COST BEHAVIOUR AND CONTROL: THE TRADITIONAL AND STICKY COST PHENOMENON Abstract Cost behavior and control is of utmost importance to managers in order to decisions. In this study‚ we took a look at the traditional cost behavior models such as variable cost (which changes in line with activity)‚ fixed cost (which is not proportionate with the level of activity)‚ and semi- variable cost which is also known as mixed cost (which have both features of the variable and fixed cost). Furthermore‚ cost estimation
Premium Costs Management accounting Variable cost
generated 23.08% to Hilton’s revenue in 1998. This shows that the program also helped to boost up Hilton’s revenue. Since Hilton is running above breakeven‚ the revenue generated by the program is considered as profit generating revenue. Therefore‚ the value of the program is: ($158 – $750/365 days) x 8‚543‚800 nights = $1‚332‚364‚647 Since HHW runs the program not as a profit
Premium Income statement Revenue Net income
Article Review: Target Cost Management An article by Louise Ross puts target costing in effect with agricultural and the farming industry‚ explaining how this system may already be partially in use. Louise Ross provides evidence of the advantages and disadvantages of target costing within the food supply chain. According to Ross‚ participants in the food supply chain were already using some form of target cost management‚ but the system was not formalized into specific aspects. Ross (2008)
Premium Costs Cost Agriculture
Everyone in the world is unique. Some people have great talents and skills‚ and some don’t. Unfortunately‚ I belong to the latter group. However‚ there is one thing that sets me apart from other candidates applying to the University of California. That is humility. There are some different ways to define humility. To me‚ humility is “the quality of not being proud because you are aware of your bad qualities.” For instance‚ sometimes when I got higher grades than my friends‚ I did not walk around
Premium Education Psychology Learning
Cost Management or Cost Control In broad sense‚ both the terms have the same meaning. Yet cost management seems to connote broader perspective. Cost control to an un-initiated may mean cutting down the incurrence of cost or expenditure every time or in every situation. In reality it is not always so. In many specific situations‚ many times‚ one has to spend or incur cost in order to gain or make more money. It is in fact like an investment. Cost management sounds better then. Profits Making
Premium Cost Costs Cost accounting
economic development whose healthy progressing relies on its management levels. I will describe the role and importance of the application of strategic management accounting in public and not-for-profit sectors and analyzes its conceptions and methods‚ combining with its management characteristics. 1. The role and importance of the application of strategic management accounting in public and not-for-profit sectors Strategic management accounting is the need of public and not-for-profit sectors effectively
Premium Management Non-profit organization Management accounting
Statistics clearly show that the cost of education in the United States is on the rise in recent years than any other time in history. Despite the fact that the government is straining to subsidize the tuition cost‚ the costs of educating children both in elementary and high school as well as at the college level are still rising owing to the increased cost of books in the country. The high cost incurred in the purchase of learning materials especially texts books makes it hard for low-income families
Premium Education Higher education University
$3.2805 Prime cost per unit Deluxe $160000/20000=$8 Regular $1500000/200000=$7.5 Per unit cost Deluxe $8+$3.195=$11.195 Regular $7.5+$3.2805=$10.7805 B. Plantwide Rate Total overhead cost/Total direct labour hours= $720000/180000=$4 Overhead rate Overhead cost Deluxe $4×20000=$80000 Regular $4×160000=$640000 Overhead per unit Deluxe $80000/20000=$4 Regular $640000/200000=$3.2 Per unit cost Deluxe $8+$4=$12
Premium Cost Costs Cost accounting
Question no: 01:- Accounting profit and Economic profit. Economic Profit Implicit cost Accounting profit Explicit cost Total opportunity cost Revenue Revenue How an economist views a firm How an accountant views a firm Accounting profit equals sales revenue minus ( - ) all costs except the cost of equity capital‚ while Economic profit is sales revenue minus ( - ) all costs including the opportunity cost of equity capital. Thus economic profit may be lower than the accounting profit. If accounting
Premium Economics Costs Microeconomics
Overall requirement * Explain how management accounting can supply information to assist the management of the organisation. * You are not required to investigate and report on the organisation’s actual management accounting system (even if you can find out). * You are to write a 1500 word report as though you were a management consultant writing to the board of directors. * WE DO NOT WANT ANY NUMBERS UNLESS YOU CREATE THEM TO DEMONSTRATE AN IDEA * This is like assessment 1a –
Premium Management