Capital Budgeting Sunk costs are costs that have already been incurred. So for example if a company spent money on a marketing assessment for a new product, that would not be included in the decision to bring that product to market because that money was already spent. Sunk costs are not included in a capital budgeting analysis. Opportunity costs are not included in a capital budgeting analysis. An opportunity cost is something

Mod 4 Case For instance, suppose Sam Smoothtalk thinks about accepting the 300 unit offer at $295 per unit. Suppose the company who makes the offer is willing to sign an agreement to buy 300 units each month. That means that the probability quotient is 1 (the sale is a sure thing). Suppose that Sam thinks that the probability of such an offer being available each month is roughly 50%. If

Economics Discussions Production Costs Postal Service (USPS) operates at a loss but its closest competitors -- UPS and FedEx -- both operate at a profit. Suggest how fixed costs have contributed to the situation of the USPS. Provide support for your response. I would suspect that the fixed costs of contributing to employee's retirement funds (Risk Analysis Research Center, 2009, p. 4) and also their restriction from closing local offices (Slentz and McCann,

Joint costing systems should bear in mind the legal constraints on the use of such systems, and should provide accurate information to managers in order to be most useful in the managerial accounting context. Firms need to remain competitive, which indicates that the market will set prices to some degree. This implies that firms can make better decisions with respect to what projects/products they wish to pursue by understanding the

Accounting journals allow for this information to be tabulated and compiled easily. 2) There are a number of factors for management to consider when deciding whether to switch from LIFO to FIFO. The change in accounting process will have an impact on the immediate year's profits, because it will adjust the cost of inventories. A LIFO reserve will need to be created to account for this change. So management must

Productivity After quarters increasing levels production, CEO Canadian Fabrication & Design upset learn, time expansion, productivity newly hired sheet metal workers declined worker hired. Believing workers lazy inefficiently supervised (possibly), CEO instructed shop foreman "crack" workers bring productivity levels. Q1.Production The apparent downturn of productivity on the part of workers has nothing to do with worker laziness and everything to do with the law of marginal returns. For every additional unit manufactured