Cost

controlling fixed cost in their organizations because fixed costs can decrease per unit if the number of units increase, up to an extent (Edmonds, Tsay, & Olds, 2011). Fixed costs are the costs that remain unchanged regardless of an increase or decrease in the number of units sold (Edmonds, Tsay, & Olds, 2011). Therefore, if the number of units sold increases, the total fixed costs is distributed throughout the total number of units sold (Edmonds, Tsay, & Olds, 2011). As a result, the fixed cost…

Cost accounting is very important in the healthcare system, but may be considered difficult and resource intensive. Applications such as the Electronic Medical Records (EMR) have been the primary focus of many organizations. There is a lot of pressure from all stakeholders to lower healthcare cost. Cost accounting analyzes the cost structure of an organization by gathering information about the costs incurred by the organization and assigned cost to products and services rendered in order to…

Costs borne by a firm can fall into two categories: explicit and implicit. According to “Principles of Economics”, explicit costs are monies that are paid out in order to run the business and may include such things as wages or rent; while implicit costs “represent the opportunity cost of using resources already owned by the firm.” (OpenStax, 2014, p. 159). My husband and I operate a small business which is a martial arts school. At this company we have explicit costs, our largest explicit costs…

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…

and its divisions/business units earn the cost of the invested capital in addition to other costs. The capital charges are therefore the core element this concept. OVC is calculated as gross margin over the total product costs (PPC total and PPC…

payment methods utilized by health care facilities. The first method is historical cost reimbursement. Even though a majority of facilities have migrated away from this form of method, there are some that still utilize this method due to the regulated cost reimbursement system is believed to monitor quality of care and in specific settings. Historical cost reimbursement is based on two aspects. The first is reasonable cost, which are guidelines for reimbursement of services the patient received…

Social cost of crime is something we all can relate to. In today’s society crime is at an all-time and with that comes the cost. Crime sadly is something that will never go away. But as a society we can pull together to prevent crime and lower crime rates. This paper will discuss social cost and give examples of social cost. The definition of social cost can vary from person to person. But my definition of social cost would be cost that society pays to deter future acts of crime. In other…

preventing medical errors and serve as a more economical method of documentation. The growing popularity of the EMR as a more cost effective method for charting has been somewhat shadowed by doubts of its cost saving benefits. These doubts as well as the significant sunk costs of EMR implementation may serve as a barrier for organizations. The purpose of this paper is to provide a cost benefit analysis of the electronic medical record to inform health care professionals of the potential effects…

Jensen and Meckling develop theory in different stages 1. Introduction 2. Analysis the agency cost 3. Question regarding the organization & examiner the role of united liability 4. Provide basic concept agency cost 5. Brief summary and conclusions. Introduction. This article has been written by Jensen and Meckling in October 1976. This study inspects the property rights, agency and financial progress a theory of the ownership structure of the firm. The authors highlight on new matter which…

Opportunity cost is the potential benefit lost by choosing one option over the next best alternative. In Settlers of Catan, this is shown in various ways, including where you place your initial roads and settlements, where to move the robber, and what resource to use your year of plenty development card on when you are attempting to acquire the necessary victory points to win. This is extremely important in playing Catan, as you generally want to take the option with the lower opportunity cost…