Variable cost

1. Variable costs will vary in direct proportion to changes in the level of an activity (1. Walther & Skousen, Managerial and Cost Accounting, 2009, 37). In other words this cost can’t be the same in all periods of time. It can be for example electricity bill for company’s office or fuel for the truck in the warehouse. Fixed costs are opposite for variable costs. Fixed cost don’t change with the level of an activity. Even if the output or input of a unit changes, it will still remain in the…

advanced technology gets we still need the ingredients to make the food and the people/businesses to buy the food. Analysis “Differential Analysis is analyzing the difference in revenues and costs among alternative courses of action” (Heisinger & Hoyle, 2013, chap. 7.1). The differential costs are the costs that change when deciding between two or more relevant options for the business (d. miller, lecture notes, 10-13-16). Two relevant factors for the brownie business are dropping…

2.8. Production With One Variable Input (Labour) And Law Of Diminishing Marginal Returns This is the situation were capital is fixed and labour is variable, and only way to increase the output is by increasing the output. amt of labour(L) capital(K) total output(q) avg product(q/L) marginal product(dq/dL) 0 20000 0 0 0 1 20000 30 30 30 2 20000 50 25 20 3 20000 80 26.66666667 30 4 20000 100 25 20 5 20000 115 23 15 6 20000 120 20 5 7 20000 112 16 -8 8 20000 100 12.5 -12 9 20000 90…

the 40% increase in standard costs and was asked to find better ways to calculate product costs and gross margin. Problems with Standard Cost Calculation: ● Decreasing cartridge margins - raised questions about the long-term profitability of the business. ● Fluctuating month-to-month…

ENGINEERING STUDY SHEET - TEST Analysis: SI units- Si units is the standard International Metric system of measurements. The metric system was introduced to australia to provide an easier system than the imperial system. The metric system is a base 10 system (all units are done by powers of 10). The imperial use more complicated bases. Metric eg; 1000 mm = 1m, 1000m = 1km (not confusing) Imperial eg; 36 inches = 1 yard, 1760 yards = 1 miles (confusing) Types of motion: Rotational-pg 141 (…

Question 1: What is the value chain? It is beneficial for organizations to strategically analyze costs to determine whether or not its costs are competitive with other companies in the same market. This comparison is done through what is known as a value chain, which analyzes the cost of internal activities and how they compare with competitors to determine which are sources of cost advantage or disadvantage. A value chain serves the purpose of examining the operating activities that businesses…

a family owned winery that is located in Temecula, California. The average retail price for their wine is around $28 per bottle. When it comes to pricing wines, cost varies based on winery location and the number of years that the winery has been in business. One rule of thumb for wineries is to price a bottle of wine at 1/1000 the cost of a ton of grapes. For example, a bottle of wine from a batch of $40,000 Cabernet Grapes would be $40. The wine business is known to be a highly lucrative…

We represent the self-insured employer, Niskayuna Central School District, and its third-party administrator, Benetech, Inc., in the above reference matter. Please accept this letter as the self-insured employer’s appeal of a Supplemental Decision filed in this matter on 07/13/17, which directs a deposit into the Aggregate Trust Fund. It is respectfully submitted that no deposit into the Aggregate Trust Fund is required of a self-insured employer under Section 27(2) of the Worker’s…

The costs increases when you factor in a professional installation, which will cost between $15-$75 per foot. Expect a fencing project with 100 feet of fence and a gate to cost between $1,600 and $7,500. You can save quite a bit of money by performing the installation yourself, but you may not be prepared for all the potential problems that…

daily decisions to major life decisions. The majority impact us economically. Fiscally 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…