Cost Analysis

1. Discussion Board

Cost Analysis

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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? Submission Details:

  • Initial post for each question must be between 250-300 words in length, and each peer reply per question must be between 150-200 words in length.

2. An oligopoly is characterized by a relatively small number of firms offering a similar product or service. Oligopoly products may be branded, as in soft drinks, cereals, and athletic shoes, or unbranded, as in crude oil, aluminum, and cement. The main distinction of oligopoly is that the number of firms is small enough that actions by any individual firm on price, output, product style, quality, introduction of new models, and terms of sale has an impact on the sales of other firms in the industry. Select a dominant single firm, duopoly firm, and triopoly firm and discuss if you foresee any weaknesses in the three firms you selected that would allow entrance into this market or if one of the firm has enough strength to become a monopoly? Submission Details:

  • Initial post for each question must be between 250-300 words in length, and each peer reply per question must be between 150-200 words in length.

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