Health services managers are essentially interested in how costs are affected by changes in volume. Cost behavior refers to a cost ’s reactions to activity level. A cost may rise‚ fall‚ or remain constant as activity levels fluctuate. We can classify several types of costs on the basis of their relationship to the amount of services provided‚ often referred to as activity‚ utilization‚ or volume (Gapenski‚ 2012). When dealing with the future there is a level of uncertainty of volume with regard
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Latasha Thomas January 20‚ 2013 HSM 260 Jerome Anderson Exercise 10.1 Recompute fixed costs‚ variable costs‚ and the BEP. What are the variable costs? What are the fixed costs? How many meals will the WHDM program need to provide during the fiscal year to reach the BEP? How much profit will the program earn if it completes its 45‚000-meal contract with the City of Westchester? The variable cost of service is $3.93 during the fiscal year the WHDM should provide 1‚011 meals to reach their
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Fixed Costs‚ Variable costs‚ and Break Even Point Elizabeth Gaud HSM /260 August 21‚ 2011 Stephanie Koontz Fixed Costs‚ Variable costs‚ and Break Even Point Exercise 10.1 Recompute fixed costs‚ variable costs‚ and the BEP. What are the variable costs? What are the fixed costs? How many meals will the WHDM program need to provide during the fiscal year to reach the BEP? How much profit will the program earn if it completes its 45‚000-meal contract with the City of Westchester? Answer:
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business and how the new equipment will help the business to function and the cost of the product will determine what the managers of the business decides. Marginal costs are change in total costs divided by change in output. Marginal revenue is the change in total revenue divided by change in output. Increase in fixed costs means that when the fixed costs cannot be changed it is the short run and when the fixed costs change it is the long run. The second questions that I chose to answer was
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Chapter 8 Cost Estimation and Budgeting 8.1 True/False 1) Direct costs are those clearly assigned to the aspect of the project that generated the cost. Answer TRUE 2) Material is an example of a cost that is recurring‚ variable and direct. Answer TRUE 3) An expedited cost is one that does not vary with respect to their usage. Answer FALSE 4) An order of magnitude estimate is usually more accurate than a ballpark estimate. Answer FALSE 5) Comparative estimates are more accurate than definitive
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Definition and explanation of mixed or semi variable cost: A mixed cost is one that contains both variable and fixed cost elements. Mixed cost is also known as semi variable cost. Examples of mixed costs include electricity and telephone bills. A portion of these expenses are usually consists line rent. Line rent normally is fixed for each month. Variable portion consists units consumed or calls made. The relationship between mixed cost and level of activity can be expressed by the following equation
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budgets. 3. The costs of direct materials are classified as: A. Choice A B. Choice B C. Choice C D. Choice D 4. The three basic elements of manufacturing cost are direct materials‚ direct labor‚ and: A. cost of goods manufactured. B. cost of goods sold. C. work in process. D. manufacturing overhead. 5. 25. Prime cost consists of direct materials combined with: A. direct labor. B. manufacturing overhead. C. indirect materials. D. cost of goods manufactured.
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Strategic Cost Management Chapter 11 The Honda Business Model for Suppliers Six-year plan 100% understanding of all components of product cost Lean supplier development concurrent engineering Flawless new product launch Communications The Value Equation Definitions Price analysis Process of comparing supplier prices against external price benchmarks Cost analysis Process of analyzing each individual cost element that makes up final price Total cost analysis Applies value equation
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clear thinking along with presentation | | | Subject Specific Parameters | 1. Understanding the procedures of Costing | Clarity of concept | | | 2. To be able to calculate the unit cost and prepare costing Profit & Loss statement | Precision in cost calculation and preparation of cost sheet | | | Grades | Grade Descriptors | Achieved Yes/No (Y / N) | P | A Pass grade is achieved by meeting all the requirements defined. | | M | Identify & apply strategies/techniques
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determine if the company is actually making money with their customers. With future growth imminent due to the success of their products‚ it was important that effort was taken to ensure that variable selling‚ general‚ and administrative (SG & A) costs did not increase faster than sales revenue. As Kanthal expanded operations and increased their market share‚ they captured business by meeting their customers ’ expectations for increased service. Increased demands were placed on their production and
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