4. Sunk Costs : are the costs that are not altered by a change in quantity and cannot be recovered; e.g.‚ depreciation. Sunk costs are a part of the outlay costs. However‚ most business decisions require cost estimates that are essentially incremental and not sunk in nature. 5. Explicit (or‚ Paid-out) Costs: Explicit costs are those expenses‚ which are actually paid by the firm (paid-out costs). These costs appear in the accounting records of the firm. 6. Implicit (or‚ Imputed) Costs
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approach can satisfy all the condition on the whole organization change; however‚ it should be something useful for the contemporary organizations. There are four types of change are defined by Dunphy and Stace (1993): type1: F ine-tuning; type2: Incremental-Adjustment; type3: Modular-transformation; type4: Corporate-transformation. F ine-tuning changes are characterized by small changes to an organization ’s strategy‚ structure‚ people‚ or processes‚ Dunphy and Stace suggest(1993) that these changes
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22 3.Forecast A: Unit Volume Oz.Contribution Contribution Dollars 5.5 oz Tube 8600000 × 0.35 = $ 3‚010‚000 5.5 oz. Aerosol: Cannibalized Volume 2145174 × 0.34 = $ 729‚359 Incremental Volume 300000 × 0.34 = $ 102‚000 Total 11045174 $ 3‚841‚359 Less: Forecasted Volume (10745174) × 0.35 = $ (3‚760‚811) Total 300000 $ 80‚548 Forecast B:
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capital expenditure since the outlay of funds is expected to produce benefits over a period of time greater than 1 year. E11-2. Classification of project costs and cash flows Answer: $3.5 billion already spent—sunk cost (irrelevant) $350 million incremental cash outflow—relevant cash flow $15 million per year cash inflow—relevant cash flow $450 million for satellites—opportunity cost and relevant cash flow E11-3. Finding the initial investment Answer: $20‚000 Purchase price of new machinery $3‚000
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Dr. Carol Dweck researches environmental factors and how we view our intelligence. Her theory proposes we take either an entity view or an incremental view of ourselves (Niehart‚ Reis‚ Robinson & Moon‚ 2002). People with an entity view see their intelligence as fixed. Intelligence does not change. Entity view individuals want to appear smart and want learning to seem effortless. When working in a classroom‚ these students will not take risks unless they are sure the end will result in success. These
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Master of Business Administration- Semester 2 MB0045-FINANCIAL MANAGEMENT (4 credits) (Book ID: B1628) ASSIGNMENT- Set 1 ___________________________________________________________________ Q1. What are the goals of financial management? Ans. Goal of financial management Financial management means maximization of economic welfare of its shareholders. Maximization of economic welfare means maximization of wealth of its shareholder’s wealth maximizations reflected in the market value of the firm’s
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+ 180Q = 0 Q Q -5Q² + 180 = 0 -5Q² = -180 √Q² =√36 Q = 6 units d. P = MC 70 = 10Q +10 60 = 10Q Q = 6 Profits = TR –TC Profits = 70(6) – (5x6² + 10x6 +180) = 0 Normal profits‚ because the profits equals 0. P 8-3 Incremental Cost. South Park Software‚ Inc. produces innovative interior decorating software that it sells to design studios‚ home furnishing stores‚ and so on. The yearly volume of output is 15‚000 units. Selling price and costs per unit are as follows:
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relevant? Market Segmentation Product Positioning 3. A Strategic Assessment of the Decision 4. What would you recommend?!?! BB 5 Analysis of the Hi-Valu Proposal 1. Incremental Contribution Revenue Less Variable Costs Material Labor Variable Overhead (40% of $24.50) Per Unit $92.29 $39.80 $19.60 $9.80 $69.20 $23.09 Total Incremental Contribution (25‚000 units @ $23.09) = $580‚000 2. One-time Design Costs $5‚000; too small; ignore it! QUESTION: Can we ignore a share of “fixed” manufacturing and
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a. Traditional Budgeting Wildavsky (1978‚ p.502) mentions that "traditional budgeting is annual (repeated yearly) and incremental (departing marginally from the year before)". It is conducted on a cash basis in current dollar. It is also in the form of line-items such as personnel or maintenance. This system is essentially a financial plan of estimated expenditures expressed in terms of kinds and quantities of objects to be bought and the estimated funds needed to finance them during a specified
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1.0 Introduction of Information Technology As we know that‚ information technology is an apprehensive with technology treat by information. In actuality‚ we use information technology to refer a complete industry. Besides that‚ information technology is used of computers or software to arrange information. In some companies‚ they call as Management Information Services. Furthermore‚ some advanced information technology department companies will be respond more strong information‚ protecting information
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