Submitted By Piveen

Words 275

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Words 275

Pages 2

Hilton & Plat 2015

Case Study Chapter 6

Cost Estimation

Organization

Period

Expenditure

Cost Behavior

:

:

:

:

ABC Donuts Tasty Sdn Bhd

Jan 20XX - Dec 20XX

Utility bill

Semi Variable

Account Classification / Visual-Fit Method /

Cost Estimation MethodHigh Low Method / Least Square Regression

:

Method

Ledger

Expenditure

Utilities

Cost Monthly

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

TOTAL

$

$

$

$

$

$

$

$

$

$

$

$

$

5,100

5,300

5,650

6,300

6,400

6,700

7,035

7,000

6,200

6,100

5,600

5,900

73,285

Cost Estimation Method

Activity or Cost Driver dozens of bakery items number of sold per month customers per

75,000

8,000

78,000

8,100

80,000

9,000

92,000

10,000

98,000

11,000

108,000

10,000

118,000

12,000

112,000

9,000

95,000

8,000

90,000

7,500

85,000

10,000

90,000

15,000

1,121,000

117,600

Cost Estimation Method

Engineering Method

Using relevant research techniques, the production team has conducted a research from ground up trying to identify whether utlities is actually affected by level of activities.

Base on the research performed, production research team has identified various activities that is related to usage of utilties.

Among the activities are:

1. Administrative activities use of computers

2. Kitchen activities using high level of electricity on kitchen appliances and water for baking donuts

3. serving customers activities at the front line also requires usage of utilities including air-conditioning, lighting to display case

Hence, it may be concluded that

1/3 of the utilties is expected to be fixed while the remaining utilities cost…...

...Bw BIg = = = = = = = = = = = = = = = = initial oil in place, STB cumulative oil produced, STB initial gas in place, SCF cumulative gas injected into reservoir, SCF cumulative gas produced, SCF water influx into reservoir, bbl cumulative water injected into reservoir, STB cumulative water produced, STB initial two-phase formation volume factor, bbl/STB = Boi initial oil formation volume factor, bbl/STB initial gas formation volume factor, bbl/SCF two-phase formation volume factor, bbl/STB = Bo + (Rsoi - Rso) Bg oil formation volume factor, bbl/STB gas formation volume factor, bbl/SCF water formation volume factor, bbl/STB injected gas formation volume factor, bbl/SCF 1 © 2003-2004 Petrobjects www.petrobjects.com Petroleum Reserves Estimation Methods © 2003-2004 Petrobjects www.petrobjects.com BIw Rsoi Rso Rp Cf Cw Swi ∆pt p(t) = = = = = = = = = injected water formation volume factor, bbl/STB initial solution gas-oil ratio, SCF/STB solution gas-oil ratio, SCF/STB cumulative produced gas-oil ratio, SCF/STB formation compressibility, psia-1 water isothermal compressibility, psia-1 initial water saturation reservoir pressure drop, psia = pi - p(t) current reservoir pressure, psia The MBE as a Straight Line Normally, when using the material balance equation, each pressure and the corresponding production data is considered as being a separate point from other pressure values. From each separate point, a calculation is made and the results of these calculations......

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...MINE3120 REPORT Ore Body Modeling and Resource Estimation Lecturer: Mr. Dr Basil Beamish Due Date: 6th June 2011 The University of Queensland St Lucia, QLD 4067 TO: MINE3120 Course Coordinator School of Engineering University of Queensland Brisbane QLD 4072 Attn: Dr Basil Beamish Dear Sir, Please find attached a copy of our Orebody Modelling and Resource Estimation report as requested. Hopefully this report will meet your expectations, however if you have any queries or concerns, please do not hesitate in contacting us. Sincerely STATEMENT OF ORIGINALITY “We hereby declare that this report is our own work and that it contains, to the best or our knowledge and belief no material previously published or written by another person nor material which to a substantial extent has been submitted for another course, except where due acknowledgement is made in the report.” Chern Gan __________________________________________________ Lucy Fraser __________________________________________________ Marcel Coquerand __________________________________________________ Michael Rigby __________________________________________________ i SUMMARY The Datamine software package was used to estimate the total resource of this copper deposit with gold mineralization. Data taken from the 26 boreholes was then subjected to the Kriging, Inverse Power of Distance and Nearest Neighbour methods to model final tonnages of copper and ounces of gold. The main......

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...Demand Estimation Tora Heyward ECO 550 – Managerial Economics and Globalization 07/21/2014 Your supervisor has asked you to compute the elasticity for each independent variable. Assume the following values for the independent variables: Introduction In this paper I will compute the elasticity for each independent that was given to me. I will determine the implications for each of the computed elasticity. Elasticity, as it is used in economics, refers to the response of a "dependent" variable to changes in the "independent" variable (n.a., 2014). I will recommend whether the firm should or should not cut its price to increase market share. I will then plot the demand curve and the supply curve. I will determine the equilibrium price and quantity. I will also outline the significant factors that could cause a change in the supply and demand. I will then indicate the crucial factors that cause the rightward shifts and leftward shifts in demand. The maker of a leading brand of low-calorie microwavable food estimates the following demand equation for its product using data from 26 supermarkets around the country for the month of April. Assume the following values for the independent variables: Q = Quantity sold per month P (in cents) = Price of the product = 500 PX (in cents) = Price of leading competitor’s product = 600 I (in dollars) = Per capita income of the standard metropolitan statistical area (SMSA) in which the supermarkets are located =...

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...Demand Estimation Sierra McDaniel ECO 550: Managerial Economics Dr. Moses Pologne 7/24/2014 Option 1: QD=-5200-42P+20PX+5.2I+.20A+.25M In economics, “a variable is an event, idea, value, or some other object or category that a researcher or business can measure” (Basu, 2014, para. 1). There are two types of variables: dependent and independent. Dependent variables are swayed by other factors, but independent variables stand alone and aren’t affected by other variables (Basu, 2014). For this equation there are five independent variables: price (P), competitors price (PX), income (I), advertising expenditures (A), and the number of microwaves sold (M). In order to calculate the given variables to get the quantity demanded the prices must be plugged into the equation: QD = Quantity of demand of 3-pack units P (in cents) = Price of the product = 500 cents per 3-pack unit PX (in cents) = Price of leading competitor’s product = 600 cents per 3-pack unit I (in dollars) = Per capita income of the standard metropolitan statistical area (SMSA) in which the supermarket are located = $5,500 A (in dollars) = Monthly advertising expenditures = $10,000 M = Number of microwaves ovens sold in the SMSA in which the supermarkets are located =5,000 QD=-5200-42500+20600+5.25,500+.2010,000+.255000 = $17,650 1. Compute the elasticity for each independent variable. According to McGuigan, Moyer, and Harris (2014), quantity demanded is most commonly used to discover......

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...Demand Estimation ECO 550 28 July 2014 Demand Estimation Demand estimation is defined as the process of developing and estimating the amount of demand for a product or service. According Kehoe (1972) demand estimation consists of determining as accurately as possible, how many units of a product will be purchased at a specific price, and further determining the change in quantity demanded if the original price IS raised or lowered (p. 29). As a president or chief executive officer of a business, it is key imperative to have an understanding of what is expected in terms of sales. Successful sales companies use demand estimation to predict future sales typically in months, quarters, or years. With this concept, a company is able to estimate how much to produce. This paper will estimate the following demand equation for a leading brand of low-calorie, frozen microwavable food using data from 26 supermarkets around the country for the month of April, compute the elasticities for each independent variable, determine the implications for each of the computed elasticities for the business in terms of short-term, recommend whether or not the firm should cut its price to increase its market share, plot the demand curve for the business, and indicate the crucial factors that could cause rightward shifts and leftward shifts of the demand and supply curves. ------------------------------------------------- Q = Quantity demanded of a unit (dependent......

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...10 Deadly Sins of Software Estimation Steve McConnell © 2002 Construx Software Builders, Inc. All Rights Reserved. www.construx.com D e l e ring Softw are P e ct Succe ss iv roj Construx ® Background Estimation Book v Construx Estimate™ v Construx’ Training s v Construx’ Consulting s v www.construx.com 2 consulting u training u software projects u construx.com Art and Science of Software Estimation Science of estimation is well-developed and well-supported by software tools v Art of estimation relies on rules of thumb and still needs some work v 3 consulting u training u software projects u construx.com Almost-Deadly Sins of Software Estimation Sins #20-#11 Sin #20 Estimating how long “it” will take to build before anyone knows what “it” is 5 consulting u training u software projects u construx.com Sin #19 Assuming that the most reliable estimates come from the people with the most powerful vocal chords 6 consulting u training u software projects u construx.com Sin #18 Telling someone you’ writing an re estimation book, because they will say, “When do you estimate you’ be done, ha ll ha ha.” 7 consulting u training u software projects u construx.com Sin #17 Creating an estimate for a new project by comparing it to a past project … … which overran its estimates... … and ultimately realizing that you based the new project’ plans on the past s project’ estimated results instead of its s actual......

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...Demand Estimation ECO 550 August 10, 2014 Dr. Lundondo Mumeka Demand Estimation In this essay I will assume the role as an employee for the maker of a leading brand of low-calorie, frozen microwavable food chain. Using the data from 26 supermarkets around the country for the month of April and the equation data that has been provided to me, I will compute the elasticity for each independent variable as well as determine the implications for each of the computed elasticities for the business in terms of short-term and long-term pricing strategies. Based on these calculations I will recommend whether the firm should or should not cut its price to increase its market share. Lastly, with the understanding of the concept on supply and demand I will discuss crucial factors that could cause rightward shifts and leftward shifts of the demand and supply curves, illustrating these shifts using graphs plotting the curves. Compute the Elasticity for Each Independent Variable Assume the following values for each independent variable. These values will be used to compute the elasticity for each independent variable for the food chain. The first step in computing these equations will be to convert all price values into dollars, then put the values of P, Px, A, I and M in the above equation. QD = - 5200 - 42P + 20PX + 5.2I + .20A + .25M • Q = Quantity demanded of 3-pack units • P (in cents) = Price of the product = 500 cents per 3-pack unit • PX......

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...Demand Estimation Dr. Xiaodong Wu Managerial Economics October 24, 2014 Elastics for Variables As the maker for frozen microwavable food we have been instructed to compute the elasticities for each independent variable. The elasticities are important because they demonstrate the direction and magnitude of change for a given variable (McGuigan, Moyer, Harris, 2014, 2014, p. 73). This data can be used to reflect supply and demand of a product and determine the feasibility of pricing strategies. To compute the elastic price for the microwave food market we will use the following regression equation and variables: QD = 20,000 - 10P + 1500A + 5PX + 10I Q = Quantity demanded P (in cents) = Price of the product = 8,000 PX (in cents) = Price of leading competitor’s product = 9,000 I (in dollars) = Per cap income of the (SMSA) of supermarkets = 5,000 A (in dollars) = Monthly advertising expenditures = 64 Computing the elasticities for each variable are as follows: Elasticity P = (DQD/DP)/(QD/P) QD = 20,000 - 10*8,000 + 1500*64 + 5*9,000 + 10*5,000 = 131,000 DQD/DP = 0 - 10 + 0 = -10 Elasticity P = (-10)/(131,000/8,000) = -.610687 for an absolute value of .61 Elasticity PX = (DQD/DPX)/(QD/PX) DQD/DPX = 0 - 5 + 0 = -5 Elasticity PX = (-5)/(131,000/9,000) = -.343511 for an absolute value of .34 Elasticity I = (DQD/DI)/(QD/I) DQD/DI = 0 - 10 + 0 = -10 Elasticity I =......

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...Running Head: DEMAND ESTIMATION 1 DEMAND ESTIMATION Name Professor Course Date DEMAND ESTIMATION 1. Elasticities of the independent variables 2 Demand equation is given by: QD = -5,200 – 42P + 20C+ 5.2(I) + 0.2(A) + 0.25(M) 100cents = 1$ P = 500 cents, C = 600cents, I = 550,000cents and A = 1,000,000, M = 5,000 QD = -5,200 – [42 × 500] + [20 × 600] + [5.2 × 550,000] + [0.2 × 1,000,000] + [0.25 × 5,000] QD = -5,200 – 21,000 + 12,000 + 2,860,000 + 200,000 + 1,250 QD = 3,047,050 a) Price elasticity of demand (PED) Price elasticity of demand is computed using the following formula: ������������ ������������ × ������ where ������������ ������ ������������ represents the change in quantity demanded with respect to a unit change in price (indicated by the coefficient of P in the equation) PED = -42 × 500 3,047,050 = - 0.00689 The price elasticity of demand implies that any 1% change in the price of the product causes a 0.00689% change in quantity demanded. A further implication is that a change in price leads to a less than proportionate change in quantity demanded hence making the demand for the product is price elastic. Any increase in price will lead to a decrease in quantity demanded of the product, this is indicated by the negative sign of the price elasticity of demand. The firm should increase its price since this will result into an increase in its total revenue as the consumers will still be willing to consume more than the......

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...Calculating and Interpreting Beta Introduction: In 1990, William Sharpe won a Nobel Prize in Economics for his work in developing the Capital Asset Pricing Model (CAPM). Traditionally the CAPM has been the basis for calculating the required return to the shareholder. This figure in turn has been used to calculate the economic value of the stock and the Weighted Average Cost of Capital (WACC) for capital budgeting. In recent years, the CAPM has been attacked as an incomplete model for explaining market pricing behavior, but academics and practitioners cannot agree on a good replacement. And so the CAPM remains an important model in practical investment and financial management decision making. Calculating Beta: The most important component in calculating the required return to shareholder (from the CAPM) is the company’s beta. The CAPM can be succinctly stated as: k s k RF k M k RF s k RF Market Risk Premium s [1] The original model was conceived of theoretically, and was expected to be forward looking. Careful reading of Sharpe’s original work show that the market assesses systematic risk looking at expected future covariance of the company’s returns with that of the overall market. It is assumed that these covariances are unbiased and efficient estimates of the observed relationships ex post facto. Traditionally the CAPM relationship is estimated using simple regression on historical outcomes, where ks is the y variable, and kM-kRF......

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...Search Images Maps Play YouTube News Gmail Drive More » Account Options chreaseluns@gmail.com | Standard View | Account | Settings | Help | Sign out Gmail by Google Show search options Create a filter Compose Mail Folders Inbox (4318) Starred star Sent Mail Drafts (4) All Mail Spam (515) Trash Contacts Labels [Imap]/Sent [Imap]/Trash (138) Edit labels « Back to Inbox 1 of about 89 Older › Print conversation Print Open conversation in new window New window Assignment 1: Demand Estimation Inbox Add star gregory syamb Tue, Jul 14, 2015 at 11:54 AM To: Chrease Lunani Reply | Reply to all | Forward | Print | Delete | Show original Demand Estimation Due Week 3 and worth 200 points Imagine that you work for the maker of a leading brand of low-calorie, frozen microwavable food that estimates the following demand equation for its product using data from 26 supermarkets around the country for the month of April. For a refresher on independent and dependent variables, please go to Sophia’s Website and review the Independent and Dependent Variables tutorial, located athttp://www.sophia.org/tutorials/independent-and-dependent-variables--3. Option 1 Note: The following is a regression equation. Standard errors are in parentheses for the demand for widgets. QD = - 5200 - 42P + 20PX + 5.2I + 0.20A + 0.25M (2.002) (17.5) (6.2) (2.5) (0.09) (0.21) R2 = 0.55 n = 26 F = 4.88 Your supervisor has asked you to compute......

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...Assignment: Demand Estimation Abraham B. Morris Farah Farahati ECO 550 July 27, 2015 In this paper, as a worker of the leading low-calorie frozen microwavable food, I am going to address and make comparative economic analysis based on demand estimates from the data of 26 supermarkets around the country for the month of April. My independent and dependent variables is squarely based on the consumers of the low-calorie frozen microwavable food. By virtue of the fact, consumers demand for the low-calorie food products depends on the consumers’ money income flows which is one of the independent variable and the price, whereas the the statistics of the number of people who wants to lose weight will be a key issue. I will compute the elasticities of the various independent variables and further determine the equilibrium price and quantity of the low-calorie frozen microwavable food, as well as outlining the determinants of the demand and supply of the products. Further analysis will be made on the shift and movement in the demand and supply curves. The makers of the low-calorie frozen microwavable food has made the following estimate in the regression equation below from 26 supermarkets in the month of April as follows: Per the demand widgets in the equation: QD = - 5200 - 42P + 20PX + 5.2I + 0.20A + 0.25M (2.002) (17.5) (6.2) (2.5) (0.09) (0.21) R2 = 0.55 n = 26 F = 4.88 The assumption for independent variables is drawn from the data provided as...

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...Production Cost Analysis and Estimation Applied Problems BUS640 Managerial Economics Gail Coates October 20, 2015 Isabel Wan Introduction The cost that a business incurs when it combines raw material and labor to produce or manufacture a product or service is called production cost. Knowing the distinction between the fixed and variable inputs in the production process is very important in production and cost analysis (Douglas, 2012). We will be examining two different problems of production cost analysis and estimation applied problems in this paper. We will also show which inputs are fixed and which are variable in one of the problems. During the other problem the marginal cost curve and the incremental cost will be described as well as the profit-maximizing price and output levels. PROBLEM 1 Workers | Oven cost- Fixed | Labor cost- Variable | Total cost | 0 | $1,000 | 0 | $1,000 | 1 | 1,000 | 500 | $1,500 | 2 | 1,000 | 1,000 | $2,000 | 3 | 1,000 | 1,500 | $2,500 | 4 | 1,000 | 2,000 | $3,000 | 5 | 1,000 | 2,500 | $3,500 | 6 | 1,000 | 3,000 | $4,000 | 7 | 1,000 | 3,500 | $4,500 | 8 | 1,000 | 4,000 | $5,000 | Number of pizzas-Variable | Average cost | Pizzas per worker | Increase in production | 0 | 0 | 0 | 0 | 75 | 20.00 | 75 | 75 | 180 | 11.11 | 90 | 105 | 360 | 6.94 | 120 | 180 | 600 | 5.00 | 150 | 240 | 900 | 3.89 | 180 | 300 | 1140 | 3.51 | 190 | 240 | 1260 | 3.57 | 180 | 120 | 1360 | 3.68 | 170 |......

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...BUS 640 Week 3 Production Cost Analysis and Estimation Applied Problems To Buy This material Click below link http://www.uoptutors.com/BUS-640-ASH/BUS-640-Week-3-Production-Cost-Analysis-and-Estimation-Applied-Problems 1. Jennifer Trucking Company operates a large rig transportation business in Texas that transports locally grown vegetables to San Diego, California. The company owns 5 large rigs and hires local drivers paid fixed salaries monthly, regardless of the number of trips or tons of cargo that each driver transports each month. 2. The Palms Dry Cleaning Shop in Fort Lauderdale, Florida, faces a highly seasonal demand for its services, as the snow-birds retirees flock to Florida in mid-fall to enjoy the mild winter weather and then return to their main homes in mid-spring. Given this seasonality, Palms tries to keep the overhead costs as low as possible and therefore, often uses seasonal contracted labor to man its operations. The following table shows the labor costs in each month of operation over the past 12 months as well as the total number of garments that were dry-cleaned in each month. Palms pays fixed wages per hour to each employee, and we can assume that the costs of other variable inputs (such as chemicals, electricity, etc) have remained constant. 3. Over the past 12 months the Four Winds Novelty Company firm has recorded its internet sales (equals monthly output levels) and its monthly total variable costs (TVC) for a particular novelty item as......

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...ACC650 Module 4 - Cost Estimation and CVP Analysis Click Link Below To Buy: http://hwcampus.com/shop/acc650-module-4-cost-estimation-cvp-analysis/ 1. DuChien Corporation recently produced and sold 100,000 units. Fixed costs at this level of activity amounted to $50,000; variable costs were $100,000. How much cost would the company anticipate if during the next period it produced and sold 102,000 units? a. $150,000. $151,000. $152,000. $153,000. Some other amount not listed above. 2. The difference between budgeted sales revenue and break-even sales revenue is the: a. contribution margin. contribution-margin ratio. safety margin. target net profit. operating leverage. 3. At a volume of 20,000 units, Dries reported sales revenues of $1,000,000, variable costs of $300,000, and fixed costs of $260,000. The company's break-even point in units is: a. 7,027 (rounded). 8,667 (rounded). 9,286 (rounded). 7,429 (rounded). an amount other than those above. At a volume of 20,000 units, Dries reported sales revenues of $1,000,000, variable costs of $300,000, and fixed costs of $260,000. The company's break-even point in units is: Selling price = 1,000,000/20,000 = 50 VC per unit = 300,000/20,000 = 15 Contribution margin per unit = 50 - 15 = 35 BEP = 260,000/35 = 7428.57 (rounding off 7,429) 4. The contribution-margin ratio is: a. the difference between the selling price and the variable cost per unit. fixed cost per unit......

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