Marginal Risk Contributions Overview This chapter focuses on marginal risk contributions, to portfolio loss volatility or to portfolio capital, and compares them with absolute risk contributions. Marginal risk contributions serve essentially for risk-based pricing with an ‘ex ante’ view of risk decisions, while absolute risk contributions are the basis for the capital allocation system. Marginal risk contributions to capital are the correct references for risk-based pricing. Pricing based
Words: 2466 - Pages: 10
Calculate the following: Current ratio, long-term solvency ratio, contribution ratio, programs/expense ratio, general and management/expense ratio, and revenue/expense ratio for the years 2003 and 2004. Current Ratio 2003 [pic][pic] [pic] [pic] 2004 [pic][pic] [pic] [pic] o Long-Term Solvency Ratio 2003 [pic] [pic] [pic] 2004 [pic] [pic] [pic] Contribution Ratio 2003 [pic] [pic] [pic] 2004 [pic] [pic] [pic] Programs/Expense
Words: 1061 - Pages: 5
whole company in both cases: external purchasing vs. internal purchasing (we have to take with contributions because fixed costs are irrelevant). External purchasing scenario: | ECD | Heidelberg | ISD | Zumwald | Turnover | - | - | 340,000 € | 340,000 € | Variable Costs | - | - | 26,300 €72,000 €100,500 € | 26,300 €72,000 €100,500 € | Fixed Costs | - | - | 117,700 € | 117,700 € | Contribution | - | - | 141,200 € | 141,200 € | Internal purchasing scenario: | ECD | Heidelberg |
Words: 352 - Pages: 2
relevant, there is a contribution of €90,000 (140,000-50,000) to Heidelberg. For EDC, the variable costs for EDC are €9,000 in the €21,600 quote to ISD. So it will have €12,600 (21600-9000) profits for the company. The total contribution to Zumwald is €102,600 (12600+90000). If ISD buy the system from Display Technologies atherosclerosis than Heidelberg, ISD will earn €39,500 more than buy the systems from Heidelberg. However, €39,500 is much smaller than the total contribution to Zumwald of €102,600
Words: 644 - Pages: 3
Zumwald AG case Zumwald produced and sold a range of medical diagnostic imaging systems, biomedical test equipment and instrumentation. The firm has a divisional structure and a highly decentralized basis. Managers of each division have lot of autonomy in decision-making and they are compensated based on achievement of budgeted targets and ROIC. Moreover, Zumwald is vertically integrated (some divisions produce components that are essential to the others). Thus three divisions involved
Words: 644 - Pages: 3
Reaction Paper: 300 “Prepare for Glory.” Taliwas sa kasaysayan ng Pilipinas na kung saan lumalaban ang lahi ni Juan upang kumawala sa tanikala ng supresyon, ang mga taga-Sparta sa naturang panahon ayon sa pelikula ay nakikipagdigma para sa karangalan at kapangyarihan. Hiyang na kasi silang lumaban kahit nakakapit pa sa patalim ang kanilang buhay. Hindi alintana ang panganib basta’t maprotektahan lamang ang kanilang pinagkainga-ingatang lunsod-estado. Isang kamangha-manghang bagay nga na magapi
Words: 299 - Pages: 2
ISSUES IN ACCOUNTING EDUCATION Vol. 19, No. 4 November 2004 pp. 555–565 The ALLTEL Pavilion Case: Strategy and CVP Analysis Edward Blocher and Kung H. Chen ABSTRACT: The ALLTEL Pavilion case is intended for the undergraduate management accounting or cost accounting course and the M.B.A. management accounting course. It provides an excellent context in which to examine strategic issues in using cost volume profit (CVP) in a service business. Based on an actual entertainment pavilion,
Words: 4897 - Pages: 20
Introduction This is a case of outsourcing where contribution analysis is carried out. Outsourcing is the ordering of goods or labour from the outside the vendors manufacturing plant. In this case the company is intending to outsource the production of 30,000 Alpha Phones from Original Equipment Manufacturers rather then producing in-house. Apart from the quantitative analysis’s qualitative factors will also be considered as necessary (Horngren, Datar and foster, 2003 p. 378). Alternative solution
Words: 889 - Pages: 4
CASE BACKGROUND • Prestige Telephone Company (PTC) is the parent company of Prestige Data Services (PDS) • PDS provides data services to its parent company as well as other companies willing to hire its services • It is wholly owned by PTC, but runs as a separate business entity, so each pays the other for services received • It was conceptualized in 1994, and started operations in 1995 • Daniel Rowe, president of PTC, was the one who pitched PDS, and believes it could
Words: 1364 - Pages: 6
while Product B’s sales price is RM200. Product A’s variable costs is RM50 while Product B’s variable cost is RM135 Contribution Per Unit, A is RM50 ; Contribution Per Unit, B is RM50 N used per unit of A is 10 Kg ; N used per unit of B is 20 Kg Therefore: Contribution per Kg A is 50/10 = 5 whereas contribution per Kg B is 65/20 = 3.25 As you can see Product A Contribution per Kg is greater than that of Product B, so every effort should be made to produce as much units of Product A as possible
Words: 295 - Pages: 2
