Job Order Costing Process Costing and Activity Based Costing

Job Order Costing Process Costing and Activity Based Costing A cost accounting system is the sum methods and techniques used by businesses allowing them to track resources consumed in production and distribution of services or goods to consumers. These methods and techniques are used by the management in order to evaluate and reward staff performance, by employees in order to manage recourses efficiently while the cost accounting system is also used for external reporting requirements meaning balance sheets and income statements. The cost accounting system is usually designed to meet particular needs of individual companies, for that reason there are three main systems businesses apply according to their needs. Job Order Costing is a cost system used to accumulate costs of jobs also called batches. Job order costing is used when individual production centres or departments work on a variety of products rather than one king of a product during a specific period of time. Prime costs and factory overhead costs are the two categories of production costs monitored with this method. Process costing is a type of costing system used for production of small identical, low-cost items. Process costing averages the costs and cant be directly traced to individual products. Activity based costing (ABC) is designed to assign costs to activities. This method has become popular because of the fact that the complexity of businesses keeps growing and so does their need to assign increasingly large indirect costs to the appropriate department or activity. ABC is the process where costing is assigned based on the cause and effect relationship between costs and activities that drive costs. What are major objectives of a cost accounting system in a hospitality establishment? Within hospitality establishments cost accounting systems help successfully achieve the following management objectives: Measuring the various needs and generated revenues of departments Monitoring and controlling the progress of each department Department related data gathered is used to evaluate costs and make proper adjustments and corrections in operating procedures What are the major objectives of a cost accounting system system in a manufacturing company? In manufacturing and service companies cost accounting systems help achieve the following management objectives. They provide the managers with helpful information regarding planning, cost control procedures and determining unit production costs. In most cases manufacturing companies also use a complete job cost sheet which contains Cost Summary and Unit Cost information since manufacturing costs are not immediately recorded as current period expenses. These information include total and costs per unit for: Direct materials, which are the raw materials used in production which costs are directly traceable throughout the product manufacturing process. Direct labour, which are the wages and other pay roll costs of employees whose efforts are directly traceable throughout the product manufacturing process. Manufacturing overhead, is the category including all other manufacturing costs like utilities aside for the above mentioned ones. What are the procedures in job order costing, process costing and activity based costing. Job order costing process is a specific set of events which will usually occur with each job. Generally the process is as follows: an order (or sale order) is received for the batch of products, a production order is issued from the sale order materials and labour are ordered and tracked for the set of products, manufacturing overhead is allocated to the job using a predetermined rate (usually per labour or per machine hour). In fact manufacturing overhead will not affect the work in process account; instead it is changed to a control account. Direct labour and materials are charged by the accountant to the work in process accounts using the actual quantity acquired. These quantities are all tracked using a job costing sheet which will likely be already a computerized ledger and use used for each job. Spoilage which surpasses expected levels based on the job at hand is considered a period cost and is reclassified from work in process account into a separate account so it can be addre ssed by the management. Process costing procedures follow specific procedures and while exact procedures may differ between different companies and businesses, but they generally follow these steps. While other types of costing are initiated when a sale order is issued, a sale order is not required for process costing as it is a continuous process. The work in process accounts are separated departments and are named according to the department they reflect on e.g. Work in process- FB department. The first department in the production process makes the first entry into the work in process account, generally for the raw materials. While the products move from department to department entries are made to each work in process account of each department. Direct labour costs are recorded at each period. Actual overhead costs are recorded; no contra-account in needed because there is no over- or under-applied overhead due to the actual costs being applied. Indirect costs are applied to the overhead account in actual amounts. Activity based costing procedures can be more complicated to set up and operate than other costing systems. The activity based costing procedures are: Only if a cost driver cant be recognized a cost can be assigned on an allocative basis. Related cost pools are assigned to an overhead rate on costs drivers. Cost pools are used to assign costs; the basis depends on the business and industry. Costs can be assigned to units, batches or products. These pools can be combined to look at facilities, divisions, or other levels of cost classifications. Costs can then be evaluated in order to see how and where they are occurring, knowing this the management can discern what cists are controllable and how they arise. Which costing methods (job order costing, process costing and activity costing) are best suited to the following businesses and why: Old Home Bakery, Inc (a bakery that produces to order): It will be able to use job order costing because it is designed for businesses which work with orders rather than mass production. Apache Oil and Gas Refinery: Because the products are similar or identical the process costing is the appropriate method the business should apply. It is also recommended because the company uses an automated continuous process. The Sea View Resort Hotel: the hotel is best recommended to use the job order costing because it offers services and the method is designed for such businesses. Willie Wonkers Chocolate Factory: because the business produces a standard item which units are identical it is best to apply the process costing method. Harris and Harris Law Firm: Since this business offers services in the form of legal counselling or legal representation is it best to use the job order costing which refers to a desired unit which might not be identical to another offered service. Explain and evaluate LIFO, FIFO and AVCO techniques. LIFO stands for last-in first-out what means that recent purchases will be stored recorded and sold before the items that already existed in stock when the purchase was received. LIFO valuation is permitted due to the belief that an ongoing business does not realize an economic profit only from inflation. When prices are rising they must replace the inventory currently being sold with items oh higher prices. It also matches better current cost against current revenue and defers paying taxes on phantom income arising exclusively from inflation. LIFO is preferred by businesses because it delays a major negative effect of inflation; higher taxes. FIFO is the most commonly used method used by businesses to record the value of inventory. It is appropriate when dealing with many different batches of similar products. The method assumes that the next item that will be purchased will be placed at the end of the line of to-be-sold items of that kind meaning what was purchased first will be sold first. In an economy of rising prices (during inflation), it is common for new companies to use this method to report the value of merchandise to boost their balance sheet. While the older and cheaper good are sold the new and more expensive goods remain as assets in the businesss books, financial statement boosted by FIFO also increase the chances a business has to get a loan. AVCO is used to establish the value of an inventory by calculating the costs of units. In practice it provides us the results we want by dividing the total cost of good available for sale with the number of items for sale.

Hoaxes: Deception and Cardiff Giant

Hoaxes What is a Hoax? A hoax is something that is intended to deceive you or better described as a theory. They are many hoaxes in the world that have been developed over time. The two I have decided to tell you about are in the top 10 famous hoaxes in the world. These two are the Cardiff Giant and then the Cottingley Fairies. As you will out while you continue to read is both of these came out not to be completely true. George Hull who was a tobacconist created the hoax, Cardiff Giant. â€Å"He decided to create the giant after an argument at a Methodist meeting about a passage stating there were giants that once lived on the earth. The men he hired to carve the man, were instructed to make it long out of gypsum. Edward Burghardt was hired by Hull to carve the stone into a man and not tell anyone. To make the stone man look old and weathered, they used many stains and acids. By the time he was transported to a farm the United States has already spent 2,600 dollars trying to figure out the hoax, this was in 1868. In almost 1869, two men dug up a well and discovered the giant. One of the reporters said, â€Å"I declare some old indian has been buried here! Later some guy set up a tent and charged 25 cents for people who wanted to see the giant. Hull later sold his interest for 23,000 dollars to a man with the name of David Hannum. They moved it to Sycacuse, New York for an exhibit. It was so popular that a man named P. T. Barnum offered 50,000 dollars for the giant; he was turned down. He later hired a man to model the giants shape and cover it in wax and created a plaster replica. The replica was put on display at New York and claimed that it was real and the other one was fake.Barnum got sued by Hannum for calling his giant fake. Barnum got sued by Hannum for calling his giant fake. Hull eventually confessed to the press on December 10. On February 2, 1870, both of the giants were revealed in the court as being, fake. Barnum was ruled by the judge that he c ouldn’t be sued. The story of Cottingley Fairies is based off of a series of five pictures that were taken by Elsie Wright and Frances Griffiths. Elsie borrowed her dad’s 25 cent camera one day and toke pictures behind the family house. As Mr.Wright was developing the pictures, he saw fairies in them, but he said they were, fake. She was banned from taking anymore pictures, but her mom, Polly, was convinced they were real. In the summer of 1919, the whole situation became public and an author wrote an article saying these fairies were real. The next fifty years od there life was spent avoiding the public and is particular hoax continued to be believed by a lot of people. Frances and Elsie both admitted when they were about to die that the first four that were taken was fake, but the fifth photo was, authentic.

Analysis Of Schindler s S List - 841 Words

For this assignment, I chose to view two movies. First, I chose Schindler’s List. I had never seen this movie and thought it was a good opportunity for me to finally see it. Second, I chose 12 Angry Men. I chose this movie because I am beginning to enjoy old movies from the 50’s and I also like some of the other movies Henry Fonda has been in. Schindler’s List is about the Polish-Jewish refugees persecution during World War II by Nazi Germany. Oskar Schindler is a German businessman and member of the Nazi party. He travels to Germany occupied Krakow, Poland in hopes of making his fortune. He acquires a factory and begins to produce enamelware with Jewish labor because it is cheaper. Further in the movie, an SS soldier Amon Goth†¦show more content†¦He also became an ethical person and his priorities shifted from making money to saving lives. Schindler also maintained his resilience through self-awareness and was able to continue with his ethical moral compass in the face of so much pressure from the Nazis. 12 Angry Men takes place almost entirely in a deliberation room in a courthouse. It is an examination of building consensus amid numerous personalities, opinions, and backgrounds. An 18 y/o boy is on trial for stabbing his father. If there is any reasonable doubt, they are all supposed to find a verdict of not guilty. All jurors originally vote guilty except for Davis. He has a reasonable doubt. The film explores many of the men in the room, some of whom have low morals, indifference, or simple carelessness. The film slowly moves from more votes on the verdict, some votes public and some votes by secret ballot. The different character personalities emerge and we begin to see how people behave in groups. The film ends with all 12 jurors voting not guilty. It was an excellent discovery through the legal process. I found this movie very informative and enjoyable to watch. Davis is a critical thinker. He wanted to examine all of the facts thoroughly before making a decision. Also, much like Schindler, Davis also relied heavily on his ethics in the decisions he made. Davis did not succumb to the organizational culture in theShow MoreRelatedMovie Analysis : Schindler s List947 Words   |  4 Pages Well-known director and producer, Steven Spielberg, released a historical drama titled Schindler’s List. The American film was released in 1993, to inform the audience of Oskar Schindler’s success in protecting the lives of over a thousand Jews during the Holocaust as he provided them with employment in his factories. Spielberg creates a dramatic tone throughout the film in order to convey the true horror of the Holocaust as he provides the audience with dramatic scenes to better convey the genuineRead MoreAnalysis Of Schindler s List, And Benigni s Life Is Beautiful1351 Words   |  6 Pagestheme. In this essay I will be comparing and cont rasting how females are depicted in Spielberg’s Schindler’s List, and Benigni’s Life is Beautiful. While the Oscar nominated movies, Schindler’s List and Life is Beautiful, both fail to represent women in the spotlight as main characters, each movie seem to choose different ways and use different techniques to depict women. In Schindler’s List, the portrayal of women are the stereotypical passive women quite the opposite to Life is Beautiful where weRead MoreAnalysis Of Spielberg s Schindler s List Uses A Variety Of Macro And Micro Techniques1063 Words   |  5 PagesSpielberg’s Schindler’s List uses a variety of macro and micro techniques that are effective in eliciting strong emotional response form the spectator. Unlike horror films, which rely on micro techniques to create tension or foreshadowing, Spielberg relies on unconventional techniques that are often juxtaposed to have the spectator feel unsettled. Despite not being a h orror film, it is compatible to through the lack of violence in the film and the context of the Holocaust. Therefore, as a spectatorRead MoreNapoli1378 Words   |  6 Pagestheir sales from last year because of change of currency rate of Japanese yen and Canada dollar. Making the transferred sub-assemblies even more expensive was the fact that there were exchange rate fluctuations favoring Indian currencies. Second, Schindler s manufacturing cost structures were compatible with customization, not commoditization. According to â€Å" Exhibit 6†, Indian people focus on price or service, not safety or technology. One of the biggest challenges he faced as getting transfer costsRead MorePreparing to Conduct Business Research: Part 4 Essay1206 Words   |  5 PagesBusiness Research 4 Veronica Davis Leslie Franklin Kathy Santiago University of Phoenix Business Research RES/351 Philip Ingraham January 3, 2013 Introduction This paper will address the following questions as it pertains to data analysis approach and quantitative and qualitative result reporting for BP. â€Å"How will you have access to the population to be sampled or interviewed? What are the instruments you will use to collect data or qualitative information? What is the appropriateRead MoreCreating A Custom Motivation Program Or Purchase One Offered By A Consulting1376 Words   |  6 Pagestherefore provide a potential barometer of how large of a problem the acceleration issue truly is. A descriptive study of the drivers could be undertaken to answer key questions such as who, what, when and where (Cooper Schindler, 2014). Who experienced this condition would provide a list of viable interview candidates. How the vehicle acted before, during, and after this experience could provide researches with potential symptoms to forecast acceleration problem. Where the driver was driving and theRead MoreChallenges : Weaknesses And Strengths1164 Words   |  5 Pagesof online media such as Internet pages in the case of the respondent of social media, users, or paper surveys, which essentially adopts the paper. In both cases, the data collection comes first then followed with the next step, i.e. the analysis of the data. Analysis of the data will follow on to the next step. Individual interviews: The interview is a primary source of information for study because much expert personnel is working in a high position due to their accumulative information on the fieldRead Moreselling to india Essay2794 Words   |  12 Pagesï » ¿Selling into India: Lessons From Silvio Napoli No amount of process re-definition could have saved Schindler the pains associated with attempting to move into India with a low-cost strategy. Fundamental assumptions about India just wanting low-cost elevators where customization wasnt a requirement took the effort of creating a subsidiary to learn from. For the last four years Ive been teaching an international business course occasionally for a local MBA Program. My students are all workingRead MoreSilvio Napoli at Schindler India Essay2555 Words   |  11 Pagesthe right choice for general manager of Schindler ¡Ã‚ ¦s India operations? Why/Why not  ¡V give details. This question can be answered by taking following 3 things in consideration. 1.1 Silvio ¡Ã‚ ¦s characteristics This can be better explained by detailing his strengths and weaknesses. 1.1.1 Strengths: As per Luc Bonnard, they trust him 100%, he has courage, he is young and flexible, he is generalist not specialist, and willing to go to India. So here is the list of his strengths with the reason why thisRead MoreClassification And Interpretation Of Research Essay1451 Words   |  6 PagesResearch =The work undertaken in an systematic order to increase the stock of knowledge to devise new applications (Manual, 2012). Definition 3 Research =The blueprint for fulfilling research objectives and answer the questions (Cooper Schindler, 2013). critical analysis of each definition Similarities are: Data collection, result finding. Differences are: It can be in systematic way or the person who is doing research, by his way. Conclusion is: The definition are written in different ways but the

The Perception Of Personality Disorders Essay - 1043 Words

Out of Sync The human mind is a mysterious and complex enigma. Neurologists and psychiatrists are still on the verge of understanding behavioral patterns to the fullest extent. There are many behavior patterns that people are not fully aware of most of the time. However, some people have behavior patterns that affect their daily lives negatively. These patterns are ingrained into their personality and may alienate others and may prevent them from achieving life goals. These traits are some of the fundamentals of personality disorders. Psychiatrist Alexander L. Chapman describes them as, â€Å"a long-lasting pattern of relating to the world that doesn’t work well.† (Chapman and Gratz). Personality disorders affect socializing and basic relationship skills that disrupt friendships and daily interactions; a more concrete understanding of these disorders will help those who face similar problems to seek diagnosis and treatment which helps further the research of these di sorders; the top four most commonly diagnosed personality disorders in the U.S. are Borderline Personality Disorder, Antisocial Personality Disorder, Narcissistic Personality Disorder, and Schizoid Personality Disorder. The first disorder, Borderline Personality Disorder, is the most commonly diagnosed personality disorder in the U.S.; it affects an estimated 1.6% of U.S. adults, however, studies suggest that it may be closer to 5.6% (NAMI). The basis of Borderline Personality Disorder is emotional instabilityShow MoreRelatedThe Perception Of Personality Disorders Essay994 Words   |  4 Pagespatterns are ingrained into their personality and can prevent them from reaching life goals. These traits are some of the fundamentals of personality disorders. Psychiatrist Alexander L. Chapman describes them as, â€Å"a long-lasting pattern of relating to the world that doesn’t work well.† (Chapman and Gratz) Personality disorders affect socializing and basic relationship ski lls that disrupt friendships and daily interactions; a better understanding of these disorders will help those who face similarRead MoreAn Attachment Theoretical Framework For Personality Disorders1532 Words   |  7 PagesLiterature Review and Analysis In the article titled An Attachment Theoretical Framework for Personality Disorders explores how John Bowlby and Mary Ainsworth’s attachment theory provides a coherent perception of â€Å"intrapsychic and interpersonal† (2013) aspects of personality disorders, such as antisocial personality disorder. Adverse attachment is often at the root of most antisocial personality disorders. This theoretical groundwork pairs breadth and parsimony to the conceptualization of BowlbyRead MoreTypes Of Multiple Personality Disorder848 Words   |  4 PagesWhat is multiple personality disorder? Multiple personality disorder also known as Dissociative Identity Disorder is a severe condition in which two or more distinct identities, or personality states, are present in and interchangeably take control of an individual. DID is a disorder categorized by identity division rather than a creation of separate personalities. The disorder is not due to the direct psychological effects of a substance or of a general medical condition. DID was called MultipleRead MoreCase Study of Wage and Salary Administration1285 Words   |  6 PagesIncidence IV. Models to Explain Important Concepts Psychopathology Defined Medical Student’s Syndrome Abnormality Normality Classification Psychopathology Defined Means sickness of the mind. There are many synonyms: Emotional Disorder Craziness Lunacy Mental Illness Mental Deviation Nervous Disease Mental Abnormality Psychiatric Illness Psychopathology Etc. Medical Student’s Syndrome Medical student’s studying the heart became sensitive to the sounds ofRead MoreFreud s Theory Of Psychology1226 Words   |  5 Pagespsychology, a person’s personality is how the person feels, thinks, and behaves. Psychoanalysis was a theory Sigmund Freud discovered. It was his theory for treating psychological disorders and he did this by using a person’s unconscious mind. He suggested that there was three different stages of awareness in a person’s conscious mind. Level one is consciousness is anytime we’re alert. When we are conscious we are aware of our emotions, sensations, thoughts, and perception. Level two is preconsciousRead MoreBasic Concepts Of Personality Development1402 Words   |  6 PagesBasic Concepts of Personality Development According to Adlerian theory the personality develops in various means. One way we develop our personality is our lifestyle and how we perceive ourselves and the world around us. Expanding on our feelings of ourselves, Adler thought feelings of inferiority and superiority assisted the growth of personality. Furthering on this ideal, he deemed that when we feel inferior of ourselves we strive to superiority. Not only does our view of our life play a roleRead MoreBorderline Personality Disorder ( Bpd )1618 Words   |  7 PagesBorderline Personality Disorder (BPD) Borderline Personality Disorder Borderline personality disorder is defined in the DSM IV, a manual used by psychiatrists to diagnose all mental disorders, as an AXIS II disorder which has symptoms of impulsively and emotional dysregulation (Livesley 146). A person with BPD have feelings of abandonment and emptiness, and have frantic efforts to avoid abandonment, going to extremes to keep someone from leaving (Burger 300). He or she is emotionally unstableRead MoreInsanity Plea Essay example1098 Words   |  5 Pagespreviously while some believe it works just fine now, and others think it should be abolished all together. In his proposal â€Å"Severe Personality-Disordered Defendants and the Insanity Plea in the United States,† George Palermo, a forensic psychiatrist, presents his thesis for the insanity plea to be reversed back to its previous definition. People who had personality disorders that could cause them to become psychotic for even a brief moment used to be eligible to receive the verdict not guilty by reasonRead MoreEssay on Borderline Personality Disorder1604 Words   |  7 PagesBorderline personality disorder is defined in the DSM IV, a manual used by psychiatrists to diagnose all mental disorders, as an AXIS II disorder which has symptoms of impulsively and emotional dysregulation (Livesley 146). A person with BPD has feelings of abandonment and emptiness, and has frantic efforts to avoid abandonment, going to extremes to keep someone from leaving (Burger 300). He or she is emotionally unstable and forms intense but unstable interpersonal relationships. They show impulsiveRead MoreDissociative Identity Disorder Of The Paleolithic Era947 Words   |  4 Pages Dissociative Identity Disorder Jorge Marquez Abnormal Psychology Professor Mackenzie It is quite unfortunate that many psychological disorders are not known out there. Dissociative Identity Disorder (DID) being one of them. Of course, this disorder is said to have been discovered a long time ago. However, it was not seen as it is today. A few decades ago, most disorders were not even known how to be treated. Several before that, disorders weren’t even the first thing