... P/M | M1 | M2 | M3 | Supply | P1 | 20 | 5 | 13 | 200 | P2 | 9 | 18 | 7 | 450 | P3 | 11 | 16 | 23 | 325 | Demand | 100 | 375 | 500 | | In order to solve the above mentioned problem we are going to use transportation model. However, before starting the solution a brief description of the model will be illustrated as follow: Transportation Problem Many practical problems in operations research can be broadly formulated as linear programming problems, for which the simplex this is a general method and cannot be used for specific types of problems like, (i) transportation models, (ii) transshipment models and (iii) the assignment models. The above models are also basically allocation models. We can adopt the simplex technique to solve them, but easier...
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...Study | 2 | 1.4 Methodology of the Study | 3 | 1.5 Scope and Limitation of the Study | 3 | Chapter-02: Theoretical Overview | 4-8 | 2.1 Definition of Matrix | 4 | 2.2 Matrix Notation | 4 | 2.3 History of Matrix | 5 | 2.4 Types of Matrix | 6 | 2.4.1 Row Matrix | 6 | 2.4.2 Column Matrix | 6 | 2.4.3 Rectangular Matrix | 6 | 2.4.4 Square Matrix | 6 | 2.4.5 Zero Matrix | 7 | 2.4.6 Upper Triangular Matrix | 7 | 2.4.7 Lower Triangular Matrix | 7 | 2.4.8 Diagonal Matrix | 7 | 2.4.9 Scalar Matrix | 7 | 2.4.10 Identity Matrix | 8 | 2.4.11 Transpose Matrix | 8 | 2.4.12 Regular Matrix | 8 | 2.4.13 Singular Matrix | 8 | Chapter-03: Matrices Operation | 9-15 | 3.1. Properties of matrix operation | 9 | 3.1.1 Properties of subtraction | 9 | 3. 1.2 Properties of Addition | 9 | 3.1.3 Properties of Matrix Multiplication | 10 | 3.1.4 Properties of Scalar Multiplication | 10 | 3.1.5 Properties of the Transpose of a Matrix | 10 | 3.2 Matrix Operation | 11 | 3.2.1 Matrix Equality | 12 | 3.2.2 Matrix Addition | 12 | 3.2.3 Matrix Subtraction | 12 | 3.2.4 Matrix Multiplication | 12 | 3.2.5 Multiplication of Vectors | 14 | 3.3 Inverse of Matrix | 15 | 3.4 Elementary Operations | 15 | Chapter-04: Application of Matrix | 16-21 | 4.1 Application of Matrix | 16 | 4.1.1 Solving Linear Equations | 16 | 4.1.2 Electronics | 16 | 4.1.3 Symmetries and transformations in physics | 17 | 4.1.4 Analysis and geometry...
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...quality information and recognize the solid, reliable research on which one‟s high-risk decisions as a manager can be based. One also needs to know how to analyze the research findings. The study of quantitative techniques provides one with the knowledge and skills needed to solve the problems and the challenges of a fast-paced decisionmaking environment. Managers make decisions on a day to day basis and it is necessary for them to be able to analyze the data so as to be able to make optimal decisions. This module has ten lesson which cover matrix algebra, markov analysis, Linear programming, differentiation, applications of differentiation to cost, revenue and profit functions, integral calculus, inventory models, sampling and estimation theory, hypothesis testing and chi-square tests. iii MODULE OBJECTIVES By the end of the course, the student should be able to:- 1. Perform various operations on matrices matrix algebra, 2. Apply the concept of matrices in solving simultaneous equations, input-output analysis and markov analysis, 3. Formulate and solve Linear programming using the graphical and simplex method 4. Differentiate various functions and apply to cost, revenue and profit functions 5. Apply...
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...Practice set for Chapters 15 and 16 1) The single-rate cost-allocation method may base the denominator choice on: A) master-budget capacity utilization B) normal capacity utilization C) practical capacity D) All of these answers are correct. 2) Benefits of the single-rate method include: A) the low cost of implementation B) fixed costs that are transformed into variable costs for user decision making C) signals regarding how variable and fixed costs behave differently D) information that leads to outsourcing decisions that benefit the organization as a whole 3) Benefits of the dual-rate method include: A) variable costs that are transformed into fixed costs for user decision making B) the low cost of implementation C) avoidance of expensive analysis for categorizing costs as either fixed or variable D) information that leads to outsourcing decisions that benefit the organization as a whole 4)The advantage of using practical capacity to allocate costs: A) is that it allows a downward demand spiral to develop B) is that it focuses management's attention on managing unused capacity C) is that budgets are much easier to develop D) Either A or B are correct. Answer the following questions using the information below: The Bonawitz Corporation has a central copying facility. The copying facility has only two users, the Marketing Department and the Operations Department. The following data apply to the coming budget...
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...Marking Scheme(Note: Breakdown of marks must be shown for each sub-question) | Allocation of Marks | 1. Who are the key players in this case? What are their roles?The key players are Mary May and Mr. Edwards.Mary May was a project manager who reported directly to Mr Edwards. As a project manager, Mary was responsible to oversee project implementation as well as the project’s pricing and costing.Mr Edwards was the Water Purification Group Vice President. He was responsible to all projects under the group and therefore need to ensure the profitability of the group. 2. What is the main issue faced by Mary? What decision Mary need to make?Project ORG7, which is under Mary’s management showed cost overruns. The actual costs of completing the project were higher than the budgeted, causing significant losses to the group. Such losses would cause Mary’s bonus and also the groups’ overall performance.Mary is in the position to determine cost allocation for all projects under her management. Therefore she has the opportunity to intentionally allocate the extra costs to other projects under her management. 3. What are Mary May’s alternatives? Please provide supporting calculation to each alternative.Alternative 1: allocate the RM2,000,000 to Project ORG7Profit before tax = Total Revenue – Total costs= RM7,000,000 – RM8,200,000= - RM1,2000,000 or 17.1% lossesAlternative 2: allocated the RM2,000,000 to another projectProfit before tax = Total Revenue – Total costs= RM7,000,000 –...
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...things he did was to put pressure on his accountants to reallocate some of the company’s fixed costs away from the other two divisions to the plumbing division. This had the effect of causing the plumbing division to report losses during the last two years; in the past it had always reported low, but acceptable, net income. Blake felt that this reallocation would shine a favorable light on him in front of the board of directors because it meant that the electronics and fiber optics divisions would look like they were improving. Given that these are "businesses of the future," he believed that the stock market would react favorably to these increases, while not penalizing the poor results of the plumbing division. Without this shift in the allocation of the fixed costs, the profits of the electronics and fiber optics divisions would not have improved. Now the board of directors has suggested that the plumbing division be closed because it is reporting losses. This would mean that nearly 500 employees, many of whom have worked for Peters their whole lives, would lose their jobs. 1. If a division is reporting losses, does that necessarily mean that it should be closed? 2. Was the reallocation of fixed costs across divisions unethical? 3. What should Blake do?” (Weygandt, Kimmel, & Kieso, 2012). Solutions Guide: Please reword the answers to essay type parts so as to guarantee that your answer is an original. Do not submit as...
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...Advantages Makes cost allocation more fair Recognizes it’s true quality Could give a break because they are using the Same equipment and staff Dialysis Center is already using the same equipment and personnel Is there a better way? In order to offset the large facility costs; the Dialysis center should be able to claim revenues on direct utilization of pharmaceutical supplies; increasing their bottom line and potentially allowing them to remain financially stable through the facility transition. Is it “fair” for the Dialysis Center to suffer in profitability, and hence for the department head to possibly lose his bonus, just because the Outpatient Clinic needs additional space? Incentives Performance improvements Performance measures Disadvantages Costs more per square foot for the dialysis center For the Dialysis Center to bear the true costs, they forfeit the chance of generating true net profit. There will be more incentive to focus on outpatient services than Dialysis patients Other departments will find it less appealing to relocate if they know their profitability or contributions to the Hospital will decline severely when incurring true facility costs. How is pharmacy revenue handled? Pharmacy supplies used for dialysis cost the pharmacy $400,000 They profit $400,000 on drugs used Dialysis center books $800,000 in annual revenue They are charged $800,000 for the drugs they use Do you support the new allocation scheme? We agree with...
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...Greetings Inc. Activity Based Costing Analysis Reasons for ABC An activity-based costing system may be appropriate for Wall Décor, when traditional overhead allocation based job-order costing system provides product line cost bias. For example, Greetings. INC has added a new product line, Wall Décor. However, they have noticeably raised their overhead costs by increasing their cost drivers. In this circumstance, Wall Décor should amend its costing system so that overhead costs will be allocated in such a way that parallels to either frame or unframed prints instead of taking into consideration the same overhead for both products. ABC Overhead Rates Activity / Est. Overhead / Expected use of Cost Drivers / Activity-Based Overhead Rates Picking prints $30,600 /102,000 prints /$0.30 per print Inventory selection and management $91,700 /131,000 comp. /$0.70 per comp. Web-site optimization: Unframed $25,800 /100,000 prints /$0.26 per print Framed $103,200 /25,000 prints /$4.13 per print ABC Product Costs Lance Armstrong (unframed) Activity Rate/Usage/Overhead Allocated Picking Prints 0.30/80,000/$24,000 Inventory Selection and Management 0.70/ 80,000 /$56,000 Website Optimization- Unframed 0.26 /80,000 /20,640 Website Optimization- framed $4.13 Framing and Matting costs $2.10 Total Overhead $100,640 Total Prints ...
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...Johnson Beverage Inc by keyson studymode.com Robert KennedyCollege Financial Management Number of the assignment: Final Assessment Name of the assignment: Johnson Beverage Inc Date: November 26th , 2009 Professor: David Duffill Table of contents - List of Exhibit Description Page Executive summary 1 Main report : Detailed problem analysis 2 - 4 References / Bibliography 5 Executive summary Johnson Beverage, Inc (JBI) owned and presided by Jack Johnson is a beverages distributer that serviced last year about 20 customers among which are four main local retailers: Saver Superstore, Oscar’s OddLots, Midwellen Supermarket and Downtown Retail. The company had been in business for two decades and had grown steadily over the past 10 to 20 years to secure a large market share in the local area. JBI distributes principally bottled sports drinks provided by small specialty beverage companies. The company’s discounts policy depends on customers and is based on a number of commercial factors. One of JBI’s best and most loyal customers for years, Saver Superstore, had been approached by a competitor and may want to negotiate a lower price for its product purchases. During a meeting held to address the situation Johnson’s accountant Jim Thomas presented a compiled report on customers profitability and profit margin where customer service costs are allocated to customers as a percentage of revenue. This analysis brought Johnson...
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...The Impact of Healthcare reforms on Hospital Costing Systems The costing systems implemented in hospitals has been the same for a while now. It’s worked and has been easily allocated based off of averages from previous years. Now as times change so will the costing systems for hospitals in order to get the most beneficial cost-reductions to them as well as improve on efficiency. This article looks into how accountants for hospitals can redesign, reposition, and re-implement costing ideas to allocate on a per-unit of care basis (Selivanoff, 2011). We’ll take a look at two ways for accountants to prepare for these reforms and five steps to adjusting the costing systems in place. In the hospital costing system accountants want to measure costs during a patients stay to determine how much resources are being used. The one way accounting departments are improving efficiency is deter away from the average costs for their resources. Rather than allocating a hundred dollars for this test and a hundred dollars for this procedure they want to implement an “on-the-fly” care plan. Which measures truly how much a patient is costing them to get the optimized cost-reduced methods. It allows them to take a deeper look into inventory and assign costs to each resource so that patients really pay for what they used and hospitals have a clear costing method that’s equal for every person. This method is effective but is highly stressful for the accounting department to record at first...
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...overhead costs by multiplying their cost drivers. Not to mention the fact that they have incorporated a largely automated system into their product line, which we know calls for an ABC system. The main reason to move to ABC though, I’d say, would be because it will allow management to make better decisions and move away from the “cash machine” and “lemonade stand” metaphor simply because overhead costs will be allocated in such a way that corresponds to either framed or unframed prints instead of considering the same overhead for both products. By doing so managers will be able to price the prints competitively while still maintaining a profitable margin. An activity-based costing system may be appropriate for Wall Décor, when overhead allocation based job-order costing provides product cost distortion. Wall Décor should change its costing system for selling its high volume produced products whereas low-volume produced products have good profit. 2. The activity-based overhead rates: | Activity | Estimated Overhead | Expected use of Cost Drivers | Activity-Based Overhead Rates | | | | | | |Picking prints |$36,000 |102,000 prints |$0.30 per print | | | | | | |Inventory selection and management |$91,700 |131,000 components |$0.70 per component | | | | | |...
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...Full cost accounting Calculations -----> Six full cost accounting decisions #1 Defining final cost objects What is the product #2 Determining mission and support cost centers Which centers support and who are production #3 Distinguishing between direct cost and indirect cost Direct cost can directly be attributed to either product or organizational unit #4 Choosing allocation bases for support center cost How is it stated that the support centers shall be allocated to mission #5 Selecting an allocation method And execute the allocation. Stepdown allocation or similar #6 Attaching a mission center's cost to it's cost objects Allocate mission centers to the cost object after how it's stated #1 Client services in each department #2 8 mission service departments T&E, recordkeeping, cleaning, utilities, rent, adm is support #3 Others are direct costs #4 Rent allocated by square foot Administration time allocated on salaries Utilities allocated by square foot Cleaning allocated by square foot Record keeping allocated by number of records (one record per visit) * After adm utilities and cleaning Training and Education allocated by hours used First rent, utilities, cleaning,administration, record keeping, T&E ANSWER ASSIGNMENT Full Costs per visits are: Homemaker Service FC pr visit W/O Counseling $ 46,34 $ 59,32 Tot cost $ 231 707,98 Family Planning $ 17,15 $ 19,02 $ 171...
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...Lecture Notes on Mathematics for Economists Chien-Fu CHOU September 2006 Contents Lecture 1 Lecture 2 Lecture 3 Lecture 4 Lecture 5 Lecture 6 Lecture 7 Lecture 8 Lecture 9 Lecture 10 Static Economic Models and The Concept of Equilibrium Matrix Algebra Vector Space and Linear Transformation Determinant, Inverse Matrix, and Cramer’s rule Differential Calculus and Comparative Statics Comparative Statics – Economic applications Optimization Optimization–multivariate case Optimization with equality constraints and Nonlinear Programming General Equilibrium and Game Theory 1 5 10 16 25 36 44 61 74 89 1 1 Static Economic Models and The Concept of Equilibrium Here we use three elementary examples to illustrate the general structure of an economic model. 1.1 Partial market equilibrium model A partial market equilibrium model is constructed to explain the determination of the price of a certain commodity. The abstract form of the model is as follows. Qd = D(P ; a) Qd : Qs : P: a: Qs = S(P ; a) Qd = Qs , quantity demanded of the commodity quantity supplied to the market market price of the commodity a factor that affects demand and supply D(P ; a): demand function S(P ; a): supply function Equilibrium: A particular state that can be maintained. Equilibrium conditions: Balance of forces prevailing in the model. Substituting the demand and supply functions, we have D(P ; a) = S(P ; a). For a given a, we can solve this last equation to obtain the equilibrium...
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...machines like Mueller. HI had been able to effectively transfer these costs directly to the customers, therefore, allowing them to price their products significantly lower. Additionally, HI had been able to produce universal fasteners that current Mueller customers could utilize with Mueller’s attaching machines. Question 3: Assuming the budgeted income shown in Exhibit 1 is the actual income, the total profit from the sale of fasteners and the sale and rental of attaching machines would be $9.5 million. Also, assuming the predicted sales by fastener product line shown in Exhibit 5 are actual figures, combining them with Exhibit 9 we can get the total manufacture cost of fasteners, which is $69,630,604. We also made assumption on the allocation of sales, general, and administration costs on fastener production. According to information provided in the case, we assume that two-thirds of the R&D costs are allocated to fastener production although it is stated that at least two-thirds of the R&D project were related to fastener production. All of the commission costs is allocated to fastener production under our assumption. The other SG&A costs are allocated proportionally based on the sales of fasteners and machines. Adding up the SG&A costs to the manufacturing cost,...
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... EDD has four separate production departments: Data Encoding (DE), Video Encoding (VE), Voice Ratio Encoding (VRE) and Variable Wire Encoding. This specific contract is exclusive to VRE. EDD therefore need to ensure that they have the correct division of costs between each production department and that the cost for each department is then split correctly between the underlying manufacturing processes within the department. EDD AND ACTIVITY-BASED COSTING. EDD has already completed a great deal of work for "Activity Based Costing" (ABC), however their actual costing system needs to be capable of allocating the costs of multiple support departments in a refined and appropriate manner. As EDD has good product diversity, broad allocation of costs has becoming increasingly inaccurate and has...
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