is focusing on the budget constraints‚ which is important; however‚ the needs of the customers must be met. He is considering adding capital expenses when business does not seem to be increasing. Smith is preparing his quarterly budget report‚ which will be presented at the Southeast regional meeting in the following week. He is very concerned about adding capital expense to the operation‚ to meet the demands of current customers‚ when business has not increased appreciably. According to the case
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Characteristics of Telco Industry Market structure is either a: Monopoly Natural monopoly Oligopoly Dominated by a handful of big players High capital expenditure (capex) Absolute fixed cost is high But fixed cost per user is very low Telco may be very cash flow rich if capex is controlled Low operating expenditure (opex) Average cost per user is very‚ very‚ VERY low. Generic Characteristics of Telco Industry Lines of business Voice Traditional fixed lines
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costs typically responsible for 20-30% of the overall OPEX expenditure‚ this is one area where the downstream sector in South-East Asia is increasingly focusing its attention. According to some analysts the costs incurred across the globe in maintaining the next generation of oil & gas assets could equate to $0.75 trillion highlighting the scale of the prize that could be on offer here. For a typical refinery the operational expenditure is principally dictated by three prime factors: the quantum
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an asset are other causes of depreciation which decrease in the value of assets. . Concepts of capital & revenue * Capital and revenue expenditures * Capital and revenue receipts * Capital and revenue losses * Capital and revenue profits * Capital and revenue reserves Capital Expenditures The expenditures which generates revenue or income is called capital expenditure. Capital expenditure
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the mobile handset business. Continued with the order stock dropped‚ all the clients just stopped buying. Stock dropped dramatically. Off course it impacted to company’s revenue which was declining‚ in the other hand company had invested more capital expenditures The turnaround program came as a shock to everybody in company. Nobody believe they could take out such big chunks of money which about SEK 20 billion or 23% of the operating expenses. The first impacts starting with reducing the number
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Deduction under section 33AB is allowable against composite income and not against only 40% of composite income- A case of un-necessary litigation by revenue in case of Tea Companies . Computation provision: Section 33AB is a provision relating to allowing deduction from business income. It falls under Part “D” of Chapter IV of the Income-tax Act‚ 1961. This part consists of various sections from section 28-44DB. As per section 29 the income referred to in section 28 shall be computed in accordance
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Conclusions §263 outlines that certain direct and indirect costs are nondeductible and must be capitalized. §§263 and 1.263(a)1(a)‚ document that no deduction is allowed for capital expenditures that are associated with the improvement or betterment of property. §1.263(a)2(a) notes that capital expenditures include constructing‚ building‚ improvements‚ and developing done on any property produced by the taxpayer for use in its trade or business. §263 further outlines that while direct costs are to be capitalized
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PCBs‚ Stryker only needs to deal with material suppliers instead of many small and unstable manufactures. The communication cost will go down. (3). Longer payable period Payable period will extend‚ which will lay less stress on Stryker‘s working capital because the longer the accounts payable period‚ the shorter the cash conversion cycle. Risks: (1). Technological changes In-sourcing PCBs will bear risks at the same time. First issue is that whether PCBs will be replaced by new technology and then
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Target Corporation Patrick Cunningham M03619570 Professor John Phelps‚ Ph.D. February 6‚ 2014 Executive Summary: This case study analyzed five different projects Target Corporation had to decide on capital spent for which project created the most value and the most growth for the company and its shareholders. By analyzing the financial statements and exhibits of each project‚ I was able to determine the positives and negatives of each of these alternatives. The alternatives were Gopher
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and considering the huge capital expenditure to set up shop. b) Threat of substitute products also seems very low since Hampton seems to be a specialized manufacturing firm. c) Rivalry among existing competitors seems to have gone down with most of the competition being taken out of business. d) Bargaining power of buyers seems to be a valid threat. Coming out of a recession‚ buyers look for deals on pricing. With the declining sales of automobiles and defense expenditures‚ the bargaining power of
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