Marginal cost

ACCA 310 EXAM 1 PRACTICE QUESTIONS 1.First Bank had the following activities, traceable costs, and physical flow of driver units: TraceablePhysical Flow of Activities CostsDriver Units Open new accounts$40,0001,000 accounts Process deposits72,000360,000 deposits Process withdrawals100,000200,000 withdrawals The above activities are used by Downtown branch and Uptown branch: DowntownSuburb New

Operating costs are expenses supplementary with the operations, maintenance and administration of a business on a daily basis. The operating cost is a component of operating income and is customarily included on a company’s income statement. A business's operating costs consist of f two core constituents, fixed costs and variable costs. A fixed cost does not change with an increase or decrease in sales or productivity and must be paid regardless of the company's activity or performance (Lowengrub

Since 1954, Anderson Water Systems has been providing upstate New York homeowners with the equipment they need to ensure that their water is clean and safe for daily use. Anderson Water Systems’ water purification and filtration products help eliminate contaminants that may come from the soil or aging plumbing lines, protecting your family’s health as they drink, bathe, and cook with your home’s tap water. Not sure what’s in your water? Anderson Water Systems also provides testing services to help

throughout the year is all recognized in December when the balance in the Manufacturing Overhead account is closed out to Cost of Goods Sold. If the balance were closed out every month or every quarter, this effect would be

people try to minimize their losses. people try to maximize their consumption. people try to minimize their costs. people try to maximize their utility.

categorically and are later on added as a total value. With this in mind, Lucas’s results are as follow: the marginal damages from local pollutants emitted from gasoline and diesel are $0.04 and $0.20 per liter of gasoline and diesel respectively (Davis, 2017), the marginal cost from carbon dioxide emissions is $0.09 and $0.10 per liter of gasoline and diesel respectively (Davis, 2017), the marginal cost of traffic congestion caused by the increased use gasoline and diesel is $0.27 and $0.26 per liter of

be used? Why? Answer: WACC covers computation of SIVMED’s cost of capital in which each category of capital is proportionately weighted. All capital basis - common stock, preferred stock, bonds or any other long-term borrowings – should be listed under SIVMED’s WACC. We determine WACC by multiplying the cost of the corresponding capital component by its proportional weight and then adding: where: Re is a cost of equity Rd is a cost of debt E is a market value of the firm's equity D is a market

generate the most relevant costs, it will be possible to use a pricing system that takes into account the changes in demands of the clients. 2. A new pricing model was suggested for 2006 based on the new costing system. If this pricing model was used in 2005 the net income would have been 7% higher. 3. The new system allows charging additional services required by the clients, generating more revenue. 4. Knowing which are the cost drivers , it will be possible to control costs more effectively (reducing

limitations of the current costing model o Simplicity – Very easy to calculate and distribute cost between residents and apartments (strength) o Out of date – It did not consider the evolution in the

that the income has covered all the costs. There are two types of costs, the direct ones, which are easy to identify as they are “directly” referred, linked to the product or service, which can be traced directly, straight and fully to the product, (e.g. material cost, labour cost, direct expenses, which are known as prime cost as well), generally, direct cost are considered, variable cost, as the cost increase when quantity/output increases, and indirect cost (overheads), which are not directly