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Profit maximization seen from a Throughput Accounting viewpoint, is about maximizing a system's profit mix without Cost Accounting's traditional allocation of total costs. Throughput Accounting actions include obtaining the maximum net profit in the minimum time period, given limited resource capacities and capabilities.
Merton's portfolio problem is a problem in continuous-time finance and in particular intertemporal portfolio choice.An investor must choose how much to consume and must allocate their wealth between stocks and a risk-free asset so as to maximize expected utility.
On an income statement, "operating expenses" is the sum of a business's operating expenses for a period of time, such as a month or year. In throughput accounting , the cost accounting aspect of the theory of constraints (TOC), operating expense is the money spent turning inventory into throughput . [ 4 ]
In microeconomics, the utility maximization problem is the problem consumers face: "How should I spend my money in order to maximize my utility?" It is a type of optimal decision problem . It consists of choosing how much of each available good or service to consume, taking into account a constraint on total spending (income), the prices of the ...
With a period of inflation, a rate base which values plant and equipment at original cost substantially undervalues the plant. In these circumstances, utilities argue in favor of reproduction-cost valuations. In either case, depreciation on plant and equipment is subtracted from the rate base and carried as an operating expense.
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Standard Costing is a technique of Cost Accounting to compare the actual costs with standard costs (that are pre-defined) with the help of Variance Analysis. It is used to understand the variations of product costs in manufacturing. [6] Standard costing allocates fixed costs incurred in an accounting period to the goods produced during that period.
Utility bills are often overlooked when computing the cost to own a home or rent an apartment. However, depending on where you live, this cost can actually be quite substantial -- even a bit ...