Assignment 2: Cost Behaviors and Allocation Prof. Gilton Grange HSA 525 Analyze the complexity of cost behaviors in health care organizations and describe how costs are classified according to their relationship with volume. Health services managers are vitally interested in how costs are affected by changes in volume. Before costs can be managed‚ one must have an understanding of how and why costs are being incurred. For‚ example medications dispensed from the pharmacy are variable costs items
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Microeconomics Spring 2010 1. Your cousin Vinnie owns a painting company with fixed costs of $200 and the schedule for variable costs as below. What is the efficient scale of the painting company? Quantity of Houses Painted per Month | 1 | 2 | 3 | 4 | 5 | 6 | 7 | Variable Costs | $10 | $20 | $40 | $80 | $160 | $320 | $640 | 2. Your aunt is thinking about opening a hardware store. She estimates that it would cost $500‚000 per year to rent the location and buy the stock. In addition‚ she would
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Whole = Percent Expense Revenue = Expense % Profit Revenue = Profit % Desired Profit Revenue = Desired Profit % Revenue – (Food and Beverage Cost + Labor Cost + Other Expense) = Profit Food and Beverage Cost Revenue = Food and Beverage Cost % Labor Cost Revenue = Labor Cost % Other Expense Revenue = Other Expense % Total Expense Revenue = Total Expense % Profit Revenue = Profit % Actual
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Overview of Cost Classification and Material Management: Ans: Cost Classification: ( Introduction: In this assignment I will be discussing how costs incurred in any organization may be classified in a number of different ways for a number of different purposes. I will also be looking to find companies that use a variety of different costing techniques and methods. I will also be discussing the comparisons between marginal and absorption costing and how the concept of activity based costing can also
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Case Study of Cost of Capital at Ameritrade 1-a How can the CAPM be used to estimate the cost of capital for a real business investment decision? CAPM results can be compared to the best expected rate of return that investor can possibly earn in other investments with similar risks‚ which is the cost of capital. Under the CAPM‚ the market portfolio is a well-diversified‚ efficient portfolio representing the non-diversifiable risk in the economy. Therefore‚ investments have similar risk if they
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its activity for October 2004 from the following information: * Sales are budgeted at $750‚000. All sales are credit sales and a provision for doubtful accounts is made monthly at the rate of 2% of sales. * Merchandise inventory was $120‚000 at September 30‚ 2004‚ and an increase of $10‚000 is planned for the month. * All merchandise is marked up to sell at invoice cost plus 50%. * Estimated cash disbursements for selling and administrative expenses for the month are
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when you first hear about he textbooks required‚ the school sends you to the bookstore on campus which will have the majority of the books. The rising price of textbooks is becoming an issue. Even though the school bookstore has to make a profit off of textbooks‚ the prices are too high considering the quantity of books students need for all classes. Why are the prices of textbooks so high? And‚ why are the prices growing as rapidly as they are? The overall cost of college is tremendously
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by: Q = 5000 - 200P Firm 1 has a unit cost of production c1 equal to 6 whereas firm 2 has a higher unit cost of production c2 equal to 10. a. What is the Bertrand-Nash equilibrium outcome? b. What are the profits for each firm? c. Is this outcome efficient? Answer: (a) At equilibrium‚ assuming that if both firms charge the same price‚ then the firms split the market evenly. (b) The higher cost firm makes zero profit‚ whereas the lower cost firm’s profit is (c) No‚ this
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Total cost of ownership (TCO) is a financial estimate whose purpose is to help consumers and enterprise managers determine direct and indirect costs of a product or system. It is a management accounting concept that can be used in full cost accounting or even ecological economics where it includes social costs. Contents • 1 Use of concept o 1.1 Computer and software industries o 1.2 Transportation industry • 2 See also • 3 References 4 External links Use
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CHAPTER 6 COST BENEFITS AND ANALYSIS 6.1 Costing for the Current System 6.1.1 Cost of Labor Professional Rate 1 Payroll Manager 93.75/hr 750/day 15‚000/month 1HRD Assistant 81.25/hr 650/day 13‚000/month Total Php 23‚000/month 6.1.2 Supplies Price Total Supplies (Annual) Bond paper - Short Bond Paper 1500pcs. 1.00 each 1500.00 - Long Bond Paper 1500pcs. 2.00 each 3000.00 Stapler 6pcs. 125.00 each 750.00 Staple 50 boxes 20
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