Barriers to entry: In theories of competition in economics‚ barriers to entry are the obstacles and hindrances that make it difficult for a company to enter a given market or industry. The most common barriers to entry include government regulation and economies of scale‚ but nowadays it is increasing for entry barriers to be viewed as a cost. Stigler defined barriers to entry as “A cost of producing which must be borne by a firm which seeks to enter an industry but is not borne by firms already
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COST CLASSIFICATION ASSIGNMENT To classify the various costs would first of all require a definition between the two types of accounting that practically all businesses have to face and a number of key terms which are equally important. These are management accounting and financial accounting. 1. THE DIFFERENCE BETWEEN MANAGEMENT & FINANCIAL ACCOUNTING: Management accounting is concerned with decision making‚ cost apportionment‚ planning and control. It is based within the organisation and is
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by quantity produced‚ AVC = VC/Q. * “As more and more of a variable input is added (i.e.‚ labor) to an existing fixed input‚ eventually the additional output one gets from that additional input is going to fall.” * If marginal productivity is rising‚ marginal costs are
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Operating cash flow‚ Terminal cash inflow = Salvage value of fixed asset‚ recovery of Net working capital Numerical Prakash Steel – Refer to Excel Finished Goods costing – 1. Absorption costing 2. Marginal costing Most companies use absorption costing and tax norms also say so. In DCF‚ marginal costing should be used. Employee cost is a fixed cost. Receivables on sales not COGS. If excise duty -> sales(1-e) = Net Sales. But in Working capital calculation‚ excise should be considered‚ since
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Chapter 14 Working Capital and Current Assets Management Solutions to Problems P14-1. LG 2: Cash Conversion Cycle Basic = Average age of inventories + Average collection period = 90 days + 60 days = 150 days (a) Operating cycle (OC) (b) Cash Conversion Cycle (CCC) = Operating cycle − Average payment period = 150 days − 30 days = 120 days = (total annual outlays ÷ 365 days) × CCC = [$30‚000‚000 ÷ 365] × 120 = $9‚863‚013.70 (d) Shortening either the average age of inventory or the average collection
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Chapter 10 (Tentative Due Date: by November 1) Question 2: Discuss the major barriers to entry into an industry. Explain how each barrier can foster either monopoly or oligopoly. Which barriers‚ if any‚ do you feel give rise to monopoly that is socially justifiable? LO1 The major barriers to entry in an industry are economies of scale‚ legal barriers such as patents & licenses and other strategic or pricing barriers. Economies of scale occur only in large firms who are able to reach a minimum
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revenue by $1012.50 ($6.75*150)‚ whereas the increase to costs will only be $600 ($4.00*150). To maximize profits‚ a perfectly competitive firm with excess capacity produces the output at which price equals marginal cost. In this case‚ the price of $6.75 is still greater than their marginal cost at $4.00. The dry cleaning service would be better off taking
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Raggs‚ Ltd.‚ a clothing firm‚ determines that the marginal profit and marginal cost are given by ‚ . Find the total revenue if R(0) = 3000. 1‚ The distance profit is given by the definiteinte gral of (P’(x)) Px=P’x=150-0.5xdx =150x-0.25x2+CThe distance cost is given by the definiteinte gral of (C’(x)) Cx=C’x=4000+0.25x2dx =4000x-112x3+CWe have the total revenue is R(x) = P(x) + C(x) Cx=150x-0.25x2+C+4000x+112x3+C =112x3-0
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various sites definitely poses some problems for scholars in trying to place it in the context of the time-line of that city; yet these scholars have the knowledge of the end result of our modern-day societies. Archaeologists and classics scholars know historical trends of human socialization and urbanization for hundreds of years in societies unrelated to ancient ones. Despite all of these advantages‚ however‚ it is hard to place exact definable events on the timeline of an ancient society because
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65 REDISCOVERING THE PRINCIPLES OF ECO-CITY AS SPATIAL ATTRIBUTES IN TRADITIONAL HOUSING SETTLEMENT: THE CASE OF URFA IN SOUTHEASTERN ANATOLIA Cemal Inceruh and Oktan Nalbantoglu Urban spaces are generally defined and created by physical and non-physical entities. Among these entities buildings play important role in defing urban spaces. These open spaces come into being as a part of building (a private courtyard)‚ as spaces between buildings for semi-public activities in culde-sac (as extensions
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