Advantages of marginal costing (Relative to the absorption costing) Preparation of routine operating statements using absorption costing is considered less informative for the following reasons: 1. Profit per unit is a misleading figure: in the example above the operating margin of Rs2 per unit arises because fixed overhead per unit is based on output of 5‚000 units. If another basis were used margin per unit would differ even though fixed overhead was the same amount in total 2. Build-up or run
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By Erik Reyes 12/18/2011 Pursuing and Compromising Happiness in The Truman Show Individuals do irrational and rational things all the time. Every day‚ we make decisions that are actually quite two sided. The item or goal you pursue has a value that is irrelevant. The evident fact is that you can pursue something realistically or unrealistically. “The Truman Show” by Peter Weir displays various examples of how individuals
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Derivatives & Risk Management Tutorial 6 Reference Material Lecture 8 (class notes and lecture slides) Tutorial Questions Question 1 A stock is currently priced at $20. In any given 4-month period‚ stock price will either go up by 18.91% or down by 15.9%.1 The riskless rate of interest is 4% per annum continuously compounded. A European-style call option is written on this stock with a $12 strike price and 8 months to expiry. a) b) c) d) Use the delta-hedging approach to price this call option. Use the
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a put option on the S&P 100 with a strike price of 700 can be used to provide portfolio insurance. 2. “Once we know how to value options on a stock paying a dividend yield‚ we know how to value options on stock indices and currencies.” Explain this statement. 3. Explain how corporations can use range-forward contracts to hedge their foreign exchange risk. 4. Calculate the value of a three-month at-the-money European call option on a stock index when the index is at 250‚ the risk-free interest
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SHARE OPTIONS IN THE STOCKMARKET The principal business of stock exchanges is trade in physical shares‚ but they also trade in share options in the major stocks. An option gives the holder the right to buy or sell a share at a predetermined price at some point in the future – for example‚ the right to buy shares in three months’ time at a price set today. An option which gives the buyer the right to buy a share is a “call” option. An option which gives the buyer the right to sell a share is a
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Summary of 5 different Seminar: Risk management is the process of dealing with the risk‚ as it is an obstacle in achieving the goals and objectives of an organization‚ by risk management these obstacles are controlled and removed. In the seminar of Lancashire Combined Fire Authority‚ it is discussed that a risk management policy is formulated in order to safeguard the achievements of operational and strategic objectives‚ with the help of effective risk controlling. The policies prepare to ensure
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As a graduate student‚ I have a wide variety of goals that I would like to achieve. Achieving my educational goals has helped me to further my career and make a better life for my family and myself. I am a first-generation college student in my family to have earned a master’s degree. I received a North Carolina Professional Educator’s License for Birth to Kindergarten‚ Standard Professional II in 2017. My goal is to become an instructor at a college. I am a motivated‚ enthusiastic educator with
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My decision to pursue medicine has not arisen from an epiphany or childhood dream‚ but is one I have come to after careful consideration. My interest stems from the science behind the biological processes in human bodies and I have relished the chance to explore them further in my AS Levels‚ from carcinogenic free radicals in Chemistry‚ to the impact of diet on cardiovascular disease in Biology. I have also striven to develop my understanding beyond the curriculum‚ such as by reading articles in
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Green color are doubted one… Question # 1 of 15 ( Start time: 01:24:42 PM ) Total Marks: 1 A person with a diminishing marginal utility of income: Select correct option: Will be risk averse. Will be risk neutral. Will be risk loving. Cannot decide without more information. We know that the demand for a product is elastic if: Select correct option: When price rises‚ revenue rises. When price rises‚ revenue falls. When price rises‚ quantity demanded rises. When price falls‚ quantity demanded rises The demand
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How to Develop a Risk Register Adapted‚ from PM 007 Project Risk Register‚ Template & Guide‚ Department of Premier and Cabinet‚ Tasmania and AS/NZS 4360 Risk Management. What is a Risk Register? The Risk Register records details of all the risks identified for the University‚ a budget centre or project. Risks associated with activities and strategies and are identified then graded in terms of likelihood of occurring and seriousness of impact. Risk registers may identify:
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