The Market for the Factors of Production
The Markets for the Factors of Production
2005 12 4 18 1.4 In 2005, the total income of all U.S. residents was about $12 trillion, or $40,000 per capita.
Workers earned about three-fourths of it in the form of wag
1. At the current time, the firm's primary goals are: Business getting, being productive, billing efficiency, offering better service. Find a balance that allocates the points between seniority and other young lawyers according to their performance. That
ACC 333 (Farrell)
GUIDE TO PREPARING CASE ASSIGNMENTS
Why are we using cases? The scenarios are relevant and practical decision problems (and often real!). They develop an important skill analyzing ambiguous situations and developing solutions. They help
Revenues
Item Sponsored Laps Raffle tickets? Wristbands T-shirts
Cost per unit
Units
Total Cost
$6.00
Variable Costs Chips Cookies Gatorade Powerade Water Solo Cups (50 pack) Fixed Costs Raffle tickets Donation DropBox Moonbouce Trophy Soundsystem Canopy
ACC 333 (Farrell)
Classes 30 and 31 Fall 2011
Field Research Project
Assignment Your group will develop a proposal for a hypothetical fundraising event for a not-for-profit organization in the region. The event itself must be held in the Oxford area and m
Assuming Mr. Jaeger chooses to harvest the Riesling grapes before the storm arrives, how much money will he make? b) Assuming Mr. Jaeger chooses to leave the Riesling grapes on the vine, what is the probability that the grapes will end up with botrytis, a
ACC 333 (Farrell)
Class 28 Fall 2011
Case Assignment - Freemark Abbey Winery Assignment 1) Draw the full decision tree for the "harvest" or "don't harvest" decision, absent the availability of any further information.
Hints: o Outcomes must be based on to
Objectives for today
Review of probability basics
Definitions Types of probabilities
Decision trees
What they are and how to draw them Using them to evaluate decision alternatives Is gathering additional information worth the cost?
Value of perfect and
ACC 333 (Farrell)
Classes 26 & 27 Fall 2011
In-Class Activity #1 Customer Profitability at Second Fourth Bank Part 1: Joint, marginal, and conditional probabilities Suppose that Second Fourth Bank has the following sample data about the number of men and
Stats: Introduction to Probability
Page 1 of 3
Stats: Introduction to Probability
Sample Spaces
A sample space is the set of all possible outcomes. However, some sample spaces are better than others. Consider the experiment of flipping two coins. It is po
ACC 333 (Farrell)
Classes 26 & 27 Fall 2011
Additional Study Questions Probability and Decision Trees
1. Parts Problems A manufacturing firm receives shipments of parts from two different suppliers, Ace Company and Action Company. Currently, 65% of the pa
Objectives for today
n n
Overview of Birch Paper case Is everyone on the same page?
Diagram of the alternatives Costs of the alternatives
n
Let's negotiate! n Back to the case:
What transfer price will work? Should VP intervene?
ACC 333 (Farrell)
Fall 2
ACC 333 (Farrell)
Class 25 Fall 2011
Research on Fairness in a Transfer Pricing Setting
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ACC 333 (Farrell)
Class 25 Fall 2011
Page 2 of 4
ACC 333 (Farrell)
Class 25 Fall 2011
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ACC 333 (Farrell)
Class 25 Fall 2011
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ACC 333 (Farrell)
Class 25 Fall 2011
Birch Paper Company Agenda for Transfer Pricing Negotiations 1) We will first divide into groups that will represent the different divisions of Birch Paper - Northern, Southern, or Thompson. As a group, you will then n
ACC 333 (Farrell)
Class 25 Fall 2011
Case Assignment Birch Paper Company
Overview Birch Paper is a classic case that provides an excellent opportunity to present, analyze, and evaluate transfer pricing issues. In only two pages, the case presents a common
Objectives for today
n
Overview of a common coordination problem in firms
The setting and the problems it creates Transfer prices as a possible solution to the problem
n
Establishing a transfer pricing policy
What does top management and division manage
ACC 333 (Farrell)
Classes 22 & 24 Fall 2011
In-class Activity #1 - Transfer Pricing at TwoTier Auto Components TwoTier Auto Parts, an automobile parts manufacturer, is heavily decentralized. Each division head has full authority on all decisions regarding
ACC 333 (Farrell)
Classes 22 & 24 Fall 2011
Additional Study Questions Transfer Pricing 1. Explain the problem(s) that transfer pricing tries to mitigate. Illustrate and discuss the tradeoffs involved.
2. ABC Electric manufactures electrical equipment in
Exhibit _ Alta Vista Day Care Center Analysis of Financial Projections
- If Maximum Enrollment is This Number of Students -20 25 30 37 Revenue: 2-3 year olds ($17 per day x 250/12 x 80%) 4-5 year olds ($16 per day x 250/12 x 80%) 5 year olds ($7 per day x
Objectives for today and next class
Identifying relevant information for decisionmaking
Reminder on decision-making steps, information Identifying relevant information Common types of managerial decisions
Adding constraints to decisions
What are constra
ACC 333 (Farrell)
Classes 19& 20 Fall 2011
In-Class Activity #1 Charters at AirOxford AirOxford owns one jet and operates flights between Oxford and the Fiji Islands. Flights leave Oxford on Mondays and Thursdays and return to Oxford from Fiji on Wednesda
ACC 333 (Farrell)
Classes 19 & 20 Fall 2011
Additional Study Questions Information Relevance and Constraints 1) Bellingham, Inc., has just completed its first year of operations. The unit costs were as follows: Manufacturing costs (per unit): Direct mater
Objectives for today
Review two types of income statements
Absorption costing Variable costing When given one, how to compute the other
Using variable costing: Cost-volumeprofit (CVP) analysis
CVP model Breakeven model Assumptions underlying CVP analy
ACC 333 (Farrell)
Class 18 Fall 2011
In-Class Activity Should CableVision Serve Miranda? Part 1 Prepare Simple Absorption Costing and Variable Costing Income Statements Assume that CableVision serves 30,000 subscribers in the Hamilton market each year, an
ACC 333 (Farrell)
Class 18 Fall 2011
Additional Study Questions Cost-Volume-Profit (CVP) Analysis 1) The Doral Company manufactures and sells pens. Data on Doral's operations is as follows: annual sales selling price per pen variable costs per pen annual
ACC 333 (Farrell)
Class 17 Fall 2011
Case Assignment Colonial Broadcasting Company Case background and assignment Barbara Warrington is trying to understand what factors are associated with ratings for TV movies broadcast on her network so she can make be
Objectives for today
What are some questions regression can help us with? Cost estimation using regression analysis
Simple regression and multiple regression
General form of regression equations Estimated equations from a regression analysis Goodness of
ACC 333 (Farrell)
Class 16 Fall 2011
In-Class Activity Using Regression Analysis at Neidless Markop Neidless Markop operates a chain of ten retail department stores. Each department store makes its own purchasing decisions. Barry Lee, assistant to the pre
ACC 333 (Farrell)
Class 16 Fall 2011
Additional Study Questions Regression Analysis for Managerial Decision-Making 1. Activity Drivers Randy Harris, controller, has been given the charge to implement an advanced cost management system. As part of this pro