Cost analysis

Next there is total cost and total revenue. Total cost is what the company spends to produce a certain quantity of its product. This includes the cost of all the materials,

The Law of diminishing returns states that if one factor of production is increased while the others remain constant, the overall returns will relatively decrease after a certain point. The total fixed cost is the same regardless of the output; the total variable costs will change with the level of output resulting in the total cost as the sum of the fixed cost and variable cost at each level of output. Over the 0 to 4 range of output, the TVC and TC curves slope upward. They reflect a decreasing rate due to the increasing minor returns. The slopes curves will increase due to these diminishing marginal returns.

Cost measurement is the process of determining the dollar amount of direct materials, direct labor, and overhead that should be assigned to production. Cost accumulation is the process of associating costs with the units produced. Cost measurement is more about whether actual or estimated costs should be used, and cost assignment is about whether costs should be assigned to jobs or processes.

The Marginal Cost graph is a function of change in total cost divided by change in quantity produced. Marginal cost is the added cost of producing one additional unit of production, or the savings in not producing one additional unit. The graph decreases until the fourth unit of production, and then increases rapidly, as marginal cost is tied to total cost and is thus subject to the law of diminishing returns.

12) Suppose a firm has $1500 in variable costs and $500 in fixed costs when it produces 500

The AHRQ organization has several portfolios’ that are funded and supports research projects. Such portfolios are information technology, health patient safety, prevention and care management, and value portfolios. Within these portfolio’s, grants are there to fund new projects that relate to each category. Within each portfolio, research has been started and effectiveness of these projects is underway. Some clinical research projects are a set of priority conditions of importance to the Medicaid, Medicare, and SCHIP programs. Projected initiatives are to improve quality of care. The Value portfolio finds ways to reduce unnecessary cost and waste while maintaining or improving quality without adding cost which is a critical, national need (2012, p.5).

The location of apt areas of production is what determines the overall cost per unit or qualityof the product. For distribution and logistics the factors such as payment of tariffs and

In general, cost means the amount of expenditure (actual or notional) incurred on, or attributable to a given thing.

Cost behavior refers to the way different types of production costs change when there is a change in level of production.

Most people don’t know that being trendy with the newest styles and clothes is actually killing hundreds of garment workers around the world. The astounding film The True Cost, directed by Andrew Morgan, was released in 2015 and shows just how much of an impact fashion has on other people and the world. The documentary is rated PG 13, and is 1hr 30 minutes long. The main objective of the film is to show and explain the harsh conditions in the fashion industry, and to demonstrate how cheaply priced clothing has negative repercussions on the world. Andrew Morgan says, “This is a story about clothing, the clothing we wear, the people that make them, it’s impact on the world”(qtd. in The True Cost). He goes on to say, “It’s a story about greed and fear, power and poverty, it’s both complex and simple, connecting the hearts and hands of those around the world”(Morgan qtd. in The True Cost). This film is very informative, and it also persuades the audience to want to change their ways as well as try to change the ways of others. There are several strategies that Morgan used in this film to better connect with his audience. Some of them include his use of Juxtaposition, the use of different styles of music, and the emotional appeals.

Opportunity cost means giving up something of value or importance to you to achieve a particular goal or outcome. It is a chance that causes you to miss out on something you want, but an individual can benefit by gaining something for the opportunity they accepted.

2. Variable Costs: power cost per KWH growth rate of 12% year on year, graphite and salt expense growth rate of 5% and 6% annually as plant production expected to remain constant

According to an accounting textbook, cost is defined as a resource sacrificed or foregone to achieve a specific objective. It is something given up in exchange. It is necessary for project managers to understand project cost management since project costs money and consumes resources.

Example 1.2: The table shows the fixed costs and variable costs for 3 potential locations for Watch Manufacturing Unit. The product is expected to sell at Rs 300 per unit. Find the most economical location for a production volume of 15,000 per year. Locations Noida Morbi Buddi Fixed Cost / Year ( Rs ) 1,20,000 1,45,000 1,10,000 Variable Cost / Unit ( Rs ) 60 45 50

Cost accounting is a type of accounting process that aims to capture a company's costs of production by assessing the input costs of each step of production as well as fixed costs such as depreciation of capital equipment. Cost accounting will first measure and record these costs individually, then compare input results to output or actual results to aid company management in measuring financial performance (Cost Accounting, n.d.).