Order A Brief Look at the History of Accounting It is like the age-old question, which came first, the chicken or the egg. On the surface it seems like a question that cannot ever be answered with any degree of certainty.
Explain the terms used in statement a. Fixed costs and Variable costs: Fixed costs are not affected by changes in activity. Consequently, as the activity level rises or falls, total fixed costs remain constant unless influenced by some outside factors such as a price change.
The more of the product that is made the more cost increase. Variable costs include the cost of direct materials, direct labor, and variable overheads, and therefore relevant to the decision at hand.
Araco is a racket producing company whose rental expense is USD per month. In many cases, we classify which costs are fixed and which costs are variable depend on the period of time that we are considering.
Normally, in short period of time most of costs are fixed costs because in short term once manufacturing decisions are decided, the company has to pay for freight charges of materials and it cannot easily cut down labor forces. In contrast, in long term many costs are variable costs, if the firm wants to reduce activity level, the input materials expense and labor expense can be reduced.
Direct costs, indirect costs and overhead: For example, the cost of leather in making bags can be attributed directly to the cost of manufacturing these products. Depreciation and administrative expenses, are more difficult to assign to specific products, and so are not considered as direct costs.
Purchasing office furniture for bag manufacturing firm is one example of indirect cost because it does not affect the production of any one unit. The classification depends on which department the cost is involved in.
For example, the salary of workers working in construction site is a direct cost but the salary of managers managing this site is not direct cost, it is indirect cost. All costs on the income statement are regarded as overhead expense except direct materials and direct labor expense.
For instance, depreciation expense, advertising, insurance, rental fees, telephone bills, repairs, office supplies and utilities costs are overheads. Controllable and uncontrollable costs: Evaluate the statement of the delegate In my point of view, the delegate misconceived the terms used in the statement, so for this reason I strongly disagree with this statement.
Costs are assigned to cost objects for a variety of purpose including pricing, profitability studies and control of spending.
Based on the purpose of management, the costs are classified as the following: For cost volume profit analysis or profitability studies, costs are divided into three categories fixed cost, variable cost and semi-variable cost.
For pricing, costs are classified into direct costs and indirect costs. For control of spending, costs are divided into controllable costs and uncontrollable costs.
Because of the misconception about classification of cost, the delegate used the terms in this statement wrongly.
Direct costs can be regarded as both fixed costs and variable costs. As I have mentioned through the obvious example above, direct costs like the salary of workers working in construction site is a fixed cost.
Every month, the company has to pay the fixed rate salary for the workers according to the colored labor contracts they have made. On the other hand, most of variable costs such as direct input materials, direct labor per unit are direct costs.
Indirect costs can be either fixed costs or variable costs. In contrast with direct costs, most of indirect costs are fixed costs, for example the rental fees for representative offices, sale department and the security cost. These costs do not directly attribute to manufacturing products thus they are indirect and fixed costs.1.
What were the events leading up to the Parmalat accounting scandal and ultimately the revelation of the accounting fraud and the reasons behind the scandal? Evolving from a small dairy shop into an international concern, Parmalat appeared to be a gigantic and stable dairy producer.
At some point. Many students find essay writing to be an especially daunting task. Depending on the essay topic, research can take anywhere from a few hours to several days and .
TUW is the online division of The Touro College and University System. The school offers an online bachelor's of science in business administration degree that can be completed entirely online.
In this BSBA program, students can choose to specialize their studies with one of the following concentrations: accounting, criminal justice, entrepreneurship, human resources, marketing, project. However, the functions of these two forms of accounting are quite different: management accounting is focused on monitoring and analyzing the effect of management decisions, financial accounting is focused on short-term, external reporting.
The following essay was submitted to the Harvard MBA program by our client.
The client was accepted to the program. Long Run Objective. My long-run objective is to achieve a senior managerial position in a large multinational corporation that markets, or preferably manufactures, commodities.
Type or paste a DOI name into the text box. Click Go. Your browser will take you to a Web page (URL) associated with that DOI name.
Send questions or comments to doi.