Marginal utility

The following essay discuss how cost of producing a product is allocated between direct and indirect cost. One type of direct cost will be identified and examine to how it will reduce cost for WGCN and the consequence of cutting this cost, but maintaining profit and quality. Additionally a flowchart will be use to explain how process work within the laundry department, and later on in the essay Hoskins and Macve (1990) will be summarised and use to explain how it help us “understand modern…

strategy which can be the excellent response to any strategy selected by other players in the market. In this case it is difficult to say whether there is dominant strategy or not. Lets assume that Marginal Revenue (MR) is equal to Marginal Cost (MC). The equation to calculate MC is= delta TC/deltaQ. Marginal cost shows the effect of change in quantity on cost. Here, we have been given the cost equation. C=900 + 60Q1 + 9Q1^2. In this equation, 900 can be considered as a fixed cost. So we…

Ramli Ali stated that, PHSB was unable to offer an attractive remuneration package to their drivers. With more attractive remunerations offered by big companies, drivers tend to bite the bait. Therefore, PHSB needed to hire and train new drivers more frequently. This activity had made increment in the Administration and Operation Expenses for year 2009. The pilferage activities are recognized to happen during year end. This was identified that most of the drivers more likely needed money during…

Chapter 6 explores the firm behaviour while operating in situations of horizontal demand, which implies a perfect competition scenario. The assumptions made clear while evaluating the perfect market assumption was that all the players in the market were privy to equal information and production resources, which is largely not the case in the real world. In my opinion, the implications of the assumptions influenced the perception of many students towards the content of the chapter. However, the…

This chapter will provide you with 10 of the most important rules in day trading. 1. Avoid market orders – With a market order, your broker will simply try to sell or purchase assets at the current market prices. However, most of these transactions will be unprofitable because you have limited control over the specific prices at which the assets will be traded. There are times when certain assets experience temporary boosts in price. When this happens after you placed a market order, you will…

Target costing is a pro-active cost control system. There is no cost slashing rather there is continuous pressure to keep the costs of a product to a minimum. Target costing sets the selling price of the product by analysing the external environment, its competitors, customer reviews, requirements and their willingness to pay. The target profit is then determined from the predetermined selling price and this results in the target cost. The target costs is then compared to the expected unit costs…

Question 5 The overhead rate is the total of indirect cost for a specific reporting period, divided by an allocation measure. Overhead rate is the percentage that we get after comparing to the total overhead expenses with the total expenses. Overhead rate has differentiate into 2 types which is blanket overhead rate (single overhead rate) and departmental overhead rate. Blanket overhead rate (single overhead rate) is the most simplistic tradisional costing system. It assign indirect cost…

representative Greek firm is LATC (q) = (9/q) +q, and this is minimized where the LAC is minimized when LATC=MC⇒ (9/q) + q = 2*q ⇒ q=3. Thus output per firm is 3 (see diagram, point X). Long run domestic supply curve could be found by setting price equal to marginal cost at minimum LAC: p=2*q= (2)*(3) = 6, this supply curve is a horizontal line at p =6. In the short run, the supply curve of each firm is Qs= (0.5)*q. For the industry, Q = 10*q = 10*(0.5)*p = 5*p, so that Qs = 5*p (see diagram…

Job costing is a system that assigns manufacturing costs to a product or batches of products. This system is used when the end products are different from each other. The job cost companies will allocate the direct materials and direct labor actually used plus the manufacturing overhead to each job. The job costing is very popular not only in manufacturing, but also in service (accounting practices, law firms, etc) and builders and construction contractors. Job costing involves the following…

machinery costs, and freight; b. Fixed costs, such as the land, building, stores, rent, allocated depreciation, and maintenance and repair; and c. Mixed costs, such as the general and administration costs (employees’ benefits and compensation, utilities and marketing and distribution (Goldstein, 2008). 2. Dunkin Donuts is an American coffee and donut chain. Its major product is the bagels and donuts. The costs of producing just the bagels with cream cheese are: a. Variable costs, such as the…