Cost overrun

Freakonomics can be seen as the study of economics based on the principle of incentives. In the movie, Steven Levitt and Stephen Dubner gives multiple examples of how incentives govern our thoughts and actions and its role in economics. The first example explored was the unlikeliness of a house agent to wait to sell a client house for a higher price. The simple reason is the low incentive. If the agent was to wait another week to sell the house for a price that is only 10k higher, they would get…

1. Of the 10 values described in Schwartz's Value Theory, is there one or two that best describe your own personal values? Which one(s) and why? Can you point to how this value(s) has directly impacted a major decision or action you have taken in your life? The Schwartz’s value aligned with my personal values would be Self-Direction. Self-Direction is independent thought and action; choosing, creating, exploring, which are happenings I apply ongoing. Growing up, change was constant in my life…

Merlin: Knowledge and Power through the Ages. By Stephen Knight. Ithaca: Cornell University Press, 2009. xvii + 275 pages. $27.95 cloth. Merlin: Knowledge and Power through the Ages is an observation of Merlin and his different forms in the variety of literature written about him. In the books, films, poems, etc. written about him he is seen as a figure of knowledge. Knight follows the myth of Merlin and goes back to his earliest roots as the early Welsh figure of Myrddin. He traces the images…

Sunk costs exist at all levels of any business and should be excluded from the decision-making process. If the company is considering adding a deluxe Teen Burger priced one dollar higher and costing twenty-five cents more to produce, the cost of the building, and cooking equipment have already been incurred and do not need to be considered. This is of particular importance when a new restaurant, menu item, or other project has not performed as expected. At times, there can be an emotional…

concern of Onyx Exteriors. Other companies tried undercutting our prices to lure our customers and failed miserably. One competitor, Custom Gable Vents, tried to satisfy their customer’s demand for a cheaper gable vent by pricing their products near cost with no margin for shipping. After shipping many cheap vents (poorly slapped together) they lost many of their customers and almost went bankrupt. Unethical business practices are never used. Our prices are based on material, shipping,…

investment to increase the automation level for the Low End products, our company gained a cost leadership advantage in the beginning. This strategic advantage allowed us to win the highest market share by reducing prices without contribution margin declined. Erie appeared to be our strongest competitor in this segment since they also increased their automation level to ten at the very beginning, which means that the cost leadership advantage is not our dominated advantage leading us to earn…

A child is a true blessing for anyone although raising them is another story. Raising a child is a tremendous job entailing costs, ethics, responsibility and maintain a stable home environment. People need to remember a child is their responsibility from birth until they are eighteen years old which includes providing both necessities physical and psychological needs. The environment during upbringing is a tremendous influence on a child psychological state of mind and is displayed in actions as…

limits. The first strategy would be to adjust its product mix. Mihocko produces five products, one at a time, throughout the year. Using data provided, Mihocko can determine an optimal production combination function based on potential sales, variable costs, particulate emissions, revenue streams and operating hours. One potential benefit of this strategy is that Mihocko could mathematically maximize its profit potential within the EPA policy emissions guidelines using a formula to determine the…

tomorrow. Some basic assumptions for intertemporal preferences are transitivity, consumer prefer more over less, and consumers can choose between two alternative streams (today versus tomorrow). A decision requires a trade off by the consumers between costs and benefits today and tomorrow. The more a consumer consumes today, the less saving he will have today which will result in less consumption tomorrow. When consumers make consumption decisions they have to take into account their future…

4.2 Inferential analysis This study uses Business Model Canvas with 9 elements, include: customer segment, value proposition, channels, customer relationship, revenue streams, key resources, key activities, key partnership, cost structure. The analysis is as follows: 4.2.1 Customer Segment Customers are the main key to get the profit. Therefore, it is important to set a target customer to earn revenue. Business will not exist without customer (Coes, 2014). This study shows that women…