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Course: MKT 1003, Summer 2010School: Scottsdale Community...
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Costing: A 7-1 Variable Tool for Management Chapter 7 McGraw-Hill/Irwin Copyright Copyright 2008, The McGraw-Hill Companies, Inc. 7-2 Marginal and Absorption Costing LINKAGE q q This session will link your previous knowledge regarding CVP ANALYSIS with another product costing technique called variable and absorption costing Todays session will provide you an understanding of two different techniques of...
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Costing:
A 7-1
Variable Tool for Management
Chapter 7
McGraw-Hill/Irwin
Copyright
Copyright 2008, The McGraw-Hill Companies, Inc.
7-2
Marginal and Absorption Costing
LINKAGE
q
q
This session will link your previous knowledge regarding CVP
ANALYSIS with another product costing technique called variable
and absorption costing
Todays session will provide you an understanding of two different
techniques of costing the product namely Marginal Costing and
Absorption Costing
McGraw-Hill/Irwin
Copyright 2008, The McGraw-Hill Companies, Inc.
7-3
OUTCOME OF THIS SESSION
How to cost the product and calculate
profit under :
q
Marginal Costing; and
q
Absorption Costing
McGraw-Hill/Irwin
Copyright 2008, The McGraw-Hill Companies, Inc.
7-4
v
Marginal and Absorption Costing
STRUCTURE OF THIS SESSION
50:50
Active participation is sought
PARTICIPATION MEANS
Contributing innovative and effective ideas
towards the current topic
v
Answering various questions
v
Following the mentors instructions
McGraw-Hill/Irwin
Copyright 2008, The McGraw-Hill Companies, Inc.
7-5
Marginal and Absorption Costing
WIIFM
YOU WILL LEARN PRACTICAL
APPROACHES TO TWO POPULAR
COSTING TECHNIQUES
q
McGraw-Hill/Irwin
Copyright 2008, The McGraw-Hill Companies, Inc.
7-6
Learning Objective 1
Explain how variable
costing differs from
absorption costing and
compute unit product
costs under each method.
McGraw-Hill/Irwin
Copyright 2008, The McGraw-Hill Companies, Inc.
7-7
Overview of Absorption
and Variable Costing
Absorption
Costing
Variable
Costing
Direct Materials
Product
Costs
Product
Costs
Direct Labor
Variable Manufacturing Overhead
Fixed Manufacturing Overhead
Period
Costs
McGraw-Hill/Irwin
Variable Selling and Administrative Expenses
Period
Costs
Fixed Selling and Administrative Expenses
Copyright 2008, The McGraw-Hill Companies, Inc.
7-8
Quick Check
Which method will produce the highest values for
work in process and finished goods inventories?
a. Absorption costing.
b. Variable costing.
c. They produce the same values for these
inventories.
d. It depends. . .
McGraw-Hill/Irwin
Copyright 2008, The McGraw-Hill Companies, Inc.
7-9
Quick Check
Which method will produce the highest values for
work in process and finished goods inventories?
a. Absorption costing.
b. Variable costing.
c. They produce the same values for these
inventories.
d. It depends. . .
McGraw-Hill/Irwin
Copyright 2008, The McGraw-Hill Companies, Inc.
7-10
Unit Cost Computations
Harvey Company produces a single product
with the following information available:
Number of units produced annually
Variable costs per unit:
Direct materials, direct labor,
a nd variable mfg. overhead
Selling & administrative expenses
$
$
Fixed costs per year:
Manufacturing overhead
Selling & administrative expenses
$ 150,000
$ 100,000
McGraw-Hill/Irwin
25,000
10
3
Copyright 2008, The McGraw-Hill Companies, Inc.
7-11
Unit Cost Computations
Unit product cost is determined as follows:
Absorption
Costing
Direct materials, direct labor,
a nd variable mfg. overhead
Fixed mfg. overhead
($150,000 25,000 units)
Unit product cost
Variable
Costing
$
10
$
10
$
6
16
$
10
Under absorption costing, selling and
administrative expenses are
always treated as period expenses and
deducted from revenue as incurred.
McGraw-Hill/Irwin
Copyright 2008, The McGraw-Hill Companies, Inc.
7-12
Learning Objective 2
Prepare income
statements using both
variable and absorption
costing.
McGraw-Hill/Irwin
Copyright 2008, The McGraw-Hill Companies, Inc.
7-13
Income Comparison of
Absorption and Variable Costing
Lets assume the following additional
information for Harvey Company.
w
w
20,000 units were sold during the year at a price of
$30 each.
There were no units in beginning inventory.
Now, lets compute net operating
income using both absorption
and variable costing.
McGraw-Hill/Irwin
Copyright 2008, The McGraw-Hill Companies, Inc.
7-14
Absorption Costing
Absorption Costing
Sales (20,000 $30)
Less cost of goods sold:
Beginning inventory
$
Add COGM (25,000 $16)
400,000
Goods available for sale
400,000
Ending inventory (5,000 $16)
80,000
Gross margin
Less selling & admin. exp.
Variable (20,000 $3)
$ 60,000
Fixed
100,000
Net operating income
McGraw-Hill/Irwin
$ 600,000
320,000
280,000
160,000
$ 120,000
Copyright 2008, The McGraw-Hill Companies, Inc.
7-15
Variable Costing
Variable
manufacturing
Variable Costing
costs only.
Sales (20,000 $30)
Less variable expenses:
Beginning inventory
$
Add COGM (25,000 $10)
250,000
Goods available for sale
250,000
Less ending inventory (5,000 $10)
50,000
Variable cost of goods sold
200,000
Variable selling & administrative
e xpenses (20,000 $3)
60,000
Contribution margin
Less fixed expenses:
Manufacturing overhead
$ 150,000
Selling & administrative expenses 100,000
Net operating income
McGraw-Hill/Irwin
$ 600,000
All fixed
manufacturing
overhead is
expensed.
260,000
340,000
250,000
$ 90,000
Copyright 2008, The McGraw-Hill Companies, Inc.
7-16
Learning Objective 3
Reconcile variable costing
and absorption costing net
operating incomes and
explain why the two
amounts differ.
McGraw-Hill/Irwin
Copyright 2008, The McGraw-Hill Companies, Inc.
7-17
Comparing the Two Methods
Cost of
Goods
Sold
Ending
Inventory
Period
Expense
Absorption costing
Variable mfg. costs $ 200,000
Fixed mfg. costs
120,000
$ 320,000
$ 50,000
30,000
$ 80,000
$
Variable costing
Variable mfg. costs $ 200,000
Fixed mfg. costs
$ 200,000
$ 50,000
$ 50,000
$
McGraw-Hill/Irwin
$
-
150,000
$ 150,000
Total
$ 250,000
150,000
$ 400,000
$ 250,000
150,000
$ 400,000
Copyright 2008, The McGraw-Hill Companies, Inc.
Comparing the Two Methods
7-18
We can reconcile the difference between
absorption and variable income as follows:
Variable costing net operating income
$ 90,000
Add: Fixed mfg. overhead costs
deferred in inventory
(5,000 units $6 per unit)
30,000
Absorption costing net operating income $ 120,000
Fixed mfg. Overhead
$150,000
=
= $6.00 per unit
Units produced
25,000 units
McGraw-Hill/Irwin
Copyright 2008, The McGraw-Hill Companies, Inc.
7-19
Extended Comparisons of Income Data
Harvey Company Year Two
Number of units produced
Number of units sold
Units in beginning inventory
Unit sales price
Variable costs per unit:
Direct materials, direct labor
variable mfg. overhead
Selling & administrative
e xpenses
Fixed costs per year:
Manufacturing overhead
Selling & administrative
e xpenses
McGraw-Hill/Irwin
25,000
30,000
5,000
$
30
$
10
$
3
$ 150,000
$ 100,000
Copyright 2008, The McGraw-Hill Companies, Inc.
7-20
Unit Cost Computations
Absorption
Costing
Direct materials, direct labor,
a nd variable mfg. overhead
Fixed mfg. overhead
($150,000 25,000 units)
Unit product cost
Variable
Costing
$
10
$
10
$
6
16
$
10
Since there was no change in the variable costs
per unit, total fixed costs, or the number of
units produced, the unit costs remain unchanged.
McGraw-Hill/Irwin
Copyright 2008, The McGraw-Hill Companies, Inc.
7-21
Absorption Costing
Absorption Costing
Sales (30,000 $30)
Less cost of goods sold:
Beg. inventory (5,000 $16)
Add COGM (25,000 $16)
Goods available for sale
Less ending inventory
Gross margin
Less selling & admin. exp.
Variable (30,000 $3)
Fixed
Net operating income
$ 900,000
$ 80,000
400,000
480,000
-
$ 90,000
100,000
480,000
420,000
190,000
$ 230,000
These are the 25,000 units
produced in the current period.
McGraw-Hill/Irwin
Copyright 2008, The McGraw-Hill Companies, Inc.
7-22
Variable Costing
Variable
manufacturing
costs only.
Variable Costing
Sales (30,000 $30)
$ 900,000
Less variable expenses:
Beg. inventory (5,000 $10)
$ 50,000
Add COGM (25,000 $10)
250,000
All fixed
Goods available for sale
300,000
manufacturing
Less ending inventory
overhead is
Variable cost of goods sold
300,000
expensed.
Variable selling & administrative
e xpenses (30,000 $3)
90,000
390,000
Contribution margin
510,000
Less fixed expenses:
Manufacturing overhead
$ 150,000
Selling & administrative expenses
100,000
250,000
Net operating income
$ 260,000
McGraw-Hill/Irwin
Copyright 2008, The McGraw-Hill Companies, Inc.
7-23
Comparing the Two Methods
We can reconcile the difference between
absorption and variable income as follows:
Variable costing net operating income
$ 260,000
Deduct: Fixed manufacturing overhead
costs released from inventory
(5,000 units $6 per unit)
30,000
Absorption costing net operating income $ 230,000
Fixed mfg. Overhead
$150,000
=
= $6.00 per unit
Units produced
25,000 units
McGraw-Hill/Irwin
Copyright 2008, The McGraw-Hill Companies, Inc.
7-24
Comparing the Two Methods
Costing Method
Absorption
Variable
McGraw-Hill/Irwin
1st Period
$ 120,000
90,000
2nd Period
$ 230,000
260,000
Total
$ 350,000
350,000
Copyright 2008, The McGraw-Hill Companies, Inc.
7-25
Summary of Key Insights
Relation between
production
and > sales
Production Sales
Effect
on
iniventory
Inventory
increases
Production < Sales
Inventory
decreases
Production = Sales
No change
McGraw-Hill/Irwin
Relation between
variable and
absorption income
Absorption
>
Variable
Absorption
<
Variable
Absorption
=
Variable
Copyright 2008, The McGraw-Hill Companies, Inc.
7-26
Effect of Changes in Production
on Net Operating Income
Lets revise the Harvey Company example.
In the previous example,
25,000 units were produced each year,
but sales increased from 20,000 units in year
one to 30,000 units in year two.
In this revised example,
production will differ each year while
sales will remain constant.
McGraw-Hill/Irwin
Copyright 2008, The McGraw-Hill Companies, Inc.
7-27
Effect of Changes in Production
Harvey Company Year One
Number of units produced
Number of units sold
Unit sales price
Variable costs per unit:
Direct materials, direct labor
variable mfg. overhead
Selling & administrative
e xpenses
Fixed costs per year:
Manufacturing overhead
Selling & administrative
e xpenses
McGraw-Hill/Irwin
30,000
25,000
$
30
$
10
$
3
$ 150,000
$ 100,000
Copyright 2008, The McGraw-Hill Companies, Inc.
7-28
Unit Cost Computations for Year One
Unit product cost is determined as follows:
Absorption
Costing
Direct materials, direct labor,
a nd variable mfg. overhead
Fixed mfg. overhead
($150,000 30,000 units)
Unit product cost
Variable
Costing
$
10
$
10
$
5
15
$
10
Since the number of units produced increased
in this example, while the fixed manufacturing overhead
remained the same, the absorption unit cost is less.
McGraw-Hill/Irwin
Copyright 2008, The McGraw-Hill Companies, Inc.
7-29
Absorption Costing: Year One
Absorption Costing
Sales (25,000 $30)
Less cost of goods sold:
Beginning inventory
$
Add COGM (30,000 $15)
450,000
Goods available for sale
450,000
Ending inventory (5,000 $15)
75,000
Gross margin
Less selling & admin. exp.
Variable (25,000 $3)
$ 75,000
Fixed
100,000
Net operating income
McGraw-Hill/Irwin
$ 750,000
375,000
375,000
175,000
$ 200,000
Copyright 2008, The McGraw-Hill Companies, Inc.
7-30
Variable Costing: Year One
Variable
manufacturing
Variable Costing
costs only.
Sales (25,000 $30)
Less variable expenses:
Beginning inventory
$
Add COGM (30,000 $10)
300,000
Goods available for sale
300,000
Less ending inventory (5,000 $10)
50,000
Variable cost of goods sold
250,000
Variable selling & administrative
e xpenses (25,000 $3)
75,000
Contribution margin
Less fixed expenses:
Manufacturing overhead
$ 150,000
Selling & administrative expenses 100,000
Net operating income
McGraw-Hill/Irwin
$ 750,000
All fixed
manufacturing
overhead is
expensed.
325,000
425,000
250,000
$ 175,000
Copyright 2008, The McGraw-Hill Companies, Inc.
7-31
Effect of Changes in Production
Harvey Company Year Two
Number of units produced
Number of units sold
Units in beginning inventory
Unit sales price
Variable costs per unit:
Direct materials, direct labor
variable mfg. overhead
Selling & administrative
e xpenses
Fixed costs per year:
Manufacturing overhead
Selling & administrative
e xpenses
McGraw-Hill/Irwin
20,000
25,000
5,000
$
30
$
10
$
3
$ 150,000
$ 100,000
Copyright 2008, The McGraw-Hill Companies, Inc.
7-32
Unit Cost Computations for Year Two
Unit product cost is determined as follows:
Absorption
Costing
Direct materials, direct labor,
a nd variable mfg. overhead
Fixed mfg. overhead
($150,000 20,000 units)
Unit product cost
Variable
Costing
$
10
$
10
$
7.50
17.50
$
10
Since the number of units produced decreased in the
second year, while the fixed manufacturing overhead
remained the same, the absorption unit cost is now higher.
McGraw-Hill/Irwin
Copyright 2008, The McGraw-Hill Companies, Inc.
7-33
Absorption Costing: Year Two
Absorption Costing
Sales (25,000 $30)
Less cost of goods sold:
Beg. inventory (5,000 $15)
Add COGM (20,000 $17.50)
Goods available for sale
Less ending inventory
Gross margin
Less selling & admin. exp.
Variable (25,000 $3)
Fixed
Net operating income
$ 750,000
$ 75,000
350,000
425,000
-
$ 75,000
100,000
425,000
325,000
175,000
$ 150,000
These are the 20,000 units produced in the current
period at the higher unit cost of $17.50 each.
McGraw-Hill/Irwin
Copyright 2008, The McGraw-Hill Companies, Inc.
7-34
Variable Costing: Year Two
Variable
manufacturing
costs only.
Variable Costing
Sales (25,000 $30)
$ 750,000
Less variable expenses:
Beg. inventory (5,000 $10)
$ 50,000
Add COGM (20,000 $10)
200,000
All fixed
Goods available for sale
250,000
manufacturing
Less ending inventory
overhead is
Variable cost of goods sold
250,000
expensed.
Variable selling & administrative
e xpenses (25,000 $3)
75,000
325,000
Contribution margin
425,000
Less fixed expenses:
Manufacturing overhead
$ 150,000
Selling & administrative expenses
100,000
250,000
Net operating income
$ 175,000
McGraw-Hill/Irwin
Copyright 2008, The McGraw-Hill Companies, Inc.
7-35
Comparing the Two Methods
Costing Method
Absorption
Variable
Year One
$ 200,000
175,000
Year Two
$ 150,000
175,000
Total
$ 350,000
350,000
Conclusions
Net operating income is not affected by changes in
production using variable costing.
Net operating income is affected by changes in production
using absorption costing even though the number of units
sold is the same each year.
McGraw-Hill/Irwin
Copyright 2008, The McGraw-Hill Companies, Inc.
7-36
Learning Objective 4
Understand the
advantages and
disadvantages of both
variable and absorption
costing.
McGraw-Hill/Irwin
Copyright 2008, The McGraw-Hill Companies, Inc.
7-37
Impact on the Manager
Opponents of absorption costing argue that
shifting fixed manufacturing overhead costs
between periods can lead to faulty decisions.
These opponents argue that variable costing income
statements are easier to understand because net operating
income is only affected by changes in unit sales. This
produces net operating income figures that are
more consistent with managers expectations.
McGraw-Hill/Irwin
Copyright 2008, The McGraw-Hill Companies, Inc.
7-38
CVP Analysis, Decision Making
and Absorption costing
Absorption costing does not support CVP
analysis because it essentially treats fixed
manufacturing overhead as a variable cost by
assigning a per unit amount of the fixed overhead
to each unit of production.
Treating fixed manufacturing overhead as a
variable cost can:
Lead to faulty pricing decisions and keep-or-drop
decisions.
Produce positive net operating income even
when the number of units sold is less than the
breakeven point.
McGraw-Hill/Irwin
Copyright 2008, The McGraw-Hill Companies, Inc.
7-39
External Reporting and Income Taxes
To conform to
GAAP requirements,
absorption costing must be used for
external financial reports in the
United States.
Under the Tax
Reform Act of 1986,
absorption costing must be
used when filing income
tax returns.
Since top executives
are usually evaluated based on
external reports to shareholders,
they may feel that decisions
should be based on
absorption cost income.
McGraw-Hill/Irwin
Copyright 2008, The McGraw-Hill Companies, Inc.
7-40
Advantages of Variable Costing
and the Contribution Approach
Management finds
it more useful.
Advantages
Impact of fixed
costs on profits
emphasized.
McGraw-Hill/Irwin
Consistent with
CVP analysis.
Net operating income
is closer to
net cash flow.
Consistent with standard
costs and flexible budgeting.
Easier to estimate profitability
of products and segments.
Profit is not affected by
changes in inventories.
Copyright 2008, The McGraw-Hill Companies, Inc.
7-41
Variable versus Absorption Costing
Fixed manufacturing
costs must be assigned
to products to properly
match revenues and
costs.
Absorption
Costing
McGraw-Hill/Irwin
Fixed manufacturing
costs are capacity costs
and will be incurred
even if nothing is
produced.
Variable
Costing
Copyright 2008, The McGraw-Hill Companies, Inc.
Variable Costing and the
Theory of Constraints (TOC)
7-42
Companies involved in TOC use a form of variable
costing. However, one difference of the TOC approach is
that it treats direct labor as a fixed cost for three reasons:
Many companies have a commitment to guarantee
workers a minimum number of paid hours.
Direct labor is usually not the constraint.
TOC emphasizes the role direct laborers play in driving
continuous improvement. Since layoffs often devastate
morale, managers involved in TOC are extremely
reluctant to lay off employees.
McGraw-Hill/Irwin
Copyright 2008, The McGraw-Hill Companies, Inc.
7-43
Impact of JIT Inventory Methods
In a JIT inventory system . . .
Production
tends to equal
sales . . .
So, the difference between variable and
absorption income tends to disappear.
McGraw-Hill/Irwin
Copyright 2008, The McGraw-Hill Companies, Inc.
7-44
McGraw-Hill/Irwin
End of Chapter 7
Copyright 2008, The McGraw-Hill Companies, Inc.
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HKU - BUSINESS - BUSI0003
Page 1: Intra-Entity Inventory TransferOn 9/23/2010, Parent Company buys 100 units of inventory from Sub for $10,000.The units originally cost Sub $8,000.At 12/31/2010 (year-end), Parent still had 10 of the units on hand.Record the consolidation entri
UT Dallas - BIOL - 1300
BIOL 1300 Exam 5 REVIEWPage 11.What actions regarding Oxygen and Carbon Dioxide occur at the lungs?Oxygen diffuses into the blood and carbon dioxide diffuses into the alveoli2.The most superior portion of the pharynx is thenasopharynx3. Name chara
UT Dallas - BIOL - 1300
BIOL 1300 FALL 2009 Unit 6 EXAM1. The vitreous and aqueous humors are found in theeye2. The primary cation in the interstitial fluid isSodium is the primary cation for ECF, potassium is the primary cation for ICF.3. The concentration of electrolytes
UT Dallas - BIOL - 1300
biol 1300 unit 3 review1. What is the name of the division of the nervous system that exclusively controls skeletalmuscles?a. Somatic nervous system2. Fibers that conduct impulses away from the cell body area. Axon3. What is not a classification of
UT Dallas - BIOL - 1300
Course SyllabusBIOL-1300 - BODY SYSTEMS WITH LAB_Course BIOL-1300, BODY SYSTEMS WITH LAB(Sec 101, 102, 103)Professor Dr. ILYA SAPOZHNIKOV, M.D., Ph. D.Term SPRING,2012Meetings The Lectures for all Sections: M/W1:00-1:50 P.M., ECSS 2.415The Lab: Se
UT Dallas - BIOL - 1300
BIOL 1300 Unit 1 Exam Review1. The system that transports blood to and from the cells is thecirculatory system2. There are numerous levels of organization in the body. The correct order from simplest to most complex isChemicals, cell, tissue, organ, o
UT Dallas - BIOL - 1300
Exam 2 Review BIOL 1300 W/Answer Key (at bottom)1. What is the name of the shaft of a long bone and the membrane that lines the marrowcavity?2. Name the hard bone and porous bone found in the shafts and ends of long bones.5. What are the cells that pr
UT Dallas - BIOL - 1300
BIOL 1300 Unit 1 Exam Review1. The system that transports blood to and from the cells is thecirculatory system2. There are numerous levels of organization in the body. The correct order from simplest to most complex isChemicals, cell, tissue, organ, o
UT Dallas - BIOL - 1300
BIOL 1300 Unit 1 Exam Review1. The system that transports blood to and from the cells is thecirculatory system2. There are numerous levels of organization in the body. The correct order from simplest to most complex isChemicals, cell, tissue, organ, o
University of Texas - CH - 204
whang (cw27622) Post-lab 1 Measurement lyon (51295) This print-out should have 25 questions. Multiple-choice questions may continue on the next column or page find all choices before answering. 001 10.0 points How many significant figures are in 4.150103
University of Texas - CH - 204
whang (cw27622) Post-lab 2 Enthalpy lyon (51295) This print-out should have 15 questions. Multiple-choice questions may continue on the next column or page find all choices before answering. 001 10.0 points Which compound has the smallest specific heat ca
University of Texas - CH - 204
whang (cw27622) Post-lab 3 Chemical Formula lyon (51295) This print-out should have 21 questions. Multiple-choice questions may continue on the next column or page find all choices before answering. 001 -bb-error = = 10.0 points1
University of Texas - CH - 204
whang (cw27622) Post-lab 4 Qualitative Analysis lyon (51295) This print-out should have 28 questions. Multiple-choice questions may continue on the next column or page find all choices before answering. 001 10.0 points Which ions are almost completely pre
University of Texas - CH - 204
whang (cw27622) Post-lab 5 Strong Acid Base lyon (51295) This print-out should have 35 questions. Multiple-choice questions may continue on the next column or page find all choices before answering. This post-lab assignment is due the Monday after spring
University of Texas - CH - 204
whang (cw27622) Post-lab 6 Copper Cycle lyon (51295) This print-out should have 30 questions. Multiple-choice questions may continue on the next column or page find all choices before answering. 001 Oxidizing agents 10.0 points1Identify the type of reac
University of Texas - CH - 204
whang (cw27622) Post-lab 7 - Weak acid buffer lyon (51295) This print-out should have 20 questions. Multiple-choice questions may continue on the next column or page find all choices before answering. 001 10.0 points In the titration of a weak acid with a
University of Texas - CH - 204
whang (cw27622) Post-lab 8 Bleach Redox lyon (51295) This print-out should have 20 questions. Multiple-choice questions may continue on the next column or page find all choices before answering. 001 10.0 points Using the smallest possible integer coeffici
University of Texas - CH - 204
whang (cw27622) Post-lab 9 Aspirin lyon (51295) This print-out should have 20 questions. Multiple-choice questions may continue on the next column or page find all choices before answering. This assignment has numerical questions that require answers to b
University of Texas - CH - 204
whang (cw27622) Post-lab 10 Ksp lyon (51295) This print-out should have 10 questions. Multiple-choice questions may continue on the next column or page find all choices before answering. This assignment must be completed even if you do not complete the ex
Texas Pan American - MGMT - 3335
Jurisprudence & the Study of Law Jurisprudence: Derived from "Juris prudentes", a phrase that can be translated as "wise in the law". Jurisprudence encompasses general forms of intellectual inquiry about the law. The term is applied to different types of
Texas Pan American - MGMT - 3335
Ruby Lopez Human Resource Management Lei Wang M/W (5:45pm-7:00pm) Experiential Exercise Nursing Shortage 1. Based on the information available on the hospital's website, create a hard-copy ad for the hospital to place in the Sunday edition of the New York
Texas Pan American - MGMT - 3335
Principles of Marketing Group 11 Pg. 99 Case Study 1. Describe the technological, social, and political forces acting on the video game industry. Technological forces include applied and basic research. With the power of the microchip doubling almost ever
Texas Pan American - MGMT - 3335
Assume the price of gas is $4 for a gallon, so the slope of gas would be cost divided by usage: $4/1gallon=4. So elasticity would be calculated: ez= (1/slope) x (P/Q) = (1/4) x 4/1) = (1/4) x 4 = 1. Now if the price is $4 for a quart instead of a gallon,
Texas Pan American - MGMT - 3335
Elasticity of demand is affected by the availability of its substitutes and the proportion of income spent. When a good has substitutes available it is considered to be elastic. When there aren't substitutes available it is inelastic. An elastic demand is
Texas Pan American - MGMT - 3335
CHAPTER 5 ASSIGNMENT An example of elasticity would be chicken, if the pound of chicken is 4 dollars, then where the graph would be X= amount of pounds purchased and Y= cost, using the equation rise over run would be ex (1 / 4)*4/1 = 4. Factors that affec
Texas Pan American - MGMT - 3335
A good example to use elasticity when slope doesn't succeed is let's say it cost a dollar for one quart of milk so the rise over run in slope terms will be 1/1, now let's say for a gallon of milk it would cost you 4 dollars which would make the ride over
Texas Pan American - ECON - 2331
Final ExaminationRuby Lopez Started: August 17, 2011 6:36 PM Questions: 651. Question 002(Points: 1.6)The study of economics is best described as a study ofa. b. c. d. e.a. the factors that influence the stock and bond markets. b. capitalism. c. the
Texas Pan American - ECON - 2331
Title: Started: Submitted: Time spent: Total score:1.Quiz 11 August 14, 2011 8:54 PM August 14, 2011 9:44 PM 00:49:31 70/90 = 77.7778% Total score adjusted by 0.0Question 001Maximum possible score: 90For a firm in monopolistic competition, innovation
Texas Pan American - ECON - 2331
In this assignment, I want everyone to compare and contrast monopolistic competition market structure with perfect competition and oligopoly. For example, what assumptions are similar and what are different. What happens to economic profits of a firm oper
Texas Pan American - ECON - 2331
View Attempt 1 of 1Title: Started: Submitted: Time spent: Total score:1.Quiz 10 August 10, 2011 11:21 PM August 11, 2011 12:08 AM 00:47:15 55/100 = 55% Total score adjusted by 0.0Question 016Maximum possible score: 100A market is classified as an ol
Texas Pan American - ECON - 2331
Why does MR decline as the firm produces more and more output? The marginal rate declines because the firm is a "perfect competition". The firm is forced to sell at a certain price due to competition or in order for consumers to buy their product. Similar
Texas Pan American - ECON - 2331
What is the difference between normal profit and positive economic profit? A normal profit is part of a firm's opportunity cost because it is the cost of not running another firm. An economic profit is a firm's total revenue minus total cost. Please brief
Texas Pan American - ECON - 2331
View Attempt 1 of 1Title: Quiz 9 Started: August 8, 2011 11:22 AM Submitted: August 8, 2011 11:53 AM Time spent: 00:31:32 Total score: 80/100 = 80% Total score adjusted by 0.01. Question 001Maximum possible score: 100The cost of all the factors of pro
Texas Pan American - ECON - 2331
Title: Started: Submitted: Time spent: Total score: 1.Quiz 8 August 3, 2011 9:44 PM August 3, 2011 10:29 PM 00:44:59 85/100 = 85% Total score adjusted by 0.0 Maximum possible score: 100 Question 001 Billy has a $20 budget to spend on yogurt and cereal. Y
Texas Pan American - BIO - 1408
Title: Started: Submitted: Time spent: Total score: 1.Exam 2 May 2, 2011 8:44 PM May 2, 2011 8:54 PM 00:09:50 98/100 = 98% Total score adjusted by 0.0 Maximum possible score: 100Learning Objective: Use the geologic timescale figure to trace macroevoluti
Texas Pan American - BIO - 1408
Title: Started: Submitted: Time spent: Total score: 1.Exam 1_ April 13, 2011 12:35 AM April 13, 2011 12:39 AM 00:04:03 92/100 = 92% Total score adjusted by 0.0 Maximum possible score: 100Which of these components of blood fights infection?Student Respo
Aachen University of Applied Sciences - AFWE - 12erfq
ASE320 Homework set # 7 Due: April 24, 2012 1.) For a turbulent boundary layer velocity profile given by u/U =(y/)1/9, where U is the freestream velocity and is the boundary layer thickness, calcu