Cost

Peanuts and Cost Accounting A problem faced by a Restaurateur (Joe) as revealed by his Accountant-Efficiency Expert (Eff. Ex.) EFF. EX.  Joe, you said you put in these peanuts because some people ask for them, but do you realize what this rack of peanuts is costing you? JOE  It ain 't gonna cost. 'Sgonna be a profit. Sure, I hadda pay $25 for a fancy rack to holda bags, but the peanuts cost 6 cents and I sell 'em for 10 cents. Figger I sell 50 bags a week to start. It 'll take 12 ½ weeks to

standard fixed cost per tonne which was derived by following formula: Standard fixed cost/tonne =Estimated annual total fixed cost /Annual demonstrated plant capacity This year, the NASA Rubber’s estimated annual total fixed cost was 44,625,000, and the annual demonstrated plant capacity was 85000tonnes. Thus, the standard fixed cost per tonne for 1986 was 525/tonne. Then, spending variance was calculated by, Spending Variance=Actual fixed cost—Standard fixed cost Actual fixed cost/tonne=Actual

concept of a direct cost and an indirect cost An organization may classify the costs of manufacturing a product as • Direct cost or • Indirect costs on the basis of whether they can be attributed to the production of goods or services or not. Direct cost: Direct cost is a cost that can be located in full for the product manufactured, service rendered or a department being costed. Explanation: Direct costs are expenditures that an organization can directly attribute to the cost objects, i.e. product

A) Explicit costs are expenses/payments that are actually made and frequently recorded. They mirror payment for a business transaction such as salaries, rent, and utilities.(OpenStax Economics, 2016). Implicit costs being intangible are not frequently recorded. This sort of cost mirrors a potential opportunity, advantages, or points of interest that may have happened in a given circumstance. (OpenStax Economics, 2016) EXAMPLES OF WHEN AN EXPLICIT COST IS DIFFERENT FROM AN IMPLICIT COST 1. Implicit

Energy costs There are various energy sources available in the world today. These are either renewable sources or non-renewable sources. Some of the non-renewable sources include coal, oil, and nuclear fuel while renewable resources are solar energy, wind power, biomass, geothermal wave and tidal power, hydropower and so on. Cost-supply and uncertainty are usually quite asymmetric when it comes to the energy industry and any other industry in the world. The paper will look at the future of energy

Apple Valley Family Practice July 2013 Cost Allocation Methodologies Prepared for Group Executive Committee Nadine Presented by Apple Valley Family Practice July 2013 Cost Allocation Methodologies Prepared for Group Executive Committee Nadine Presented by Introduction Apple Valley Family Practice is a medical practice with four locations in the Minneapolis/St. Paul area. The clinical staff consists of 20 physicians, all of whom practice in one or more areas of family medicine

COST MANAGEMENT ACCOUNTING ANSWER 1.1 a) DIRECT COSTS:- A direct cost is defined as the price that can be directly applied to production of goods. The direct cost classifies direct material, direct labour and manufacturing overheads. The direct cost is related to labour, raw material and expenses related to the production of goods. Direct cost is simply as the cost that is applied directly to the product. For example- wages of full time and part time staff. b) INDIRECT COSTS:- Indirect

What Are the Added Costs of Renting a Billboard? Other than renting a billboard, there are other costs that must be accounted for. On average, companies will spend $500 to $1,000 to pay someone to design the billboard. Buying the vinyl material for a bulletin billboard will cost about $500 for 700 square feet of vinyl. To lower costs, businesses can always choose to hire a freelancer online to complete the design. How Do I Rent the Billboard That I Want? If the business has already found the

As corporate cost is the cost associate with Treasury cost, Human resource management cost. Acitivity based costing seeks to identify cost drivers that are directly link all the activities e.g. support activities and production activities to the product manufactured or service provided. The cost of all those activities are assigned to products or services via the activity cost driver, according to the each product relative consumption of these activities. Allocating corporate overheads based on

Cost-Benefit Analysis Raviteja Turaga Dr. Hammad Elbedour Analysis, Modelling and Design Date: 06/03/2016. Cost-Benefit Analysis Cost-benefit analysis is an economic evaluation whether to go ahead with the project depending on the benefits attained from the invested amount on the project (cost). To perform this analysis, all the inputs (cost) and outputs (benefits) should be measured in the same unit of measurement and at the same time. Generally, the measurement unit is money (usually