a) Write out the general form of the Company's total costs b) Suppose the Company's short-run production function is given by the following Q=c (L, S, K0) = 2LS Where each unit of Q represents a thousand products. Determine the minimum total cost at which the company could produce 100,000 products. c) To achieve minimum cost, what quantities of labor and plastic would the company have to use?
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
You are informed that a company produces Sulfuric acid by combining two variable factors,
labor (L) and Sulphur (S), with one fixed input, capital stock (Ko). The company pays $2 an
hour for labor and $1 for Sulphur; the fixed costs associated with its capital stock total $150 a period.
a) Write out the general form of the Company's total costs
b) Suppose the Company's short-run production function is given by the following
Q=c (L, S, K0) = 2LS
Where each unit of Q represents a thousand products.
Determine the minimum total cost at which the company could produce 100,000
products.
c) To achieve minimum cost, what quantities of labor and plastic would the company have
to use?
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