Summer2011-Microeconomics-Exam Two Practice 1. To calculate the total utility of consuming N products: A. add the additional satisfaction of consuming each product up to N and multiply by its price. B. add the total satisfactions of consuming each product up to N. C. multiply the additional satisfaction from consuming the Nth product by its price. D. multiply total satisfaction from consuming N products by N. 2. Suppose that the following table lists the utility that Steve receives from
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COST CLASSIFICATION CONCEPT OF COST: DEFINITION: A SACRIFICE OR GIVING UP OF RESOURCES FOR A PARTICULAR PURPOSE FREQUENTLY MEASURED BY THE MONETARY UNITS (RUPEES‚ DOLLARS) THAT MUST BE PAID FOR GOODS AND SERVICES . ➢ EMPHASIS ON COST INFORMATION: MANAGEMENT ACCOUNTANTS PAY A LOT OF ATTENTION TO COSTS BECAUSE COST HAVE A VITAL ROLE TO PLAY IN PLANNING ‚ EVALUATING AND DECISION MAKING. FOR EXAMPLE IN PLANNING THE ROUTE AND FLIGHT SCHEDULES THE MANAGER OF AN AIR LINE MUST CONSIDER
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economics and business decision-making‚ sunk costs are retrospective (past) costs that have already been incurred and cannot be recovered. Sunk costs are sometimes contrasted with prospective costs‚ which are future costs that may be incurred or changed if an action is taken. Both retrospective and prospective costs may be either fixed (continuous for as long as the business is in operation and unaffected by output volume) or variable (dependent on volume) costs. Note‚ however‚ that many economists consider
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source same End result ! ends with financial statements ! integral part of other business aspects B. Cost Accounting Terminology 1. Nature of Cost Cost - A sacrifice of resources: Cost is a measurement in monetary terms of the amount of resources used for some purpose. Expense - The cost charged against revenue in a particular accounting period. 2. Purposes of Gathering Cost Information Routine decision making:
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Ford Motor Company has had its share of success and failures over the years. In order for the company to remain competitive and relevant in today’s economy‚ Ford should actively anticipate threats and have a strategy in place that allows them to minimize impacts while capitalizing on external opportunities. Ford Motor Company is one of three major domestic automobile manufactures. They also own Volvo‚ Aston Martin‚ Land Rover‚ Jaguar‚ and Mazda. Some of the external threats that face Ford Motor
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Candy Apple Red 65’ with a 289 is the best ever. Or how about a fastback with the HighPower V8 and GT package? Ever heard the rumble from a Boss 302? And yet others consider the 5.0 Liter Mustangs the best largely because of the variety of low cost add-on parts available. These cars are inexpensive to buy and modify. And then there is the Cobras no matter what year or body style the Cobras come of the factory line ready to go "Run’em". In the early 60s’ the only American sports car was the
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Level Material Cost Classifications Consult Ch. 6 & 7 of Health Care Finance and other sources to complete the form. This worksheet requires you to match the definitions and examples of types of cost‚ and the types of centers where costs occur. Part 1: For each term in Column A‚ select the correct definition from Column B on the right. Write the corresponding letter of the definition next to the term. |Column A | |F |Indirect costs
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Ford Motor Company Ford Motor Company is the world’s largest producer of trucks‚ and the second largest producer of cars and trucks combined. Ford has manufacturing‚ assembly or sales affiliates in 34 countries and Ford companies employed 337‚800 people world-wide in 1996. Ford has manufacturing facilities in 22 countries on 5 continents‚ with 87 plants in North America and 41 in Europe. In Europe‚ in 1995‚ Ford’s combined vehicle market share‚ at 12.2%‚ was the highest for eleven years‚ with three
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2-22 Variable costs and fixed costs. Consolidated Minerals (CM) owns the rights to extract minerals from beach sands on Fraser Island. CM has costs in three areas: a. Payment to a mining subcontractor who charges $80 per ton of beach sand mined and returned to the beach (after being processed on the mainland to extract three minerals: ilmenite‚ rutile‚ and zircon). b. Payment of a government mining and environmental tax of $50 per ton of beach sand mined. c. Payment to a barge operator. This
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decision making framework was Utilitarian in nature‚ Ford chose the action that would cause the least amount of harm for the majority involved‚ therefore allowing the minority to be harmed by death. Apparently‚ Ford did not care about the type or severity of harm they caused. They chose a lower number of estimated deaths as opposed to a higher number of financial harm. The decision to view death as a viable option was fueled by Egoism. Fords CEO‚ Iacocca‚ was an integral part of the Egoism utilized
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