the cost of production. The definition of productivity is what is put out per the number of hours put in‚ or worked. For instance‚ if you make 50 cookies over 50 hours worked‚ your rate of productivity is 1 per hour. The cost of production is comprised of several factors: fixed costs; variable costs; and the total cost. The fixed costs are defined as “costs that are spent and cannot be changed in the period of time under consideration” (Colander‚ 2010‚ p. 283). The variable costs are
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Apa sih opportunity cost? Untuk yang pernah belajar ekonomi pasti kenal baik dengan istilah ini‚ tapi buat yang lain‚ opportunity cost is : "...the cost of something in terms of an opportunity foregone (and the benefits that could be received from that opportunity)‚ or the most valuable foregone alternative." (Dictionary.LaborLawTalk.com) Kalau diterjemahkan adalah suatu biaya dari hilangnya suatu kesempatan dalam menggunakan sumber daya tertentu. Kalau kita melihat waktu sebagai sumber daya
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by the energy from the burning coal. Adjacent turbines converted the energy in the steam to mechanical energy‚ which was then converted to electrical energy in the plant’s generators. Large coal-fired plants like Bowen had high fixed costs but relatively low variable costs and were designed to operate continuously. Utilities used them for baseload generation‚ supplementing the energy from the coal
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only variable manufacturing costs. Answer: False Difficulty: 1 Objective: 1 Terms to Learn: absorption costing Absorption costing “absorbs” all manufacturing costs‚ both fixed and variable. 2. Variable costing includes all variable costs — both manufacturing and nonmanufacturing — in inventory. Answer: False Difficulty: 1 Objective: 1 Terms to Learn: variable costing Variable costing includes only manufacturing variable costs in inventory. 3. Under both
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Demand DEFINITION OF SHORT RUN(SR) Some input cannot be changed within a time period There 2 type of inputs: I. Fixed inputs II. Variable inputs There 2 type of production of costs: I. Fixed costs • Fixed costs are those that do not vary with output and typically include rents‚ insurance‚ depreciation‚ set-up costs‚ and normal profit. II. Variables costs • Variable costs are costs that do vary with output‚ and
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Datar‚ S.M. and Foster‚ G. (2003) Cost Accounting - A Managerial Emphasis‚ Pearson Education‚ Inc.‚ New Jersey‚ Eleventh Edition CHAPTER 11 DECISION MAKING AND RELEVANT INFORMATION 11-1 The five steps in the decision process outlined in Exhibit 11-1 of the text are: 1. 2. 3. 4. 5. Obtain information Make predictions about future costs Choose an alternative Implement the decision Evaluate performance to provide feedback 11-2 Relevant costs are expected future costs that differ among the alternative
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Table of Contents Aims and Objectives Methodology Description Analysis Evaluation Recommendations Appendices Reference AIMS AND OBJECTIVES The aims of this internal assessment are as follows: 1. To identify the changes in the firm’s external environment over the period 2004 to 2008because since the firm was affected by changes during this time period
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M3.27 Working With Costs and Budgets Explain the Importance of agreeing a budget and operating within it: A budget plan is the most effective way to keep the business and its finances on track. It gives you the opportunity to review the business’ performance and any factors that are affecting or may affect your business. Also to manage your money more effectively‚ allocate appropriate resources‚ monitor performance‚ meet planned objectives and plan for the future. To be most effective this
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DETERMINING THE COST OF MATERIALS An important area of materials accounting is the costing of materials requisitioned from the storeroom for factory use. The unit cost of incoming materials is known at the time of purchase. The date of each purchase is also known‚ but the materials on hand typically include items purchased on different dates and at different prices. Items that look alike usually are commingled in the storeroom. As a result‚ it may be difficult or impossible to identify an issue
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From the A12 redesign proposal‚ it shows that the current standard cost system is unable to link the reduction in the number of parts to activity reductions and cost savings. The labor-direct-based standard cost system reflects the cost of A12 is distorted. Using the ABC system‚ according to the activities of A12 allocate the overhead cost to A12 that could find that the current overhead cost of A12 was overstated by the standard cost system. At last‚ A12 Junction Box could be identified it is an attractive
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