Total Economic Costs = $793‚000 + $190‚000 = $983‚000 - Total accounting profit is total revenue less explicit costs. $970‚000 - $793‚000 = $177‚000 - Total economic profit is revenue less economic costs. $970‚000 - $983‚000 = <$13‚000> Prior to starting Sound Audio‚ the owner earned a salary of $175‚000 per year. In year one‚ he realized an accounting profit of $177‚000‚ which is greater than his annual salary; however‚ the economic profit
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Homework II – Managerial Economics – Fall 2011 Each question is worth 1 point. 1. A call provision gives bondholders the right to demand‚ or "call for‚" repayment of a bond. Typically‚ calls are exercised if interest rates rise‚ because when rates rise the bondholder can get the principal amount back and reinvest it elsewhere at higher rates a. True b. False 2. Sinking funds are devices used to force companies to retire bonds on a scheduled basis prior to their maturity.
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standards on what is good or bad in a person’s behavior or decisions making. In addition it deals with internal values that are a part of the company’s culture and their employees. An ethical issue is found in a case that the actions of a person or an organization may harm others. "Managerial ethics help to guide decision making and the organization of internal and external behavior. Ethical problems usually arise from a conflict between an individual or group and the company‚ division or department
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Benedictine University MBA 601 Managerial Accounting Final Project (paper) Outsourcing In today’s business environment‚ outsourcing becomes more and more popular and important for all kind of companies because more and more companies realized the benefits of outsourcing. Outsourcing is the process by which the company contracts to another one to supply some goods and services. Outsourcing is not only used in the domestic business‚ but also used in the international business that is the offshoring
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Managerial Accounting and Control Decision Making: Relevant Costs and Benefits Case 14-62 Roy Kondoy Shella Faye Sportway Corporation • Sportway is a wholesale distributor supplying a wide range of moderately priced sports equipment to large chain stores • Products: 60% purchased‚ 40% manufactured • The company has a Plastics Department that is currently manufacturing molded fishing tackle boxes • Sportway is able to manufacture and sell 8‚000 tackle boxes annually‚ making full use of its direct-labor
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FI504 Sample Case Study 3 on Cash Budgeting Solution It is recommended that you share this solution file in Doc Sharing by the end of Week 5 with your students. The Cambridge Company has budgeted sales revenues as follows: Jan Feb Mar Credit sales $45‚000 $36‚000 $27‚000 Cash sales 27‚000 76‚500 58‚500 Total sales $72‚000 $112‚500 $85‚500 Past experience indicates that 60% of the credit sales will be collected in the month of sale and the remaining 40% will
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SOCIAL STUDIES PROJECT SCHOOL BASED ASSESMENT (S.B.A) (YEAR 2011) NAME OF CANDIDATE: SCHOOL: CENTRE #: CANDIDATE #: TITLE: The Level of Alcohol Use among Students of My School. TERITORY: Acknowledgement The successful completion of this study would not have been possible without the assistance and cooperation of a number of people. Consequently‚ I would like to thank GOD for giving me the strength to complete this study. I would
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...............................................................................79 3.3. The case study strategy............................................................................................................83 3.4. Research design .........................................................................................................................88 3.4.1. The selection of the case study sites......................................................................................88
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Chapter 12 Introduction to Simulation Using Risk Solver Platform 1 Chapter 12 Introduction to Simulation Using Risk Solver Platform This material is made available to instructors and students using Spreadsheet Modeling and Decision Analysis‚ 5e by Cliff T. Ragsdale‚ published by South-Western‚ a division of Cengage Learning. No part of this work may be reproduced or used in any form or by any means – graphic‚ electronic‚ or mechanical‚ including photocopying‚ recording‚ taping‚ Web distribution
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have a clear view of their abilities‚ have good study habits and are able to use effective study skills. Learning how to study involves putting away the habits and ideas which have made study unpleasant and burdensome‚ and talking on habits and ideas which make study more pleasant and fruitful. Why does one individual learn more quickly and thoroughly than other? The main reason for inefficiency in learning is ones carelessness and ineffective study habits. According
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