Ronald Coase noted‚“The cost of doing anything consists of the receipts that could have been obtained if that particular decision had not been taken.” For example‚ the opportunity set for this Friday night includes the movies‚ a concert‚ staying home and studying‚ staying home and watching television‚ inviting friends over‚ and so forth. The opportunity cost of taking job A included the forgone salary of $102‚000 plus the $5‚000 of intangibles from job B. Opportunity cost is the sacrifice of
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runs a small pottery firm. He hires one helper at $12‚000 per year‚ pays annual rent of $5‚000 for his shop‚ and spends $20‚000 per year on materials. He has $40‚000 of his own funds invested in equipment (pottery wheels‚ kilns‚ and so forth) that could earn him $4‚000 per year if alternatively invested. He has been offered $15‚000 per year to work as a potter for a competitor. He estimates his entrepreneurial talents are worth $3‚000 per year. Total annual revenue from pottery sales is $72‚000
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Accrual Method HSM/260 Melissa Vance 11/29/2012 There is one major difference between the accrual method of accounting and the cash basis of accounting and that is that in the accrual method‚ the amount that is entered into the books is one that has
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Strategic Cost Management ACCT90009 Seminar 1 Seminar 1 Subject Administration Introduction to SCM oduc o o SC Administration • Subject Coordinator Dr. David Huelsbeck Email: david.huelsbeck@unimelb.edu.au Room: 08.028‚ The Spot Phone: +61 3 9035 6256 Consultation Hours: Monday 4:15pm – 6:15pm • Seminars: Tuesday: 2.15 pm – 5.15 pm‚ FBE ‐ Theatre 211 (Theatre 2) Thursday: 6.15 pm – 9.15 pm‚ Alan Gilbert ‐ Theatre 2 Teaching Format and Resources • Seminar Format 3 hour seminar
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Week Nine Final Project: Analyzing Financial Statements HSM 260 Current Ratio Table [ 1 ] | | 2002 | 2003 | 2004 | Current Ratio | Current Assets | $104‚296.00 | 0.75 | $82‚058.00 | 0.87 | $302‚902.00 | 0.43 | | Current Liabilities | $139‚017.00 | | $93‚975.00 | | $699‚004.00 | | An organization’s current ratio shows how liquid the assets of the agency are by comparison to the short term debts that the agency must pay to continue its operations. This ratio is calculated
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Assignment: Fixed and Variable Costs‚ Break-Even Point Exercise 10.1 Recompute fixed costs‚ variable costs‚ and the BEP. What are the variable costs? What are the fixed costs? How many meals will the WHDM program need to provide during the fiscal year to reach the BEP? How much profit will the program earn if it completes its 45‚000-meal contract with the City of Westchester? The variable cost of service is $3.93 during the fiscal year the WHDM should provide 1‚011 meals to reach their
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1. Why are Microsoft‚ Intel‚ and other leading for profit companies interested in low-cost computers for the developing world? In 2005‚ Nicholas Negroponte‚ the founder of MIT’s Media Labs‚ announced the One Laptop per Child (OLPC) program at the World Economic Forum. The concept was simple and appealing. Innovate a $100 laptop and distribute it to children in the developing world’s governments. The vision was for bridging the digital divide between developed and developing nations. The OLPC was
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difference in costs between high and low months is calculated by subtracting the cost lowest month from the highest month. • 26‚000 – 20‚500 = 5‚500 3. Variable cost per meal is calculated by dividing the cost difference by the difference in service volume. • 5‚500 / 1‚400 = 3.93 • $3.93 per meal 4. Total variable cost for the lowest time period is calculated by multiplying the service volume by the variable cost per meal. The same calculation is used to determine the total variable cost for the highest
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1. Why are Microsoft‚ Intel‚ and other leading for profit companies interested in low-cost computers for the developing world? In 2005‚ Nicholas Negroponte‚ the founder of MIT’s Media Labs‚ announced the One Laptop per Child (OLPC) program at the World Economic Forum. The concept was simple and appealing. Innovate a $100 laptop and distribute it to children in the developing world. No one can argue the power of getting kids access to computers/internet‚ and hence‚ access to a virtually limitless
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management concluded the large fixed cost absorbed sale figure. First it is important to understand the standard costing system implemented in Rubber group. Standard costing assigns quantity and price standards to each component of variable and fixed costs in calculating the total cost. In the case of NASA‚ the system uses standard purchasing price (input cost) and standard inputs usage in place for variable costs‚ and standard spending price (input cost) and standard
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