Microeconomics Topic 6: “Be able to explain and calculate average and marginal cost to make production decisions.” Reference: Gregory Mankiw’s Principles of Microeconomics‚ 2nd edition‚ Chapter 13. Long-Run versus Short-Run In order to understand average cost and marginal cost‚ it is first necessary to understand the distinction between the “long run” and the “short run.” Short run: a period of time during which one or more of a firm’s inputs cannot be changed. Long run: a period of time during which
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Terrorism: The Total Cost Introduction Terrorism has many costs‚ whether it is emotionally‚ or financially. No matter the results‚ failed or successful‚ there are costs involved. The terrorist utilize finances‚ energy‚ time‚ design and method engineering‚ as well as the one being terrorized incurring the possibility of greater costs. Either way it is viewed‚ the loss of life remains the biggest cost‚ and most impacting. The effect of a single act
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Cost Accounting Chapter Module-1 - Introduction to Cost Accounting Definition Cost: - Generally cost refers to all expenses incurred in producing a product or rendering service. But‚ from the cost accounting point of view “Cost is a normal sacrifice of resources in the creation of product or services”. Costing: - Costing is defined as “the technique and process of ascertaining cost of a given thing”. According to CIMA it is defined as “the establishment of budgets‚ standard‚ costs and
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opportunity cost of a choice is the value of the best alternative forgone‚ in a situation in which a choice needs to be made between several mutually exclusive alternatives given limited resources. Assuming the best choice is made‚ it is the "cost" incurred by not enjoying the benefit that would be had by taking the second best choice available.[1] The New Oxford American Dictionary defines it as "the loss of potential gain from other alternatives when one alternative is chosen". Opportunity cost is a key
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Define cost object and give three examples Cost object is defined as “Anything for which a separate measurement of cost is desired”. The term cost object and cost objective is synonymous. Cost object may refer to a process‚ a cost centre‚ and cost units. Cost unit is a quantitative unit of product or service in relation to which cost are ascertained. Cost centre is a location‚ function or item of equipment in respect of which cost are ascertained. 2. Define cost accumulation
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procedures‚ applying $815‚000 of overhead to products Alpha and Gamma on the basis of direct labor hours. The company is considering a shift to activity-based costing and the creation of individual cost pools that will use direct labor hours (DLH)‚ material handling (MH)‚ and number of shipments (NS) as cost drivers. Data on the cost pools and respective driver volumes follow. Product Alpha Gamma Pool Cost Pool No. 1 (Driver: DLH) 200 1800 $420‚000 Pool No. 2 (Driver: MH) 15 10
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My Direct approach on Problem Solving Rafael Rius DeVry University September 16th 2010 When I am trying to solve various problems in life‚ I find it very useful to identify what I consider to be the most direct solution‚ regardless of how I feel about actually implementing it. I find this to be the most clear and direct why to get around my problems. Many problems have multiple solutions‚ but often the solution require persistence to implement. But if we can somehow get myself to follow
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Cost accounting deals with ascertainment ‚ allocation ‚ apportionment accounting aspect of costs.Management accounting deals with the effect and impact of costs on the business. 2. Cost accounting provides a base for management accounting whereas management accounting is derived from cost accounting and financial accounting. 3. Cost accounting does not include financial accounting ‚ tax planning and tax accounting. Management accounting includes financial and cost accounting ‚ tax accounting
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in step and swinging your arms in formation‚ then you are paying attention to the cadence that is being given‚ so if you get a command by whoever is marching you‚ you are already paying attention and can react quickly. This can be the difference between life and death in a combat zone. The same thing can be said about talking on the phone while walking around. You need to not have any distractions when you are patrolling an area. If you are not alert‚ you could get yourself killed by an IED
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Name: Class: Cost Accounting Date: 02.12.2012 Quiz 5 1) Absorption costing: A) expenses marketing costs as cost of goods sold B) treats direct manufacturing costs as a period cost C) includes fixed manufacturing overhead as an inventoriable cost D) is required for internal reports to managers 2) Variable costing: A) expenses administrative costs as cost of goods sold B) treats direct manufacturing costs as a product cost C) includes fixed manufacturing overhead as an inventoriable
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