Cost

the two treatments. Under the revised cost estimates, HD is allocated $466,610 for general overheads, $116,489 for durable equipment use and $661,966 for nursing services, a total of $1,245,065 as service costs. This reduces the net income of HD treatments to $3,923 from $131,525 under the ratio-of-cost-to charge system. On the other hand, the net income for PD treatments has increased from $93,504 under the old system to $221,106 under ABC system. The cost allocations are as follows: $319,215…

Concepts of CVP (Cost Behaviour Analysis?) Contribution Margin Contribution margin (CM) is a cost accounting concept that allows a company to determine the profitability of individual products (Investopedia, 2015). In short, it is equivalent to the revenue less the total variable cost (Horngren, Datar, & Rajan). The CM per unit measures the amount of each unit sold contributes to cover fixed costs and increasing profit and also considers what happens when sales and production increase by one…

low. In this case, Ryanair has operated its business in an efficient manner where it has used various methods of reducing cost to create value for Ryanair Holding business and its customers. The main method it has used to add value to Ryanair’s operation is the use of a single model aircraft, the Boeing 737-800. The aircraft can help to minimize training and maintenance costs, easy to handle spare parts inventory and allow flight crews to have a flexible schedule. Besides that, as it could…

According to an article written by Kassier and Angell (1999), cost effectiveness analysis, is the method that was established in the early 1990s, used to estimate the value of a program by adding costs and health outcomes of the program. Health outcomes can range from a variety of results from things such as the reduction of patient’s blood pressure to the number of lives saved. Cost effectiveness analysis is an important tool for identifying opportunities and redirecting resources to achieve…

Team C feels that Cost-benefit analysis would be appropriate to the Bureau of Land Management’s (BLM) situation. According to our textbook, in the modern society importance of estimating and evaluating costs and compare them with benefits increases. Today public administrators must do more than just to enjoy the benefits of protecting wild horses as a symbol of the independence of the American West – they must also weigh the costs and other repercussions of such action. Then the public…

Rent is a fixed, committed cost because it does not change due to differences in activity levels. In other words, rent is always a cost that will be due regardless of business activity level. It is generally considered a committed cost because once you sign the lease you are committed to paying rent for the life of the lease (Walther, 2012). Property taxes on land and building are fixed committed cost due to the fact that it does not change as per stipulated tax period. This tax does not affect…

Cost Benefit Analysis The Department of Environmental Quality (DEQ) in every state has a program that focuses on attaining and maintaining air quality standards with the finality of reducing the factors that could potentially affect a person’s health. Oregon has adopted regulations from neighboring states such as California, as they have had more experience and knowledge in alternative ways for reducing air pollutants. Part of that transition has been to develop and enforce Low Emission Vehicle…

1. Give three examples of opportunity cost from your day-to-day life, and how you made your decision based on opportunity cost. Discuss whether or not these opportunity costs are same or different than monetary costs a) My husband and I recently got tickets to a very popular band here in Canada called the Tragically Hip this band has had some sad news health wise and this will probably be their last tour, we felt very lucky to get these tickets and paid $200 for them, this turned out to be very…

Introduction Cost can be defined as the amount that has to be paid in order to get something. In companies or industries cost is valuation of effort, resources, material, time spent, risks incurred and opportunity in production and delivery of goods. Cost accounting is also considered as cost volume profit analysis. This model is useful elementary instruction and for making short run decisions. Cost accounting is process of finding cost for the production of fixed cost and variable cost. By…

to do a cost benefit analysis of the organization actually opening and having a physical presence and relocating personnel to another country. This step is done in the before any planning and money is spent. Then the company should look at the exchange of the currency from one country to another, the cost of living, salaries, paid time off and the cultural differences all comes into play when selecting to expanding to another country. Companies should not avoid expanding to save on cost and…