Midterm 1. Opportunity costs are most simply defined as cost in terms of foregoing alternatives. This means what you potentially lose in making a choice for one thing in a decision. Stella would need to be aware that whatever resources she allocates to paying for the new car, will be removed from using them for other purposes. She should consider how much the car will cost in comparison with the other uses for her funds combined with the cost of another means of transportation. In short, for this
Words: 1280 - Pages: 6
per year in city *$3000 tax credit on hybrid *Same repair costs *Each car will need to be replaced after three years (resale value of $0) *Average gasoline price of $3.50 Monthly fuel costs: Highlander SE: 1250 hw miles / 25 mpg => 50 gallons * $3.50/gallon = $175 2083 city miles / 20 mpg => 104.15 gallons * $3.50/gallon = $364.53 Total Monthly Fuel Cost = $539.53 Monthly opportunity cost of capital is 2%/12 = 0.1667% Total PV of Costs = $32,845 + Annuity of $539.53 for 36 months at 0.1667% =
Words: 759 - Pages: 4
the Case in Point boxes from the Course Reader. The first case will define the economic concepts: choice, scarcity, and cost. The second case will describe how the stock market puts supply and demand to work. The last case will present the effects can be caused by private and external costs. Case in Point: Chapter 1.1-Defining Economics; Section 1-Scarcity, Choice, and Cost What Is Wrong With The Oil Productions? Why is oil harmful? Petroleum or oil had come to the existence about four
Words: 2346 - Pages: 10
Opportunity Cost of getting an MBA and Economic Factors to consider while taking a degree The opportunity cost of getting an MBA is what one must forego as a result of the resolution to pursue an MBA. Acquiring an MBA has potential career flexibility and advancement opportunities. This, however, gets accompanied by a huge price tag. Inflation has been outgrown by the higher education costs in America. Acquisition of an MBA has combined tuition costs with accommodation and stationery costs (John
Words: 360 - Pages: 2
on product cost. This case study was performed in order to see if Allied Office Products should switch and implement the Sales Based Pricing System. “ABC” based service costs for the TFC business were calculated and Total Cost/Expense were found to be $1,550,000 Storage, $1,801,000 Requisition Handling, $ 761,000 Basic Warehouse Stock Selection, $734,000 “Pick-up” Activity, $612,000 Data entry, and $250,000 Desk Top Delivery for a total of $5,708,000. After finding the Total Cost we were able
Words: 813 - Pages: 4
on top of. One competitor, an international company, uses the most modern technology to create the parts for its furniture. This company stays ahead of Guillermo because this process is cheaper, faster and much smarter. Next there was the high cost of labor, Guillermo has to be able to afford the expensive wood and make the payroll when it is time for employees to be paid. Working against these problems will result in a profit loss. Guillermo faces the concept of self-interest. This principle
Words: 446 - Pages: 2
Low employee retention is caused by several factors and not many businesses are immune. High turnover rates not only reflect badly on a business but are very costly. A 2012 study showed that it cost 1/5th an employees’ salary to replace them("What Are The Causes Of High Labor Turn Over Rate?", 2014). Costs such as advertising, recruiting, screening and hiring effect the bottom-line of every company. Low retention rates attribute to employee satisfaction, pay and geographical issues. Communication
Words: 423 - Pages: 2
24 - 25 Environmental Management Accounting (EMA) versus Environmental Financial Accounting (EFA): If so, what is the significance of knowing the better accounting method to use when identifying environmental cost? It has become indispensable for companies to increase their responsibility regarding all facets of the environment and to acclimatize existing practices to cause limited environmental impairment; more especially at this present time when stakeholders
Words: 5757 - Pages: 24
Analysis of cost data technique: CVP ANALYSIS OR COST VOLUME PROFIT ANALYSIS CVP a name itself explains that it is an analysis of Cost with reference to sales volume and profit (i.e. how much change is occurred in profit with due to cost and volume). CVP is an analysis that determines the company about the profitability by defining the cost-effective combination of costs (fixed cost and variable cost) and sales volume and price. (John Freedman, 2015) The basic formula for this relationship
Words: 1006 - Pages: 5
(dotted-line reporting to purchasing manager) and plant purchasing department (straight-line reporting to purchasing manager). Currently, they are being pressured to cut down their plant costs and reduce their prices. Aside from these, they are also facing employment and global competition issues. Three months ago, an opportunity to outsource their painting operations to Greven was presented to Glenn. As part of the evaluation process, tests were administered and colleagues were consulted. The tests showed
Words: 776 - Pages: 4
