StudentShare solutions

# The Routines of Decision Making - Math Problem Example

Nobody downloaded yet

## Extract of sample The Routines of Decision Making

2. The maximum purchase price for the pair of bindings is \$10.00, as this is the cost of production that differs between the alternatives. In case if the price is higher, the company will be realizing a loss.
3. If the production increases from 10.000 units to 12.500, the fixed costs that change between the alternatives allocated to a pair of skis would be the following: 10.000 / 12.500 = \$0.8. The fixed cost of 100.000 should be considered when making the decision, as it does not differ between the alternatives. Since all the rest of the production costs remain unchanged, we can simply add the net change in fixed cost from the total cost of production that varies between the alternatives in order to receive the cost of production for a pair of bindings under the new circumstances: 10.00 + 0.8 = 10.80.
When considering the long run (30,000 sales form by the end of the third year), the fixed overhead that varies between the alternatives per pair of bindings is only \$0.33 (10.000/30.000). Under this sales volume the company should produce the bindings itself. ...Show more
Cite this document
• APA
• MLA
• CHICAGO
(“The Routines of Decision Making Math Problem Example | Topics and Well Written Essays - 500 words”, n.d.)
Retrieved from https://studentshare.net/science/294419-the-routines-of-decision-making
(The Routines of Decision Making Math Problem Example | Topics and Well Written Essays - 500 Words)
https://studentshare.net/science/294419-the-routines-of-decision-making.
“The Routines of Decision Making Math Problem Example | Topics and Well Written Essays - 500 Words”, n.d. https://studentshare.net/science/294419-the-routines-of-decision-making.

## Summary

1. Before making a decision the costs of the two alternatives need to be compared and contrasted. The decision must be based only on relevant information. Relevant information includes the predicted future costs and revenues that differ among the alternatives…
Author : tyrel61
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the math problem on your topic
"The Routines of Decision Making"
with a personal 20% discount.
Grab the best paper

### Check these samples - they also fit your topic

Risk assessment plan
From the research it is clear that probabilistic risk analysis (PRA) or quantitative risk analysis (QRA) or probabilistic safety analysis (PSA) is one of the most used methods of analysing risk in project development and operation. The use of this technique supports and validates the improvement of control and mitigation measures against threats.
19 pages (4750 words) Math Problem
Mod2 SLP: Financial decision making
YEAR 1 t= 1 yr S=P(1+rt) 158000= P(1+(0.07)(1)) P= \$147663.55 S= 246000 r= 7% P= ? YEAR 2 t= 2 yr S=P(1+rt) 246000= P(1+(0.07)(2)) P= \$215789.47 S= 289000 r= 7% P= ? YEAR 3 t= 3 yr S=P(1+rt) 289000= P(1+(0.07)(3)) P= \$238842.97 Amount you have to invest today for all 3 future payments is: P= \$602296 Money on hand today is worth more than tomorrow, therefore it is important that we understand the concept of time value of money.
2 pages (500 words) Math Problem
Criticism of Absorption Cost System
But curtailing overproduction and reducing or eliminating inventories could lead to missed opportunities or higher gains during periods of higher demand, specially on products that see little or no change on their manufacturing, composition, or function.” My Response To The Student’s Answer: Throughout the course of history, management accounting writers have formed an opinion that there is an inversely proportional link between the allocation of fixed overheads and the want or incentive to over produce inventory.
5 pages (1250 words) Math Problem
Microeconomics Math Problem
The rational behind this decision is the fact that in this case firm is covering all its variable costs and generating revenue which is greater than total variable costs. This means that firm is contributing the amount over and above the variable costs to the fixed costs.
2 pages (500 words) Math Problem
Financial accounting
According to accounting concepts, as long as business is going concern it should state all its assets on book value rather than on NRV. This means that since we have no intention of closing down, we are going to write it down at the book value, regardless of what our NRV is.
2 pages (500 words) Math Problem
Activity Based Cost accounting system
Activity Based Costing encourages managers to watch activities or functions that are value added . These are operational acts that help identify the activities or functions that get customers. Management should study cost drivers in decision making.
4 pages (1000 words) Math Problem
New Product Development Accounting Project
Advertising expense has been classified as discretionary cost as it is among the expenses that are fixed but can be altered in the short term by current management decisions. For example, the company can reduce its cost by spending less on advertising or going for a less expensive option in a budget year.
14 pages (3500 words) Math Problem
A Linear Programming
4 pages (1000 words) Math Problem
Job selection-multiple criteria decision analysis
She has excellent curriculum vitae with a high grade point average and a strong record of campus participation in clubs and activities. As a result, she has had a number of good interviews with various companies. She now has
7 pages (1750 words) Math Problem
Multiple criteria decision analysis
In connection to this the main aim of this project is to use MCDA to solve the problem. For the last 10 year Bernard has wanted to own a home. After discussing with his wife, they decided to take a mortgage. But now the problem is, he does not
7 pages (1750 words) Math Problem
Comments (0)
Click to create a comment
Let us find you another Math Problem on topic The Routines of Decision Making for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
• About StudentShare
• Testimonials
• FAQ
• Blog
• Free Essays
• New Essays
• Essays
• The Newest Essay Topics
• Index samples by all dates
Join us:
Contact Us