Construction assembles residential houses. It uses a job-costing system with two direct-cost categories (direct materials and direct labor) and one indirect-cost pool (assembly support). Direct labor-hours is the allocation base for assembly support costs. In December 2010‚ Amesbury budgets 2011 assembly-support costs to be $8‚300‚000 and 2011 direct labor-hours to be 166‚000. At the end of 2011‚ Amesbury is comparing the costs of several jobs that were started and completed in 2011. Laguna Model
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to maximize profits‚ marginal revenue must equal marginal cost. The statement is true if it were specifically being applied to long-run equilibrium under perfect competition. If it is not being applied to that specific instance then the statement is false as profit maximization takes place when marginal revenue equals marginal cost. 2. The Miami plant should continue to operate because it only loses $60‚000 per month compared to possibility of losing $68‚000 (its fixed costs) per month. By continuing
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charging different consumers different prices and the price difference is not based upon cost differences. Question 2 4 out of 4 points To maximize profit a price discriminating firm should Selected Answer: d. both a and c Question 3 0 out of 4 points If a firm is selling a product in two markets‚ A and B‚ and the marginal revenue in A is $25 and the marginal revenue in B is $20‚ the firm should Selected Answer: a. charge a higher price
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3/30/13 Cost Es+ma+ng and Control Prof. Omar El-‐Anwar Lecture #7: Cost Control Announcement • If you did not pass in a prerequisite: – Fill a waiver form – We are s+ll discussing the outcome with Derasat 3olya! • HCSS – The password is working fine …! 25-‐Sep-‐12 2 1
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Cost of Raising a Child Have you ever sat down and thought about how much a child costs to raise? If not‚ just think about it for a minute‚ how much it would cost to raise a baby from birth to after high school. For you it’s probably incredibly hard to even try thinking about; not even knowing where to start. Well here it is‚ depending on your income‚ it is going to take an average of $325‚000 to raise a child. (Give or take around $100‚000). When taking in consideration how much it costs to
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business control systems are: Capital Cost this is physical items and property. It is includes anything with life of three years and over. For example this can be lands/buildings‚ Vehicles‚ computers and other equipments. Revenue Costs this covers the costs of day-to day running the business. For example‚ fuels and maintenance of vehicles and equipments. it could also include salaries‚ advertising and promotion materials‚ and insurance. Indirect Cost this is the cost that directly invested or attributed
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high levels of metropolitan car pollution‚ lots of open space amenities‚ and un-equal provision of public goods and services. Along with the disadvantages‚ there are also a few advantages. The advantages of urban sprawls are the lower transportation costs and self-sorting of the population. The article also talks about the people living in the inner-city‚ suburbs‚ and urban sprawls. They say that there are lots of problems with crime and other activities in the inner-city which results in high income
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thoroughly planned out. Living on your own and being independent involves two very important expenses: Start up and recurring expenses. Start up expenses are the costs associated solely with the implantation of a plan‚ project‚ or business. In our case it would be for a plan. Start up costs
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The budgeted profit statement for this month‚ which has been prepared using marginal costing principles‚ is as follows (a) Prepare in full a budgeted profit statement for this month using absorption costing principles. Assume that fixed production overhead costs are absorbed using the normal level of activity. (b) Prepare a statement that reconciles the net profit calculated in (a) with the net profit using marginal costing. RM(‘000)
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offered a pay raise but will need to relocate in order to accept it this is a compromising decision that is not easy to resolve. I will be explaining the principles of individual decision making‚ provide an example and compare and explain the marginal benefits and cost associated with the decision. I will also explain the decision that led me to make a different decision. Principles of Decision Making As individuals we are faced with making decisions that we sometimes have to compromise in difficult
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