Absorption and marginal costing (Relevant to AAT Examination Paper 3: Management Accounting) Li Tak Ming‚ Andy Deputy Head‚ Department of Business Administration‚ Hong Kong Institute of Vocational Education (Kwai Chung) Introduction Absorption costing and marginal costing are alternative cost accumulation systems used to ascertain product or job costs for inventory valuation and cost of sales. Absorption costing Absorption costing includes both variable and fixed production costs in the
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Act of Parliament (the Pre-legislative process diagram): Consultation- this is your first stage where you have to get different opinions from other people about what they think about the law that you want to introduce. You can do this by creating a survey‚ questionnaire‚ asking people face to face etc. If you get you get positive or negative feedback then you can go through to the next stage which is the green paper. Green paper- this is the second stage‚ where you produce your draft
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elasticity. Alternative formulation of elasticity EP = dQ/dP * P/Q = dlnQ/dlnP Natural log: ln‚ uses the base “e” How? ∂lnQ/∂lnP =(d lnQ/dQ) * (dQ/dP) * (dP/dlnP) [ Note: dY/dX = 1/(dX/dY) since‚ dlnX/dX = 1/X‚ dX/dlnX = X] Example: Q = AP-α A:Constant>0 lnQ=lnA + ln(P-α) =lnA – αlnP EP = dlnQ/dlnP = -α ∝ =∆lnQ/∆lnP ∝ =P/Q* (∆Q/∆K) = Elasticity The coefficients of double log model are the corresponding elasticity Price elasticity = -1.247 Income elasticity
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be obtained for their industry. Marginal revenue‚ marginal cost‚ total cost and profit-maximizing are some of the concepts that are analyzed when making business production decisions. Marginal revenue is the total revenue that is changed when one more unit of output is produced. The total revenue is determined by multiplying the unit price by what quantity the company can sell. The total revenue increases when the first unit is purchased and equals the marginal revenue. When the second unit is
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The Value of Marginal Places In the essay “In Praise of Margins” by Ian Frazier‚ Frazier mentions that the world is a place where adults tend to get caught up in. They do not realize that what they need is that place to breath. He says that marginal places and activities‚ when he was a kid‚ were a waste of time‚ but once he was older and saw his child have their marginal “moment” playing‚ in the steam instead of fishing‚ he realizes the importance as an adult. He mentions that we all have a place
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PROBLEM 1 Max has the utility function U(x‚ y) = x(y + 1). The price of x is $2 and the price of y is $1. Income is $10. How much x does Max demand? How much y? If his income doubles and prices stay unchanged‚ will Max’s demand for both goods double? To set his MRS equal to the price ratio‚ Max sets (y+1)/x = 2. His budget constraint is 2x + y = 10. Solve these two equations to find that x=11/4 and y=9/2. If his income doubles and prices stay unchanged‚ his demand for both goods does not double
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Velasquez 5.1 and 5.5 All of your responses should be written in complete sentences. 1. Define Rationalism The view that knowledge of the world can be obtained by relying on reason without the aid of the senses. 2. Define Empiricism Knowledge about the world can be attained only through sense experience. 3. What is Induction and how does it work? How does it make use of both empiricism and rationalism? It is defined as the reliance of observations‚ generalizations and repeated confirmation.
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Reservation System Thesis The chapter 1 discusses the introduction and system overview of the study. This section deals with the following statement of the problem according to the study‚ objective‚ scope and delimitation of the study. The chapter 2 deals with the feasibility studies discuss which includes technical feasibility and operational feasibility. Economic feasibility deals with the hardware and software depreciation cost. The cost will implement in the market analysis. System Analysis
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[pic] Topic 1: Define project What is a project? A project is the defined set of planned and managed activities carried out for a period of time — with a defined start and end date. A project is designed to yield a set of products or services as agreed with the project clients and stakeholders. It has a lifecycle which is the process by which the project is undertaken. Five features that differentiate projects from ordinary work are that they:
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Study Exercise One Part One SWOT Analysis of adopting a new form of governance for Colorado Springs Utilities: Strengths (internal): • Politically insulates elected officials from unpopular‚ but necessary utility decisions • Reduces risk and legal liability to elected officials • Allows for greater subject matter expertise and focused attention on public utility issues by members of new utility board • Frees council members to focus their attention on other constituency issues • Allows for improved
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