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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Question 1 (5 points) 1. Which of the following may lead to vertical integration? a) Technological interdependencies b) Reduced search and bargaining cost c) The hold-up problem d) All of the above Question 2 (5 points) Effective collusion generally is more difficult when a) the number of oligopolistic firms involved decreases b) the number of oligopolistic firms involved increases c) when customer orders are small‚ frequent‚ and received on a regular basis as compared
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were above marginal cost‚ the firm could increase profits by increasing output‚ while if price were below marginal cost‚ the firm could increase profits by decreasing output. A profit-maximizing competitive firm decides to shut down in the short run when price is less than average variable cost. In the long run‚ a firm will exit a market when price is less than average total cost. * In the long run‚ with free entry and exit‚ the price in the markets equal to both a firm’s marginal cost and its
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I. Identify and classify different types of cost incurred in Foxwood Company with an appropriate cost classification There are many concepts of cost in an organization. Costs also are used in different business applications‚ such as financial accounting‚ cost accounting‚ budgeting‚ capital budgeting‚ and valuation. Consequently‚ there are different ways of categorizing costs according to their relationship to output as well as according to the context in which they are used. Following this summary
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cost for the product. Increasing Revenue Because of the recent decrease in sales‚ TMS should first consider the marginal revenue and cost profit maximizing guide to determine whether there significant profit will produce to validate producing building and forestry equipment. Based on data gathered‚ after completing the analysis it proves that the marginal revenue exceed the marginal cost proving that no more would be added to cost than to revenue. If profits are maximized‚ prices need to be in excess
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NAME – Hassan Usman Zia SUBJECT – Introduction to Economics COURSE CODE - PEC.2013 SUBJECT LECTURER – Ms Naathiya Mohan INSTITUTE – Institute Technology Pertama QUESTION – 1 (A) In the current situation we are planning a 250-km trip to Thailand but you are indifferent whether we should take a bus or drive. When you are informed about the typical cost of travelling a 10‚000 km driving by Hertz that are as follows: Insurance – RM 1000 Interest – RM 2000 Fuel and Oil
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University of XXXBUS 500B Fall 2014 Homework 2.2 Due Date: Sunday 09/28 Instructor: KittiTrade 1. Nation A’s production in 1 day Nation B’s production in 1 day Computers 100 Software 140 Computers 120 Software 150 Two nations can produce computers and software in the amounts given in the table above. Using the same amount of resources to produce two goods. Draw PPF curve and explain the reason of each question. a. Does either nation have an absolute advantage in producing
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We already know that following are the important cost concepts related to the production process of a firm: • Fixed Cost • Varibale Cost • Average Cost • Marginal Cost please refer to following page Introduction to Cost Concepts to understand various cost concepts in detail. Here we will briefly state again the meaning of above stated cost concepts for better understanding of the module on short run cost analysis. Fixed Cost is that cost which does not change (that is either goes up or
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Capital (K) Labor (L) Total Product (TP) Average Product (AP) Marginal Product (MP) 10 10 10 10 10 10 10 10 10 10 10 0 1 2 3 4 5 6 7 8 9 10 0 5 15 30 50 75 85 90 92 92 90 - - a. From the information in the table‚ calculate marginal and average products. b. Graph the three functions (put total product on one graph and marginal and average products on another). c. For what range of output does this function have diminishing marginal returns? d. At what output is average product maximized? Technical
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In a perfectly competitive market‚ firms are unable to differentiate their product from that of other producers. TRUE Profits for all market structures are maximized when the MR (marginal revenue) is equal to the MC (marginal cost). TRUE For a firm in a perfectly competitive market‚ price is always equal to marginal revenue. TRUE A monopolistically competitive market is characterized by barriers to entry. FALSE Cartels normally engage in direct price competition. FALSE Multiple Choice: Choose
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