in generating solutions to a problem‚ and rigorous in your selection of the best one available. However‚ this solution may still not be worth implementing‚ as you may invest a lot of time and money in solving a problem that is not worthy of this effort. Cost Benefit Analysis or CBA is a relatively* simple and widely used technique for deciding whether to make a change. As its
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The Influence of Customer Satisfaction and Switching Costs on Customer Retention: A Survey of Retail Internet Banking Users in Hong Kong WONGChjBo BSc(Hons)‚ MBA‚ MA‚ MSc Student ID No. 9911675L International Graduate School of Management Division of Business and Enterprise University of South Australia A Thesis submitted in total fulfillment of the requirements for the degree of Doctor of Philosophy in Business and Management 24 January 2005 TABLE OF CONTENTS Page No.
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Answers to Warm-Up Exercises E9-1. Answer: Weighted average cost of capital N 10‚ PV $20‚000 (1 0.02) $19‚600‚ PMT Solve for I 8.30% 0.08 $20‚000 $1‚600‚ FV $20‚000 E9-2. Cost of preferred stock Answer: The cost of preferred stock is the ratio of the preferred stock dividend to the firm’s net proceeds from the sale of the preferred stock. rp Dp Np rp (0.15 $35) ($35 $3) rp $5.25 $32 16.4% E9-3. Cost of common stock equity Answer: The cost of common stock equity can be found by dividing the dividend
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