...computers, help average and marginal productivity. Computer help to make jobs go faster whether the task is giving multiple people a memo or giving a single person a message that is two cities away, e-mail is very useful for these tasks. Excel makes accounting duties that use to take days, even weeks to accomplish, can now be put together in matters of minutes or an hour. Law of Diminishing Marginal Productivity An economic principle that states that while increasing one input and keeping other inputs at the same level may initially increase output, further increases in that input will have a limited effect, and eventually no effect or a negative effect, on output. The law of diminishing marginal productivity helps explain why increasing production is not always the best way to increase profitability. The law of diminishing marginal productivity shows us that instead of continuing to increase the same input, it might be better to stop at...
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...Production Cost Analysis and Estimation Applied Problems BUS640 Managerial Economics Gail Coates October 20, 2015 Isabel Wan Introduction The cost that a business incurs when it combines raw material and labor to produce or manufacture a product or service is called production cost. Knowing the distinction between the fixed and variable inputs in the production process is very important in production and cost analysis (Douglas, 2012). We will be examining two different problems of production cost analysis and estimation applied problems in this paper. We will also show which inputs are fixed and which are variable in one of the problems. During the other problem the marginal cost curve and the incremental cost will be described as well as the profit-maximizing price and output levels. PROBLEM 1 Workers | Oven cost- Fixed | Labor cost- Variable | Total cost | 0 | $1,000 | 0 | $1,000 | 1 | 1,000 | 500 | $1,500 | 2 | 1,000 | 1,000 | $2,000 | 3 | 1,000 | 1,500 | $2,500 | 4 | 1,000 | 2,000 | $3,000 | 5 | 1,000 | 2,500 | $3,500 | 6 | 1,000 | 3,000 | $4,000 | 7 | 1,000 | 3,500 | $4,500 | 8 | 1,000 | 4,000 | $5,000 | Number of pizzas-Variable | Average cost | Pizzas per worker | Increase in production | 0 | 0 | 0 | 0 | 75 | 20.00 | 75 | 75 | 180 | 11.11 | 90 | 105 | 360 | 6.94 | 120 | 180 | 600 | 5.00 | 150 | 240 | 900 | 3.89 | 180 | 300 | 1140 | 3.51 | 190 | 240 | 1260 | 3.57 | 180 | 120 | 1360 | 3.68 | 170 | 100 | ...
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...structure industry overview; international market analysis, China domestic market analysis, Macroeconomic environment and economic situation analysis and influence, Functional beverages industry policy and plan, Functional beverages product specification, manufacturing process, product cost structure etc. then statistics Global and China key manufacturers Functional beverages capacity production cost price profit production value gross margin etc details information, at the same time, statistics these manufacturers Functional beverages products customers application capacity market position Activationontact information etc company related information, then collect all these manufacturers data and listed Global and China Functional beverages capacity production capacity market share production market share supply demand shortage import export consumption etc data statistics, and then introduced Global and China Functional beverages 2009-2013 capacity production price cost profit production value gross margin etc information. And also listed Functional beverages upstream raw materials equipments and down stream clients survey analysis and Functional beverages marketing channels industry development trend and proposals. In the end, this report introduced Functional beverages new project SWOT analysis Investment feasibility analysis investment return analysis and also give related research conclusions and development trend analysis of Global and China Functional beverages industry...
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... | |【网 址】 |http://www.360BaoGao.com/2014-02/2014_Market_Research_Report_on_Global_and_China_Tire_Industry/ | |【提 示】 |如需中文、日文等其他语言版本报告，请向客服咨询。 | was professional and depth research report on Global and China Tire industry. The report firstly introduced Specialty Tire basic information included Tire definition classification application industry chain structure industry overview; international market analysis, China domestic market analysis, Macroeconomic environment and economic situation analysis and influence, Specialty Carbon Black industry policy and plan, Tire product specification, manufacturing process, product cost structure etc. then statistics Global and China key manufacturers Tire capacity production cost price profit...
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... | |【网 址】 |http://www.360BaoGao.com/2014-02/2014_Market_Research_Report_on_Global_and_China_Smartphone_Industry/ | |【提 示】 |如需中文、日文等其他语言版本报告，请向客服咨询。 | "2014 Market Research Report on Global and China Smartphone Industry" was professional and depth research report on Global and China Smartphone industry. The report firstly introduced Smartphone basic information included Smartphone definition classification application industry chain structure industry overview; international market analysis, China domestic market analysis, Macroeconomic environment and economic situation analysis and influence, Smartphone industry policy and plan, Smartphone product specification, manufacturing process, product cost structure etc. then statistics Global and China key manufacturers Smartphone capacity...
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...diagram, cost analysis of purchasing new equipment, and improving scheduling will not only increase the plant’s capacity—it will also eliminate overtime costs leading to savings for growers. NCC operates as a service industry therefore we used peak numbers (10% higher level of berries - over the average production in 1994 and 1995) to ensure our process would eliminate bottlenecks even during periods of high production. Using a process flow diagram, cost analysis of purchasing new equipment, and improving scheduling will not only increase the plant’s capacity—it will also eliminate overtime costs leading to savings for growers. NCC operates as a service industry therefore we used peak numbers (10% higher level of berries - over the average production in 1994 and 1995) to ensure our process would eliminate bottlenecks even during periods of high production. Using a process flow diagram, cost analysis of purchasing new equipment, and improving scheduling will not only increase the plant’s capacity—it will also eliminate overtime costs leading to savings for growers. NCC operates as a service industry therefore we used peak numbers (10% higher level of berries - over the average production in 1994 and 1995) to ensure our process would eliminate bottlenecks even during periods of high production. Using a process flow diagram, cost analysis of purchasing new equipment, and improving scheduling will not only increase the plant’s capacity—it will also eliminate overtime costs leading...
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...product costing and income determinationAbsorption Costing: This is a total cost technique under which total cost (i.e., fixed cost as well as variable cost) is charged as production cost. In other words, in absorption costing, all manufacturing costs are absorbed in the cost of the products produced. Marginal Costing: An alternative to absorption costing is marginal costing, also known as ‘variable costing’ or direct costing. Under this technique, only variable costs are charged as product costs and included in inventory valuation. Fixed manufacturing costs are not allotted to products but are considered as period costs and thus charged directly to Profit and Loss Account of that year. Fixed costs also do not enter in stock valuation. Marginal Costing: Definition CIMA London as ‘The accounting system in which variable costs are charged to cost units and fixed costs of the period are written off in full, against the aggregate contribution. Its special value is in decision making’. Segregation of costs into fixed and variable elements • In marginal costing all costs are classified into fixed and variable. Semi-variable costs are also segregated into fixed and variable elements. Marginal costs as products costs • Only marginal (variable) costs are charged to products produced during the period. Fixed costs as period costs • Fixed costs are treated as period costs and are charged to Costing Profit and Loss Account of the period in which they...
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...their production of Release-Ease within their current plants or move production to another location. This new location would be one, or more, of Applichems’ production locations including: Gary (Indiana/USA), Mexico, Frankfurt (Germany/Europe), Sunchem (Japan). To determine this, a cost analysis must be conducted to verify the benefits of keeping production of Release-Ease in their current locations, or moving production to another location. When determining the cost benefits, transportation and production cost differences must be considered. Recommendations Through careful analysis, it is recommended that Production of Release-ease be maintained in Gary, Indiana. Instead of abandoning the Gary production facility due to its lack of production efficiencies, measures to improve the facility should be implemented. Ceasing production of Release-ease in Japan is also recommended. Although the plant in Japan is more technologically advanced, its high production costs and low productivity levels are valid reasons for eliminating the Release-ease production lines. It is recommended, however, that the plant continues its current production of the other product it manufactures. The plant will also be useful in conducting R&D for other Applichem products. Changes in the production volumes among the various plants are also recommended. These changes will increase production to full capacity for some plants while reducing transportation costs. Analysis Cost...
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...Survey Study Analysis and Overview : Industry Trend, Size, Share, Growth and Forecast Global industry for Sodium Permanganate is a distinctive study encompassing a detailed study of the industry pertaining to an important set of industry verticals. The report, titled Global Sodium Permanganate Industry 2015, is the result of data gathered from industry experts and a mix of primary and secondary research methodologies. The report studies the international Sodium Permanganate industry chain in detail, with focus on key product types, applications, development trends, production methodologies, technological developments, leading countries and companies supplying Sodium Permanganate, and a detailed study of competitive landscape of the marketplace. Browse Complete Report with TOC @ http://www.qyresearchreports.com/report/global-sodium-permanganate-industry-2015-market-research-report.htm Based on a close study of trends, and developments observed in the Sodium Permanganate industry over the review period, the report forecasts industry’s overall progress on fronts such as production capacities, product costs, prices, profits, gross margins and production values over the period 2014-2020. The report studies the international Sodium Permanganate industry starting from scratch – with the basic definition of Sodium Permanganate, moving up with the study of elements forming the international Sodium Permanganate industry, the structure of industry chain, an analysis of regulatory...
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...High Voltage Load Switch Loss Industry 2015 Market Analysis Survey Research Growth and Forecast Report A new research report on the international High Voltage Load Switch Loss industry, with a key focus on the China market, has been recently added to the research report database. The report, titled “Global And China High Voltage Load Switch Loss Industry 2015 Market Research Report”, is a detailed analysis of the key elements of the High Voltage Load Switch Loss industry chain based on expert data gathered pertaining to report’s review period. A detailed forecast of the High Voltage Load Switch Loss industry’s future state during the years 2020-2015 is formed based on historical data, prominent trends of the past, and development trends observed in the industry so far. The section of competitive analysis of the report presents a snapshot of the High Voltage Load Switch Loss industry landscape in key countries and regions across the globe, with a keen focus on Chinese regions. Of the key High Voltage Load Switch Loss international and Chinese manufacturers, details such as product types manufactured, production capacities, production values, gross margins, product production global share, company contact information, product pictures, manufacturing processes, product cost structures, etc. are included. The report also studies the new projects in the High Voltage Load Switch Loss marketplace, and presents SWOT analysis, investments feasibility and returns feasibility of...
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...CONTENTS Analysis of the case 2 Q1) Do you agree with Walters decision to keep product 103? 3 Analysis of Profit and loss statement 4 Sensitivity analysis 6 Strategic scenarios 8 Q2) Should superior lower as of January 1, 2006 its prices of product 101? To what price? 10 Q3) why did Supreme improve profitability during the period of January 1 to June 30, 2005? 13 Analysis 14 Q4) why is it important that Superior has an effective cost system? 17 What is your overall appraisal of the company’s cost system and its use in report to management 18 List the strengths and weaknesses of the system and its related reports for the purpose management uses the system’s output 18 What recommendations, if any, would you make to waters regarding the company’s cost accounting system and its related reports? 19 Initial Analysis of Superior Manufacturing Company Case :- 1) After death of Richard Harvey (2004), founder and president of Superior Manufacturing Company (SMC), Paul Harvey took over. Paul Harvey had only 4 years of experience. Soon followed serious management problems because of some bad decisions made by Paul Harvey. The income statement of 2004 reflected net loss of $0.68million in a good business year. To solve this problem Herbert Waters was brought over as General Manager of SMC. 2) SMC manufactured 3 different products namely 101, 102, 103 and was among the top 8 companies in the industry. Samra Company was market leader and announced price annually and other...
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...Decision Analysis - The graduate analyzes risks and values and uses a variety of decision analysis tools and decision theory to evaluate alternatives during decision-making processes. 326.3.3: Decision Strategies - The graduate evaluates decision methods and develops strategies for organizational decision processes. 327.3.2: Metrics and Tools - The graduate...
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...Flexible Budget ACC 543 June 20, 2011 Flexible Budget In today’s business, a flexible budget helps plan for the future. This tool compiles expense, revenue, production, and cost data. The data produced from the flexible budget provides an organization with a tool for performance evaluation. This can assist management in determining the most profitable sales and production levels, in addition to determining fixed and variable costs. Examining how the flexible budget relates to fixed and variable costs as well as analyzing the correlation between the static and flexible budget leads to cost-volume-profit analysis. Static and Flexible Budgets Fixed cost, such as manufacturing, is those cost that remain unchanged and stay constant no matter what the volume of activity may be. The variable cost, labor and materials, will vary and is most often determined based on the activity and the market prices for various labor and materials. The flexible budgets provides the what if situations for the company. The budget is also commonly used to determine how effectively a company is planning and performing. Unlike the static budget, the flexible budget provides customers with the actual number rather than the planned activity for the company. In the budget, the fixed cost will remain constant but may change for a couple of reasons. One of the reasons the numbers may be change is because the planned volume may be higher than the actual volume, which would...
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...MAINTAINING QUALITY SUBDOMAIN 329.4 - MANAGING OPERATIONS Competencies: 326.3.1: Decision Analysis - The graduate analyzes risks and values and uses a variety of decision analysis tools and decision theory to evaluate alternatives during decision-making processes. 327.3.2: Metrics and Tools - The graduate analyzes how work is accomplished and applies quality...
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...Global ISO E Super Industry 2015 Market Survey Study Analysis and Overview : Industry Trend, Size, Share, Growth and Forecast Global industry for ISO E Super is a distinctive study encompassing a detailed study of the industry pertaining to an important set of industry verticals. The report, titled Global ISO E Super Industry 2015, is the result of data gathered from industry experts and a mix of primary and secondary research methodologies. The report studies the international ISO E Super industry chain in detail, with focus on key product types, applications, development trends, production methodologies, technological developments, leading countries and companies supplying ISO E Super, and a detailed study of competitive landscape of the marketplace. Browse Complete Report with TOC @ http://www.qyresearchreports.com/report/global-iso-e-super-industry-2015-market-research-report.htm Based on a close study of trends, and developments observed in the ISO E Super industry over the review period, the report forecasts industry’s overall progress on fronts such as production capacities, product costs, prices, profits, gross margins and production values over the period 2014-2020. The report studies the international ISO E Super industry starting from scratch – with the basic definition of ISO E Super, moving up with the study of elements forming the international ISO E Super industry, the structure of industry chain, an analysis of regulatory policies ruling the marketplace, and...
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