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
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understanding about cost accounting. This paper will discuss: Why is cost accounting so important to the success of the firm; what are the various methods of cost accounting and how are they used; how does an operating budget work to discipline a firm’s management; what are the elements of a budget; how are budgets constructed; what is variance analysis and how it is used. Cost accounting can be described as the process of accumulating‚ measuring‚ analyzing‚ interpreting and reporting cost information
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Multiple Choice Questions 16. Which terms would make the following sentence true? Manufacturing companies that benefit the most from activity-based costing are those where overhead costs are a _________ percentage of total product cost and where there is ___________ diversity among the various products that they produce. A) low‚ little B) low‚ considerable C) high‚ little D) high‚ considerable 17. Would factory security and assembly
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changes when placed in water. Identify the independent and dependent variables. If the rock is placed in water‚ then it’s mass will be added to the original mass. The independent variable has to do with the amount of water put onto the rock‚ the dependent variable is the mass of the rock after it has been in the water. 3. Describe‚ in detail‚ a procedure to test your hypothesis. Identify the controlled variables. The controlled variables is the mass of the rock before it has gone into the water. It’s
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machine hours and outgoing shipments‚ which are the activities’ three respective cost drivers‚ follow: Luxury Exclusive Setups 50 30 Machine hours 16‚000 22‚500 Outgoing shipments 100 75 The firm’s total overhead of $3‚080‚000 is subdivided as follows: manufacturing setups‚ $672‚000; machine processing‚ $1‚848‚000; and product shipping‚ $560‚000. REQUIRED: a) Calculate the unit manufacturing cost of Luxury and Exclusive electric sleeping bags by using the company’s current overhead
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Q1: explicit costs and implicit costs concepts Explicit Cost Explicit cost is defined as the direct payment which is supposed to be made to others while running business. This includes the wages‚ rents or materials which are due in the contract. The explicit cost is the expense done in business which can easily be identified and accounted for in the business at any stage. The explicit cost represents the out flows of cash in clear and obvious terms. When any out flow of credit occurs in a business
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There’s no escaping the fact that college cost are rising. According to recently released reports from the College Board‚ most students and their families can expert to pay‚ on average‚ from $95 to $1‚404 more than last year for this year’s tuition and fees‚ depending on the type of college. (Collegeboard.com) The United States needs to lower the cost of college tuition; because students and parents have had to pay double the amount of money for schooling then they would have ten years ago.
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COSTING SUPPORT AND COST CONTROL IN MANUFACTURING A COST ESTIMATION TOOL APPLIED IN THE SHEET METAL DOMAIN PROEFSCHRIFT ter verkrijging van de graad van doctor aan de Universiteit Twente‚ op gezag van de rector magnificus‚ prof.dr. F.A. van Vught‚ volgens besluit van het College voor Promoties in het openbaar te verdedigen op vrijdag 3 mei 2002 te 15.00 uur. door Erik ten Brinke geboren op 15 maart 1973 te Hardenberg Dit proefschrift is goedgekeurd door: de promotor prof.dr.ir. H
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finances. There are several financial positions that are established. While all points display problems with the finances‚ these perspectives are different problems. One perspective is that financial spending is usually not self-sustainable with rising costs‚ showing a need to use as many resources as possible to keep the programs alive. Some think that the limit of resources should be better distributed to academic spending. Some think that there are resources that are available for students to be paid
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After watching the “Costs of Dying” video‚ I was a little shocked. The video focused on the behind the scenes‚ of what happens during end of life care. The speaker interviewed doctors and those who play a role in dealing with the medical field to find out what really happens with patients during their end of life care. One thing that specifically stuck out to me was that many of the tests that are run on patients may not actually be needed. Instead‚ these tests are done in order to keep paying patients
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