investments that make today will determine the value of business tomorrow. In order to 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
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economics and business decision-making‚ sunk costs are retrospective (past) costs that have already been incurred and cannot be recovered. Sunk costs are sometimes contrasted with prospective costs‚ which are future costs that may be incurred or changed if an action is taken. Both retrospective and prospective costs may be either fixed (continuous for as long as the business is in operation and unaffected by output volume) or variable (dependent on volume) costs. Note‚ however‚ that many economists consider
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Economic Cost of “Power Outages” By Dr. Aisha Ghaus-Pasha Table of Contents Page No. 1. Causes of Power Outages 1 2. Quantifying Outage Costs 2 3. Incidence of Outages 4 4. Pattern of Direct Costs 5 5. Types of Adjustments to Outages 5 6. Extent of Recovery of Output 6 7. Total Outage Costs to the Industrial Sector 6 8. National Costs of Load Shedding 7 9. Policy Implications 9 9.1. Investment in Power Sector 9 9.2. Load Management
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In the books of a Company Cost Sheet for the period ended…….. Units Produced….. Name of the product unit sold…. Particulars Total cost Rs. Unit Cost Rs. Opening stock raw materials Add Purchases of Raw Materials Add: Expenses on Purchases of Raw Materials (octroi & duty) Less: Closing stock of raw materials Less: Sale of scrap or defectives of raw materials = Cost of materials consumed Add: Productive Labour Add: Outstanding wages Add: Direct Expenses( architect’s
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COST CLASSIFICATION CONCEPT OF COST: DEFINITION: A SACRIFICE OR GIVING UP OF RESOURCES FOR A PARTICULAR PURPOSE FREQUENTLY MEASURED BY THE MONETARY UNITS (RUPEES‚ DOLLARS) THAT MUST BE PAID FOR GOODS AND SERVICES . ➢ EMPHASIS ON COST INFORMATION: MANAGEMENT ACCOUNTANTS PAY A LOT OF ATTENTION TO COSTS BECAUSE COST HAVE A VITAL ROLE TO PLAY IN PLANNING ‚ EVALUATING AND DECISION MAKING. FOR EXAMPLE IN PLANNING THE ROUTE AND FLIGHT SCHEDULES THE MANAGER OF AN AIR LINE MUST CONSIDER
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the economic benefits of college compare to the costs? Under what circumstances-if any-is college worth it? I think that it depends on what you would like to do‚ whether a college degree is really worth it. I know for my future career goal of becoming a nurse‚ it is definitely necessary. But‚ if you chose to be a restaurant manager or become a police officer/fire fighter a college degree may not be the most cost effective path to becoming successful. When I went to college‚ I thought that as long
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Cost Methods ACC/561 September 4‚ 2013 Cost Methods Absorption costing is a process in which you relate a portion of your fixed overhead costs to the manufacturing product cost. This process will be done on a per unit term. Divide the fixed costs by the number of units manufactured and sold over the period of the term. This will give you the cost of per unit for the amount made and the amount. With the variable costing unlike the absorption costing you will use the fixed
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ZDNet Make the Case Series: IT Business Case Template: Voice over Internet Protocol (VoIP) Solutions General Introduction Voice over Internet Protocol (VoIP) is one benefit of the convergence between data and telecommunications. Companies today are seeing the value of transporting voice over IP networks to reduce telephone and facsimile costs and to set the stage for advanced multimedia applications and services such as unified messaging‚ in which voice‚ fax‚ and e-mail are all combined
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True False 2. The cost flows for a process-costing system are totally different from those of a job order costing system. True False 3. Process systems are characterized by a larger number of homogeneous products passing through a series of processes. True False 4. The production report is the document that summarizes the manufacturing activity that takes place in a work-in-process department. True False 5. Many service organizations and just-in-time (JIT) manufacturing
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Cost Allocation Paper Cost Accounting Abstract This article’s focus is how cost accounting allocates costs of a manufacturing plant. All things are hypothetical. The conclusions of this report regarding costing of commercial services provided by Goodyear Tire should be recognized as a theory of the way Goodyear Tire conducts business activities‚ rather than suggestions of how Goodyear Tire should conduct business. Goodyear Tire is a publically traded company‚ which has many different
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