Variable Cost=Total Cost-Fixed Cost=$823‚000-$600‚000=$223‚000 Variable Cost/Units=$223‚000/2.5 million lbs.=$0.0892/lb. $600‚000+$0.0892x (x=demand in lbs.) Air Transportation: Variable Cost=Total Cost-Fixed Cost=$800‚000-$450‚000=$350‚000 Variable Cost/Units=$350‚000/2.5 million lbs.=$0.14/lb. $450‚000+$0.14x (x = demand in lbs.) Therefore: $600‚000+$0.0892x=$450‚000+$0.14x $150‚000=$0.0508x X=2‚952‚755.906=2‚952‚756 lbs. Ocean transportation cost equals air transportation cost when the
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productivity of the product then the end cost could increase too. Changes of the productivity can increase by changes in technology and human capital. This allows the production of the products to become better managed by managers because it can track all the materials that is needed for that product with better technology. The price increase of $0.20 cents per pound does have an effect on the raw material cost of the product because the increase in price will come to the cost of the product which if the price
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mobile valued added services (MVAS) and online advertising and e-commerce. The internet services industry in China is at the growing stage due to technological advances leading to higher internet and mobile penetration within the country at a lower cost‚ as well as the strong economic growth upon China’s admission to the World Trade Organization (WTO). Tencent’s most famous products include QQ (instant messenger)‚ Qzone (social networking service) and QQ.com (internet portal) and 3G.QQ.COM (WAP
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Chapter 8 Cost Estimation and Budgeting True/False 1) Direct costs are those clearly assigned to the aspect of the project that generated the cost. T 2) Material is an example of a cost that is recurring‚ variable and direct. T Multiple Choice 1) Which of the following is a direct cost? A) labor B) rent C) depreciation on equipment D) health benefits 2) Workers paid $15.00 per hour with an overhead charge of 1.45 and a personal time allowance of 1.15‚ have what total direct labor cost for an
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Cost Cutting Tips Most of us spend more than we need to for a lot of things. If you really can afford luxuries such as gourmet teas or designer clothing and still save for your future‚ you’re lucky. However‚ if you’re struggling to meet the financial goals you’ve set on your retirement roadmap‚ it’s time to look for ways to cut expenses—daily‚ monthly‚ and long-term. Start by seeing if you’d benefit from either of these big cost-cutting strategies: •If you’re paying high interest on a mortgage
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Sport Obermeyer Sport Obermeyer started to make firm commitments for producing its 1993-1994 line of fashion skiwear with scant information about how the market would react to the line. Inaccurate forecasts of retailer demand had become a growing problem at Obermeyer: in recent years greater product variety and more intense competition had made accurate predictions increasingly difficult. Also‚ another issue Sport Obermeyer faced was how to allocate production between factories in Hong Kong
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COST CONCEPTS AND COST ACCOUNTING By: Aman Jawahar Sarika Deepak Muneer CONTENTS Concept of Cost Cost Accounting Terms in Cost Accounting Elements of Cost Meaning of Overheads Classification of Costs Methods of Costing Types of Costing MEANING: Cost Concept: The term ‘cost’ means the amount of expenses [actual or notional] incurred on or attributable to specified thing or activity. Cost means ‘the price paid for something’. Cost Accounting: Cost Accounting is concerned with recording
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fluctuations in demand for its playgrounds for children. An aggregate production plan is devised annually and updated quarterly. Cost data‚ expected demand‚ and available capacities in units for the next four quarters are given here. Demand must be satisfied in the periods it occurs; that is‚ no backordering is allowed. Design a production plan that will satisfy demand at minimum cost. (25 Marks) Expected Regular Overtime Subcontract Quarter Demand Capacity Capacity Capacity 1 650
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1. The chief economist for Argus Corporation‚ a large appliance manufacturer‚ estimated the firm’s short-run cost function for vacuum cleaners using an average variable cost function of the form. AVC= a + bQ+ cQ^2 (the 2 is suppose to be exponent) Where AVC=dollars per vacuum cleaner and Q=number of vacuum cleaners produced each month. Total fixed cost each month is $180‚000. The following results were obtained: Dependent Variable:AVC R-Square
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brand‚ size‚ and price. eBags has been able to build a good relationship with over 300 suppliers and has increased their Stock Keeping Units (SKU) to over 15‚000 which contributes to its success. They have been able to minimize the high inventory holding cost by implementing a drop-ship model. This model has its issues though as they can not always control the shipping schedule and it has a lower profit margin. Part of eBags success is due to their transparent relationship with their vendors. They created
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