Economic cost

Reader Company (SRC) and I am pleased to present to you the 2016 Income Statement (IS). In compliance with your request, the Managerial accounting interpretation of the results and merely in gross margin income, statement was using Variable Costing. The cost classification is based in “all non-manufacturing categories”, direct, indirect and fixed. It also includes the recommended projection on how SRC can adjust its strategies. By looking at the 2016 statement in three (3) different…

There are two main models for Life Cycle Inventory Analysis, and they are very different between them. The Attributional Life Cycle Inventory is based on a description of how environmentally relevant physical flows affects life cycle and its subsystems. On the other hand, Consequential Life Cycle Inventory is based on describing how changes in Life Cycle itself affect the environmentally relevant physical flows. The main objective of this paper is to amplify the consequential model beyond the…

responsible people often take the cost-benefit principal into account when making economic decisions. The principle first assumes people are rational and so, their goals are rational. It then states, one should only take action when the benefits of that action are as least as high as the costs associated with the action. I wondered what the outcome would be when an emotional decision, such as adopting a baby through international adoption, was approached using this economic principle. If the…

(2005). Bensaou portfolio model shows a relationship in which neither party has grown specialised assets for cooperation. Each party can go to the market and move to another business partner at low cost with minimal damage. As per Bensaou, there are two sorts of fruitful connections: high necessities - high abilities and low prerequisites - low capacities. There are likewise two courses to disappointment, under-planned relationship and over-composed…

contrast and explain economic profit and accounting profit. Be sure to explain any terms. Economic profit and accounting profit both calculate gains and losses of production. Accounting profit calculates total revenue subtracting explicit costs. Explicit costs are the physical costs of production such as capital spent in production. Economic profit also calculates total revenue, but also subtracts implicit costs, which are the opportunity costs of production. One uses Economic profit to…

In economic theory normal profit is referred as the minimum level of profit necessary for a firm survival in that line of business. This level of profit enables the firm to incur all its running cost of business. However Accountant calculation is rather different because calculation of profit is based on numerical of past monetary costs and revenues and makes no reference to the concept of opportunity cost. Normal profit arise where Average revenue = Average total cost. Normal profit…

should perform a certain value creation activity by themselves or outsource it to another firm (Parmigiani, 2007). However, in order to reduce labour costs, companies often choose to outsource the task. The company assigns the task to outside professionals who can offer increased efficiencies and economies of scale reducing the company’s internal costs and mitigating the risk of failure. For example, in the electronics industry, many companies have been outsourcing some parts of the software…

Overland Trucking 1. Relevant costs that would be incurred with accepting FHP’s proposal would be insurance, fuel, oil lubricants, tolls, parts and small tools, hourly wages for drivers and the trailer pool expense. Fixed costs are not relevant as they will be incurred regardless if Overland accepts the deal or not. These expenses are a fixed amount that do not fluctuate with the number of shipments the company does. 2. The contribution of each mile is $0.76. FHP proposed a price of $2.15/mile…

parallel way since it's twofold the first wage and you can now bear the cost of twice as a great part of the great. 2. Describe the utility maximizing condition in words. To maximize satisfaction, the consumer should allocate their money income so that the last dollar spent on each product yields the same amount of extra marginal utility. When making a purchase decision, a consumer tries to get the greatest…

(b) There are two villages. In the …rst village, each couple is allowed to have one child at most. In the other one there is no such a constraint. Suppose all parents want boys, so that in the second village each couple will keep trying until they get a boy. In the end, will the Boy/Girl ratios in the two villages be extremely di¤erent? Reason your answer. Answer: Intuitively, if each child independently has probability to be a boy and 1 probability to be a girl, then no matter how many children…