Cost underestimation

4. He introduced an incentive plan to pay the workers according to the rate of production to minimize workers dissent and reduce resistance to improved methods. 5. Increased production and produce higher profits. • The effect of time- motion study of Taylor: • 1. Reduced wasted efforts • 2. Set standards of performance • 3. Encouraged specialization and stressed on the selection of qualified workers who could be developed for a particular job. Gantt Henry I. Gantt (1861-1910): Gantt was…

1/10 net 20 This information can be used to compute the credit cost of borrowing this money. X % Discount 100 - % Discount 360 Credit Period – Discount Periods = 1 X 360 99 10 = 0.363636 = 36.36%. Annualizing The Credit Cost The 10-day discount period occurs 36 times per year. Using this information, it is possible to compute the effective annual rate of interest on a 360-day year: = [1+(credit cost / times compounded per year)] degree “Times compounded per…

Laser vs InkJet Printers: How do you decided what’s best for you? If you're thinking of buying a printer, either for work or home, then you're probably wondering whether to get an inkjet printer or a laser printer. Your choice of printer will of course depend on what you want to do with the printer, how much printing you do, how many other people will also use the printer, and, of course, how much you can afford to spend for the printer itself and the replacement ink or toner. There are a…

Introduction: The survival kit is a challenge that people can participate. The rules of this activity are that you are given precisely 50 euros to spend on good or services to bring with you on a deserted island for a day’s stay; and that’s all you’re allowed to bring, with the clothes on your back. Then, you have to do the same challenge once again, however instead of staying for just a day, it will be a week’s stay. The budget is still 50 euros, the person has to decide what is necessary to…

the point where marginal revenue equals marginal cost. Marginal revenue can be simply defined as the change in total revenues as a result of an increase of one unit. Similarly Marginal cost on the other hand is the change in total cost as a result of an increase in one unit of production. As such maximize profits, as is the aim of all profit making businesses, is to produce and sell units provided the revenue from additional unit(s) outstrip the cost of producing it or them. By evaluating the…

social circle and humans are very social creatures. By taking away the social aspect of the work problems could arise in motivation and enthusiasm. This problem could expand even further creating absenteeism and a high turnover which means an extra cost of finding more people and training them in for the…

Warren Thatcher’s Build a container Home Unleashes the secrets of Building Container Homes Have you ever considered building a home using a shipping container? Or have you ever weighed the options available to you if you want to build an affordable home in record time? Well, you may want to learn about Warren Thatcher’s Build a container home. Warren Thatcher’s Build a Container Home, is a DIY comprehensive guide for building a container home from scratch. His guide touches on the cheapest and…

Staff Competence and Procurement Planning Boyatzis (2008), define competency as a capability, ability or an underlying characteristic of an individual which is casually related to effective or superior performance. It is a set of related but a different set of behavior organized around an underlying construct, which we call the “intent”. The behaviors are alternate manifestations of the intent, as appropriate in various situations or times. Competence is a cluster of related abilities,…

two intersections, a rural and an urban intersection. This case can be argued from an act utilitarian perspective using cost-benefit analysis that the course of action that produces the greatest benefit relative to cost is the one that should be chosen (Harris et al., 2009). The cost-benefit analysis includes three steps: (i) assessing the available options, (ii) assessing the costs and the benefits and (iii) making a decision that is likely to result in the greatest…

The advanced pricing technique that would be most appropriate for a Sam’s Club or Costco would be second degree price discrimination. Second degree price discrimination is defined by Thomas and Maurice (2010, p. 583) as, “When a firm offers lower prices for larger quantities and lets buyers self-select the price they pay by choosing how much to buy.” Therefore, when the same consumer buys more than one unit of a good or service at a time the marginal value placed on consuming additional units…