„Microeconomics” How entrepreneurs optimize costs of production. Unfortunately‚ the economy hasn’t improved in last few recession years. It is so difficult to live thru these hard times when the recession is overtaking whole worlds businesses. Companies now need to aggressively cut their costs. It’s a survival issue. It is not easy to compete in the market today. Rising prices‚ shifting fuel rates‚ global competition and varying labor rates around the world have made cost control very important
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1. The chief economist for Argus Corporation‚ a large appliance manufacturer‚ estimated the firm’s short-run cost function for vacuum cleaners using an average variable cost function of the form. AVC= a + bQ+ cQ^2 (the 2 is suppose to be exponent) Where AVC=dollars per vacuum cleaner and Q=number of vacuum cleaners produced each month. Total fixed cost each month is $180‚000. The following results were obtained: Dependent Variable:AVC R-Square
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Fashion Fights Recession 1. Using the five forces framework‚ how would you characterize the competition in the luxury goods industry? Threat of Substitutes There is relatively no threat of substitution in the luxury goods industry. This is mainly because of the quality and price of substitutes‚ and the cost of switching to the consumer. The price of counterfeit goods that copy the luxury goods causes there to be a positive monetary cost in switching but there is a loss of prestige as luxury goods
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Estimating the Cost of Capital: Survey and Synthesis Case 13 Teaching Notes Introduction “Each year in the US‚ corporations undertake more than $500 billion in capital spending” (Bruner 184). This case presents a reasonably analyzed set of teaching notes describing how these financially sophisticated corporations estimate their capital costs. Understanding the estimation of capital costs helps identify the uncertainty of the cost-of-capital theory‚ sets a benchmark for cost-of-capital‚ helps
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Case Study # 3: Carter Cleaning‚ pp. 222-223 2 Abstract The format and form in which a job description should appear varies in semblance. There is no set format in which a job description should appear‚ however with technology ever increasing and the many changes in the way an organization completes a job analysis‚ long gone are the days of compiling a list of duties for positions that are forever changing. It is within the job specifications where an organization can show what human traits
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References: on organizational performance measurement include Richard L. Lynch and Kelvin F. Cross‚ Measure Up! How to Measure Corporate Performance (Cambridge‚ Mass.: Blackwell Business‚ 1995); Robert S. Kaplan and David P. Norton‚ The Balanced Scorecard: Translating Strategy into Action (Cambridge‚ Mass.: Harvard Business School Press‚ 1996); and Andy Neely‚ Business
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May 22‚ 1995‚ in the U.S. Term Limits‚ Inc. v. Thornton case the Supreme Court ruled that states cannot impose qualifications on future members of Congress stricter than what is stated in the Constitution. The case was brought to the Supreme Court when the state of Arkansas put an amendment into their state constitution that limited the number of terms any Federal Congressional and Senate candidate from Arkansas could serve. The Supreme Court ruled that “state-imposed term limits were an imperfect
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The Case Study Aquarius Advertising Agency Adapted from a case in Daft‚ J. (2004) Organizational Theory. Thompson/ South Western Press‚ p. 126) The Aquarius Advertising Agency is a middle-sized firm that offers two basic services to its clients: 1) customised plans for the content of advertising campaigns (e.g. slogans and layouts)‚ 2) Complete plans for media (such as radio‚ TV newspapers‚ billboards‚ and magazines). Its activities are current organised in a traditional way. The organisational
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Quality Cost 1 Quality is defined from the customer´s point of view l Performance l Performance or the primary operating characteristics of a product or service. Example: For a car‚ it is speed‚ handling‚ and acceleration. For a restaurant‚ it is good food. l Features l Features or the secondary characteristics of a product or service. Example: For a TV‚ it is an automatic tuner. For a restaurant‚ it is linen table cloths and napkins . l Reliability l Reliability
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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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