Total Cost Analysis
The manager of a rival T-shirt stand found that her cost to produce 10 T-shirts is $107.09, while the cost to produce 40 T-shirts is $402.16..
Assume the cost C(x) is a linear function of x, the number of T-shirts produced.
Find the total cost of producing 100 T-shirts.(Round to 2 decimal places)
In: Finance
A company has a holding cost per unit of $5. Each order has a fixed cost of $8 and the annual demand quantity is 150,000 units. What is the company's optimal order quantity?
In: Finance
Discuss the concept of cost transformation and how management accountants can contribute towards the cost transformation of an organisation.
In: Accounting
During the month of July, direct labour cost totalled $24,000 and direct labour cost was 30% of prime cost. If total manufacturing costs during June were $105,000, the manufacturing overhead was:
In: Accounting
Computing Cost of Goods Sold and Ending Inventory Under
FIFO, LIFO, and Average Cost
Assume that Madden Company reports the following initial balance
and subsequent purchase of inventory.
| Inventory balance at beginning of year | 1,820 | units @ $150 each | $273,000 |
| Inventory purchased during the year | 2,380 | units @ $180 each | 428,400 |
| Cost of goods available for sale during the year | 4,200 | units | $701,400 |
Assume that 2,800 units are sold during the year. Compute the
cost of goods sold for the year and the inventory on the year‑end
balance sheet under the following inventory costing
methods.
| COGS | Ending Inventory | ||
|---|---|---|---|
| a. | FIFO | Answer | Answer |
| b. | LIFO | Answer | Answer |
| c. | Average Cost | Answer | Answer |
In: Accounting
Explanation of how a firm makes cost minimizing production
decisions and how its cost varies with output is known as
Iso-cost
iso-quant
theory of the firm
production function
Which one of the above is the answer?
In: Economics
Which of the following costs is always constant? a. average variable cost b. average total cost c. average fixed cost d. none of the above
In: Economics
The cost of 15 hp motor 5 years ago was 25000$. Today cost index value is 1810 and 1330 was 5 years ago. If the power-sizing exponent is 0.69 find the following:
1) Calculate the cost of 30 hp motor for 5 years ago.
2) Calculate the cost of 30 hp motor today.
In: Economics
Suppose the firm’s labor cost rises and the equipment cost falls. How should the firm change its labor and capital usage? What information is needed to answer this question numerically?
In: Economics
True or false: Since the long-run cost is the lowest-cost way of producing each output, the long-run cost curve runs through the minimum points of the short-run cost curves. Briefly explain your answer
In: Economics