PRINCIPLES OF COST CONTROL 1.1 Introduction Cost is important to all industry. Costs can be divided into two general classes; absolute costs and relative costs. Absolute cost measures the loss in value of assets. Relative cost involves a comparison between the chosen course of action and the course of action that was rejected. This cost of the alternative action - the action not taken - is often called the "opportunity cost". The accountant is primarily concerned with the absolute cost. However‚
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Capital Purchase Justification Introduction According to the hospital’s five-year plan‚ an investment in capital equipment should boost the quality of services offered at the hospital. Many options of capital investments that hospital could invest in exist. However‚ this report recommends an investment in the MRI (Magnetic Resonance Imaging) equipment. This equipment involves a large capital investment upfront‚ but it can be profitable in the end. The hospital has considered factors such as the cost
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------------------------------------------------- ASSIGNMENT ON COST CONTROL AND COST REDUCTION ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- -------------------------------------------------
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INTERNATIONAL B-SCHOOL SUBJECT: FINANCIAL & COST ACCOUNTING Total Marks: 80 N.B.: 1)Allquestionsarecompulsory 2) All questions carry equal marks. Q1) ABC Ltd. Produces room coolers. The company is considering whether it should continue to manufacture air circulating fans itself or purchase them from outside. Its annual requirement is 25000 units. An outsider vendor is prepared to supply fans for Rs 285 each. In addition‚ ABC Ltd will have to incur costs of Rs 1.50 per unit for freight and Rs 10‚000
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Regina Company Inc. Common Size Income Statement Year 1988 1988 1987 1987 1986 19862 Net Sales $181‚123 100% $128‚234 100% $76‚144 100% Cost of Goods Sold $94‚934 52.41% $70‚756 55.18% $46‚213 60.69% Selling Distribution and Administrative $21‚870 12.07% $14‚621 11.40% $10‚366 13.61% Advertising $39‚992 22.08% $26‚449 20.63% $8‚557 11.24% R&D $2‚423 1.34% $1‚530 1.19% $1‚182 1.55% Total Operating Cost & Expenses
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Capital Structure In finance‚ the term “capital structure” refers to the way a firm finances its assets. Generally speaking‚ there are two main forms of capital structure: debt financing and equity financing (Cumming 52; Myers‚ 83). Each type has its own advantages and disadvantages‚ and an essential task for the successful manager of a firm is to find an optimal capital structure in terms of risk and reward for stockholders. When making decisions that affect capital structure‚ managers must be
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EconomicThis document has been made available on www.actuaries.org.uk with the permission of the Society of Actuaries‚ Schaumburg‚ Illinois. Copyright 2008. Specialty Guide on Economic Capital Version 1.5 March 2004 Specialty Guide on Economic Capital Section I. II. Page FOREWORD...................................................................................................................1 INTRODUCTION AND OVERVIEW .........................................................
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Homework #7 “Capital Punishment” Due by Friday February 28th 11:55pm Economically speaking in my opinion it does make more sense for someone to spend life in prison as opposed to the death penalty. An article form California’s Mountain News states‚ “According to statistics provided by the office of California ’s nonpartisan Legislative Analyst‚ the current annual cost for maintaining an inmate in a state prison is $47‚102. The Department of Corrections and Rehabilitation‚ however‚ places the
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Subject: Financial Management Chapter no. 11: Capital Budgeting Chapter No. 11 – Capital Budgeting Contents ♦ Capital budgets as opposed to revenue budgets ♦ Different kinds of capital budgets – non-productive assets‚ improving operating efficiency and capital projects ♦ Choosing capital projects – Conventional and Discounted Cash Flow techniques ♦ Payback period‚ Discounted payback period‚ Net Present Value‚ Internal Rate of Return‚ Profitability Index methods ♦ Assumptions underlying different
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SHARE CAPITAL Share capital is the Funds raised by issuing shares in return for cash or other considerations. The amount of share capital a company has can change over time because each time a business sells new shares to the public in exchange for cash‚ the amount of share capital will increase. Share capital can be composed of both common and preferred shares. Each share carrying a vote in the management of the business‚ managerial control may be limited. The authorized capital of a company is
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