Abraham Lincoln University Cost Analysis Discussion

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Abraham Lincoln University

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When materials are stored in inventory for a period of time before being used in the production process, the accounting cost and economic cost differ if the market price of these materials have changed from the original purchase price. Accounting cost is equal to the actual acquisition cost and economic cost is equal to the current replacement cost. After reading the articles “U.S. Car Business in Major Shift” and “Car Making in America”, which cost do you feel the U.S. Car industry (GM, Ford, etc.) is most affected by – accounting or economic cost?

Managerial Economics: Applications, Strategy, and Tactics (14th Edition)James McGuigan, R. Charles Moyer, & Frederick HarrisCengage Learning, © 2017, 2014ISBN-13: 978-1-305-50638-1ISBN-10: 1-305-50638-3Materials to refer are attached:

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Managerial Economics Applications, Strategies and Tactics, 14e James R. McGuigan R. Charles Moyer Frederick H. deB. Harris © 2017 Cengage Learning® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use. 1 PART III – PRODUCTION AND COST Chapter 8 – Cost Analysis © 2017 Cengage Learning® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use. 2 Chapter 8 – Cost Analysis Overview • THE MEANING AND MEASUREMENT OF COST • SHORT-RUN COST AND PRODUCT FUNCTIONS • LONG-RUN COST FUNCTIONS • ECONOMIES AND DISECONOMIES OF SCALE © 2017 Cengage Learning® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use. 3 Ch 8 – The Meaning and Measurement of Cost Accounting versus Economic Costs (1 of 2) • Accountants have been primarily concerned with identifying highly stable and predictable costs for financial reporting purposes • As a result, they define and measure cost by the known certain historical outlay of funds • The price paid for commodity or service inputs, in USD, is one measure of the accounting cost • Interest paid to bondholders or lending institutions is used to measure the accounting cost of funds to the borrower © 2017 Cengage Learning® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use. 4 Ch 8 – The Meaning and Measurement of Cost Accounting versus Economic Costs (2 of 2) • Economists, on the other hand, have been mainly concerned with measuring costs for decision-making purposes • That objective is different • Opportunity costs: The value of a resource in its next-bet alternative use • Opportunity cost represents the return or compensation that must be foregone as the result of the decision to employ the resource in a given economic activity • Economic profit is defined: © 2017 Cengage Learning® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use. 5 Ch 8 – The Meaning and Measurement of Cost Three Contrasts between Accounting & Economic Costs (1 of 3) • Depreciation Cost Measurement – The production of a good of service typically requires the use of plant and equipment • Capital assets: A durable input that depreciates with use, time and obsolescence • Depreciation is a loss of asset value, but it is difficult or impossible to determine the exact service life of a capital asset and future changes in its market value • As a result, accountants have adopted standard allocation procedures for assigning a portion of the acquisition cost of an asset to each accounting time period, and to each unit of output produced within that time period © 2017 Cengage Learning® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use. 6 Table 8.1 – Profitability of Bentley Clothing Store © 2017 Cengage Learning® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use. 7 Ch 8 – The Meaning and Measurement of Cost Three Contrasts between Accounting & Economic Costs (2 of 3) • Inventory Valuation– When materials are stored in inventory before being used, the accounting and economic costs may differ if the market price of the materials has changed • The accounting cost is equal to the actual acquisition cost • The economic cost is equal to the current replacement cost • Sunk cost – A cost incurred regardless of the alternative action chosen in a decision-making problem • Sunk Cost of Underutilized Facilities – As shown in Table 8.3, a savings results from accepting an offer for less than the firm’s cost © 2017 Cengage Learning® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use. 8 Table 8.2 – Effect of Inventory Valuation Methods on Measured Profit – Westside Plumbing & Heating Co. © 2017 Cengage Learning® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use. 9 Table 8.3 – Warehouse Rental Decision – Dunbar Manufacturing Company © 2017 Cengage Learning® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use. 10 Ch 8 – The Meaning and Measurement of Cost Three Contrasts between Accounting & Economic Costs (3 of 3) • Conclusions– • 1. Costs can be measured indifferent ways, depending on the purpose for which the cost figures are to be used • 2. The costs appropriate for financial reporting purposes are not always appropriate for decision-making purposes. The relevant cost in economic decision making is the opportunity cost of the resources rather than the historical outlay of funds required to obtain the resources © 2017 Cengage Learning® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use. 11 Ch 8 – Short-Run Cost and Product Functions (1 of 3) • Fixed costs – The costs of inputs to the production process that are constant over the short run • Variable input costs – The costs of the variable inputs to the production process • Average and Marginal Cost Functions © 2017 Cengage Learning® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use. 12 Ch 8 – Short-Run Cost and Product Functions (2 of 3) • Marginal cost – The incremental increase in total variable cot that results from a one-unit increase in output © 2017 Cengage Learning® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use. 13 Table 8.4 – Production Function – Deep Creek Mining Company © 2017 Cengage Learning® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use. 14 Figure 8.1 – Foreign Exchange (FX) Rates: The Value of the U.S. Dollar against Several Major Currencies © 2017 Cengage Learning® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use. 15 Table 8.5 – Short-run Cost Functions – Deep Creek Mining Company © 2017 Cengage Learning® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use. 16 Ch 8 – Short-Run Cost and Product Functions (3 of 3) © 2017 Cengage Learning® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use. 17 Figure 8.2 – Short-Run Average & Marginal Cost Functions – Deep Creek Mining Company © 2017 Cengage Learning® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use. 18 Figure 8.3 – Long-Run & Short-Run Average Cost Functions © 2017 Cengage Learning® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use. 19 Ch 8 – Long-Run Cost Functions (1 of 1) • In long-run planning, the firm chooses the optimum combination of inputs to produce the desired level of output at least cost, and some of these inputs become fixed • In the short run, if demand increases unexpectedly, the firm may have little choice but to add additional variable inputs • Should this demand persist, a larger fixed input investment in plant and equipment is warranted, and then unit cost can be reduced • See Figure 8.3 © 2017 Cengage Learning® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use. 20 Ch 8 – Long-Run Cost Functions Optimal Capacity Utilization: Three Concepts (1 of 1) • Optimal output for a given plant size – Output rate that results in lowest average total cost for a given plant size • Optimal plant size for a given output rate – Plant size that results in lowest average total cost for a given output • Optimal plant size – Plant size that achieves minimum long-run average total cost © 2017 Cengage Learning® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use. 21 Ch 8 – Economies and Diseconomies of Scale (1 of 1) • Product Level Internal Economies of Scale • Internal economies of scale - Declining long-run average costs as the rate of output for a product, plant, or firm is increased • Learning curve effect – Declining unit cost attributable to greater cumulative from longer production runs • Volume discount – Reduced variable cost attributable to larger purchase orders © 2017 Cengage Learning® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use. 22 Figure 8.4 – Learning Curve: Arithmetic Scale © 2017 Cengage Learning® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use. 23 Ch 8 – Economies and Diseconomies of Scale The Percentage of Learning (1 of 1) • Plant-Level Internal Economies of Scale • Sources of scale economies at the plant level include capital investment, overhead, and required reserves of maintenance parts and personnel • Firm-Level Internal Economies of Scale • One possible source is in distribution; multi-plant operations may permit a larger firm to maintain geographically dispersed plants, lowering delivery costs • Diseconomies of Scale • Diseconomies of scale - Rising long-run average total costs as the level of output is increased © 2017 Cengage Learning® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use. 24 Ch 8 – Economies and Diseconomies of Scale The Overall Effects of Scale Economies and Diseconomies (1 of 2) • For some industries, long-run average total costs for the firm remain constant over a wide range of output once scale economies are exhausted; For others, long-run average total costs rise at a large scale • The possible presence of both economies and diseconomies of scale leas to the hypothesized long-run average cost function for a typical manufacturing firm being U-shaped with a flat middle area • See Figure 8.5 © 2017 Cengage Learning® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use. 25 Figure 8.5 – Long-Run average Cost Function and Scale Economies © 2017 Cengage Learning® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use. 26 Ch 8 – Economies and Diseconomies of Scale The Overall Effects of Scale Economies and Diseconomies (2 of 2) • Minimum efficient scale (MES) - The smallest scale at which minimum costs per unit are attained • Up to some MES, the smallest scale at which minimum long-run average total cost are attained, economies of scale are present • In most industries, it is possible to increase the size of the firm beyond this MES without incurring diseconomies of scale • But expansion beyond the maximum efficient scale eventually will result in problems in inflexibility, lack of managerial coordination, and rising long-run average total costs • © 2017 Cengage Learning® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use. 27 Figure 8.6 – Minimum Efficient Scale (MES) in Autos © 2017 Cengage Learning® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use. 28 Business: A sadder, wiser union; Carmaking in America Anonymous . The Economist ; London Vol. 400, Iss. 8752, (Sep 24, 2011): 75-76. ProQuest document link ABSTRACT On September 20th, as the United Auto Workers union (UAW) and General Motors (GM) unveiled a remarkably modest four-year pay agreement, union bosses stressed their commitment to helping GM prosper. Some union members will complain loudly about the new deal. But the UAW's leaders can boast of some achievements. After what seemed like endless rounds of job cuts, GM is now hiring again. The road ahead for GM and the other American carmakers is still potholed and slippery. If sales continue to recover, they can hire more workers and still make profits. But if recession returns, forget it. GM has plenty of cash to help it weather passing storms, and its repeated cost-cutting has made it lean enough to make profits even if it produces fewer cars. But its fight for survival is far from over--and the same applies to the union it has locked horns with for 75 years. FULL TEXT GM has reached a realistic deal with its blue-collar union. But bigger struggles lie ahead for both TWO years ago General Motors (GM) went bankrupt. High labour costs, short-sighted management and global economic turmoil forced what was once America's mightiest firm to seek refuge from its creditors. Only a federal bail-out saved GM from the scrapheap. Now, after a dramatic restructuring, the company is in reasonable shape, but another recession could sideswipe it. Small wonder the United Auto Workers union (UAW) is less truculent than before. On September 20th, as the UAW and GM unveiled a remarkably modest four-year pay agreement, union bosses stressed their commitment to helping GM prosper. The deal allows GM to hire thousands of new "tier two" employees, who will get about half the pay of longer-serving blue-collar workers for the same work. It offers early-retirement buy-outs to thousands of costly tradesmen the firm no longer needs. It gives each of GM's 48,500 production-line workers a $5,000 lump sum now and about $4,000 more spread over four years, plus a slightly higher share of profits. But GM has not had to concede any increase in basic pay (apart from a modest rise for the low-paid tier twos). The next contract talks, in 2015, will in effect start with pay reset at the levels of the early 2000s. This is not the first time the union has had to make concessions. In 2007 it accepted the long-taboo two-tier wage structure. In 2009 it agreed to curbs on its ability to call strikes. Now that GM has lighter debts and a smaller, cheaper workforce, the firm is back in profit. Better models have won car-buyers back: in August GM had a 20.4% market share in America, up almost two percentage points in a year. But still, the union has to be realistic. Two spectres make it shiver. One is the economy. The other is the continuing threat from the "transplants"--lowcost foreign-owned car factories in America, mostly in the union-unfriendly South. Until 2007, GM's labour costs PDF GENERATED BY SEARCH.PROQUEST.COM Page 1 of 4 were far higher than the transplants' (see chart). Now GM, like Ford and Chrysler, has slashed them so severely that they are only slightly higher. Analysts at Deutsche Bank reckon that the labour deal could narrow the cost gap by a few dollars more. Some union members will complain loudly about the new deal. But the UAW's leaders can boast of some achievements. After what seemed like endless rounds of job cuts, GM is now hiring again: of the 6,400 jobs it plans to add or retain in American plants as a result of the deal, many will involve work that would otherwise have been sent down Mexico way. Since all these jobs will be at unionised plants, the UAW will get some respite from the relentless decline in its membership, which has slumped from 1.5m at its peak in 1979 to less than 400,000. The UAW is being reasonable partly because it wants to keep GM competitive, but also because it dreams of persuading workers at foreign transplants to unionise, says Harley Shaiken, a labour expert at the University of California, Berkeley. Mr Shaiken thinks this is fairly likely, so long as Ford and Chrysler reach similarly amicable deals with the UAW. However, Kristin Dziczek of the Centre for Automotive Research in Michigan is sceptical: workers usually join unions only when they feel mistreated, she says. Pay at the transplants may be lower than at the Big Three in Detroit, but it is above-average for the states where the foreign-owned plants are located. And most of the transplants are in "right-to-work" states, where closed-shop agreements, which force workers to join a union as a condition of employment, are banned. In any case, the UAW may have its reasonableness tested in the coming talks with Ford and, in particular, Chrysler. Ford, which never declared bankruptcy, has the highest costs of the Big Three, and thus needs to drive a hard bargain. Sergio Marchionne, the boss of Chrysler and of its main shareholder, Fiat, has shown himself to be tough with the Italian and Canadian unions, says Ms Dziczek, and he is already in a bad mood with the UAW's leader, Bob King, for failing (says Mr Marchionne) to turn up for a negotiating session. Still, it may make sense for Mr King to grit his teeth and strike a deal with Mr Marchionne: Chrysler insiders say the firm is contemplating bringing back in-house some work currently contracted out to non-union suppliers, so long as the UAW agrees to keep labour costs down. The road ahead for GM and the other American carmakers is still potholed and slippery. If sales continue to recover, they can hire more workers and still make profits. But if recession returns, forget it. Analysts at Morgan Stanley, a bank, expect Americans to buy 14m new cars next year. If the economy shrinks, however, they could buy as few as 10m, and GM would again start to lose money. Either way, the Big Three will face tougher competition, as foreign rivals such as Hyundai and Volkswagen continue to expand their global capacity. GM has plenty of cash to help it weather passing storms, and its repeated cost-cutting has made it lean enough to make profits even if it produces fewer cars. But its fight for survival is far from over--and the same applies to the union it has locked horns with for 75 years. DETAILS Subject: Automobile industry; Corporate profiles; Labor unions; Labor contracts; Statistical data; Business conditions; Competition Location: United States--US Company / organization: Name: General Motors Corp; NAICS: 333415, 336111, 336399 Classification: 8680: Transportation equipment industry; 9110: Company specific; 6300: Labor relations; 9140: Statistical data; 9190: United States PDF GENERATED BY SEARCH.PROQUEST.COM Page 2 of 4 Publication title: The Economist; London Volume: 400 Issue: 8752 Pages: 75-76 Publication year: 2011 Publication date: Sep 24, 2011 Section: Business Publisher: The Economist Intelligence Unit N.A., Incorporated Place of publication: London Country of publication: United States, London Publication subject: Business And Economics--Economic Systems And Theories, Economic History, Business And Economics--Economic Situation And Conditions ISSN: 00130613 CODEN: ECSTA3 Source type: Magazines Language of publication: English Document type: News Document feature: Photographs Graphs ProQuest document ID: 893994147 Document URL: http://nec.gmilcs.org/login?url=https://search.proquest.com/docview/893994147?a ccountid=42685 Copyright: (Copyright 2011 The Economist Newspaper Ltd. All rights reserved.) Last updated: 2017-11-18 Database: ProQuest Central Database copyright © 2019 ProQuest LLC. All rights reserved. PDF GENERATED BY SEARCH.PROQUEST.COM Page 3 of 4 Terms and Conditions Contact ProQuest PDF GENERATED BY SEARCH.PROQUEST.COM Page 4 of 4 U.S. Car Business in Major Shift Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]04 Jan 2011: n/a. ProQuest document link ABSTRACT If the Korean auto maker crosses that threshold as expected this year, the U.S. market will have seven manufacturers--GM, Ford, Toyota Motor Corp., Honda Motor Co., Chrysler, Nissan Motor Co. and Hyundai--with market share of 5% or more. FULL TEXT Author: Sharon Terlep; John Kell U.S. auto sales rose 11% in December, capping a year that suggests the industry is on the verge of one of the most dramatic shifts in its history. For most of the past century, the U.S. car industry was dominated by General Motors Co., Ford Motor Co. and Chrysler Group LLC. Now, as a result of both long-term trends and the upheaval of the last two years, the Big Three are about to be replaced by a Gang of Seven as the industry's driving force. In 2010, Hyundai Motor Co. saw its U.S. market share climb to just short of 5%. If the Korean auto maker crosses that threshold as expected this year, the U.S. market will have seven manufacturers--GM, Ford, Toyota Motor Corp., Honda Motor Co., Chrysler, Nissan Motor Co. and Hyundai--with market share of 5% or more. That's a dramatic shift from the days when the three Detroit companies dominated the market and dictated the industry's direction. "I think it's fair to say we are entering a new era," said Jim Press, a former Toyota and Chrysler executive now working as a consultant to several vehicle makers. "You have a completely different situation when you have six or seven companies that are all established, with a significant customer base. It's not like the old days when it was the Big Three and then all these little guys." The emergence of seven major car makers means companies can no longer focus on besting a single rival, as they did years ago when GM was on top, or in recent years when Toyota set the bar for quality and reputation. "There's much less margin for error now," said Michael J. Jackson, chief executive of AutoNation Inc., a large chain of auto dealerships based in Fort Lauderdale, Fla. "If you don't give the customer exactly what he wants, he's got a wide range of other places to go." Underpinning the change in the competitive landscape are two extraordinary shifts in 2010: a stronger-thanexpected resurgence by the three Detroit makers, and a reversal of fortune for Toyota, which just a year ago appeared ready to pass GM as the country's top-selling car maker. In 2008 and 2009, the Detroit Three were beaten down by massive losses and, later, bankruptcy. But in 2010, Ford and Chrysler both gained market share. GM, while its share slipped less than a percentage point, is on its way to reporting billions of dollars in profit for 2010 as its sales rise. PDF GENERATED BY SEARCH.PROQUEST.COM Page 1 of 3 At the same time, Toyota, which for nearly 30 years reported an almost unbroken string of U.S. market-share gains, suffered a significant setback, losing 1.8 points of share in 2010, to 15.2% from 17%, according to Autodata Corp. As a result, Toyota fell behind Ford in share for the first time since 2006. Toyota has struggled to keep its sales rising since a recall and sudden-acceleration crisis engulfed the company a year ago. Toyota's sales fell 5.5% in December and were flat for the year, while almost every other major maker reported increases. GM's sales rose 8.5% in December and 7.2% for the full year. Ford's increased 6.8% in December and almost 20% for the full year. Chrysler saw increases of 16.4% last month and 16.5 for 2010. Chrylser sold 1.1 million vehicles last year, hitting the target set a year ago by Chief Executive Sergio Marchionne. Meanwhile, Hyundai, which a decade ago was laughed off as a maker of cheap, small cars, said its December sales climbed 33% to 44,802. For the full year, its sales totaled 538,228, up 24%. It was the first year Hyundai's U.S. sales exceeded 500,000 vehicles. Write to John Kell at john.kell@dowjones.com Credit: By Sharon Terlep And John Kell DETAILS Subject: Automobile industry; Automobile sales; Market shares Location: United States--US Company / organization: Name: General Motors Corp; NAICS: 333415, 336111, 336399 Product name: Chevrolet Equinox Publication title: Wall Street Journal (Online); New York, N.Y. Pages: n/a Publication year: 2011 Publication date: Jan 4, 2011 Section: Business Publisher: Dow Jones &Company Inc Place of publication: New York, N.Y. Country of publication: United States, New York, N.Y. PDF GENERATED BY SEARCH.PROQUEST.COM Page 2 of 3 Publication subject: Business And Economics Source type: Newspapers Language of publication: English Document type: News ProQuest document ID: 822338075 Document URL: http://nec.gmilcs.org/login?url=https://search.proquest.com/docview/822338075?a ccountid=42685 Copyright: (c) 2011 Dow Jones &Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission. Last updated: 2017-11 -17 Database: ProQuest Central Database copyright © 2019 ProQuest LLC. All rights reserved. Terms and Conditions Contact ProQuest PDF GENERATED BY SEARCH.PROQUEST.COM Page 3 of 3
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Cost Analysis

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Cost Analysis
The automotive industry is regarded as one of the most labor and capital-intensive
industries in the world. There are various costs incurred in the production and manufacturing
process, advertising and marketing, as well as selling automobiles. However, costs such as
accounting and economic costs are also involved in the ...

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