Cost allocation for indirect costs Cost Pool – Set of costs that are added together before being allocated to cost objects on some common basis Cost Driver/ Allocation base Cost Object Cost Driver Rate = Total Costs in Pool/ Total Quantity of Driver Where total quantity of driver = practical capacity of driver Cost of excess capacity = Cost Driver Rate * Excess capacity Predetermined overhead rate - cost per unit of the allocation base used to charge overhead to products. Predetermined
Premium Costs Cost driver Cost
Agency Costs of Free Cash Flow‚ Corporate Finance‚ and Takeovers Michael C. Jensen Harvard Business School MJensen@hbs.edu Abstract The interests and incentives of managers and shareholders conflict over such issues as the optimal size of the firm and the payment of cash to shareholders. These conflicts are especially severe in firms with large free cash flows—more cash than profitable investment opportunities. The theory developed here explains 1) the benefits of debt in reducing agency
Premium Corporate finance
A simple internet search for the meaning of EO or Equal Opportunity as it pertains to the army will show a great definition. Such as "The Equal Opportunity (EO) program formulates‚ directs‚ and sustains a comprehensive effort to maximize human potential and to ensure fair treatment for all persons based solely on merit‚ fitness‚ and capability in support of readiness. Equal Opportunity philosophy based on fairness‚ justice‚ and equity." (Army Regulation 600-20‚ Date 6 November 2014 Army Command
Premium Discrimination Equal Employment Opportunity Commission Affirmative action
Economic Opportunities in India 1 Economic Opportunities in the Country of India Sean P. Horton International Business 260 Mr. Russell March 22‚ 2009 Economic Opportunities in India 2 Abstract While researching the economic opportunities in the country of India‚ we can see trends‚ such as that of calls being outsourced to India‚ signifying a vision of globalization‚ increased competition and market share. India is poised to become and remain a global competitor in
Premium India Economics Mumbai
Sector briefing Pharmaceutical Opportunities in Bangladesh. WHY BANGLADESH? Pharmaceutical is one of the highest priority sectors in Bangladesh. With an annual twodigit growth rate the Bangladesh pharmaceutical industry is now heading towards self – sufficiency in meeting local demand. With over US$250 million investments in the pharmaceutical industry of Bangladesh the sector has emerged as the country’s most developed hi-tech one that contributes significantly to the national economy
Premium Pharmacology International trade Pharmaceutical industry
What are the strengths and weaknesses of the rational choice approach to understanding the political? Whilst people all around the world debate over which political system is the most effective‚ social scientists are still in debate over which is the best way to analyse politics. Without the correct analysis of political objects how is one supposed to decide which political system or party is the most effective? It is for this reason that the way in which we analyse political objects is
Premium Rational choice theory Politics Economics
make long-term investments in new product lines‚ new equipment and other assets‚ managers must know the cost of obtaining funds to acquire these assets. The cost associated with different sources of funds is called the cost of capital. . If the business earns more than its cost of capital‚ the market value of the business will increase. Likewise‚ if returns on long-term investments are below the cost of capital‚ market values will decline. Therefore‚ how we manage capital is extremely important to fulfilling
Premium Interest Capital structure Pharmaceutical industry
"Controllable costs are costs which can be influenced by the action of a specified member of an organization. For example‚ the foreman of a production department can control the utilization of power or raw materials in his department and these are‚ therefore‚ controllable costs as far as he is concerned. Uncontrollable costs are costs which cannot be influenced by the action of a specified member of an undertaking. For example‚ the foreman of a production department can control the wastage of
Premium Costs Cost
By reading books‚ people can learn how to get through problems in their own lives by relating to characters. Readers can see what characters did to get out of bad situations‚ and what they learned from them. In Uglies by Scott Westerfield the reader grasps that what someone looks like on the outside doesn’t matter‚ and it is what is on the inside that counts. The Fault In Our Stars and Looking For Alaska by John Green both deal with death at a young age and losing loved ones. Love is a serious topic
Premium Love Romance John Green
Economic Forces Economic factors are an important aspects that concern the nature and direction of the economy in which a firm operates. Since the relative affluence of various market segments will affect the consumption patterns‚ companies must take this into consideration when planning its strategy. In periods of normal price variation‚ the demand for coffee is price inelastic. However‚ when coffee prices show big increases‚ consumers tend to reduce their consumption commensurately. The
Premium Central Intelligence Agency Inflation Coffee