Cost accounting

of opportunity cost: Should I drive for Uber today or enjoy a day off from my full time job? Driving for Uber allows me certain things, Money in the form of earned income, money also in the occasional for of cash tips from my riders, I get to explore my town and the towns and city around me seeing new things, Driving also allows me to meet new people and occasionally form new networking nodes into different parts of business and society that I do not operate normally. The costs on not…

Q1. The existing cost system in the Cambridge University network is step-down cost system that allocates overhead to support cost centers and service cost centers. By considering cost drivers such as FTE’S, sq. footage, they calculate the rate for each cost center and then allocate the cost. This method, emphasizing on the amount charged for a procedure, provides the clear aggregate cost information in the unit of department or cost center and suitable for cost-based reimbursement system.…

benefits, it is not financially the best option for the company to take. While the company is paying employees a low wage rate, increasing to $20 per unit is too expensive for the business to support at this time. Increasing employee pay by $1 will raise costs by $13% [(8.7/7.7)-1]. The extent of possible productivity increase or payroll savings by decreasing employee turnover cannot be determined at this time. If payroll savings and productivity equal 13%, then the company should increase pay.…

In this case, we had 2 costs, fixed and variable, and 3 different options, reconstructing old equipment, purchasing new equipment, and outsourcing. This decision analysis tool allowed me to construct a crossover chart which showed the points at which the costs of the options demonstrated an advantage over the other. A1. Submit a copy of the output from your decision analysis tool…

Daily Mail ticket prices have gone up by 26% since 2007! Ticket prices are not the only thing expensive about going to the theater though. Another thing that is expensive is the cost for your snacks! According to an article in Time magazine, 85% of the theater profit comes from the concession stand! A small box of M&Ms can cost up to $5! Another one of the main disadvantages is the distractions. In the theater, you have parents who bring their loud, crying kids. If you’re close enough to one of…

At first glance both the PESTLE model and Porter’s 5 forces model are simple and easy to understand even by those who have little knowledge of business management. Whilst the PESTLE framework examines the macro environment to measure market suitability, Porter’s five forces identify industry forces and the interaction between them to evaluate the possibility of profitability. This will give more direct information about the organisation’s strategic competitiveness and profitability. On the…

The 4 ideals set forth in the utopian 10th stage of the human mind as described by Antoine Nicolas de Condorcet are guaranteed the livelihood for the aged, a universal system of education, fewer work hours, and the refinement of a technology for the accumulation of knowledge. (Pg. 305) The first ideal of the 10th stage of the human mind is guaranteed the livelihood for the aged. In other words, the elderly would be warranted means of support, and have nothing to be worried about. I believe…

1. Andy and Lucy are carrying on a business which each person provide 50% of the capital to contribute the business. Andy is responsibility for treating horses and farm animals while Andy specialises in treating domestic pets. Because of its partnership structure, they will receive a share of net profit if they are operating with a view of making profit. In conclusion, Andy and Lucy are running a partnership as defined by section 1 (1) of the Partnership Act 1891 (SA) as they applied the theory…

Total revenue and elasticity are related. Total revenue is how much money sellers received from selling a good; the formula is price the good was sold times the quantity sold. Elasticity is a way to calculate how consumers change their buying behavior whenever the price of a good changes. If elasticity is high, then consumers greatly alter their buying behavior whenever the price of a good changes. If elasticity is low, that means that consumers did not change their consumption greatly. In other…

moving products between different stage in their process. Each stage is formed from two parts. Lead time which is the time span required for each stage of the product-flow process to finish and the second part is called the component cost which is basically the cost related to each step. These two features of the supply-chain administration together, are also known as the product-flow process. The product flow of “Plumpy'nut” has three sections. At first Plumpy’nut is transported by “K+N”…