Question 1: (a) Suppose the income elasticity of demand for pre-recorded music compact disks is +5 and the income elasticity of demand for a cabinet maker’s work is +0.5. Compare the impact on pre-recorded music compact disks and the cabinet maker’s work of a recession that reduces consumer incomes by 10 per cent. (2 marks) (b) How might you determine whether the pre-recorded music compact discs and MP3 music players are in competition with each other? (2 marks) (c) Interpret the
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management statement not to exceed 100 words. 13-5. (Flotation costs and issue size) D. Butler Inc. needs to raise $14 million. Assuming that the market price of the firm’s stock is $95‚ and flotation costs are 10 percent of the market price‚ how many shares would have to be issued? What is the dollar size of the issue? Market price of the firms stock $95 Flotation cost 10 percent of market price Stock price is $95‚ so the flotation Costs are $9.50 (10% x $95) the firm receives $95 - 9.50 = $85
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CONFIDENTIAL AC/OCT 2010/ACC116/165/211 UNIVERSITI TEKNOLOGI MARA FINAL EXAMINATION COURSE COURSE CODE EXAMINATION TIME INTRODUCTION TO COST ACCOUNTING / COST ACCOUNTING ACC116/165/211 OCTOBER 2010 3 HOURS INSTRUCTIONS TO CANDIDATES 1. 2. 3. This question paper consists of five (5) questions. Answer ALL questions in the Answer Booklet. Start each answer on a new page. Do not bring any material into the examination room unless permission is given by the invigilator. Please check to
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the answer to the question is. A ball and bat cost $1.10. The bat costs $1 more than the ball. How much does the ball cost? If you’re like most people‚ your immediate answer was‚ "Ten cents." And you’d be wrong. Check it out. The bat costs $1 more than the ball. So if the ball costs ten cents‚ then the bat costs $1.10‚ and the total cost would be $1.20. That’s too much. We could try something lower. How about seven cents? Then the bat would cost $1.07‚ and the total would be $1.14. Closer
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THE COST AND SALES CONCEPT Cost is defined as a reduction in the value of an asset for the purpose of securing benefit or gain. Cost is defined in a hotel and restaurant as the expense to a hotel or restaurant for goods or services when the goods are consumed or the services are rendered. KINDS OF COSTS 1. Fixed costs – are those that are normally unaffected by changes in sales volume. They are said to have little direct relationship to the business volume because they do not change
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The Cost of College THE PROBLEM: The cost to attend college is high‚ and has been rising for many years. The cost of college is too high‚ a lot of people can’t afford it‚ and unemployment rates are sky high. Why is the cost of college so much? The best answer would be our economy. Our economy has a great effect on the rising prices of everything‚ including college tuition. Another factor influencing the price of college is the demand for a higher education‚ for a well-paying job is more than ever
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Part A 1. What is a data structure? Data structure is a mechanism for storing data and organizing it in some way. The data structures you use in Alice are list and arrays. 2. Which automatically grows in size as you add items to it‚ lists or arrays? The list automatically expands as items are added to it. 3. When you drag a list tile and drop it on top of a placeholder in an instruction‚ a menu will appear. What will be on the menu? A menu appears showing a list of the methods that
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Cost leadership Strategy Strategy used by businesses to create a low cost of operation within their niche. The use of this strategy is primarily to gain an advantage over competitors by reducing operation costs below that of others in the same industry. For example‚ The Swedish furniture retailer Ikea revolutionized the furniture industry by offering cheap but stylish furniture. Ikea is able to keep its prices low by sourcing its products in low-wage countries and by offering a very basic level
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Organization structure is defined as the way that an organization arranges its employees and management so that efficient work can be performed and it can meet its targeted goals.2 When an organization is small‚ a sole proprietorship or partnership where face-to-face communication is frequent‚ formal structure may not be necessary. In a larger organization such as a corporation or limited liability company‚ a more defined structure must be utilized‚ as decisions have to be made about the delegation
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Factors Defining Organization Structure Structure is mainly impacted by the following factors: Strategy Size Technology / Degree if routineness Environment Structure Follows Strategy - 1987 John Scully moved Apple from an adhoc‚ isolated research team system under Steve Jobs to a consolidated research and innovation team system that involved marketing and manufacturing early in the product development process. This was done to meet the fierce competition from IBM. The revised strategies – avoid
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