Marginal concepts

1. Key features Key features of Combined Cheeses Limited (CCL) that should be considered when selecting a costing system: • Handmade cheese; significant due to production costs being heavily influenced by labour costs. • Expanding quickly; require accurate costing information in order to remain efficient and competitive during growth. • No purchasing power over suppliers; focus of managing costs of converting milk into cheese and minimising wastage costs. • Distribution centre centralises…

Question 1. The operating budget includes the revenues and expenses during the fiscal year, while the cash budget focuses on the coming year. The operating budget is usually more in depth. The cash budget would let the people know if they have enough money on hand or will there be able to collect the money needed during the upcoming year. The focus of a cash budget would be to estimate the incoming revenues the company has coming in the upcoming year of the budget. It would allow…

Q2. What is an inferior good? If the price of an inferior good falls what can we say about the quantity consumed? Explain Definition Consumer’s demand for goods depend upon the level of income. Inferior goods are defined as goods for which quantity demanded decreases with an increase in consumer’s income and quantity demanded increases with a fall in consumer’s income. This happens when the goods have relatively expensive substitutes available whose demand increases when the consumer becomes…

Quality program to be a way of life at ADI. Question 2: Critically Evaluate the half light concept, in light of Analog Devices Strategy, What are the potential and limitations of the half life concept? How would a company develop half life for different processes,…

Dima Assessment Game Theory The Cournot model of oligopoly assumes that rival firms produce a homogenous product, and each attempts to maximize profits by choosing how much to produce. All firms choose output (quantity) simultaneously. The basic Cournot assumption is that each firm chooses its quantity, taking as given the quantity of its rivals. The resulting equilibrium is a Nash equilibrium in quantities, called a Cournot (Nash) equilibrium (OECD, Glossary of Statistical Terms,…

For him deal society as a social system with essential task to perform. He has been most influential in outline the speculative basis of socioeconomic condition. He understand the concept of condition as a position in the social structure, as part of the social comparing in society. A status is been valuate and this social evaluation is central to Parson’s contribution to the idea of socio-economic condition. Social condition for him…

The neoclassical economic approach assumes that working time is perceived in terms of time allocation and related choices taken by a rational actor with regards to the consumption of time. Thereby, time is considered as a scarce resource, as a day is limited to 24 hours and therefore the main aim of the rational actors is to achieve a maximization of personal time utility (Sirianny & Negrey, 2000). This implies that the actors act in order to achieve their individual preferences and this…

methods uses(are used) to presenting(present) the income statement which is(are) the marginal costing and the absorption costing, the net profit difference will be reconciled between these two methods after the income statement is complete. Marginal and absorption costing are two different approaches to dealing with fixed manufacturing overheads and whether or not they are included in valuing inventory. The marginal cost is the total variable cost of the product, it consists of direct labour…

6.1 Case study There are two classifications of costs associated with construction projects, direct costs and indirect costs. Direct costs include the labor, material and equipment operating costs necessary to put work in place. Indirect costs include supervision, job and home office overhead, profit, financing, and the cost of inflation. Direct costs can be allocated to each activity on the project. Indirect costs, on the other hand, cannot be realistically prorated and assigned to each…

Briefly compare and contrast job costing with process costing. 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…