Fixed cost

Job costing, according to Heisinger and Hoyle (2012) is a “system of assigning costs used by companies that produce unique products or jobs” while on the other hand, a process costing is a “system of assigning costs used by companies that produce similar or identical units of product in batches employing a consistent process” (p. 242). In other words, in a job costing system, a company can accumulate production cost to a specific unit. It is often used by companies involved in creating…

negative variance. It should also consider the opportunity cost and trade-offs of neglecting orders from other customers whom are willing to pay for the regular price of the good. With 200,000 in brochure printing capacity it would be beneficial for Fineprint to accept the offer. This offer would increase revenues by $2,500 and the profits would stay positive by accepting the offer. The fixed costs will not change but if each variable cost is divided by the former total production amount of…

primary care provider (PCP.) This cost containment strategy is intended to avoid service being duplicated by the PCP and the specialist. (www.amjc.com) The similarities of both the HMO’s and PPO plans is that both plans require authorization, prior approval or pre-certification for many elective hospital admissions, tests which can be costly surgeries and procedures. Through the use of managed care, HMOs and PPOs are able to reduce the costs of hospitals and physicians.…

care. It would also reduce the costs of inpatient…

joining the set of all points at which a quantity of output is produced while varying quantities of two and/or more inputs. An indifference curve mapping helps us to arrive at the utility-maximization of consumers, the isoquant mapping deals with the cost-minimization of producers. Isoquants are ideally drawn alongside isocost curves in capital-labour graphs, showing the technological trade-off between capital and labour in the production function, and also the decreasing marginal returns of…

0 or many solutions then our model would not be finding the optimal value. After calculating the optimal values, we were able to verify the accuracy of our model through a few different factors. First, the more we used a truck the smaller the total cost of the entire network. This makes sense because it is cheaper to use trucks rather than drones. Also, as the drone’s velocity increased, the area it was able to serve increased. These were two of the many ways that we were able to verify the…

Maximum Price Guaranteed maximum price or GMP is one of the most popular types of the arrangement in which construction contractor pays the all costs incurred in project, plus a fixed cost or a certain percentage of the total cost of the project as their profit margin. In this type of contract the contractor is fully responsible for the overrunning costs. Any additional scope and changes from client required arrangement of the new contract or must be formally stated in the supplementary section…

Cost Accounting Cost accounting refers to the internal financial system to track expenditures and costs within an organization. Such a system guide managers and decision-makers in their actions as they show the profit or loss of the organization within a specific period of time. Traditional accounting process considers only direct cost related to the product and skips many environmental and hidden costs. For example, if toxic materials are emitted during the development of a product, then it…

$1.2 trillion is the student debt of Americans as of 2014 according to the New York Daily News. How can college be worth it, if collectively Americans owe this much money in debt. Part of the problem is increased tuition, another problem is people who do not have the funds for college are spending irresponsibly. Is college worth it; it most certainly is. College provides opportunities that would be otherwise impossible. College provides you with the opportunity to form new relationships,…

Failure Criteria for the Proposed Project and Appraise its Viability in the given Scenario (AC 1.2) Viability of Project: Project viability refers to the ability of project to achieve desired goals and objectives influenced by number of factors like Cost Overruns, Time Overruns, Changes to the Scope and Specifications, Quality Problems, Changes in Business Environment and so forth. Following are some important factors and aspects, may influence viability of Project of Palm Tree Spa Resort. 1.…