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Issue:

Technology

 

Written by:

Kevin L

 

Date added:

October 7, 2014

 

Level:

 

Grade:

B

 

No of pages / words:

4 / 999

 

Was viewed:

3779 times

 

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Essay content:

Ron Ikuta calculated the variable cost on the instruction time as per contact hour for part-time instructors and $95 per hour for all CRP instructors. However the full time rate was simply a fixed salary of $50000 prorated over 480 contact hours. Ron calculated a cost saving of $44 per hour as section by section, seasonal filled in for full time instructors...
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This may have been a reasonable measure of the difference in the marginal cost of instruction had only one full-time instructor departed, but the net loss of three instructors turned staffing into a large decision. In the planning stage management accountants should be able to determine what are the relevant costs so that they can make a sound decision whether to take on a new project or make any modification to the current one...
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