accounting profits and economic profits for Gomez’s pottery. Explicit costs: $37‚000 (= $12‚000 for the helper + $5‚000 of rent + $20‚000 of materials). Implicit costs: $22‚000 (= $4‚000 of forgone interest + $15‚000 of forgone salary + $3‚000 of entreprenuership). Accounting profit = $35‚000 (= $72‚000 of revenue - $37‚000 of explicit costs); Economic profit = $13‚000 (= $72‚000 - $37‚000 of explicit costs - $22‚000 of implicit costs). 8-4 (Key Question) Complete the following table by calculating
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Federal Taxation Week 7 homework Property Transactions Question 10-1 Distinguish between realized gains and losses and recognized gains and losses. You will always have a loss or a gain due to an exchange transaction. Once the transaction is completed the corresponding amount will be recorded on your income statement. Recognition exists only in the context of tax laws‚ in some cases the exchange transaction will be excluded under IRC Section 1031. Problem 10-47 On April 18‚ 2010‚ Jane
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the trade-off between efficiency and effectiveness. Creating value means striking the most appropriate balance between efficiency and effectiveness for the market need the product will satisfy. Efficiency means doing something at the lowest possible cost. It is optimizing the use of all your resources to deliver the goods or service at the best way possible. Efficiency will dictate whether or not as an operation you will be able to deliver consistently at the profit margin and deal with the fluctuations
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that maximizes the profit contribution over the strategic planning period subject to (a) the availability of company resources (b) risk (c) non-profit objectives. 9-6 Transaction cost approach Opportunistic behaviour of export intermediary VS Opportunistic behaviour of producer Issues such as: stock size‚ service‚ marketing costs‚ price‚ commission etc. 9-7 9-8 Export intermediary responses to opportunistic behaviour of producer Establish personal relations with producer’s key employees
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[1][2] It is a further development of the theory of internalization and published by John H. Dunning in 1980.[3] The theory of internalization itself is based on the transaction cost theory.[3] This theory says that transactions are made within an institution if the transaction costs on the free market are higher than the internal costs. This process is called internalization.[3] For Dunning‚ not only the structure of organization is important.[3] He added 3 more factors to the theory:[3] Ownership
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entry modes: Company Objectives Need for Control Internal Resources‚ Assets and Capabilities Flexibility Mode of Entry Choice: A Transaction Cost Explanation Regarding entry modes‚ companies normally face a tradeoff between the benefits of increased control and the costs of resource commitment and risk. Transaction Cost Analysis (TCA) perspective Transaction-Specific Assets (assets valuable for a very narrow range of applications) 3. Exporting Indirect Exporting Export merchants Export
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both rely endogenously on the board of director as a control instrument. Even though AT and TCE both share these similarities‚ they analyze them from different perspectives. The unit of analysis in AT is individual level‚ while it is transaction in TCE. The focal cost of AT is the residual loss that causes from bounded rationality‚ opportunism‚ and moral hazard‚ while it is maladaptation of governance structure in TCE. Furthermore‚ the focal contractual concern of AT is ex ante‚ while it is ex post
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transportation marketplaces: a transaction cost perspective Thomas J. Goldsbya‚*‚ James A. Eckertb‚1 a Fisher College of Business‚ The Ohio State University‚ 554 Fisher Hall‚ 2100 Neil Avenue‚ Columbus‚ OH 43210‚ USA b Haworth College of Business‚ Western Michigan University‚ Kalamazoo‚ MI‚ USA Abstract Electronic transportation marketplaces (ETMs) are Internet-based mechanisms that match buyers and sellers of transportation services. With claims of reducing the administrative costs of transportation procurement
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and Hierarchies: The Transaction Cost Asanuma‚ Banri. 1989. "Manufacturer-Supplier Relationships in Japan and the Concept of Relationship-Specific Skills." Journal of Japanese Asanuma‚ Banri. 1992. "Manufacturer-Supplier Relationships in International Perspective: The Automobile Case‚" in InternationalAdjust? Aumann‚ Robert J. 1985. "What is Game The? ory Trying to Accomplish?" in FrontiersofEconom? Bajari‚ Patrick and Steven Tadelis. 2001. "In? centives Versus Transaction Costs: A Theory of Barnard
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Costs of Production July 2011 Topics to be Discussed Measuring Cost: Which Costs Matter? How do Cost Curves Behave? – Cost in the Short Run – Cost in the Long Run How to Minimize Cost? How to draw Implications for Business Strategy? Topics to be Discussed Production with Two Outputs: Economies of Scope Dynamic Changes in Costs: The Learning Curve Estimating and Predicting Cost Measuring Cost: Which Costs Matter? Accountants tend to take a retrospective view of firms’ costs‚ whereas
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