STANDARD COSTS Setting a budget is never easy as it involves predicting the future and therefore uncertainty. The process is not about getting the budget absolutely right; it is about not getting it too wrong. This budget process may be applied to most revenue budgets that deal with income and costs‚ but there is also a requirement to produce a capital budget that covers the purchase‚ sale and replacement of fixed assets. There is normally an investment limit dictated by funding availability and
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economics and business decision-making‚ sunk costs are retrospective (past) costs that have already been incurred and cannot be recovered. Sunk costs are sometimes contrasted with prospective costs‚ which are future costs that may be incurred or changed if an action is taken. Both retrospective and prospective costs may be either fixed (continuous for as long as the business is in operation and unaffected by output volume) or variable (dependent on volume) costs. Note‚ however‚ that many economists consider
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Sunk Cost-cost that has already been incurred and cannot be avoided no matter what a manager decides to do. A business segment should only be dropped if a company can avoid more in fixed costs than it loses in: contribution margin Which of the following techniques describe how a bottleneck should be managed: Find ways to increase the capacity of the bottleneck‚ ensure there is minimal lost time at the bottleneck due to breakdowns and set-ups‚ focus business process improvement efforts on the bottleneck
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Considering an IPO? The costs of going and being public may surprise you September 2012 A publication from PwC’s Deals practice Table of contents The heart of the matter 1 Embarking upon the IPO process requires insight into the costs An in-depth discussion 4 The initial public offering Cost of going public Cost of being public 5 12 What this means for your business 27 Assess the readiness of your organization for an IPO to appropriately stage the costs incurred and to minimize
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Opportunity cost Have you ever been in the situation deciding which cloth to buy? Have you ever facing the dilemma of to study or to play? Have you ever consider as a seller and choose to lower the price or raise it? In the field of economics‚ here’s a solution for you. The magic word is “opportunity cost”. Opportunity cost in terms of economy is the highest-value alternative one has to give up to engage in an activity. In other words‚ using the same resources such as money and time‚ the best
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Lesson-13 Elements of Cost and Cost Sheet Learning Objectives • • • To understand the elements of cost To classify overheads on different bases To prepare a cost sheet Elements of Cost Raw materials are converted into finished products by a manufacturing concern with the help of labor‚ plants etc. The elements that constitute the cost of manufacturing are known as elements of cost. The elements of cost include the following: • • • Material Labor Expenses Each of these elements is again subdivided
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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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c. Internal accounting d. Cost accounting 5. Financial accounting information is used for a. investment decisions. b. regulatory measures. c. stewardship evaluation. *d. all of these. 6. Which of the following is NOT part of the financial accounting information system? a. filing reports with the SEC b. reporting a large contingent liability to current and potential shareholders *c. determining the future cashflows of a proposed flexible manufacturing system d. preparing
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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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than the cost of capital. The cost of capital is the rate of return that capital could be expected to earn in an alternative investment of equivalent risk. If a project is of similar risk to a company’s average business activities it is reasonable to use the company’s average cost of capital as a basis for the evaluation. A company’s securities typically include both debt and equity‚ one must therefore calculate both the cost of debt and the cost of equity to determine a company’s cost of capital
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