TYPES OF COSTS Introduction :-Production is the result of services rendered by various factors of production.The producer or firm has to make payments for this factor services. From the point of view of the factor inputs it is called ‘factor income’ while for the firm it is ‘factor payment’‚ or cost of inputs.Generally‚ the term cost of production refers to the ‘money expenses’ incurredin the production of a commodity. But money expenses are not the only expensesincurred on the production
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Cost Control and Cost Reduction A business enterprise must survive‚ grow‚ and prosper. Cost Control and Cost Reduction are activities necessary for ensuring that these objectives are fulfilled. With the liberalization of the Indian Economy and Globalization‚ there is now a cut throat competition from various concerns of the world. As a result there is now a race to secure a place for survival. This has increased the importance of cost control and Cost Reduction. Cost Control “Cost control
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I - A. " Representational faithfulness is accomplished when transactions and events affecting the entity are presented in financial statements in a manner that is in agreement with the actual underlying transactions and events" (CICA‚ Financial statement Concepts 1000.21 (a)‚ 2003). It means that all of information in the financial statement such as numbers and descriptions must be factual. The independent auditors checked the computer ID tags on each piece of equipment to confirm the actual numbers
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The 3 most famous R’s (Reduce‚ Reuse and Recycle) Before we start our presentation‚ I will suggest that we play a clip video regarding the 3 R’s from you tube by “Jack Johnson” in order to put the audience in the mood and let them anticipate the better picture of our topic of the day. Introduction Practicing these three steps (Reduce‚ Reuse and Recycle) helps us lessen the environmental impact that manufacturing and distributing products have on our environment. Reducing waste is the most
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of that‚ Colorscope could provide higher quality than the large printers in the fields where it had specialized. Before the dawn of desktop publishing‚ which led to commoditization of the services‚ competition was more based on quality than on price. As a small agency‚ it is also probable that Colorscope could be more flexible in meeting specific demand and provide more tailored services to the few customers it served‚ compared to the large printers which would have a bigger and more bureaucratic
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Mobile phones have changed through time starting with the size of the phone‚ then the technological advances‚ and finally the usage of the phone. Even though the purpose of the phone has not changed‚ which is to call people‚ the phone itself has changed in many ways. The first reason on how mobile phones have changed over time is the size of the phone. In 1190‚ Martin Cooper invented the first mobile phone called the Motorola Dynamic 8000X. The phone was about the length of a non-sharpened pencil
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calCheckpoint: Technological Advancements in Communication What technological advancements in communication were discussed in the article? In this article‚ The technological advancements in communication discussed included collaborative technologies like social computing‚ wiki’s‚ mash up’s‚ video conferencing‚ and instant messaging. These technologies allow businesses to get away from all the e-mails or traditional communication that involves only a select number of people. With collaborative
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Agency Costs of Free Cash Flow‚ Corporate Finance‚ and Takeovers Michael C. Jensen Harvard Business School MJensen@hbs.edu Abstract The interests and incentives of managers and shareholders conflict over such issues as the optimal size of the firm and the payment of cash to shareholders. These conflicts are especially severe in firms with large free cash flows—more cash than profitable investment opportunities. The theory developed here explains 1) the benefits of debt in reducing agency
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Ronald Coase noted‚“The cost of doing anything consists of the receipts that could have been obtained if that particular decision had not been taken.” For example‚ the opportunity set for this Friday night includes the movies‚ a concert‚ staying home and studying‚ staying home and watching television‚ inviting friends over‚ and so forth. The opportunity cost of taking job A included the forgone salary of $102‚000 plus the $5‚000 of intangibles from job B. Opportunity cost is the sacrifice of
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Despite their diplomatic and mercantile qualities‚ the Assyrians had the most capable and savage military of their time. Through technological advancements and sheer ruthlessness‚ they built the largest empire the ancient world had ever seen. One of the most important technological advancements they made was using iron for weaponry instead of bronze. Iron has a few advantages over bronze. One being that because bronze is an alloy of copper and tin whereas iron is a naturally occurring element‚ iron
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