成本分析-英文版.pptVIP

Cost AnalysisChapter 8 The meaning and measurement of cost Short-run Cost Functions Long-run Cost Functions Scale Economies and Cost Appendix 8A: Cobb-Douglas Long Run Cost The Object of Cost Analysis Managers seek to produce the highest quality products at the lowest possible cost. Firms that are satisfied with the status quo find that competitors arise that can produce at lower costs. The advantages once assigned to being large firms (economies of scale and scope) have not provided the advantages of flexibility and agility found in some smaller companies. Cost analysis is helpful in the task of finding lower cost methods to produce goods and services. Managerial Challenge:US Airways US Airways created in mergers with Allegheny, Mohawk, Lake Central, Pacific Southwest and Piedmont Airways. Mostly in the East, with high cost but high yields (most seats were filled). But, this situation invites entry by competitors by Continental or others. The key to US Airways’ survival lays in managing its high cost. Meaning of Cost There an Many Economic Cost Concepts Opportunity Cost -- value of next best alternative use. Explicit vs. Implicit Cost -- actual prices paid vs. opportunity cost of owner supplied resources. Examples of Relevant Cost Concepts Depreciation Cost Measurement. Accounting depreciation (e.g., straight-line depreciation) tends to have little relationship to the actual loss of value To an economist, the actual loss of value is the true cost of using machinery. Inventory Valuation. Accounting valuation depends on its acquisition cost Economists view the cost of inventory as the cost of replacement. Unutilized Facilities. Empty space may appear to have no cost” Economists view its alternative use (e.g., rental value) as its opportunity cost. Measures of Profitability. Accountants and economists view profit differently. Accounting profit, at its simplest, is revenues minus explicit costs. Economists include other implicit costs (