Identify and discuss the factors that are affecting the way cost accounting is practiced.
In: Accounting
"A manufacturing company is considering a new investment in a machine that will cost $170,000 and has a maintenance cost of $5,700 that occurs every 2 years starting at the end of year 2. Assuming that this equipment will last infinitely under these conditions, what is the capitalized equivalent cost of this investment at the rate of 13.6%? Enter your answer as a positive number."
In: Finance
Suppose there are n = 100 firms in the market each with the cost function is C(y) = 5 + y + 0.5y^2. What is the inverse market supply curve? What is the market supply curve? Draw the market supply curve. (Hint: Go from individual supply to market supply. Finish by getting inverse market supply.)
In: Economics
Dan is evaluating a project that will cost $900,000 but is expected to produce cashflows of $225,000 per year for 10 years, with the first cash flow in one year. His cost of capital is 12% and his company's preferred payback period is three years or less.
a. What is the payback period of this project?
b. Should he take the project if he wants to increase the value of the company?
In: Finance
What is a dollar amount for the cost of addressing women's health in Virginia?
In: Economics
1. Suppose the cost of labor rises by 25% and are expected to stay at that level for a long time. Show graphically how this change in the relative price of labor and capital affects the firm’s expansion path. (7 pts)
2. Suppose that a firm’s production function is q = 2L1/2K1/2. The cost of a unit of labor is $18.50 and the cost of a unit of capital is $20. The firm is currently producing 1,000 units of output and has determined that the cost minimizing quantities of labor and capital are 100 and 20, respectively. Write the function form of isoquant (K as a function of L, given q = 1,000). Also write the function form of isocost. (8 pts)
3. Give an example of an implicit opportunity cost, based on observation in your daily life, as a student, a worker, or an entrepreneur. Implicit cost is cost that does not require an outlay of money. (6 pts)
In: Economics
If the estimated lifetime benefit of a system is $870,000 and the estimated lifetime cost of the system is $550,000.
(First, state the formula).
c. What is the real annual cash value of the system?
In: Accounting
People in the aerospace industry believe the cost of a space project is a function of the mass of the major object being sent into space. Use the following data to develop a regression model to predict the cost of a space project by the mass of the space object. Determine r2 and se.
Weight (tons) 1.897, 3.019, 0.453, 0.979, 1.058, 2.100, 2.408, Cost ($ millions) 53.6, 184.7, 6.4, 23.5, 33.4, 110.4, 104.6
*(Do not round the intermediate values. Round your answers to 4 decimal places.)
**(Round the intermediate values to 4 decimal places. Round your answer to 3 decimal places.)
ŷ = *? + *? x
r2 =?**
se =?**
In: Statistics and Probability
Answer in a of 150 words or more. If there is a 10% cost overrun, what happens to the NPV and IRR? If sales are 10% higher than your original estimate, what happens to the NPV and IRR?
In: Finance
Using a perpetual system, what is the cost of the goods sold for November if the company uses LIFO?
| Nov. 01 | Inventory | 22 units at $21.00 |
| Nov. 04 | Sold | 9 units |
| Nov. 10 | Purchased | 33 units at $23.00 |
| Nov. 17 | Sold | 25 units |
| Nov. 30 | Purchased | 23 units at $24.00 |
Using the perpetual LIFO system, what is the cost of the merchandise sold for November?
In: Accounting