21 : Theory of Cost 1 Recap from last Session Production cost Types of Cost: Accounting/Economic Analysis Cost –Output Relationship Short run cost Analysis Prof. Trupti Mishra‚ School of Management‚ IIT Bombay Session Outline The Long-Run Cost-Output Relations Break-Even Analysis: Linear Cost and Revenue Functions. Break-Even Analysis: Non-Linear Cost and Revenue Function Prof. Trupti Mishra‚ School of Management‚ IIT Bombay long-run is a period for which all inputs
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A learning curve‚ in common terms‚ “is used to describe the effort required to acquire a new skill (e.g.‚ expertise with a new tool) over a specific period of time” Wikipedia.org. In scholarly terms‚ “Learning curves are also an integral part in planning corporate strategy‚ such as decisions concerning pricing‚ capital investment‚ and operating costs based on experience curves” Chase-Jacobs-Aquilano. In the pizzeria scenario presented requires a full understanding of the cause and effect of decisions
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The SaleS learning Curve & virTual SaleS Advice for a successful startup‚ product launch or foray into new sales territory W hen launching a new company‚ product or service or expanding into a new territory‚ the temptation is often to hire a new VP of sales‚ some enterprise reps and build a high powered sales force as quickly as possible. It has been demonstrated‚ however‚ that ramping up a sales force too quickly can have very negative impact on the bottom line. As founding Chairman and CEO
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The Laffer curve‚ named after the economist Arthur Laffer‚ is a curve that demonstrates the trade-off between tax-rates and tax-revenues (Wanniski 1978). It is used to illustrate the concept of taxable income elasticity‚ the idea that a government can maximise the revenue by setting the tax rates at an optimum point. This curve can be traced back as far as 1844 to a French economist Jules Dupit who in 1844 found similar effects as Laffer did (Laffer 2004). Dupit also saw tax revenues rising from
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Market Structure Simulation Quasar Computers When industries are selling similar products this makes up market structure. I will be discussing economic profit that Quasar computer is able to make. The market structure is made of the following pure monopoly‚ pure competition‚ monopolistic competition‚ and oligopoly. In the simulation I learn about pricing and non pricing strategies and understanding the diverse market structure. Quasar put out a new first all-optical notebook that is called
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What Is Revenue Management? The science and expertise of forecasting immediate consumer demand at the micro-market stage when optimizing cost and accessibility of your goods is called as revenue Management. The implementation of RM philosophy is indefinite‚ and has the prospective to yield remarkable stages of revenue. Enterprises that have used RM procedures have seen profits rising greatly by 7 percent exclusive of incorporating considerable sum of capital overheads‚ providing outcome in a revenue
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The Bathtub Curve and Product Failure Behavior Part One - The Bathtub Curve‚ Infant Mortality and Burn-in by Dennis J. Wilkins Retired Hewlett-Packard Senior Reliability Specialist‚ currently a ReliaSoft Reliability Field Consultant This paper is adapted with permission from work done while at Hewlett-Packard. Reliability specialists often describe the lifetime of a population of products using a graphical representation called the bathtub curve. The bathtub curve consists of three periods: an
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factors that impact the shape of the yield curve but monetary authorities influence greatly the shape of the yield curve .Monetary authorities influence the shape of the yield curve by initiating either a contractionary monetary policy or an expansionary monetary policy.A yield curve is a line that plots the interest rates‚ at a set point in time‚ of bonds having equal credit quality‚ but differing maturity dates. The most frequently reported yield curve compares the three-month‚ two-year‚ five-year
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MANAGEMENT ACCOUNTING APPLICATIONS The learning curve: from aircraft to spacecraft? instructions‚ the components‚ and how to assemble them. In addition‚ you may also lack confidence in your ability to produce an acceptable product. The second one‚ however‚ will take you less time‚ as you will be more familiar with the instructions‚ the components‚ and the assembly procedures. You will also be confident of your ability to assemble this product. The third one will take even less time‚ as you will
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THE S-CURVE Introduction The first time most project managers become aware of the existence of S Curves is when they are requested by the client or senior management to include one in their next progress report. The following explains what the mysterious S Curve is‚ why it is an important project management tool‚ and how to generate one. What is a S Curve? A S Curve is defined as "a display of cumulative costs‚ labour hours or other quantities plotted against time. The name derives from
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