have a sound knowledge of cost behaviour ie fixed costs‚ variable costs‚ semi-variable costs and sunk costs. Answer: Understanding cost behaviour helps manager in anticipation of changes in cost when there is a change in their activities like production‚ sales‚ inventory pile up etc. It provides good assistance in planning‚ cost management and decision making. A number of behaviour patterns exist ranging from fixed to variable and from linear to curvilinear. Many cost predictions techniques are
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Opportunity Cost Lets start with a small introduction to the topic Opportunity Cost. Opportunity cost is the cost of any activity measured in terms of the value of the next best alternative forgone (that is not chosen). It is the sacrifice related to the second best choice available to someone‚ or group‚ who has picked among several mutually exclusive choices. The opportunity cost is also the "cost" (as a lost benefit) of the forgone products after making a choice. Opportunity cost is a
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COST OF PRODUCTION CONTENTS 1. Introduction 2. Types of costs 3.1 Opportunity‚ implicit and explicit costs 3.2 Fixed and variable costs 3.3 Average costs 3. Types of cost curves 4.4 Marginal cost curve 4.5 Average cost curves 4. Costs in Short run and in the Long run 5.6 Short run 5.7 Long run 5.8 Economies of scale 5. Cost analysis in the real world 6.9 Economies of scope 6.10 Experiential
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Abstract There are a lot of decisions that have to be made when running a business. One of those decisions is when to buy new machines or equipment or upgrade the machines or equipment that the business already has. Using analysis of the needs of the business and how the new equipment will help the business to function and the cost of the product will determine what the managers of the business decides. Marginal costs are change in total costs divided by change in output. Marginal revenue
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Lending Decisions Assignment LOAN APPRAISAL REPORT Title: AFW 3841 Assignment By: Umasuthan Rengasamy (20365853) To: Dr. Sockalingam Faculty: School of Business and Economics Date of Submission: 4 May 2012 TABLE OF CONTENTS 1. Introduction 2. Company Profile 3. The Financial Performance (3 years) 4. The Proposed Project 5. Capital & Financials 6. Capacity 7. Collateral 8. Conditions 9. Compliance Issues 10. Justification for the Loan 11. Loan Decision and Terms
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Managers are frequently referred to as decision makers. Managers make decisions about every aspect of the organisation‚ including strategy‚ structure‚ control systems‚ responses to the environment and human resources. Decision making is not easy. It is done in the face of constantly changing conditions‚ unclear information and conflicting points of view. Types of decisions and problems A decision is a choice made from available alternatives. Decision making is the process of identifying problems
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Running Head: PROMOTION Promotional Decisions in Marketing Nadine Mwihaki Maina 08smc119 Principles of Marketing BCM208 Mr. Kiarie TABLE OF CONTENT 1. INTRODUCTION 1.1 Definition of promotion 1.2 Reasons for promotion 1.3 Elements of Promotion 1.4 Promotion Strategy 2. ADVERTISING 2.1. Definition of advertising 2.2. Tools used in advertising(Seven steps of advertising) 2.3. Types of advertising 2.4. Reasons for advertising 3. PUBLIC RELATIONS 3.1. Definition of public relations 3.2. How public
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Cost Leadership: Any organization in order to survive in a highly competitive market should be able to achieve sustainable growth and profitability. Companies that have managed to reduce costs and understand the cost technology can obtain sustainable advantage as a cost leader. In order for any company to become a cost leader is important that the cost technology is understood and the five constituent steps are implemented and followed by the management. The five steps towards obtaining
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A Tough Decision Hot sun‚ cool water‚ ear piercing screaming of children. It was almost a perfect day at Cole Park‚ where I was a lifeguard. I got down from my chair‚ and headed up to the guard shack for my much needed break. Tired‚ and stressed out‚ I collapsed on the bench. The phone rang‚ and that is when it all began. When the summer began‚ my friend Chuck and I started a band. I was lead singer‚ and also lead MC. We played all originals‚ which were mostly rap-metal songs
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Opportunity costs The first opportunity cost that I made was choosing to enroll in a university that offers online courses or going to a traditional university that only has classroom style learning. The pros of attending online for me included not having to commute back and forth 40 additional miles per day‚ not having to hire a babysitter for my child‚ and I’d be in the comfort of my own home or environment to my liking when I studied. The cons included‚ not having that social connection to my
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