of opportunity cost, the more alternatives that we have given up in undertaking an action, the higher the opportunity cost.” Please comment on this statement and explain your answers using examples. Ans Opportunity cost of an action refers to the value of the best alternative that must be given up in order to undertake that action. That is, the highest-valued option forgone. The statement in the question is uncertain and is determined by situation, because the opportunity cost is the value of
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of the marginal costs and the marginal benefits. It also requires that a person weigh out the own personal disadvantages and advantages related to this decision. I would take my family’s needs into consideration during this process in my life. There are five principles that is an appropriate to guiding a home purchase. The first of these is the principle “People Face Trade-offs”. People have to make choices if they are going to pay for a new home. The second principle is “The Cost of Something is
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What is an ideal management control system Management control is a process of assuming that resources are obtained and used effectively and efficiently in the accomplishment of the organization’s objectives. It is a fundamental necessity for the success of a business and hence from time to time the current performance of the various operations is compared to a predetermined standard or ideal performance and in case of variance remedial measures are adopted to confirm operations to set plan or policy
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UNIT 13: MANAGING FINANCIAL PRINCIPLES AND TECHNIQUES Table of Contents Task 1: Applying costs concepts to decision making process 2 1.1Explaining the importance of costs in pricing strategy 2 1.2 Designing costing and pricing system 2 1.3 Recommending proposal 4 Task 2 Application of forecasting techniques 5 2.1 Forecasting Techniques 5 2.2 Sources of Funds for the Expansion of ABZ Ltd 6 Task 3 Participating in the Budgeting Process 10 3.1 Selecting appropriate budgetary targets
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their demand for oil. This demand, coupled with investors who are seeking to invest in commodities such as oil due to the weak dollar, are driving oil prices up. The cost of gasoline is not solely based on the price of oil. The price of gasoline also includes the taxes, the cost to refine oil into gasoline, the transportation costs, and the profit of the gasoline dealer. Stocks of gasoline grew by almost one million barrels which means there will be plentry of gasoline available. The weaker demand
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Name: AccountingManagement Unit Name: Activity Based Costing Unit code:(AA3/2/LN/069 & AA3/3/LN/057) Learner Name: Tutor Name: Chris Cooney COURSE WORK ASSIGNMENT 2015-16 Traditional cost accounting has been based on allocating a subjective or calculated range of indirect expenses to direct costs. Activity Based Costing (ABC) offers an alternative approach. Much of the textbook work on ABC refers to examples from large-scale manufacturing and yet in the UK total public spending is expected
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EXECUTIVE SUMARRY With her appointment as the president and CEO of Astral Records, Sarah Corner was tasked with saving the organization from the problems it had. Leadership is core to organizational development and success. It is crucial that a radical transformation approach be pursued to resolve the problems faced by the organization. ‘Investment is the employment of funds with the aim of achieving additional income or growth in value. The essential quality of an investment is that it involves
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chapter 9. Evaluating new production and sourcing locations 9.1 Labor costs in manufacturing industries in different countries Norway Belgium Switzerland West. Germany Denmark Finland France Austria Luxemburg Sweden Netherlands Ireland Italy USA Japan UK Spain East Germany Canada Greece Slovenia 43.64 38.59 37.14 36.05 35.08 33.76 33.31 33.20 33.09 32.88 32.75 29.62 27.40 22.95 22.86 22.21 21.87 21.11 21.01 16.44 13.18 South Korea Malta Portugal
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component of a firm’s information system, includes budgets, data on the costs of each product and current inventory and periodic financial reports. Internal accounting systems serve two purposes: v Provide some of the knowledge necessary for planning and decision making; v Help motivate and monitor people in organizations (control). The most basic control use of accounting is to prevent fraud and embezzlement. Design and use of cost systems An internal accounting system should have the following characteristics:
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Exercise 9 Solution Chapter 11 Firms in Perfectly Competitive Markets 11.1 Perfectly Competitive Markets 1) Which of the following is not a characteristic of a perfectly competitive market structure? A) There are a very large number of firms that are small compared to the market. B) All firms sell identical products. C) There are no restrictions to entry by new firms. D) There are restrictions on exit of firms. Answer: D Comment: Recurring Diff: 1 Page
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