Cost and Price Analysis Instructor: Name: Class: Finance 230 Date: Period: Results: 1) Why is it important for the government to exercise good fiscal judgment when spending funds? Government employees are held responsible for use of good judgment so those excessive prices are not paid. 2) List and describe four types of market based pricing. Be sure to provide at least one (1) example of each type. Competitive Offers – response to solicitation encouraging competing offers Established
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the costs for the year. The restaurant wanted to see what some of their fixed and variable costs were for the year. They also wanted to make sure they remain in their relevant range. The costs focused on were the cost of hamburgers (raw materials) and the cost of building rent. It was determined that the raw materials were the variable costs because the cost will vary based on production of hamburgers. A variable cost is a cost that will change in direct proportion to changes in the cost-driver
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Being able to determine whether a cost is fixed or variable is vital to the understanding of overhead loading and cost behavior. A fixed cost is unchanged with a change to the cost driver. (Horngren‚ Sutton‚ and Stratton p.46) Which means that a fixed cost does not rise with the change is production of your product. A good example of a fixed cost is rent. No matter how many widgets you make (within a relevant range) your rent will not increase. A variable cost‚ on the other hand‚ does change with
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Fixed cost are ones that don’t change in view of included factors (Fixed‚ variable‚ and negligible cost‚ 2017). There are few fixed expenses with working a vehicle. Fixed cost will incorporate the cost of the vehicle‚ the cost of protection‚ enlistment and property charges. These are cost the vehicle will acquire regardless of the possibility that it sits untouched in the carport. Be that as it may‚ once the vehicle moves it has variable expenses. These variable expenses incorporate gas‚ general
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Question 5.1 Explain the difference between fixed costs‚ semi-fixed costs‚ and variable costs. Fixed costs are those which do not change with the level of activity within the relevant range. These costs will incur even if no units are produced. For example rent expense‚ straight-line depreciation expense‚ etc. Fixed costs are those which do not change with the level of activity within the relevant range. These costs will incur even if no units are produced. For example rent expense‚ straight-line
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ultrasound Imaging system * The product was faster‚ cheaper and more compact * Design was supported by Heidelberd division’s engineers at full cost of time compensation. To get a best price for its component‚ ISD did a bidding which involved Heidelberg. Unfortunately Heidelberg bidding price was much higher than outsider company‚ therefore ISD decided to buy from Display Technology Plc Here is the bidding: Supplier | Cost per X73 System (€) | Heidelberg Division | 140‚000 | Bogardus
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1 In a process cost system‚ product costs are summarized: on job cost sheets. when the products are sold. after each unit is produced. on production cost reports. What decision criteria should managers use in selecting projects when there is not enough capital to invest in all available positive NPV projects? the internal rate of return the discounted payback the profitability index the modified internal rate of return 3 Horizontal
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Agri-environment contract adoption under fixed and variable compliance costs. This report looks at the agri-environment contract adpted by farmers’ to be able to contribute and partake in the enrivonmental schemes through pressure groups and government. It provides disctinct description to the differences in fixed and variable costs. The purpose of explaining the differences were to illustrate how farmers partaking to the project would be different than how much land will be needed to chip in the
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actions of any single buyer or seller will a. have a negligible impact on the market price. b. have little effect on market equilibrium quantity but will affect market equilibrium price. c. affect marginal revenue and average revenue but not price. d. adversely affect the profitability of more than one firm in the market. Table 14-1 Quantity Total Revenue 0 $0 1 $7 2 $14 3 $21 4 $28 2. Refer to Table 14-1. For a firm operating in a competitive market‚ the price is a. $0. b. $7. c. $14. d. $21
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Why a 2-year contract costs you more for a cell-phone One thing I hear on an almost weekly basis is‚ “I can’t believe my cellphone bill was x amount of dollars this month!”. Yes‚ the big name carriers (Verizon‚ AT&T‚ Sprint‚ and T-Mobile) are what most people know of‚ but there are many more options in terms of price‚ coverage‚ plans‚ and more. And I will say this right off the bat; buying a $600 phone and joining a prepaid carrier‚ even the ones you see prepaid cards at the gas station‚ will
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