required to produce each product or provide each service. ABC assumes that most overhead costs are related to activities within the firm and that they vary with respect to the drivers of those activities. Allocation. The process of spreading costs from one expense category to several others, typically based on usage. For example, such corporate overhead expenses as rent and utilities may be charged to departmental units based on square feet. Amortized expenses. The costs for assets, particularly intangible
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1. INTRODUCTION TO DERIVATIVES While, trading in derivatives products has grown tremendously in recent times, the earliest evidence of these types of instruments can be traced back to ancient Greece. Even though derivatives have been in existence in some form or the other since ancient times, the advent of modern day derivatives contracts is attributed to farmers’ need to protect themselves against a decline in crop prices due to various economic and environmental factors. Thus, derivatives contracts
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defer payment into the future when he or she could have the same amount of money now? For most of us, taking the money in the present is just plain instinctual. So at the most basic level, the time value of money demonstrates that, all things being equal, it is better to have money now rather than later” (Croome 2003). The concept of Time Value of Money (TVM) is that the dollar that company has today is worth more than the promise or expectation that the company will receive a dollar in the
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usually includes the development, analysis, and maintenance of plans for total sales, total production, targeted inventory, and targeted customer backlog for families of products. The production plan is the result of the aggregate planning process. Two approaches to aggregate planning exist:1) production planning and 2) sales and operations planning, sales plan. | Advanced planning and scheduling (APS) | Techniques that deal with analysis and planning of logistics and manufacturing during short
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PART 3A COST MEASUREMENT CONCEPTS 457 QUESTIONS [1] Source: CMA 0690 5-27 Costs that arise from periodic budgeting decisions that have no strong input-output relationship are commonly called A. Committed costs. B. Discretionary costs. C. Opportunity costs. D. Differential costs. [Fact Pattern #1] The estimated unit costs for a company using absorption (full) costing and planning to produce and sell at a level of 12,000 units per month are as follows.
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other currencies because it is a relatively stable source of purchasing power and widely accepted. It also tends to be the international pricing currency for products traded on a global market, and commodities such as oil, gold, etc The US dollar is one of the primary reserve currencies used worldwide. A reserve currency, also called an anchor currency, is a currency that is held in significant quantities by numerous governments and central banks as part of their foreign exchange reserves. These
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$1,000 * 1.05/.05 = $21,000. With payment at the end of the year, the value would be $20,000. #3 The effective yield is the discount rate that makes the present value of the coupon payments equal to the price of market price of the bond. A short-term measure of the effective yield is the coupon rate plus the expected appreciation on the bond. #7 A nominal rate is used to discount nominal values; a real rate is used to discount real values. If the values are real, use the appropriate real rate
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this book to affect the minds of the young adults because he wants to warn them what society may become in the future. A society based on hate can survive when there is power. There are many factors that would make one want to believe this type of society would not survive. For one, humanity has an innate desire to seek outside the self, to break free from its confines and truly experience life. As brilliantly explained by Mr. Keating (Robin Williams) in the 1989 movie Dead Poets Society, “And the
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UV0012 KOTA FIBRES, LTD. Ms. Pundir, the managing director and principal owner of Kota Fibres, Ltd., discovered the problem when she arrived at the parking lot of the company’s plant one morning in early January 2001. Trucks filled with rolls of fiber yarns were being unloaded, but they had been loaded just the night before and had been ready to depart that morning. The fiber was intended for customers who had been badgering Pundir to fill their orders in a timely manner. The government tax
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error is omitting one of the ledger account totals from the trial balance.[2] * An error of reversal is when entries are made to the correct amount, but with debits instead of credits, and vice versa.[1] For example, if a cash sale for £100 is debited to the Sales account, and credited to the Cash account. Such an error will not affect the totals. * An error of commission is when the entries are made at the correct amount, and the appropriate side (debit or credit), but one or more entries
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