Free Essays on Cost to Get Inspired & Learn by Example

Introduction

A contract isapact entered into by two or more competent parties with the objective of creating a legal commitment between the parties. Proof of a contractis written, but they could also be verbal or implied. Some contracts such as for insurance policy, sale of real property, and installment plans have to be on paper in order to be legally binding. The fundamental attributes of a contractual relationship are an offer, consideration, competent parties with the legal capacity to enter a contract, and mutual assent. Each party involved in the contract acquires responsibilities and rights relative to the responsibilities and Continue reading...

Question 1:

Build cost
The total build cost can be calculated using the following formula
Total build cost = Resin cost + labor costs + molding unit cost + additional costs

Resin costs

The resin cost is equal to:
Resin cost per unit = $1
Resin /unit = 455g
Total resin cost = 1 * 250,000
Total resin cost = $ 250,000

Labor costs

The labor cost is equal to:
Labor cost per employee per hour = $18
Work hours/year = 2083.00
Total labor cost per year = 2083 * 2 * 18
Total labor cost per year = $ 74,988

Molding unit

Molding unit costs = $ 285,000

Additional costs

The additional costs equal to = (carrying cost + management employee cost + property taxes)
Carrying Continue reading...

Assignment 2: Operations decisions

The price elasticity of demand calculated in assignment 1 indicates that the industry for flow-calorie frozen food is a competitive market. The price elasticity was more than 1 showing that a change in price of the food causes a significant change in quantity demanded. The value implies that firms in the market do not have much power to the prices for their commodities. The competitors of the firm include Nestle SA, Kellogg Company, Birds Eye Foods, among other companies. The high price elasticity enables businesses in the market to use pricing strategies in order to attract and maintain customers. Continue reading...

Report to the management of Mendel Paper Company

Contribution margin analysis
At the initial estimates, all the four product lines will have a positive contribution margin. Material costs constitute a larger percentage of the total variable cost for each of the four product lines. Variable overhead cost is allocated on the basis of the number of hours. Given the information on the number of units produced per hour, computer line will have a variable overhead cost of $1.50 per unit. The variable cost per unit for Napkins, Placemats and Poster board will be $0.60, $2.40 and $0.50 respectively. The computer line has the highest contribution margin while Continue reading...

Q 1:
Biolea: It is a company that have been involved in producing organic olive oil by using presses and millstones. This family owned business products are bottles and estate produced. High-quality products are provided through continuous mix of tradition and innovation by considering sustainability in tourism development and environment. The company incurs the fixed cost of salaries to its tour guides and olive farmers. In addition to this, the depreciation of machines is also the fixed cost for the company. The company’s variable cost includes the bottling cost of olive oil and the cost of olive seeds Continue reading...

Introduction

In this essay paper an evaluation of the menu management techniques at Riverford Field Kitchen Restaurant has been done. A number of important factors have been taken under consideration to explore the strategies of Riverford Field Kitchen Restaurant related to its functional overview, menu pricing strategies, management of contribution margins to generate more revenue and profit for the restaurant company. Besides the management and measures which have been implemented in cost control by Riverford Field Kitchen Restaurant have been discussed in this paper to identify how it affects the profitability of Riverford Field Kitchen Restaurant. Eventually the specific merchandising Continue reading...

1. Compute the departmental overhead rates using machine hours as the cost driver.
Overhead rates are calculated by dividing the estimated manufacturing overhead cost by the base allocated. The allocation base can either be direct labor hours, direct labor dollars, machine hours and direct material. In this question, the cost drive used is total machine hours
Overhead rate = estimated manufacturing overhead cost/estimated total machine hours

Maxi flow department

The total manufacturing overhead cost comprises of radiator parts fabrication cost, heater assembly, weld and test costs, compressor parts fabrication cost and compressor assembly and test cost.

The total manufacturing overhead cost is 480000 dollars

The allocation base that I used is Continue reading...

Funding the Rising Cost of U.S. Health Care

The rate of healthcare cost in the United States is on the constant increase from the last decades. This high level of spending on healthcare and sustained increase in the United States have been the scrutiny and subject of discussion for several decades by all the stockholders. Thus, this investigating potential link is trying to explain how the cost of healthcare can affect the economy of the United States. The healthcare spending can affect the economy in a complex and diverse ways across all the sectors of the population groups and Continue reading...

Problem 1

Question 1
A skimming price is a price that is set high so as to enable the maximization of profits. New products in the market can be given high prices if the intention of the company is to make profits within each period of production. It is usually advisable to set the skimming price at a price that is similar to the profit-maximization price in the short run. A price that is higher or lower than the profit-maximization price will not result into higher profits. The disadvantage of this pricing strategy is that profit can only be maximized in Continue reading...

Cost of Accidents

Abstract
Road transportation is the backbone of trade, access to markets, education and health care. The worldwide number of road deaths is an unacceptable 1.24 million per year. Comprehensive road safety laws cover only 7% of the world’s population. Casualties from road accidents are invariably those who are in the lower classes of society. 518 Billion Dollars is the estimated cost of accidents worldwide.
Cost of accidents can be worked out in many ways. The ‘Gross Output’ or ‘human capital method’ entails costs to be divided into those that cause a diversion of current resources and those that Continue reading...