When reformulating the Gig Economy phenomenon in a Transaction Cost Economics perspective‚ Proposition 1 arises: theoretically‚ the greater the uncertainty in the transaction is‚ the lower firms will recur to On-Demand services. In the specific case of Amazon Mechanical Turk and Upwork‚ uncertainty can be determined as: the degree to which the platforms’ infrastructure protect parties and guarantee the transaction (internal uncertainty); the extent to which different countries regulate temporary
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In economics and related disciplines‚ a transaction cost is a cost incurred in making an economic exchange. A number of different kinds of transaction costs exist. Search and information costs are costs such as those incurred in determining that the required good is available on the market‚ who has the lowest price‚ etc. Bargaining costs are the costs required to come to an acceptable agreement with the other party to the transaction‚ drawing up an appropriate contract‚ etc.. Policing and enforcement
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the year‚ the company has extended their product range to pumps and flow controllers. The main learning outcome from analyzing the case study is manufacturing overhead cost allocation. Exhibit 2 in the case study shows pumps has a highest manufacturing overhead cost compare to valves and flow controller. The common overhead cost drivers in the production are machine hours‚ production runs and hours of engineering work. The key issue in this case study is the gross margin on pump sales is 19.5%
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Chapter 8 Cost Estimation and Budgeting True/False 1) Direct costs are those clearly assigned to the aspect of the project that generated the cost. T 2) Material is an example of a cost that is recurring‚ variable and direct. T Multiple Choice 1) Which of the following is a direct cost? A) labor B) rent C) depreciation on equipment D) health benefits 2) Workers paid $15.00 per hour with an overhead charge of 1.45 and a personal time allowance of 1.15‚ have what total direct labor cost for an
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Cost Cutting Tips Most of us spend more than we need to for a lot of things. If you really can afford luxuries such as gourmet teas or designer clothing and still save for your future‚ you’re lucky. However‚ if you’re struggling to meet the financial goals you’ve set on your retirement roadmap‚ it’s time to look for ways to cut expenses—daily‚ monthly‚ and long-term. Start by seeing if you’d benefit from either of these big cost-cutting strategies: •If you’re paying high interest on a mortgage
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Opportunity Cost Scarcity of resources is one of the more basic concepts of economics. Scarcity necessitates trade-offs‚ and trade-offs result in an opportunity cost. While the cost of a good or service often is thought of in monetary terms‚ the opportunity cost of a decision is based on what must be given up (the next best alternative) as a result of the decision. Any decision that involves a choice between two or more options has an opportunity cost. Opportunity cost contrasts to accounting cost in
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1. The chief economist for Argus Corporation‚ a large appliance manufacturer‚ estimated the firm’s short-run cost function for vacuum cleaners using an average variable cost function of the form. AVC= a + bQ+ cQ^2 (the 2 is suppose to be exponent) Where AVC=dollars per vacuum cleaner and Q=number of vacuum cleaners produced each month. Total fixed cost each month is $180‚000. The following results were obtained: Dependent Variable:AVC R-Square
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Unemployment What is unemployment cost ? Unemployment is well as something bad ‚ most economist agree that high levels of unemployment are costly not only to a person directly affected but also as the economy as a whole. Some economist are convincing themselves that there is a certain level of unemployment that we can not erased. Elevated unemployment imposes significant cost on someone‚ the society and the county. The cost of unemployment to the individual is not something
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COST CONCEPTS AND COST ACCOUNTING By: Aman Jawahar Sarika Deepak Muneer CONTENTS Concept of Cost Cost Accounting Terms in Cost Accounting Elements of Cost Meaning of Overheads Classification of Costs Methods of Costing Types of Costing MEANING: Cost Concept: The term ‘cost’ means the amount of expenses [actual or notional] incurred on or attributable to specified thing or activity. Cost means ‘the price paid for something’. Cost Accounting: Cost Accounting is concerned with recording
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Technical Problem 2 a) Implicit Costs: Opportunity cost = $500‚000 x 14% = $70‚000 Explicit Costs: What is paid for products/services = $80‚000 Total Economic Costs: Implicit Costs + Explicit Costs = $70‚000 + $80‚000 = $150‚000 b) Economic Profit: Total Revenues – Total Economic Cost = $175‚000 - $150‚000 = $25‚000 c) Accounting Profit: Total Revenues – Explicit Costs = $175‚000 - $80‚000 = $95‚000 d) New Implicit Costs = $500‚000 x 20% = $100‚000 Economic Profit: $175‚000 – ($100‚000 + $80
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