Proper analysis and distribution of commercial expenses

Commercial expense may be defined as that portion of the total cost which is incurred in the marketing, as distinguished from the production, of the commodity. It covers such items as packing and transportation, advertising, selling and general administration expenses, forming an impressive and, in some instances, a preponderant portion of the total cost

Depreciation: Comments on its computation and treatment in ordinary manufacturing operations

It is the aim of this pamphlet to present in a broad and general way the basic principles of the depreciation problem as these principles concern ordinary manufacturing operations. Much has already been written on the subject of depreciation, but the greater part of this literature has been written from the viewpoint of the technical accountant and the engineer. An effort has been made to confine the following discussion to non-technical language and present the subject in a manner that will appeal to the executive, the superintendent and the foreman, as well as the cost accountant

Reducing Student Costs: A Report on Textbooks and Course Materials Implementation Status Update as of June 2016

This is the implementation plan status update for the Reducing Student Costs: A Report on Textbooks and Course Materials. The plan is divided into two sections: 0-12 completion goals and 12-36 month goals

Financial burden in cost: What it is and how it should be considered in the administration of your business

Financial burden is most commonly overlooked, or inadequately considered, by many business men, with the result that their business appears to be prosperous and financially sound, whereas, as a matter of fact, just the opposite is true. The principal kinds of financial charges which are given improper or little or no attention are: interest, reserves for various contingencies, financing, refinancing and reorganization expenses, obsolescence, depreciation, federal taxes and dividends. Altogether too frequently the business executive has an erroneous idea that items of this nature do not represent actual money-out-of-pocket expenditures, or charges that must be reckoned with, before the proper goal has been reached in the administration of his business

Costs of quality or quality costs

Costs of quality or quality costs do not mean the use of expensive or very highly quality materials to manufacture a product. The term refers to the costs that are incurred to prevent, detect and remove defects from products. There are four categories: internal failure costs (costs associated with defects found before the customer receives the product or service), external failure costs (costs associated with defects found after the customer receives the product or service), appraisal costs (costs incurred to determine the degree of conformance to quality requirements) and prevention costs (costs incurred to keep failure and appraisal costs to a minimum). Cost of quality is a methodology that allows an organization to determine the extent to which its resources are used for activities that prevent poor quality, that appraise the quality of the organization's products or services, and that result from internal and external failures. Having such information allows an organization to determine the potential savings to be gained by implementing process improvements.Web of Science5213

trade costs in goods market lead to home bias in equities?.

Two of the main puzzles in international economics are the consumption and the portfolio home biases. We solve for international equity portfolios in a two-country/two-good stochastic equilibrium model with trade costs in goods markets. We show that introducing trade costs, as suggested by Obstfeld and Rogoff [Obstfeld, M., Rogoff, K., 2000a. The Six Major Puzzles in International Macroeconomics: Is There a Common Cause? NBER Macroeconomics Annual, 15], is not sufficient to explain these two puzzles simultaneously. On the contrary, we find that trade costs create a foreign bias in portfolios for reasonable parameter values. This result is robust to the addition of non-tradable goods for standard calibrations of the preferences.Trade costs, Home bias, Portfolio choice, International macroeconomics;

Organic Farming Certification – the Costs of Reducing Transaction Costs

Since 1991, the European Union regulates the organic food market. By implementing the organic regulation and the corresponding inspection and certification system, organic markets were fostered, but the financial costs and bureaucratic drift of this system are controversial. Up to now, there exist only very rough estimates of the overall burden of organic producers, mostly considering only the cash costs and neglecting opportunity costs of the certified entities, which are likely to be of considerable magnitude. As a first step in approximating the amount of these costs, this paper uses the concept of Transaction Costs in order to identify and structure the relevant cost types. The quantification of this concept needs data which will soon become available

INFLATION COSTS, UNCERTAINTY COSTS AND EMERGING MARKETS

Given the costs to real output that inflation uncertainty has been shown to impose, two recent papers have investigated the interaction of inflation and uncertainty for a group of emerging market nations. Both papers find that an increase in inflation almost invariably increases uncertainty in developing countries. This finding accords with the Friedman hypothesis and with most results for industrialized countries. However, there is both theoretical and some tentative empirical evidence suggesting that, when inflation is high, and thus costly, an increase in inflation can spur greater investment in predicting the path of prices, and actually reduce rather than increase uncertainty. This possibility is particularly relevant for emerging markets, some of which have histories of high inflation. Using a somewhat different empirical methodology than previous authors, we find that inflation does indeed lower uncertainty at some horizons, and, as per theory, does so predominantly in those countries in our sample with the higher rates of inflation.Price Level, Inflation, Deflation, Macroeconomic Analyses of Economic Development