feasibility: Project name: Nueva Aldea Construction time: 3-4 years, we chose a 4 year construction time because we assumed it will take 3 years of direct constructing and a 1 year for extra delays and administrative procedures. We will also assume that the cost of the construction will be divided evenly between the years. Mill life time: 30-40 years, for the sake of this question we will assume a 35 years lifetime. (P.1 L.10) Expected sales: 350$ million per year at full capacity production. (P.1 L.10)
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resources, one has to incur cost whatever his decision will be. As cost is defined as the ‘highest-valued option forgone, whenever there is an option, there will be cost. However, since one’s resources can only be allocated to one use at one time, though there may be many options available, the cost of one’s activity is not equal to the sum of the options forgone. Hence, in deciding the cost of one’s action, only the highest-valued option forgone is considered as the cost of one’s action. This is because
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sales level (e.g. certainty level). 5. How would you incorporate the following information in your analysis? i. Sales price with inflation. ii. The land cost ($250,000) iii. Cost associated with administrative staff ($223,000) iv. Sales staff time in securing the contract ($40,000) v. Cost saving due to new line ($0.019 per unit plus $138,000 per year) vi. Operating margin of 15%. vii. Working Capital: Reduction in average inventory age (by two
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with profits above budget and sales increasing by 20% from the previous year. Jean had stumbled across a new source of revenue in which he helped deliver packaged food for regional producers using the company’s refrigerated trucks. The incremental cost to provide the service was very low and was seen by Jean as a simple way to increase revenue. Jacques was surprised by Jean’s new initiative, but acknowledged the profit potential in the distribution business. Pierre Giraux is the manager of
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Research Study Capital-Market Effects of Corporate Disclosures and Disclosure Regulation Christian Leuz Peter Wysocki June 26, 2006 Commissioned by the Task Force to Modernize Securities Legislation in Canada Christian Leuz Christian Leuz is currently the Professor of Accounting at the University of Chicago, Graduate School of Business. He is also the David G. Booth Faculty Fellow. Prior to this position, Professor Leuz was the Harold Stott Term Assistant Professor in Accounting at
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Netflix Case Analysis Key Strategic Issue This article is about the past business history and current business situation Netflix company is in. The case begins talking about how Netflix started with a bang making positive profits and revenues, but has recently hit some trouble due to strategic mishaps negatively affecting the company. The article then begins to describe the industry and various competition within it, and how they do business. There is some information on market trends in home
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focusing on where a quality issue may appear during a particular process; Checksheets demonstrate tallies of the number of defects for a list of problems that were discovered in the past; Histograms provide management with a frequency of data that is relevant to the quality problem; Scatter Diagrams identify "a pattern that may cause a quality problem" (Russell & Taylor III, 2014, p. 61); Statistical Process Control Charts consist of upper and lower boundaries. "If the process stays between these
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3-04 Re: Relevant Quality Costs Date: March 1, 2013 Sir, As a producer of tangible products, CCI, Inc must direct its focus to delivering the best possible product to our customers. This is integral not only in the nurturing of our existing relationships, but also in fostering new ones. Our systems’ audit team has successfully identified three categories of cost as they relate to the implementation of quality consideration. These three costs are appraisal costs, prevention costs, and failure
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Direct labour costs 40,000 10,000 Production overhead 20,000 30,000 Seed stock, fertilizer and chemical 15,000 25,000 Costs to complete the cycle 90,000 100,000 Estimated harvest 10,000 kg 15,000 kg Required: a) Determine the estimated total costs upon completion and estimated profit for each batch if the selling price for the tiger prawns is RM12/kg. b) If provision for batch 1 and batch 2 is RM16,000 and RM8,000 respectively, calculate the value of the closing stock at NRV and at cost 1 QUESTION
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emphasize on the going-concern. Contract pricing issue The three contracts accepted earlier this year suggest the current pricing scheme does not provide sufficient revenue to cover the relevent expenses. Project cost management is critical to serve as a basis to measure cost and productivity of each project. Therefore, the IT systems should implement a project costing function to support more appreciate pricing decisions. Cash-flow management issue Recent delays in vendor payments have
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