Assuming no safety stocks‚ Litely estimates a 50% chance of no shortages in each cycle‚ and the probability of shortages of 5‚ 10‚ and 15 units as 0.2‚ 0.15‚ and 0.15 respectively. The carrying cost per unit per year is calculated as $5 and the stockout cost is estimated at $6 ($3 lost profit per switch and another $3 lost in goodwill‚ or future sales loss). What level of safety stock should Litely use for this product? (Consider safety stock of 0‚ 5‚ 10‚ and 15 units) Carrying cost equals zero.
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PRINCIPLES OF COST CONTROL 1.1 Introduction Cost is important to all industry. Costs can be divided into two general classes; absolute costs and relative costs. Absolute cost measures the loss in value of assets. Relative cost involves a comparison between the chosen course of action and the course of action that was rejected. This cost of the alternative action - the action not taken - is often called the "opportunity cost". The accountant is primarily concerned with the absolute cost. However‚
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Merchandising in global penny stocks is a very good opportunity of investment. If you do not have a basic understanding of how to trade penny stock it will be a great risk in investing and you may make boundless mistakes out of ignorance and absence of direction. It is more favorable to invest in companies which are waiting for their future rather than companies which have already matured are now in decline. While investing in penny stocks‚ there is no doubt that there is a huge insubstantially in
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COST SHEET FOR AMUL ICE-CREAMS [pic] PRESENTED BY HIRAL MEHTA 61 SAURAV MEHTA 62
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applied arbitrarily it is advisable not to entirely depend on them. While accounting statements can help one understand revenue‚ cost‚ cash flows and financing structure it is the mistrust in how these numbers are derived that prompts one not to rely on the published results. In situations like these additional techniques are required to analyse and make predictions on a stock. One technique that analyst have depended on is technical analysis. Technical analysis argues that the market is its own best
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all the resources available to the company to maximize their profit and be efficient in every way possible. It is therefore the duty and obligation of the operation management to see that all these are made possible. The operation management of the company must have proper experience and knowledge of how to handle different situations‚ how to manage resources‚ and mainly tackle any kind of problem that may arise during the functioning of any department in the company.
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CONFIDENTIAL AC/OCT 2010/ACC116/165/211 UNIVERSITI TEKNOLOGI MARA FINAL EXAMINATION COURSE COURSE CODE EXAMINATION TIME INTRODUCTION TO COST ACCOUNTING / COST ACCOUNTING ACC116/165/211 OCTOBER 2010 3 HOURS INSTRUCTIONS TO CANDIDATES 1. 2. 3. This question paper consists of five (5) questions. Answer ALL questions in the Answer Booklet. Start each answer on a new page. Do not bring any material into the examination room unless permission is given by the invigilator. Please check to
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Classify each cost listed below as either a product cost or a period cost for purposes of preparing the financial statements for the bank. 1. The cost of the memory chips used in radar set. * Product Cost 2. Factory Heating Cost * Period Cost 3. Factory Equipment maintenance costs. * Period Cost 4. Training costs for new administrative employees * Period Costs 5. The cost of the solder that is used in assembling the radar sets. * Product costs 6. The Travel
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$111.81 Summary Section4 – Valuation Reasons about using FCF analysis Computing FCFF from Net Income and CFO & Computing FCFE from FCFF Report Introduction Nike is the largest footwear company in the world selling footwear‚ apparel‚ equipment through 25‚000 retailers. As a stable‚ yet fast growing company‚ Nike is facing several obstacles in its core section. In this report‚ we have done thorough business analyses using Porter’s Five Force and SWOT approach to get the fundamentals
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really sure how the stock market worked. When I first invested into stocks‚ I did not know the philosophy of “buy low and sell high.” I thought the complete opposite‚ so when I bought shares of particular stocks‚ I bought them when they were high. So I basically started out my project with a big failure. As I was choosing which stocks to invest in‚ I looked at their six month history on a chart. If they appeared to be pretty steady‚ I took that as a good investment and bought the stock. Also‚ I chose
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