Pm 592 Week 2

Pm 592 Week 2
Instructions: Please complete all 3 multi–part problems for this week 's assignment.
2–1 Basic Estimating Problem
Your company is installing a new piece of machining equipment and a robotic arm. Your manager
asks for the project costs by cost category as well as the total amount. Given the following
information, develop a base cost estimate by grouping costs by Equipment / Material (items 1 – 4),
Installation / Labor (items 5 and 6), and Overhead (items 7–9). 1. Two pieces of equipment costing
$ 15,000 and $ 35,000 2. Material required for electrical hook–up is 400 feet at $ 25 per foot 3.
Controls for each piece of equipment are estimated at $ 600 each 4. Required start–up material is
3,700 pounds at $ 2.70 per pound ... Show more content on Helpwriting.net ...
Listed below are the initial cost estimates for the ingredients and labor for 1000 sandwiches
delivered to the retail outlets: PRODUCT COMPONENT | COSTESTIMATE | TYPE OF
ESTIMATE | Buffalo | $80.00 | Order of Magnitude (market price) | Lettuce | $15.00 | Definitive
(own farms) | Tomatoes | $12.00 | Definitive (own farms) | Pickles | $7.00 | Budget (existing
supplier) | Corn Starch | $5.50 | Budget (existing supplier) | Mustard | $3.70 | Definitive (in stock
item) | Buffalo special sauce | $3.00 | Order of Magnitude (new product) | Aromatic Herbs | $6.50 |
Budget (existing supplier) | Semi toxic food preservative | $1.50 | Definitive (in stock item) | Labor |
$6.00 | Order of Magnitude (Buffalo preparers an unknown quantity) | Packing and shipping |
$18.00 | Definitive (same as current product) | Total cost | $158.20 | NA |
The target retail price for the new sandwich is $1.49 each. This is the cost the retailer thinks they
can sell the sandwich and still make money. The average markup from Bill to the Retailer is 150%.
New products are targeted for 100% markup by the Retailer to the consumer on introduction, so that
price and cost reductions can be taken as
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Gopro And Contour Essay
In the action camera world, there are two big names: GoPro and Contour. In the last year, the action
camera market has exploded, marked by the proliferation of cheap action cams and, more recently,
by the entrance of major brands such as Sony. However, in the shadow of the big boys, there is a
little known action camera that has a big offering...
The Crocolis HD Action Camera
At $149.99, it significantly undercuts the competition in terms of price. The GoPro Hero 2 retails
for $299 and the Contour+ retails for $499.99. GoPro is the market leader for a reason. It offers
superior picture quality and a comprehensive line of accessories. The Contour offers advanced
features, such as Wi–Fi streaming, but comes at a premium price tag. However, there is a
compelling argument to be made for the Crocolis HD Action Camera. It offers more features in a
more complete stock package for half the price of the GoPro hero 2 and less than ... Show more
content on Helpwriting.net ...
Not water resistant, water proof. This means you can take it surfing with you in Indonesia, sand
boarding in the deserts of Peru and it will withstand the tough conditions of a dirt biking in
Australia. The locking mechanism, the gasket and the lens all feel very sturdy and inspire
confidence. The forward facing slim rectangular profile means this is much more aerodynamic and
less awkward than the flat box shape of the GoPro series.
Controls
The action controls necessary while mobile are easily accessible on the top. The playback controls
and the settings line the bottom of the action cam underneath the 1.5″ LCD. This is a major
advantage over the GoPro Hero 2 and the Contour+ that do not come with a viewing screen.
Ports & Inputs
Flip open the top locking mechanism and the screen folds over to reveal all the ports and inputs.
This includes the battery, SDHC slot, mic–in, mini–HDMI port, mini–USB port, TV out and the
charge indicator.

Product Tactics Essay
My product tactics
My product should be able to improve and innovate the processes of sports medicine. The product
should use social media to make impact on the client network. Also to make the brand competitive
and ensure creativity as well as convenience. These objectives will be achieved by ensuring the
company hires competent staff who are dedicated to their jobs. Ensuring proper and efficient service
delivery. This makes the clients feel respected and they save time too. Also I will ensure that I
improve the credibility of the company brand in the eyes of the new and old clients.
To achieve these product strategies first I will conduct serious interviews to ensure that I get the
right staff composition. I will also motivate the staff ... Show more content on Helpwriting.net ...
To attain my place strategies I will first visit the new market for a couple of weeks and interact with
the locals. At this point I will identify one person who is willing to guide me through the state and
introduce me to the various teams in the area. From there I will market myself by providing free
services just to showcase my work. Before putting my strategy into action I will attend all sports
events in the different stadiums and introduce myself to the team managers. This will be done in the
expansion period after three years of being in business. To evaluate progress I will look at the
number of options I have for a business location and the suitability of good business in that location.
Evaluation will also be based on the number of clients available.
My promotional Tactics
The promotional objective of the business is to ensure that the client is confident about quality of
service and he or she can give recommendation to other customers. To also ensure that clients are
attracted to the quality of service offered. To create awareness of the brand far and wide. The
strategies to achieve this is using social media as a marketing platform where existing customers
and potential customers are able to interact with the staff and ask questions. The business will also
use marketing agents that will create awareness to the people on the ground level. Another strategy
is to offer discounted prices during the first weeks of business.
The tactic to be used to

Wilkerson Company
http://www.scribd.com/nikunjj_1/d/70869811–Solution–to–Wilkerson Management Accounting for
Multinational Companies
Solution to the Wilkerson Case
Igor Baranov
Executive Summary
Taking into account the difference among product and high proportion of overheads,
Wilkersonshould abandon its existing cost system and move to activity–based costing. The
profitability analysisindicates that the company earns healthy margins on pumps and valves.
However, the margin of flow controllers at actual usage of capacity is negative. Wilkerson should
consider action targeted atcost reduction (changes in flow controllers design or in their production
and delivery process) orraising the price of flow controllers for customers. Since flow ... Show more
Option II: Activity–based costing
Activity–based costing allows tracing indirect costs to product with a high degree of accuracy.
Whilevolume–based costing is implicitly based on an assumption that there's a direct relationship
between volume of production of individual products and level of overhead, activity–based costing
allowsfinding individual relationships between volume of production and different overheads. It
becomespossible due to combining overheads into cost pools and allocating these cost pools to
products inproportion to selected cost drivers that reflect these individual relationships between
volume of production and level of overheads.Wilkerson should pool overheads into five groups
(cost pools): machine–related expenses, setuplabor cost, receiving and production control,
engineering, packaging and shipment. The next step ischoosing most appropriate cost drivers that
reflect the relationship between volume of productionof individual products and level of overheads.
Machine hours are the most natural cost driver formachine–related expenses. Both setup and
receiving, and production control activities are changedin proportion to number of production runs.
Engineering cost can be allocated in proportion tohours of engineering work, whereas packaging
and shipment activity is driven by the number of shipments
The selected cost pools,

The Pros And Cons Of Government Intervention
The future is uncertain, as such conventional wisdom dictates that governments must intervene in
the economy to help enhance growth and ensure stability. However, is too much intervention a bad
thing? There are many reasons why it is so but one such reason is that in an economy where there is
excessive government intervention and ownership such as in the Soviet Union, there was a lack of
risk and subsequently lack of innovation as rather than satisfying customers the concern of a
producer in the system was to satisfy the state. The lack of a reward for working harder, due to all
businesses being owned by the state reduces incentive to produce or innovate and this leads to
inefficient outcomes in an economy. This is a contrast to a capitalist society where innovation and
hard work can lead to personnel gain in the form of money. Price ceiling and price floors are price
control mechanisms that are used to, respectively set a maximum price, and a minimum price. One
such problem as a result of implementing these is that they will artificially cause a shortage or
surplus, respectively, of the good or service due to affecting supply and demand. This prevents the
good/services to be at the equilibrium price, which is where economic outcomes would be most
efficient. So should governments intervene? Regardless of the aforementioned downsides this has
always been a topic of debate between Keynesian economists and classical economists, but a widely
accepted consensus is that some level

Management Control System
CHAPTER 22
MANAGEMENT CONTROL SYSTEMS, TRANSFER PRICING,
AND MULTINATIONAL CONSIDERATIONS
22–1 A management control system is a means of gathering and using information to aid and
coordinate the planning and control decisions throughout the organization and to guide the behavior
of its managers and employees. The goal of the system is to improve the collective decisions within
an organization.
22–2 To be effective, management control systems should be (a) closely aligned to an organization
's strategies and goals, (b) designed to fit the organization 's structure and the decision–making
responsibility of individual managers, and (c) able to motivate managers and employees to put in
effort to attain selected goals desired by top ... Show more content on Helpwriting.net ...
22–12 Reasons why a dual–pricing approach to transfer pricing is not widely used in practice
include:
1. The manager of the supplying division uses a cost–based method to record revenues and does not
have sufficient incentives to control costs.
2. This approach does not provide clear signals to division managers about the level of
decentralization top management wants. 3. This approach tends to insulate managers from the
frictions of the marketplace because costs, not market prices, affect the revenues of the supplying
division. 4. It leads to problems in computing the taxable income of subunits located in different tax
jurisdictions.
22–13 Disagree. Cost and price information are often useful starting points in the negotiation
process. Costs, particularly variable costs of the "selling" division, serve as a "floor" below which
the selling division would be unwilling to sell. Prices that the "buying" division would pay to
purchase products from the outside market serves as a "ceiling" above which the buying division
would be unwilling to buy. The price negotiated by the two divisions will, in general, have no
specific relationship to either costs or prices. But the negotiated price will generally fall between the
variable costs–based floor and the market price–based ceiling.
22–14

Itunes Music ( Apple ) Store Entered Into The Music Market
ITunes music (Apple) store entered into the music market in 2003. However, prior to Apple 's entry
into the digital world of music, the industry was fighting this new wave of music getting released to
customers. However, with Apple 's release of its iPod digital–media player (2001) and adding the
iTunes Store in 2003, they became the gatekeeper of digital downloads. Consequently, they
promptly became supreme inside this new swim lane of the music industry. The key player that
allow this was the iPod, MP3 players, and Apple 's own iTunes software which all interfaced, thus
making them one of the industry most popular amongst technology favorites and consumers.
However, the music companies did not take too kindly to this, they were at odds ... Show more
Apple used the concept of variable pricing upon their entry into the world of digital music, in their
efforts to identify the structure of pricing and to implement pricing strategies which would promote
downloadable data. Variable pricing affects the different cost of a merchandise based on the
preferences of the manufacturers. While this varies from flat pricing model, where just one fixed
price is utilized for those items that are alike. Take the content of purchasing songs, all cost one
price and all movies will cost another. Apple captured the music industry with its entry of variable
pricing through the iTunes music store. Nevertheless, this pricing tool (variable) was not welcome
with open arms by music executives in the industry, but Apple demonstrated its pricing influence in
delivering a product and winning over executives as a result of this pricing strategy and that its
policy was here to stay.
Offering consumers more choices through the use of variable pricing is a great strategy model. Not
only can consumers purchase songs they have never purchased through the Apple's Music Store,
Apple also control how they increase the price, which can tremendously affect its revenue. There are
articles and reports that have been published on Apple and how they have over 70 percent control of
this market base in the United States when it comes to downloading music. Having such a large
market sector, as well as providing easy on the go music options to listen to,

The Economic Impact of High Gas Prices
The economic impact of high gas prices 1
A Brown
Strayer University
The Economic Impact of High Gas Prices 2
Section 1: Introduction
The American economy is one of the strongest in the world; people from every
country comes here to live or travel on vacation with their families and take advantage of
its many economical opportunities available to its citizens. Traveling is one of Americas
Favorite pass time and a way of life for its citizen. When the quality of life is
interrupted, and people are not able do to the things that they use to do on a regular bases
the people panic and that send the nations economy ... Show more content on Helpwriting.net ...
Americans love luxury vehicles, during the pass 10 years SUVs` became the major family vehicle,
families are starting to feel the financial strain at the pump when they have to put gas in their
vehicle. Some people can not afford to fill up their SUVs because it cause $50 to $100.00 to fill
their gas tank. These same vehicles use to case lest than $35.00 at a lower gas price. Rising gas price
affect every one, not just drivers, some gas station in the south and mid west is completely out of
gas due to the rising gas price. The gas station owners can not compete with the larger oil company
who control the flow of oil. We are already seeing a ripple effect from the high gas prices. Go
shopping lately? We seem to be in a perpetual daze when it comes to the economy. "Oh, nothing bad
will happen; Things will be okay". It seems easy to forget of the not–so–distant times during the
Great Depression.

Rising gas prices affect everything across the board. This is because commodities need to be
transported across the country on trucks. Trucks, as you know, require lots of gas.
Section 4: U.S. Economy The rising cost of retail gasoline prices has affected U.S. households
regardless of whether their members drive, take public transportation, or walk. In a modern
economy, the interdependency created by supplying specialized labor and trading for all other

Price Control Essay
The price ceiling is the maximum price a seller is allowed to charge for a product or service. An
impact on society includes when the prices are so high of a product, that no one can buy it. A price
floor is the lowest legal price a product or service can be sold at. When market price is at its lowest,
it may still be too high for consumers to purchase products. Governments can intervene for any
purpose, and they are the ones who set these price controls.
Governments may intervene in the market system to fix prices above or below equilibrium if they
believe that it is in the public interest to do so. Governments may intervene in the provision,
regulation, maintenance and management of public goods to maximise the benefits to the ... Show
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Because consumers aren't paying as much for the product, producers will not be able to produce as
much at the lower price, and consumers will demand more because the product is cheaper. The end
result will be consumers not being able to buy the product since there is not enough being made. For
example, the price of milk was $2 per litre, and has now been reduced to $1 per litre. This will be
great for consumers as they can buy more milk for less, until it runs out. Therefore price ceilings
have a good impact on consumers.
For producers, price ceilings don't have as good an impact as it does on consumers. Since the
consumers are paying much less money for goods and services, they simply cannot afford to make
any products. It will have a harmful effect on producers, as their surplus will decrease, resulting in
them not making as much product. For example, if the price of lettuce decreases from $7 to $5, then
that means a decrease in the amount of money producers are getting. They will not have enough
money to grow lettuce, so there will be none or little lettuce harvested to be sold. This means that
price ceilings have a large impact on producers, and not in a good way.
If the government puts in a price ceiling, then the quantity demanded will exceed the quantity
supplied, meaning that not enough goods or services will be supplied to satisfy demand. This
situation is called a shortage. Because price ceilings are installed in the interests of

Qlt1 Task 5
Food and Beverage Cost Control
Course Work 2: fall 2015 (2nd semester 2015)
To: Mr. Arno Thöny
From: Vid Hočevar Hvorostanski
Class: Certificate 2
Title: Recipe Costing, Pricing and Analysis
Submission Date: 12th October 2015 at 20:00 hrs.'
Module: Food and Beverage Cost Control
TABLE OF CONTENTS
Content Page Number
1.0 Introduction 3
2.0 Menu Prices 4
3.0 Recipe Costing 5
4.0 Actual Food Cost vs Planned Food cost 7–8
5.0 Conclusion 9 ... Show more content on Helpwriting.net ...
I will explain menu pricing and I will present you, a short marketing video as an example.
Part of establishing the menu is to chose the right price, a price that is competitive priced and
ultimately profitable.
In the first part of this report, I will present you menu strategy pricing and recipe costing with a
description, chosen for recipe (all recipe in report).
In the second part of report I will be researching between actual and planed food cost and I will try
to find a reason for the difference.
Next, in the conclusion of report, I will discus what I have been learned from this assignment and
what can I improve.
2.0 MENU PRICES

In my opinion, menu prices and strategy are very important part of F&B and hospitality industry in
general. All the prices are calculated in the way to maximize profit and offering guest a value for
money to attract them. Menu pricing strategy is also very different when it comes to the type of a
restaurant (Asian, fine

Essay about Profit Center
The TallTree2 Hotel Casino is a 640–room resort complex featuring a full range of Nevada–style
gaming with slot machines and table games. Besides the hotel and casino, it also operates four
restaurants, two entertainment showrooms and three gift shops. Because of the economic
environment at the time, TallTree2 wanted to improve its bottom line by launching a range of
Special Events like golf tournaments, boxing matches, New Year Parties and a series of pit, keno
and slot tournaments. Those special events were specifically designed to compensate for the slow
periods and generate additional gaming revenues.
Terrence Wei, the new property president, feels that his department managers appear to be in
conflict with each other. The managers ... Show more content on Helpwriting.net ...
The company is decentralized and each department is a responsibility center. A responsibility center
is a division of a company for which a manager has the authority to make decisions. The main types
of responsibility centers are cost centers and profit centers.
A cost center is a division of a company that is responsible for the keeping the costs as low as
possible. Cost centers contribute to a company's profitability indirectly like marketing, customer
service or research and development.
A profit center is a division of the company that is accounted for on a standalone basis for the
purpose of profit calculation. The managers of those profit centers have the decision–making
authority related to product or service pricing and operating expenses. Therefore, the profit center is
responsible for making its own earnings.
The goal is to reorganize the allocation of costs so that each segment is profitable. The special
events target high rollers and should bring more money that they currently bring.
The Casino department should still be run as a profit center. Gambling is the largest source of
revenue for the hotel casino complex. The department manager controls the revenues by offering
special promotions and complimentary food, beverages and rooms in times of slow periods. The
manager is not only responsible for the profit generated but also for the costs.

Chembright’s Case
Chembright's Case
1.) What is the main decision confronting Chembright? What happens if they do nothing?
The main decision for Chembright is in regards to the pricing of their products specifically bleach,
which is Chembright's main product, and how their main competitor R.J. Poulson is pricing theirs
bleach in order to get rid of the competition. This has caused Chembright to be unable to compete at
these prices since there isn't any profit margin for them if they lower their price as R.J. Poulson.
Therefore Chembright has to stop the price war with R.J Poulson to be able to maintain their
products in these markets. Now Chembright is facing the issue of how to retain their customer's
without lowering their prices, since regardless of ... Show more content on Helpwriting.net ...
If this doesn't work I would contact directly the markets involved and see if any agreement is
possible in regards to the retail price of the both products to seek the greater good of the market,
Chembright, and R.J. Poulson. Given that R.J Poulson actually wants to take us out business I
would try to enforce the antidumping since they initiated the change in prices to dump Chembright
of the market. Lastly I would try to talk with my competitors and try to agree on price,

Taxation and Price Control on the Economy
Running head: TAXATION AND PRIVE CONTROL ON THE ECONOMY
Taxation and Price Control on the Economy
March 22, 2009
Taxation, a system of raising money to back our government, in which all governments require
payments of money–taxes–from people. The government use tax money to pay for expenses that are
well needed such as: the service of America soldiers, police officers service, hospitals and the list go
on. Without taxes to fund its endeavors, the government could not exist.
Is the tax levied (imposed) on the producers or consumers?
Every walk of life has to face the music of taxation at one level or another. Taxes are used for many
reasons such as stimulating the economy to governing spending. According to Johnson (2005) tax ...
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Then was the case in history when rent controls were place to regulate equilibrium for rent. At
points in our history it is known that a ceiling or a floor was imposed to regulate a problem. In
recent days of the Governor Sunny Perdue was trying to establish a ceiling on water being released
from the Chattahoochee River to the Florida Panhandle. According to the daily news reports via
local news station (11–alive; Fox 5 and others) the city of Atlanta and surrounding cities was going
to run out of water if the draught continued and the water levies were allowed to continue sending
gallons of water down stream. After several petitions to stop the effort of water release the
governmental officials came to an agreement but had the Supreme Court had to get involved the
Governor for Atlanta was pushing for a ceiling or maximum amount water to be released that would
not leave Atlanta desperate and its citizens without adequate water supply. The implications of a
continued downward spin would be certain.
In many aspects, if the economy as a whole for the United States and surround countries continue to
struggle in one way or another ceilings and floor may be viable options in turning around the
economy not to mention alleviating the decrease value of a dollar. Should the market not bounce
back or even the water crisis is resolved in Atlanta, Georgia the rate of success and economic
stimulation is slim to none in defining equilibrium in our

Walmart : An International Presence Essay
Walmart was founded by Sam Walton to bring affordable household products to people in small
towns. Sam Walton put the customer first, building a great company with dedicated employees and
core values of service to customers, striving for excellence and acting with integrity
Along the way, Walmart has grown into the world's largest company.
Around 260 million customers visit one of 11,500 Walmart 's stores each week. Walmart has an
international presence in 28 countries and e–commerce platforms in 11 countries. In the fiscal year
2015 net sales equal $482.2 billion, and it had 2.2 million employees worldwide.
Walmart 's "Save money, live better" idea resonate with every customer, everywhere it has a
presence. Walmart 's purpose can be defined as to help clients afford something extra by offering the
best possible prices on the products.
Let's look how Walmart contributes to society and its different parts: clients, suppliers and
employees.
Today 's customer seeks the convenience of one–stop shopping. Walmart presents the broad
assortment that customers appreciate in multiple categories: grocery, entertainment, crafts and
sporting goods. Customers love company's services, and Walmart leading position prove its strategy.
The second group is suppliers. Walmart has large scale, thus significant buying power. This power
gives the tremendous opportunity for current and potential Walmart suppliers to substantially grow
their business. To meet this constant price

Case Study Pro Audio Sales Agent
Pro Audio Sales Agent Program
1. Major Facts / Major Problems:
– The program is an administrative nightmare at retail level
– Retailers have problems in delivering the product
–many dealers were spending time training customers and later losing them to other dealers.
–there were errant sales agents working against the retail price
–the product image of PSX–360 was on the verge of damage because of the new plan.
2. Possible Solutions:
Solution A: Control the retail price of electronic, and sound processing equipment through public
awareness programs Pricing is a relevant issue in procurement at all levels. Individuals purchasing
the commodities of an organization should receive clarity on pricing. There is confusion in this ...
This is because other dealers in the market will get an opportunity to sell their products in the
market. Customers can get products locally with the change. Some suppliers can still get a way of
working around the pricing issue to increase their sales.
Advantage B: An increase in sales will translate to profitability in the organization. This in turn
translates to revenue increase in the organization and dealers. Canceling agreements to exclusive
rights of sale will give all dealers similar opportunities. This means that the dealers in the market
have an opportunity to reach any consumer. Additional dealers will help in leveling the playing
field.
Disadvantage B: Canceling sale agreements may constitute a breach of contract, which means that
dealers can sue the organization where there is no proof of error. This cancellation might make
dealers feel shortchanged in the organization. This means that it is critical to have a clear direction
so that such occurrences do not happen in organizations.
4. Choice and Rationale:
Solution A: Control the retail price of electronic, and sound processing equipment through public
awareness programs.
Rationale
Pricing is a pertinent issue in procurement and acquisition in organizations. Consumers buying the
commodities of an entity should get clarity on pricing related issues. There is uncertainty in Pro

Case Study Newell Company
Question 1) Does Newell have a successful Corporate Strategy? Does it add value to its business?
Five forces –Tests This case has represented high rivalry due to the price war between the
competitors of Rubbermaid and the corporations in the industry resulting in price reduction. The
price the company was placing was high for the bargaining power of buyers. The buyers are home
storages and commercial products which are bought by retailers and end–consumers. This is the
reason why Rubbermaid could not be able to increase cost through high retail prices. The suppliers,
on the other hand, also have a high bargaining power resulting to Rubbermaid incurring a high cost
of sold goods. Considering substitutes, the company products have many ... Show more content on
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The newellization process in conjunction with proper management will enhance that both the
companies grow and improve their financial gain and market position in the competitive market
addressed above. This is well demonstrated by how Newell's main aim in the association is gaining
access to the Rubbermaid brand equity and shelf space. By purchasing Rubbermaid Company,
Newell organization increased its market cap value over $10 billion. This action resulted in an
increase in market power which had been lessened by

Emergency Bubblegum Price Control Act Case Study
The facts of this case are that Congress has enacted the Emergency Bubblegum Price Control Act.
Under it, the Price Administrator was given the authority to "establish such maximum price or
prices that in his judgment will be generally fair and equitable and will effectuate the purposes of
the act," at any time when, in the Price Administrator's judgment, bubblegum prices rise or
threatened to rise to an extent or in a manner inconsistent with the purposes of the Act. The issue at
hand is whether the Act articulates an "intelligible principle" sufficient to constitute a valid
delegation of power. Under the "Nondelegation Doctrine", the principle in administrative law states
that congress cannot delegate its legislative powers to agencies.

Big Bazar Price Control on Customer Demand
Case study of One Year Executive MBA Roll number: EMBA1/APRIL13F/1001 Name: Santosh
Kumar Mishra Subject: Elective –Retail management Case Study Project :–As a retail manager how
will you achieve business by decision making focused on price offer and demand pressure from
customer ,on availability of product ? Examine the strategy you will adopt in retail chain business
(Big Bazaar). Answer: As a retail manager in Big Bazar we need to understand the organized retail
and how we operate in India along with the SWOT analysis, Then I will look for the Price mix and
factors related to this. What is Big Bazar and why it is like this :– Basically Big bazaar is designed
as an agglomeration of Bazar or Indian Market with cluster offering wide ... Show more content on
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'DD' is the demand curve which slopes downward showing less is demanded at a higher price and
more is demanded at a lower price. The demand curve DD' is drawn according to law of diminishing
marginal utility. Supply side The supply curve of a commodity usually slopes upward. Law of
supply holds that more of a commodity is supplied at high price and less of a commodity is supplied
at a lower price. Supply depends on the cost of production. The price charged by a seller depends on
the marginal cost of production. Because of the operation of the law of diminishing returns and
larger quantities can be produced only at higher prices. The above schedule can be expressed in
terms of a supply curve. In the diagram given below 'SS' is the supply which slopes upward to the
right showing that larger quantities of potatoes can be offered at higher price. Equilibrium between
demand and supply: The twin forces of market demand and market supply determine price. The
level of price at which demand and supply curves interact each other will finally prevail in the
market. The price at which quantity demanded equals quantity supplied is called equilibrium price.
The quantity of the good bought and sold at this price is called equilibrium price. Thus the
interaction of demand and supply curves determines price–quantity equilibrium. At the equilibrium
price the buyers and sellers are satisfied. Any price at the price Rs 12 quantity demanded is 3 and
quantity

Price Controls: Indirect Of A Minimum Wage
Price Controls
Equilibrium is the price point where the quantity demanded equals the quantity supplied, causing
the supply curve and demand curve to intersect (OpenStax, 2014). What happens when an
equilibrium price for something deemed a necessity becomes too high or too low, that it becomes
out of reach for people? When an item is truly a necessity for the well–being of its citizens,
governments will step in and regulate the market with legislature to implement price controls, such
as price ceilings and price floors. Governments use price ceilings to set a maximum price allowed or
a price floor to set a minimum price for a given product/service (OpenStax, 2014). While a
government may intend to protect its citizens through price controls, it can, in fact, have the
opposite effect. ... Show more content on Helpwriting.net ...
Let us examine the minimum wage law as an example of a price floor. A minimum wage is the
lowest price that the government has declared is acceptable for an employer to pay someone for
their labor. The intent of a minimum wage (price floor) is to ensure that citizens who work full time
should be able to afford basic living necessities (things like housing and food) (OpenStax, 2014).
This sounds reasonable, since it would be very difficult for someone to afford the basics without a
decent minimum wage. However, when we look at the economics of a price floor on wages, we
might find that at a certain point a minimum wage will have an adverse effect on a nation's

Should Politicians Continue To Blame High Gas Prices
The government often times will play the blame game when things are not going according to plan,
or more importantly, according to the government's plan. Since the summer of 2008 when gas prices
reaches a record high or $4.12 a gallon the we've loved to blame the oil companies and the
government for the increasing prices of gasoline. Who is responsible for high gas prices? Oil
production dropped during the Bush administration but has risen by about 20% during Obama's
presidency, making it clear that domestic oil production has little effect of the price of gasoline.
Why then to politicians continue to blame high gasoline prices on the oil companies? Congress has
restricted the building of oil refineries and the drilling of oil in Alaska offshore for over 15 years.
These restrictions have greatly reduced the supply of domestic oil. The ... Show more content on
Helpwriting.net ...
If profit is taken away the future for innovation and efficiency is also eliminated. A reduction in the
amount of gasoline companies supply, also meaning a shortage on consumers could be cause by a
windfall profit tax. A windfall tax is a tax levied by governments again certain industries when
economic conditions allow those industries to experience above–average profits. (Tax, n.d.) These
type taxes are primarily imposed on companies in the targeted business that have advanced the most
from economic windfall, or product–based businesses. While most people think there are no benefits
from imposing any taxes, there are benefits of a windfall tax, including: proceeds being precisely
used by governments to boost funding for social programs, and many believe profits can be
reinvested and used to stimulate innovation that will advance society as a full. Taking away an oil
company's enthusiasm to make large profits, will also take away any motivation that company has to
make dicey investments such as discovering new crude oil fields and constructing new

Export Inspection Council Of India Essay
EXPORT INSPECTION COUNCIL OF INDIA MINISTRY OF COMMERCE AND INDUSTRY
PROCEDURES AND PRICING CRITERIA OF CERTIFICATE OF ORIGIN UNDER
PREFERENTIAL TRADE AGREEMENTS IN INDIA REPORT Submitted by– Roshni Gandhi
Course: BA Economic (hons) Enrollment no: A6018213031 Guide : Ms Amrita Choudhury Date
Started: 26th May, 2015 Date of completion: 6th July,2015 Credit:4 . ACKNOWLEDGEMENT The
internship would not have been possible without the support and guidance of many people. I am
highly indebted to Mr. Rajvinder Singh, Deputy Director(EIC) for bestowing me with untiring effort
in guiding me to sail through this project work. Without his due guidance I could have

Celulosa Arauco Essay
Introduction
The Pulp industry is a promising industry with profit margins as high as 31%. Pulp is a commodity
product which is frequently traded. Demand for pulp is expected to increase world over in the
coming years.
Key Environmental, structural, competitive and market forces affecting Pulp industry (See Exhibit
1)
The pulp industry has been marked by a flat growth over the past few years. Though, it is expected
to pick up with demand increasing in the emerging economies such as China. The pulp producers
have been known for controlling inventories releasing products to marketplace at a targeted price.
But the overall market trend is changing from a supply driven market to a demand driven market.
The Chilean government and free trade ... Show more content on Helpwriting.net ...
Recommendation for Horizontal Integration (See Exhibit 4)
I would support and recommend Perez to make investments to increase capacity and expand
horizontally. The greatest competitive advantage of Celulosa Arauco is cost. I believe that Celulosa
Arauco can take advantage of its low cost effectiveness and become a low cost leader in pulp. If
Celulosa Arauco is consistently able to price their pulp lower, it will be increasingly difficult for
vertically integrated companies to produce their own pulp in–house. In a commodity market it is
critical to keep costs low by maintaining high production efficiencies. I would also recommend
Perez to invest further in Research and Development, Forest Management and Genetics to improve
the overall quality and life of plantations. Generating electricity from surpluses at the pulp mills will
help it to reduce costs further. Concentrating a large amount of revenues from a single source (pulp)
carries a lot of risk. Hence, I would recommend Perez to diversify into as many by–products as
possible. The panels, timber and wood products market can create a buffer to maintain their margins
when the pulp prices are volatile. Celulosa Arauco has an established distribution network including
ports that plays an important role to reduce transportation costs. Integrating vertically into paper
manufacturing will require different sets of skills and resources. Unlike pulp, paper is

Pharmaceutical Price Controls in the Oecd Countries
Pharmaceutical Price Controls in OECD Countries
Implications for U.S. Consumers, Pricing, Research and Development, and Innovation
U.S. Department of Commerce International Trade Administration
The International Trade Administration (ITA) has as its mission the creation of economic
opportunity for U.S. workers and firms by promoting international trade, opening foreign markets,
ensuring compliance with trade laws and agreements, and supporting U.S. commercial interests at
home and abroad. To learn more about the ITA, write to: International Trade Administration, Office
of Public Affairs, U.S. Department of Commerce, Washington, DC 20230, or visit the ITA's Internet
site at www.ita.doc.gov.
Pharmaceutical Price Controls in OECD ... Show more content on Helpwriting.net ...
Department of Commerce, International Trade Administration
Executive Summary
Improvements in health care and life sciences are an important source of gains in health and
longevity globally. The development of innovative pharmaceutical products plays a critical role in
ensuring these continued gains. To encourage the continued development of new drugs, economic
incentives are essential. These incentives are principally provided through direct and indirect
government funding, intellectual property laws, and other policies that favor innovation. Without
such incentives, private corporations, which bring to market the vast majority of new drugs, would
be less able to assume the risks and costs necessary to continue their research and development
(R&D). In the United States, government action has focused on creating the environment that would
best encourage further innovation and yield a constant flow of new and innovative medicines to the
market. The goal has been to ensure that consumers would benefit both from technological
breakthroughs and the competition that further innovation generates. The United States also relies
on a strong generic pharmaceutical industry to create added competitive pressure to lower drug
prices. Recent action by the Administration and Congress has accelerated the flow of generic
medicines to the market for precisely that reason. By contrast, in the Organization for Economic
Cooperation and

The Prices And The Federal Reserve 's Control Of The Money...
The early to mid–eighties presented a challenge to the fed. A combination of falling oil prices and
the Federal Reserve 's control of the money supply, helped to slow down an inflation that had been
largely out of control in the previous decade. By the mid–eighties, the economy had bounced back
and the United States was entering into one of the longest periods of consistent and sustainable
economic growth since the second world war. Along with this growth, the annual inflation rate did
not exceed 5%.
Other problems still loomed on the horizon though. The agriculture industry still had issues only to
be compounded by the droughts of 1986 and 1988. Congress consistently ran considerable deficits
throughout the 1980's. The deficits grew ... Show more content on Helpwriting.net ...
This did cause some inflation, but not to the level that the oil crisis from a decade earlier had.
Fears became a reality as the 1990's approached. The budget deficits on the federal level began to
rise again. At $220 billion in 1990, the deficit had grown three times in size since 1980. Bush was
dedicated to curbing the deficit, believing that America could not continue to be a leader in the
world without doing so. In the wake of a struggle with Congress, Bush was forced by the
Democratic majority in Congress to raise tax revenues and as a result, many Republicans felt
betrayed. After all, Bush had promised "no new taxes" in his 1988 campaign.
Fiscal Policy
Monetary policy is controlled by the Federal Reserve, an independent agency from the executive
branch. However, the administration does have an obvious effect. The most obvious is the
appointment and reappointment of Alan Greenspan. At the time this may have seemed like a tough
decision, but in hind sight the decision could not have been any better. When it was time for his
reappointment from President Clinton, he was not regarded as the savior he is now. Many officials
from the Bush administration blamed him for the recession of 90–91. Not to mention the fact that
Greenspan is a conservative Republican. It would have been common sense to assume that Clinton
would put someone who shared his political philosophy over the highest bank in the land. The fact
that Clinton

The Dark Side Of Price Controls Essay
The shortage On the thirteenth of May of 2015, Capx, an online British news website, published
Rachel Cunliffe's article, "The dark side of price controls in Venezuela," where she goes in depth
about the effects of a binding price ceiling has on the living conditions of Venezuelans. According to
Mankiw, a price ceiling can be defined as a legal maximum on the price at which a good can be sold
that is below the equilibrium price. A price ceiling with a binding constraint, or binding price
ceiling, occurs when the government sets a required price on a good or goods at a price below
equilibrium. In "The dark side of price controls in Venezuela," the socialist state of Venezuela, is
experiencing shortages of basic goods, such as toilet paper, milk, coffee, soap, and electronics,
which have led people to queue up in long lines to get them on a first come, first served basis. These
shortages have also caused a sharp increase in crime which range from police officers being gunned
down for their weapons, trucks ambushed for their merchandise, and commuters being held up for
their cell phones. The root cause of all the problems that the citizens of Venezuela face are due to
government price fixing and currency control. In the free market, prices function as signals to both
consumers and producers of how much of a product or service must be demanded or supplied
respectively. A binding price ceiling occurs when the government sets a required price on a good or
goods at a price

Microeconomics Term Paper
Price Control | January 21
2011
| Price control if not properly managed could be disastrous to the economy. It maynot only lead to
higher prices in the long–run, but can even disrupt an industry. If pricesare not allowed to vary in
response to greater risk, cost of production, and increasing costof staying in business, not enough
producers would be encouraged to supply the product. | A Term Paper |
B I B L I O G R A P H Y
Philippine Institute for Development Studies, Economic Issue of the Day Vol. X no.2 (March 2010),
"The Janus face of price controls"
The Business Star, "DTI Price Monitoring Scheme Now Underway In All Provinces," May 17,
1989, p.
12.
http://www.philstar.com/Article.aspx?articleid=538575 ... Show more content on Helpwriting.net ...
To these ends, the State shall:
(1) Develop, adopt and promulgate measures to promote productivity in basic necessities and prime
commodities;
(2) Develop an improved and efficient transport and distribution system;
(3) Develop, adopt and promulgate measures to stabilize prices at reasonable levels;
(4) Institute appropriate penalties for illegal price manipulation and other violations of this Act; and
(5) Establish a mechanism that will readily protect consumers from inadequate supply and
unreasonable price increase on occasions of calamities, emergencies and like occurrences.
Sec. 3. Definition of Terms. – For purposes of this Act, the term:
(1) "Basic necessities" includes: rice; corn; bread; fresh, dried and canned fish and other marine
products, fresh pork, beef and poultry meal; fresh eggs; fresh and processed milk; fresh vegetables;
root crops; coffee; sugar; cooking oil; salt; laundry soap; detergents; firewood; charcoal; candles;
and drugs classified as essential by the Department of Health;
(2) "Butter fund" means a contingent fund in the budget of the implementing agency which shall not
be used in its normal or regular operations but only for purposes provided for in this Act;
(3) "Implementing agency" means the department, agency or office of the

Business Analysis : Docell's Overall Goal
1. Docell's overall goal is profitability. To keep this goal acquainted the Docell company holds a
specific strategy to control over their profitability. They are in a very price–competitive market
where the market price cannot be controlled accurately. That is why they follow a strategy where
they try to keep the production cost in a tight manner to make as much profit as they can. For their
high–profit rate, they are concerned to keep the product quality as high as possible to beat the
competitors. To do so, they are focusing on meeting the customer's need as early as possible. So
their main critical success factors are:
Keeping the production cost in check by operating as efficiently as possible. Late PwC research
demonstrated that 66% of organizations plan to cut expenses throughout the following 12 months.
Be that as it may, revealing wastefulness is just the initial step. On the off chance that change is
going to stick and cost investment funds supported, the better approach for working must be feasible
and appropriately received by the association.
Keeping the product quality higher than other competitors.
Meeting the customer's need on time. Growing new items and administrations with the assistance of
client criticism about more established items and administrations. Focus and tune in. In some cases,
clients will not have the capacity to verbalize precisely what they need.
2. Responsibility accounting is a reporting framework that arranges income, cost, and

Prescription Drug Price Controls Essay Essay
Prescription Drug Price Controls Intro to Health Science Professor Feinberg Brittany Aaron 10–25–
2016 Introduction: Prescription drug prices are on the rise in the United States. Currently, the United
States does not implement a price control on prescription drugs. Every day the supply and demand
for prescription drugs fluctuates. Pharmaceutical companies produce drugs that are necessary for
survival. Therefore, it is necessary for research and development to continue in the United States.
Those suffering the effects of exorbitant prices must do so until a generic form of a prescription
drug is produced. Once approved by the FDA, new drugs will make their appearance on the market
and patients will no longer suffer financially. Until then, it is necessary for pharmaceutical
companies to price their drugs based on the idea of supply and demand. This produces the profit
used to fund research. Price controls discourage innovation. If a price control were set in place, of
course the price of prescription drugs would decrease. However, the development of new drugs
decreases with it. Today's generation would benefit from lower prices, while future generations
would suffer from the loss of drug innovation. Primary Argument: The high prices set by
pharmaceutical companies for drugs allows the companies to continue researching, developing, and
producing new drugs. As new diseases are discovered, new medications must be discovered in order
to treat them.

Chinese Housing Price Control and Economic in One Lesson
Executive summary
This report will be discussed on the issue of Chinese housing price control policy and its effects.
The research has showed in the past decades, Chinese housing pricing was increasing at an
unhealthy amazing rate in almost every city. The Chinese government has kept publishing a series
of policies in order to control the increasing price. The report will apply this issue to Economic in
One lesson and analysis the inflation and government pricing fixing effects.
Introduction
Since the reform and opening–up policy published in China in 1978, Chinese economy boomed in
the past decades. China is facing great opportunities with its Chinese features; however, it also
brings some negative ... Show more content on Helpwriting.net ...
Each family member will have 60 square meters exempted from tax. Hazlitt has discussed the effect
on tax, it cuts down the production. In China real estate case, it not directly reduces the production
as the tax burden doesn't go to supplier, however it directly leads to the decrease of housing demand
and cooling down people's notion of housing is a store of wealth.
Recommendation and conclusion
In economics view housing price control is only a short–term solution for maintain the stable price.
In the long run government shouldn't interfere too much in a mature property market as the market
itself has the ability to adjust the price and balance the demand and supply. Moreover, whether the
local property industry actually can achieve the goals that government set and is the new property
tax will continue implement in other cities or it will be abolished is still uncertain. As we can see,
there is a gap between the government policy and actual practice due to the real Chinese society
situation and people's conception. Housing price has become one of the most urgent issue in China
for a period of years and actually in later 2008 and 2009 some big cities' housing price had a
obvious decrease, such as Guangzhou city. The main reason is not because of governmental macro–
control but the global financial crisis.

Wilkerson Company
CASE REPORT
DATE: 03/01/2015
GROUP 5: Oliver Principe, Jorge Colorado, Manwinder Singh, Amanpreet Mann
SUBMITTED TO: Prof. Ting He
CASE: Wilkerson Company
Introduction
Wilkerson Company is in the business of manufacturing valves, pumps and flow controllers.
Wilkerson is currently faced with declining profit margins relative to industry competitors. Severe
industry wise price cuts in the pump business, which is Wilkerson's major product line, has badly
affected the company's margins (Gross margin below 20% as against a planned gross margin of
35%). The firm has identified the need to investigate its costing mechanisms and determine their
credibility comparable to those exercised elsewhere in the market. The need of the hour for ... Show
more content on Helpwriting.net ...
Batch level: These activities must be performed for each batch of products; a setup has to be
performed each time a batch of components have to be machined in a production run; people in the
receiving and production control departments ordered, processed, inspected and moved each batch
of components for a production run; in the packaging and shipping area each time products were
packaged and shipped, about the same amount of work was required, regardless of the number of
items in the shipment.
Product–sustaining level: Activities that are needed to support an entire product line, engineering
labor cost
Facility level: No facility level cost pool was identified in the case
Machine
Related
$336000
Setup
$40000
Receiving / Production
$180000
Engineering
$100000

Packaging /Shipping
$150000
Overhead Costs
Total manufacturing overhead (March 2000) $806000
Activity
Cost
Pools
Unit
Level
Batch
Level
Product–Sustaining
Level
Facility
Level
ABC Stage Two
First, cost drivers for each activity cost pool are identified, and then from Knight's team data, we get
the cost driver quantity.
ABC Calculations 1) Activity cost pool ÷ Cost driver quantity = Pool rate 2) Product line pool rate
X Cost driver quantity for each product line = Activity cost product line 3) Activity cost for each
product

Wage And Price Controls During World War II
Brief History Wage and price controls were enforced in the United States during World War I, World
War II, the Korean War, and the Vietnam War. In 1942, the United States government began wage
and price controls in order to help win World War II and maintain the general quality of life. The
Office of Price Administration (OPA) was established in 1941 and their mission was to avoid
profiteering and inflation as goods became in short supply in the United States due to the war. The
Emergency Price Control Act of 1942 gave the OPA the ability to regulate prices in the marketplace,
and brought 60 percent of all civilian food items under a form of control which froze prices at their
store–by–store March 1942 levels. (Wage–Price Control, 2008) President ... Show more content on
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There are several forms of rent control, however they all take the shape of legally imposed below–
market rates for rental housing. Most rental ceilings came into being at the end of World War II
(1939–1945) to help mitigate expected disruptions in the rental housing market due to the demand
shock of veterans returning from overseas service in the war. (Rent Controls, 2008) Rent control can
still be seen in larger municipalities, such as New York City, to make housing more affordable for
low–income tenants. In the short run, the supply for apartments is inelastic and the quantity of
buildings already supplied is constant. Rent control, in the long run, reduces the availability of
apartments subsequently causing suppliers not to build more apartments due to not being able to
make a profit from their rentals. Shortages of rental homes can lead landlords to discriminate against
renters and even demand for renters to pay extra monthly payments under the table. Rent control
deters new investments that would have gone to rental housing and has validated that it leads to
housing deterioration, fewer repairs, and less maintenance. For In a 1990 poll of 464 economists
published in the May 1992 issue of the American Economic Review, 93 percent of U.S. respondents
agreed, either completely or with provisos, that "a ceiling on rents reduces the quantity and quality
of housing

Price Control Research Paper
Use economic theory and supporting material to discuss whether house rents in big cities should be
regulated and if a price limit to rents would be beneficial
The issue of introducing regulations and limits to the prices at which rents are set has been long
debated by economists and policymakers. Morally considered, price caps and rent regulation seem
an effective strategy in allowing lower to middle income families and individuals rent out a home,
however, economists generally believe that such regulations negatively impact the housing market
and the supply of housing. In this essay, the issue of price regulations within the housing market will
be discussed from a microeconomic standpoint, with brief acknowledgement to the social effects ...
With these circumstances, it is hard to see how price capping would alleviate the supply gap in
rental properties, even with external factors such as land–use regulations playing a part in keeping
rent prices high; capping any sort of price increases in rent simply gives landlords an impetus to sell
property that they may have instead rented out to homeowners. This suggests that price caps prove
little help in alleviating issues in rental property supply for those who need it.
From a historical standpoint, rent control has had few positive effects, particularly for Britain, who
has frequently experimented with such endeavours. Rent control was introduced in 1915 for
wartime Britain, far from a temporary solution, rent control of some form existed until the 1990s.
The Rent Act of 1939 reintroduced full rent control, likely in anticipation for World War 2, for
practically all rented housing regardless of circumstance. The 1939 act largely made it so that
tenants of rented property could not legally be required to vacate their rented property, this left
almost every landlord with practically no volition to maintain their properties given the lack of
competition. Furthermore, tenants had basically no incentive to leave their properties on their own
accord due to the very low prices of rent, even when family and economic situations may have
otherwise pushed said families to relocate. There were

Assignment 2 : Costing And Pricing
Unit 4 Financial Control in Hospitality – Assignment 2 – Costing and Pricing in Hospitality
The ability to control finances effectively is a hugely important part of running a successful
hospitality business. The control of finance determines the cash flow of the business whether
positive or negative. A variety of procedures can be optimised to suit each business. These
procedures pay dividends when selecting goods and developing a specification, as well as costing
dishes, menus and functions.
There is a diverse variety of costs throughout hospitality businesses aside from material costs; which
are the cost of products to produce the product that's to be sold. The majority of costs to a business
are overheads. Overheads are a compilation of additional costs to run the business and produce the
businesses service. These include labour costs; these are the largest overhead to a business. As this
is the biggest overhead the business can develop structures to meet the demand of consumers. For
example on a busy Saturday evening in a restaurant you may need all of your staff; whereas on a
Tuesday night where you have 40 covers you can reduce the amount of staff to reduce overheads.
Aside from this employing both part–time and full–time to allow for more and less busy sessions to
keep labour costs as low as possible without breaching the Minimum Wage Act 1998. There are
fixed and variable costs. A fixed cost doesn 't change as the output of the business increases or
decreases, for

Determining The Role Played By Cost Accounting For Success...
Cost accounting can be defined as the method where all the expenditures used during execution of
business activities are gathered, categorized, examined and noted down (Horngren & Srikant, 2000).
The data collected is then reviewed to reach a selling price or identify where investments are
possible. The principal aim of cost accounting is advising the top administration or the top
management on the most suitable method of action based on the cost capability and efficiency. Cost
accounting offers the comprehensive cost information that assist the business regulate the present
business operations and also enabling in future business plan. Since managers are supposed to make
resolutions for their own firms, there is no need for the data ... Show more content on
Helpwriting.net ...
Cost accounting has been of great help to the business management because of various roles it
plays. The information cost accountants offer different uses, some of which aid in the controllership
function, as well as the industrial role. Firstly, cost accounting is useful in estimating costs and in
setting prices of various products. In businesses where the cost of a good is grounded upon its
estimated cost, cost accounting does a very significant use in making sure that a correct approximate
is prepared (Meigs, 1998). Labor hours and essential materials are usually provided by engineering.
Cost accounting uses these data and adds predicted disparities grounded upon historical
performance of related goods to get a selling price. Cost accounting also utilizes labor degrees,
taking into concern expected inflationary issues resulting from fluctuations in the economy (Foster
& Baxendale, 2013). Cost accounting plays a vital role in helping the leadership of an organization
make important decisions on a number of issues that include:
Buying or renting equipment that is of value to the company. Retaining or making a replacement on
the machine that is in use.
Proceeding with operations or winding up the business operations.
Accepting orders at a lower cost (Rginean, 2013).
Cost accounting provides a means of determining the unused time and the turnover (Foster &

Advantages Of Subsidies
Objectives
Subsidies, by means of creating a difference between consumer prices and producer costs, brings
change in demand/ supply decisions. Subsidies are often aimed at :
1. inducing higher consumption / production.
2. achieving social policy objectives including redistribution of income, population control, etc.
3. offsetting market imperfections including internalisation of externalities;
TRANSFERS AND SUBSIDIES
Transfers which are straight income supplements are different from subsidies. An unconditional
transfer to an individual would add to his income and would be distributed over the entire range of
his expenditures. A subsidy however relates to a particular good, the relative price of which has been
lowered because of the subsidy ... Show more content on Helpwriting.net ...
It is the richer farmers who may derive relatively larger benefits because of their capacity to use
these allied inputs.
Subsidies to elementary education form about half of the total subsidies on general education.
However, this is not true for all individual States: the share of elementary education is lowest in the
high income States and the highest in the low income States (Goa, Punjab and West Bengal actually
give higher subsidies to secondary education than primary education).A negative correlation
between the level of per capita income and the share of subsidies to elementary education is thus
discernible. Most subsidies to higher education accrue predominantly to the better–off sections of
society as they have an overwhelming advantage in competing out prospective candidates from the
poorer sections in getting admission to courses that are characterised by scarcity of seats.
For subsidies of health, the greater emphasis on curative health care expenditure often reflects a bias
towards the better–off people whereas preventive health care expenditure with much larger
externalities would clearly be of greater help to the economically weaker sections of the society.
AGENDA FOR

Price Control In New York City
A price control is a regulation that allows trading only at certain prices. There are two types of price
controls: price ceilings, which outlaw prices above the ceiling, and price floors, which outlaw prices
below the floor.
Both price floors above the buyer's top dollar and price ceilings below a seller's bottom line prevent
wealth–creating transactions from occurring.[6]
Discussion Question: Rent control in New York City is an example of a price ceiling. Landlords
cannot rent to tenants at prices above the ceiling. Identify the unconsummated, wealth–creating
transactions, and try to figure out how to consummate them.
Answer: Potential tenants, who are willing to pay more than the rent–controlled price, and potential
landlords, who are willing to rent at the higher prices, are deterred ... Show more content on
Helpwriting.net ...
To circumvent this regulation, foreign banks that were not subject to U.S. regulation offered dollar–
denominated savings accounts to U.S. investors at higher interest rates. These dollar–denominated
savings accounts are called "Eurodollars."
Discussion Question: In the 1970s, credit card companies faced ceilings on the amount of interest
they could charge on credit card debt. This led them to deny credit to all but the most credit–worthy
borrowers. Identify the unconsummated, wealth–creating transaction, and try to figure out how to
consummate it.
Answer: High–risk borrowers and the bankers who wanted to lend to them at higher interest rates
were deterred from transacting. Since these price–ceilings were imposed by state regulations, some
banks convinced the state of South Dakota to remove its price ceiling. In return, many banks moved
their credit card operations to South Dakota. To avoid losing jobs to South Dakota, all states except
Arkansas have raised their interest–rate ceilings on credit–card

Price Control
Price Controls
Econ 360–002
Sonia Parsa
Sparsa1@gmu.edu
G00509808
Word Count: 1540
Abstract
This paper examines how, in the United States, the government imposes several forms of taxes and
price controls and how all individuals are required to pay direct and indirect taxes. It looks at how
the approach of taxation and how the constraints of taxation on goods and price controls affect the
U.S. economy.
Introduction
Regulations have played a huge role in the political and economic world for centuries. There are
various different types of regulation. One regulation that the government imposes under its tax
policy is price control, which is not considered to be voluntary. Price control can play two different
roles, a price ceiling ... Show more content on Helpwriting.net ...
We can also use the supply–demand analysis to dissect the labor market when a wage–control is
placed by the government (shown in Figure 2). By establishing a minimum–wage law, it mandates a
price floor above the equilibrium wage; therefore, the rate of unemployment among unskilled
workers increases. When wages increase, a greater number of workers are willing to work while
only a small number of jobs will be available at the higher wage. Companies can be more selective
in whom they choose to employ causing the least skilled and inexperience to be excluded. [pic]
Figure 2 assumes that workers are willing to work for more hours if paid a higher wage. We graph
this relationship with the wage on the vertical axis and the quantity of workers on the horizontal
axis. Combining the demand and supply curves for labor allows us to examine the effect of the
minimum wage. We will start by assuming that the supply and demand curves for labor will not
change as a result of raising the minimum wage. This assumption has been questioned. If no
minimum wage is in place, workers and employers will continue to adjust the quantity of labor

supplied according to price until the quantity of labor demanded is equal to the quantity of labor
supplied, reaching equilibrium price, where the supply and demand curves intersect. Evidence–
Minimum Wage Basic theory says that raising the minimum wage, which is a type of price–control,
helps

The Importance Of Prescription Price Controls
Though some believe prescription price controls are outrageous, prescription price controls can save
people's lives by helping them afford their medications. In recent discussions of prescription prices,
a controversial issue has been whether or not they should be lowered. On the one hand, some argue
that higher prices help the economy more. On the other hand, however, others argue that people
can't afford their medications. In sum, then, the issue is prescription price controls. For the 469
drugs on the market since the end of 2004, prices increased by 25.6% from 2005 to 2009, while the
general growth rate was 13.3%. Consumers taking drugs to treat chronic diseases found that their
average yearly cost increased from $2,160 to $3,168. Not many people know the transition of prices
in the medical field. "Last year pharmaceutical costs grew 13.6 percent – faster than any other part
of the healthcare industry – and pharmaceutical company profits were nearly 20 percent in 2012,
double the average profit margin for the S&P ... Show more content on Helpwriting.net ...
"There is no evidence to suggest that the pill works any better except, perhaps, for doctors and the
middlemen supplying them. They can charge $3.45, or about five times as much as a five– or 10–
milligram pill." (Meier 1). The medical field nowadays is mostly for profit. The Hatch–Waxman Act
encourages the manufacture of generic drugs by the pharmaceutical industry and established the
modern system of government generic drug regulation in the United States.."Nearly 25 years before
the passage of the Hatch–Waxman Act, consumer advocates on and off of Capitol Hill complained
that the high cost of drugs was driven by the protection of brand monopolies long after original
patent monopolies had expired." (Greene 1). Prescription monopolies rule the medical field, and
control medication

A Brief Note On Wage And Price Control
Wage and Price Control
About Wage and Price Control
A Brief History Wage and price controls were enforced in the United States during World War I,
World War II, the Korean War, and the Vietnam War. In 1942 the United States government began
wage and price controls in order to help win World War II and maintain the general quality of life.
The Office of Price Administration (OPA) was established in 1941 and their mission was to avoid
profiteering and inflation as goods became in short supply in the United States due to the war. The
Emergency Price Control Act of 1942 gave the OPA the ability to regulate prices in the marketplace,
and brought 60 percent of all civilian food items under a form of control which froze prices at their
store–by–store March 1942 levels. (Wage–Price Control, 2008)
President Roosevelt instituted the National War Labor Board to regulate hiring and firing of worker
in 1942. It was the responsibility of the board to determine the correct procedures for settling
disputes that could possibly affect any war production. The board had authority to approve wage
increases and quickly adopted the Little Steel formula for wartime changes based on the rising cost
of living. (Price Control, n.d.) The federal government for the first time recognized an ongoing
responsibility for formulating budgets that would help maintain high levels of employment with the
introduction of The Employment Act of 1946. Controls during the world wars and the Korean War
were part

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