2009 TOPIC 7: ABSORPTION AND MARGINAL COSTING Outline: 1. Learning Objectives 2. Differences between absorption and variable costing 3. Impact on profit under each costing technique 1. Learning objectives a. Explaining the differences between absorption costing and marginal costing b. Explaining the impact on stock valuation & profit under each costing system c. Explaining the impact on under each costing system d. Preparing multi-period absorption and marginal costing profit statements 2. Explaining
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Discuss whether marginal utility theory is a realistic piece of economic analysis in explaining consumer demand. [13marks] Marginal utility is the extra satisfaction gained from the consumption of an additional unit of a good or service. It can be specified as the change in total utility divided by the change in quantity. The concepts of market demand and law of demand often utilized marginal utility as the backbone‚ the theoretical basis. An example would be the demand curve‚ which is usually
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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 is the change in total revenue divided by change in output. Increase in fixed costs means that when the fixed costs cannot be changed it is the short run and when the fixed costs change it is the long run
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shape. The campaign manager should then spend the campaign’s budget on the combination of the two inputs will that maximize the number of votes. 5. For each of the following examples‚ draw a representative isoquant. What can you say about the marginal rate of technical substitution in each case? a. A firm can hire only full-time employees to produce its output‚ or it can hire some combination of full-time and part-time employees. For each full-time worker let go‚ the firm must hire an increasing
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unit of the product represented by these data since that amount maximizes marginal utility.” Do you agree? Explain why or why not. c. “It is possible that a rational consumer will not purchase any units of the product represented by these data.” Do you agree? Explain why or why not. Answer: Missing total utility data‚ top – bottom: 18; 33. The missing total utility for the second unity can be found by adding the marginal utility (change in utility) to the total utility for the first unit. By consuming
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defines marginal people‚ places‚ or activities as "... the ones that don’t quite work out" (58 Frazier) since they are insufficient to meet the standards of the economic world. However‚ Frazier shows he values marginal activities and places because they allow people to be themselves without the worry and judgment. For Frazier and his friends‚ they viewed "The woods" (56 Frazier) as their place of margin Often times society deems marginal behavior to be unbeneficial‚ but Frazier states "..marginal behavior
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me. Thanks Sultan Lashari 10 2629 LETTER OF TRANSMITTAL TO: Sir Michael Simon‚ Instructor micro economics FROM: Sultan Lashari‚ 10K 2629 DATE: 29th/November/ 2010 SUBJECT: Consumer behavior and Marginal utility We present our report on “CONSUMER BEHAVIOR AND MARGINAL UTILITY” that was assigned to us. This report provides information related to rational behavior of individual and utility of individual This report is divided into some parts‚ such as the INTRODUCTION. This part
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organizations work towards diminishing it however‚ it is a very touchy problem and needs to be handled with caution as the process is very tedious which is not realized by many people worldwide. Many think that diminishing child labour suddenly and as soon as possible is going to be good for the world however‚ this is not true. The fight to end child labour is going to be long and hard because of the many negative impacts it will have on the world To begin‚ diminishing child labour will be very difficult
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The SAS System 21:44 Wednesday‚ November 26‚ 2014 Obs date refd_1st_lag refd_1st_diff refd_1st_diff_1st_lag refd_1st_diff_2nd_lag 1 30MAR1990 . . . . 2 29JUN1990 . . . . 3 28SEP1990 . . . . 4 31DEC1990 -0.19835 0.42248 . . 5 29MAR1991 0.22413 -0.16683 0.42248 . 6 28JUN1991 0.05730 -0.20439 -0.16683 0.42248 7 30SEP1991 -0.14709 0.20291 -0.20439 -0.16683 8 31DEC1991 0.05581 -0.02545 0.20291 -0.20439 9 31MAR1992 0.03037 -0.13786 -0.02545 0
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Explainthe relationship between the average cost and marginal cost curve? Answer: We usually assume that the Average Cost curve is U shaped The MC curve will intercept the AC curves at its minimum point. When AC is decreasing‚ MC lies below AC - because when MC is below AC‚ producing an extra unit of output will pull down average cots When AC is increasing‚ MC lies above AC - because when MC is above AC‚ producing an extra unit of output will raise average costs Therefore MC will intercept the
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