Marginal cost

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…

What are the fundamental principles of a Free Market System that affect current markets for in-demand products, and how does this affect manufactures and consumers alike; explain their point of view. First of all, what is a free market system, it's the way that one thing affects the other, such as the selection of products and services; and the prices to which will affect the economy. "if a business makes something that few people actually want, sales will be low, and the firm will typically…

An implied contract may be created in several different ways. Oral assurances by a supervisor or employer representative (e.g., “We need good people around here, you’ve got a job for life!” or “We don’t dismiss employees without giving them a chance to correct their behavior.”) may give rise to an implied contract. Likewise, the employer’s handbooks, policies, practices or other written assurances may create an implied contract. As a manager and supervisor of an accounting department,…

and obtain the most updated standards costs and quantities. Step 2: Search for suppliers of inputs As indicated in part A, there is an unfavorable variable cost rate variance. This can be caused by paying more or used more overhead items than budgeted. The actual pricing of the current suppliers is higher than the standard set.…

workings (Prime cost (direct costs) – To max 3 marks): Direct costs are cost objects that are directly attributable to the finished product, these can be direct materials, direct labour and direct expenses related to the production of the finished product. Prime cost is the total of all direct costs (material, labour and expenses). Quantity x price rate = total E.g. for machining department ‘Carom’: 450 x 12 = 5,400 1,200 x 8 = 9,600 2,230+5,400+9,600=17,230 Total prime cost for Order 2169…

Extra transport cost: For one price to prevail throughout the market, it is essential that there is no extra transport cost for the consumers while buying a commodity while buying commodity…

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…

last seven weeks, along with the total costs of operating the cafeteria are given below: week meals served 1 2 3 4 5 6 7 1,500 1,600 1,800 1,450 1,200 1,650 1,900 cafeteria costs (RM) 4,800 5,080 5,280 4,900 4,000 5,100 5,400 Assume that the relevant range includes all of the activity levels mentioned in this problem. Required: A. Use the high low method to establish the fixed and variable component of cafeteria costs. (5 marks) B. Express the fixed…

1. Theory of Production and Costs, Long and Short-Run Equilibrium a. As LTC (q) = 9 + q2, the long run average cost curve of a representative Greek firm is LATC (q) = (9/q) +q, and this is minimized where the LAC is minimized when LATC=MC⇒ (9/q) + q = 2*q ⇒ q=3. Thus output per firm is 3 (see diagram, point X). Long run domestic supply curve could be found by setting price equal to marginal cost at minimum LAC: p=2*q= (2)*(3) = 6, this supply curve is a horizontal line at p =6. In the short run…

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…