have done above is a “full-cost” analysis. This is in contrast to a “direct-cost” analysis that ignores overhead costs. Is full cost the right metric for job profitability and customer profitability? What assumptions are we making about the variability of overhead costs when we do a “full-cost” analysis? By allocating the overhead costs to jobs and customers there is an implicit assumption that these are variable with the cost driver. In reality‚ some of the overhead costs are fixed‚ at least in the
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Plant overhead $122‚000 D/L rate/hour $30 Youngstown has a traditional cost system. It calculates a plant-wide overhead rate by dividing total overhead costs by total direct labor hours. Assume‚ for the calculations below‚ that plant overhead is a committed (fixed) cost during the year‚ but that direct labor is a variable cost. 1. Calculate the plant-wide overhead rate. Use this rate to assign overhead costs to products and calculate the profitability of the four products. The assignment
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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 reduction Generally defined as the act of cutting costs to improve profitability. Cost reduction‚ should therefore‚ not be confused with cost saving and cost control. Cost saving could be a temporary affair and may be at the cost of quality. Cost reduction implies the retention of essential characteristics and quality of the product and thus it must be confined to permanent and genuine savings in the costs of manufacture‚ administration‚ distribution and selling‚ brought about by elimination
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First‚ let me start off by explaining what internet neutrality is. Some of our broadband internet provider if not all want to charge companies like Netflix‚ Amazon‚ Vudu‚ and other media streaming services more for the speed at which they stream their content to us the consumers for these services. For content to stream to your end device without lag‚ buffering‚ and the quality of resolution it takes a certain amount of transmitted data speed to make that happen to receive it in a manner that you
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Nano-Cement : A high strength low cost alternative. (A review of the paper : Influence of nano - SiO2 on Portland cement pastes by M. Stefanidou and I. Papayianni) *Corresponding Author : M. Stefanidou ; Email Address :stefan@civil.auth.gr Abstract The object of this review is to throw light on the paper : “Influence of nano- SiO2 on the Portland cement pastes” . This paper was written by M.Stefanidou and I. Papayianni. The paper is based on the research conducted by them on high
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accounting profits and economic profits for Gomez’s pottery. Explicit costs: $37‚000 (= $12‚000 for the helper + $5‚000 of rent + $20‚000 of materials). Implicit costs: $22‚000 (= $4‚000 of forgone interest + $15‚000 of forgone salary + $3‚000 of entreprenuership). Accounting profit = $35‚000 (= $72‚000 of revenue - $37‚000 of explicit costs); Economic profit = $13‚000 (= $72‚000 - $37‚000 of explicit costs - $22‚000 of implicit costs). 8-4 (Key Question) Complete the following table by calculating
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Microsoft’s Diversification Strategy 1. Why did Microsoft‚ the most successful computer software company‚ choose to remedy its strategic disarray? Microsoft is a multinational computer technology corporation headquartered in Redmond‚ Washington that develops‚ manufactures‚ licenses‚ and supports a wide range of products and services related to computing. The company was founded by Bill Gates and Paul Allen on April 4‚ 1975. Microsoft is the world’s largest software maker measured by revenues
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American literature is the written or literary work produced in the area of the United States and its preceding colonies. For more specific discussions of poetry and theater‚ see Poetry of the United States and Theater in the United States. During its early history‚ America was a series of British colonies on the eastern coast of the present-day United States. Therefore‚ its literary tradition begins as linked to the broader tradition of English literature. However‚ unique American characteristics
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Introduction Law is a system of rules and guidelines which are enforced through social institutions to govern behavior‚ wherever possible. The law of contracts differs from other branches of law in a very important respect. It does not lay down so many precise rights and duties which the law will protect and enforce. Instead‚ the law of contract is a division of law which contains rather a number of limiting principles‚ subject to which the parties may create rights and duties for themselves‚ and
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