ECON 600 Lecture 3: Profit Maximization I. The Concept of Profit Maximization Profit is defined as total revenue minus total cost. Π = TR – TC (We use Π to stand for profit because we use P for something else: price.) Total revenue simply means the total amount of money that the firm receives from sales of its product or other sources. Total cost means the cost of all factors of production. But – and this is crucial – we have to think in terms of opportunity cost‚ not just explicit
Premium Supply and demand Price elasticity of demand Elasticity
reengineering efforts fail to achieve the goals set for them and figures from evaluations of TQM indicate the same results [STEWART93]. Even though impressing results have been achieved‚ the high rate of failure leads to an immense waste of resources in many organizations. This waste might be avoided‚ if change agents would gain genuine knowledge about the concept they are struggling with. According to my opinion‚ the reasons for failure can be found in the following areas: 1) BPR has no solid theoretical
Premium Business process reengineering
BW MANUFACTURING COMPANY CASE SUMMARY The owners of BW Manufacturing‚ a small manufacturer of gas grills‚ have prepared a preliminary budget for the upcoming year and would like to assess the financial impact of several alternative scenarios‚ including dropping a product; changing the price on a product‚ with a resulting increase in volume; and shifting advertising focus‚ with a resulting shift in volume from one product to another. A new budget must be prepared. At year-end‚ the actual results
Premium Variable cost Cost Change
Profit Determination Prepared by John Hoggett and Clare Innes Measurement of Profit • Cash basis • Cash income received - Cash expenses paid – Revenues recorded when received – Expenses recorded when paid • Accrual basis • Profit = Income (incl. Revenues) - Expenses – Revenue is recognised when the anticipated inflow of economic benefit can be reliably measured – Expenses when the consumption of benefits can be reliably measured 2 Adjusting Entries • The need for adjusting entries-
Premium Generally Accepted Accounting Principles Depreciation
ACCT 805AE Case 4 Ocean Manufacturing‚ Inc The Osprey Group Feb 21‚ 2011 Q1. The client acceptance process can be quite complex. Identify five procedures an auditor should perform in determining whether to accept a client. Which of these five are required by auditing standards? First they should gather and examine all available financial information‚ such as tax returns‚ annual reports‚ the balance sheet‚ and income statement. This should be done so that the audit firm can do a quick initial
Premium Audit Balance sheet Financial ratios
Tobechukwu N. Olumba Professor Burgess English 105 31 March 2014 Turning Around Doing a lot of work in college is always thought-provoking without a textbook‚ but with the textbook‚ it can be the simplest and most effective way to work hard. Sometimes‚ being on social media after completing some study time is desperately acceptable. It takes about fifteen minutes for some videos‚ posts‚ and tweets. I’m usually not in a good mood for those things during my study time before Friday. The
Premium High school
comprises liquid waste discharged by domestic residences‚ commercial properties‚ industry‚ and/or agriculture and can encompass a wide range of potential contaminants and concentrations. In the most common usage‚ it refers to the municipal wastewater that contains a broad spectrum of contaminants resulting from the mixing of wastewaters from different sources. Sewage is correctly the subset of wastewater that is contaminated with feces or urine‚ but is often used to mean any waste water. "Sewage"
Premium Water
Altamirano 1 Victor J. Altamirano Professor Powers Business and its Publics 25 February 2012 Subsidizing Profits In contemporary United States policy‚ the conception of free market principles result in negative externalities for the public as well as market inefficiencies. To address these issues‚ the government has developed methods to sway commercial enterprise and its services through taxes and subsidies. Taxes are used to discourage certain transactions and production operations
Premium Public good Government Externality
Science One World Essay: Waste Management The World Book Dictionary defines waste as “useless or worthless material; stuff to be thrown away” (Zero Waste America Is a…). It is also categorized into different types such as municipal waste‚ industrial waste‚ hazardous waste‚ construction and demotion waste‚ sewage and so on. Sewage is classified as one of the most serious type of waste because it always happen everyday. Wastewater is defined as “a combina- tion of one or more of: domestic effluent
Premium Reverse osmosis Water Sewage treatment
Studies Research-Based Expository Essay Food Waste Problem in Hong Kong: The current situation and the possible solutions Introduction Renowned as the Food Paradise‚ people all over the world come to Hong Kong for the food here. This definitely creates lots of economics benefits for Hong Kong. Nevertheless‚ this makes the problem of food waste ever more serious. As mentioned by the Environmental Protection Department‚ “In recent years‚ the amount of food waste arising from the C&I sectors has increased
Premium Waste Recycling Waste management