• the law of demand is invalid. • this situation has nothing to do with the law of demand. 4). A monopoly firm is different from a perfectly competitive firm in that: • A monopolist’s demand curve is perfectly inelastic whereas a perfectly competitive firm’s demand curve is perfectly elastic. • A competitive firm has a u-shaped average cost curve whereas a monopolist does not.
There was no standard organizational structure, rather all major functions were performed by one person. George Henderson's focus was more on production and customers satisfaction. 2) Do you think it meets the criteria for an effective compensation system as set out in compensation notebook 1.1 goals of the reward and compensation system (found in the text book page 12). We think that the criteria for the effective compensation system do not meet the goals of reward and compensation system in Henderson Printing because Long (2013, p.11) describes that the reward is one that adds value in organization, considering all the costs which is not seen in Henderson Printing. Long (2013, p.11) describes eight criteria's of goals of reward and compensation system, but in Henderson Printing, none of the criteria was met.
Case Homework for Seligram, Inc. The biggest issue with Seligram, Inc. is the obsolescence of its labor-based burden allocation process. Since there are two alternative systems that have been promoted, we need to examine and figure out which system works better. First of all, clearly the labor-based burden allocation system is not working because it is using a single cost pool. As we can see from Exhibit 6, ICA’s Direct Labor Cost is 83.8% of CAPACITOR’s while ICA’s Total Machine Hours are 246% of CAPACITOR’s.
Simply put, the Circular Flow diagram is a very simplified picture of how money and products are exchanged within an economy. It’s a visual of how our economy works. A circular flow diagram might be used by a business to show how a specific series of exchanges of goods, services and payments make up the building blocks of a given economic system of interest. The diagram above represents all the actors in an economy as either households or firms/companies. In other words, the diagram describes a pure model economy with no government intervention.
The traditional costing method lumps all overhead costs into a single pool and allocates those costs across all products produced based on one of the three cost drivers (direct labor hours, number of units produced, or machine hours). This method of costing does not take into account the differences between products when allocating overhead costs, like a product’s custom requirements or production complexity, so the costs are applied the same way across all products produced using the cost driver (The Economist Newspaper, 2009). Activity based costing allocates overhead costs to
The fabrication phases and the assembly and test phase consist of their own procedures. Nowadays manufacturing process becomes more and more technologically diverse and intense. It results in a decrease in a direct labor percentage of total manufacturing cost. Management considered that an inaccuracy of GEI’s standard cost system caused a poor financial performance. The company need find a better cost system which could truly track costs and identify which of products were profitable and which were not.
2. What might go wrong in the future? The Internal Venture concept requires a lot of capital funding from Telecam so, if this concept has been promoted but most venture funded turn to be failure, the financial standing could be in trouble. Secondly, when several internal ventures have been set up there is a chance that the company could turn to fragment organization. Thirdly, the stock option which intend to provide tremendous potential return to the founder of each Internal Venture, however, if the stock price of Telecam tumble down, the stock option will no longer an effective incentive to the founder member.
2.2 The budget has not been accurate enough. This has caused some budgets to be over compensated for and others under compensated for leaving us with a problem of how to distribute the remaining money from budgets or raise additional capital to fund the departments which the budget hasn’t covered. 2.3 The budget has been tampered with as the year has gone on. This has caused upset and inaccuracy as money has been shifted, added and taken from different departments, leaving some departments short or over paid for without explanation why. 3.0 Recommendations 3.1 To reduce the exceeding of budgets, I recommend that more time is spent to see where money can be saved without risking health and safety.
In relation to money, the developer’s goal may be hindered due to the costs of his/her project exceeding the “spending cap.” In addition, time proves to be a factor when new findings mandate certain alterations for a code in progress. Moreover, arising maintenance requests could change the foundation that a system in progress has established. The reality of systems implementation and operation is that no plan is ever concrete because it could un-expectantly or foreseeably change at any given moment. 2. Why is it important to document change requests?
An oligopoly is much like a monopoly, in which only one company exerts control over most of a market. In an oligopoly, there are at least two firms controlling the market. An oligopoly is a market dominated by a few large suppliers. The degree of market concentration is very high. Firms within an oligopoly produce branded products and there are also barriers to entry.