If anyone is interested, I have worked
through this exercise myself and my findings are:
Additional Costs |
Year 1 |
Year 2 |
Year 3 |
Total Costs from Above |
208.33 |
233.33 |
308.33 |
Number of Eggs Produced by TWO chickens |
624 |
624 |
624 |
Additional Average Cost per Egg |
£0.3339 |
£0.3739 |
£0.4941 |
Food Costs s per Egg per the BBC |
£0.0350 |
£0.0350 |
£0.0350 |
Total Average Cost per Egg |
£0.3689 |
£0.4089 |
£0.5291 |
SWITCH
to HTML format to read the table properly.
So, I demonstrate that it costs more to
keep your own chickens than it does to buy from the supermarket. I also mention
some of the opportunity costs.
I reveal that I can buy fresh large eggs
for 10 pence each in
Finally, I discuss the qualitative factors
of keeping the chickens
Not such a silly question as you might
have thought! There’s definitely a very useful half lesson here for
accountants, business students and economists.
Duncan Williamson
Alright, here you are: forget the AQA, OCR and Edexcel
case study analyses for a few minutes and get to grips with a couple of
chickens.
If you would like to
incorporate management accounting with a touch of The Good Life, the environment, GreanPeace, Friends of
the Earth and the rest take a look at this page and then answer the
question that follows:
http://news.bbc.co.uk/1/hi/magazine/3714733.stm
Stroll down to the Chickenomics graphic that is followed by a
short series of numbers and calculations.
Required: the answer provided by the
BBC is wrong: suggest the correct answer. (10 marks … or for AQA, 150
marks)
Time to fly the coop and begin
to sort out the web site: regular visitors be prepared for www.duncanwil.co.uk to suffer a possible
short loss as I migrate from one ISP to another.
Duncan Williamson
PS forgive the dig at AQA but I
couldn’t resist: I was going to develop it even further but resisted the
temptation!