Factors in Inventoriable Costs

Factors in Inventoriable Costs 1) Definition of inventoriable costs In accounting, inventoriable costs are those costs incurs when company obtain products or make to the end products before they sell them. So inventoriable costs are also involving to product costs which include costs of direct labour, direct material and manufactural overhead. inventoriable costs are recorded in inventory account as assets in balance sheets before products are sold as costs of goods sold expenses which are recorded as expenses in income statements. (Wilkinson, 2013) 2) Examples of costs are included and not included in inventoriable costs Costs are included in inventoriable cost such as raw material and direct labour. For example, raw materials such as cloth and zipper which are purchased by hang bag factories. Direct labour which are workers use those raw material to make hand bags. All finished hand bags cannot be recorded into expenses until they are sold and will record into costs of goods sold expenses in income statements. Selling expenses and administrative expenses are not included in inventoriable costs .They are period costs which are recorded as expenses directly into income statements. Examples of costs are not included in inventoriable costs such as salaries paid to salesperson, advertisements expenses which are not related to production costs. Activity based cost drives can be identified as volume-based cost driver and non-volume cost based drivers. Volume based cost drives include input and outputs. Volume cost based drivers Outputs are one of cost drivers such as the number of units produces. If a business has only one product, then if use outputs cost drives will be the simplest method. However, if businesses have more than one product, and each product need to allocate difference overhead resources, the outputs will not be cost drivers. A noodle shop in the night market in Auckland can use outputs as cost drives because they only have product of noodle and the ingredient and labour costs in each bowl of noodle is same. However, there are different breads in bakery, so bakery cannot use outputs as cost drivers. Inputs. Direct labour hours or direct labour cost. Many businesses uses direct labour hour or cost as manufacturing overhead cost driver. For example, tax agency they charge their client by their time cost. Machine hour. Some business their equipment is more automatic and they need fewer direct labour cost, so they use machine hour as overhead cost drivers. For example, Fuji Xerox they charge their client by printers meter reading. Direct material quantities or costs. Some businesses require large numbers of material and they use direct materials as cost drivers. (Langfiled-Smith, 2012) Example: Management accountant he use input of volume cost based drivers to decide the price of custom furniture for their clients in ABC furniture design shop. The costs of custom a chair as following: There are $50 direct material, $100 labour cost, $20 machine hour. Management accountant will set that chairs price must be more than $170. Examples: followings are electricity costs for producing cookie in a cookie company. Month Electricity cost for month Numbers of batches produced for month January $7200 1210 February 6950 1050 March 6100 980 April 7300 1350 May 5990 810 June 6530 990 July 5700 790 August 5400 750 September 6800 990 October 7150 1190 November 5800 820 December 7400 1320 Variable cost of Electricity per batch = ($7400-5400)/ (1320-750) =3.51 per batch produced At the lowest activity of 750 batches, total variable cost is $2633 ($3.51750), subtracting lowest cost in lowest activity was $5400, and difference was $2767. Monthly cost of electricity = $2767+ ($3.51 x number of batches produced in a month) Weakness of high low method: this method is not recommended in estimate cost behavior, because this method only use two data (highest and lowest) and ignore the rest data. So we have no assurance about this method to present cost behavior accurately. a. Avoidable and unavoidable costs Avoidable costs are those costs will not happen if some particular decision is made. (Langfiled-Smith, 2012) Example: Bank of New Zealand they decided to close some braches and cutting opening hours because they use digital bank more. BNZ use this method to save the avoidable cost such as wages, rates, and rents in some branches by closing them. (Parker, 2017) Unavoidable costs: are costs still incur even no matter what decisions or actions are made. Example: residential property owner whatever the decision is made to rent or not rent the house, the council rate and insurance costs are not avoidable. Sunk and Opportunity costs Sunk costs are those costs already happened and cannot be changed now and in the future. Those costs are resources already acquired and they will not be affected by different decisions are made. So when make decision can ignore those costs. (Langfiled-Smith, 2012) Example: accountant purchase a printer for $1000. The cost of $1000 is sunk costs. Opportunity costs are potential benefits are arisen when alternative decision is made over another. (Langfiled-Smith, 2012) Example: if accountant did not purchase that printer cost $1000, he/she will save $1000, and $1000 is opportunity cost. Relevant and irrelevant costs Relevant costs: costs are affected by the different managerial decision made. Normally, there are two or more alternative managerial decision, and manager will choose more profitable alternative. Relevant costs will be incur in one managerial decision but avoid in another. Example: those costs in closed BNZ branches are relevant costs, because BNZ will save more expenses and to get more profit if they close those branches. Irrelevant costs: costs are not affected by different decision making. In other words, irrelevant costs are costs will continually happen no matter what decision are made. Example: CEO salary is irrelevant costs whether BNZ decide to close some branches References Langfiled-Smith, K. (2012). Management Accounting: information for creating and managing value. Sydney, NSW 2113, Australia: Rosemary Noble. Parker, T. (2017, March 17). BNZ cuts branches and opening hours. Retrieved from nzherald.co.nz: http://www.nzherald.co.nz/personal-finance/news/article.cfm?c_id=12objectid=11820201 Relevant VS Irrelevant costs. (n.d.). Retrieved from accountingexplained: http://accountingexplained.com/managerial/costs/relevant-irrelevant-costs Wilkinson, J. (2013, July 24). The Strategic CFO. Retrieved from Inventoriable costs: https://strategiccfo.com/inventoriable-costs/

Happiness is the meaning and purpose of life Essay

â€Å"Happiness is the meaning and purpose of life, the whole aim and end of human existence†- Aristotle. Do you agree with Aristotle’s statement? Discuss why/ why not. While happiness in a scientific sense can be explained as the chemicals released throughout our bodies, it still doesn’t tell us fully why these are chemicals are sent and what it means in the overall human experience in scientific terms. From an artistic perspective happiness is the largest component in providing self-worth to one’s self and with its absence we see people delve into the depths of depression losing the motivation and ability to perform tasks and live life to its fullest, and in some extreme cases losing the will to live. On the opposite side of depression there is euphoria and this is where people experience moments in their life that they remember and cherish during times of reflection, it is at these moments when we find the most purpose in our lives especially when we enjoy what we are enjoying so therefore Aristotle’s statement can easily be viewed as correct as this essay will argue for. What does it mean to be happy? It seems that this is another one of those questions that can be argued in multiple ways but for this essay I will take Aristotle’s definition. Happiness, from Aristotle’s definition of a human as a being who recognises his potential to give form to himself (Colebrook 2006, p. 2). A person with depression and the utter lack of happiness views themself as worthless and lose their passion of living, losing much their ability and potential. This fact of people committing suicide when they are overcome with sadness demonstrates that without happiness human beings lose their meaning and passion in life. Without this passion and drive depressed people tend to isolate themselves and do not ‘live’ their lives to its fullest extent. It seems therefore that the purpose of our lives is to find those things that do make us happy, and then doing them. If there’s a certain person in our lives that makes us happy, we need to find a way to spend more time with them. Because if you’re not happy, you need to look at your life and think about why you aren’t feeling that amazing thing you want to be feeling. When a person reflects back on their life in their elder years the memoires they tend to remember are based around the feelings of joy and happiness such as the birth of their children or their first kiss, spending times with friends etc. These  memories are fundamentally the building blocks of their personalities and without these moments of happiness a person would more than likely feel unfulfilled in their lives in reflection. We see this time and again when renowned people who have achieved great accomplishments turn to drugs and seep into mental illness when they are not happy with the direc tion of their life. This then demonstrates that regardless of what you accomplish if you are not enjoying what you are doing you may lose meaning in your life and turn to unhealthy methods so that you can cope with your current life style. Thirdly when people have the available time and resources it is more than likely that they will spend this leisure time doing activities that make them feel happy and give them self-satisfaction. ‘Happiness can also be a by-product of working’ (Andersen, W, 2008) occupation that the person enjoys. It therefore seems that humans will go through burdens so that they may enjoy the activity of their choice. An example of this would be working all week in a occupation you do not enjoy so that you may go on a camping trip with your family, supporting the coming saying that people ‘live for the weekend’ as that is during the time when they are doing activities they enjoy, although these kinds of one off activities do not demonstrate lifelong happiness it must be something ongoing, a more long term activity that can be used as an example could be coaching a junior sport team. This therefore demonstrates if recreational activities are what people are working towards and it is what makes them happy it must then tie in with what they consider meaningful in life and therefore be its purpose. If you can find something that makes you happy, truly happy, then life will be a lot better for you. It can’t be something superficial, or something that only lasts for a day or two. It’s something that affects your entire life. It lasts. It burns inside of you and it doesn’t go out. That is happiness. It is therefore clear that Aristotle’s statement that happiness is the meaning and purpose of life can be argued as correct on multiple basis’s such as those people lacking happiness losing all meaning and purpose as explained in the second paragraph. In addition when people look back on their lives in reflection it is moments of happiness that people are most likely to remember and cherish and not those of turmoil and heartache. Furthermore people will pursue activities they find enjoyment and happiness in when given the opportunity demonstrating that they live for those brief  moments of time. In conclusion it is clear that Aristotle’s stat ement may well be correct but it is entirely dependent on the individual to find what makes them happy. References: Colebrook, C 2006, Narrative Happiness and the meaning of life Andersen, W, 2008, Journal of Christian education, vol 51, No. 2, p1/p17

Fearless Is The Absence Of Fear Essay

Last night I heard my own heart beating sounded like footsteps on my stairs.Six months gone and I’m still reaching even though I know you are not there.I was playing back a thousand memories thinking about everything we have been through.Now I’m pacing down the hall,chasing down the street.Flashback to the night when you said to me â€Å"Nothing is going to change not for me and you.† But not before I knew how much I had to lose after the tragedy. Picture perfect memories scattered all around the floor.I close my eyes and the flashback starts I’m standing there on my front door waiting for you to knock my door.Its the quarter after one and I saw you walking towards my house with a pink evening dress you was wearing.With ruffle and roses on it.You was smiling towards me with a really sweet smile.She is a young lady that taught me the meaning of the real life,she educate me in each lesson that I’m feeble of.She was born Catrina Ariana Florence.She was known as Catie.Her eyes are blue and always sparkling just like the Georgia stars in the sky. But as for me,I would love to call her Ms Florence because it sounds like flower.One day,I remember tears streaming down my face when my step-father and mother left me at the roadside.They said that they don’t want to raise me anymore and I was so sad because I have no relatives and siblings.I slept at the bus stand with tears waiting for my fate.It is raining and I was badly wet and cold. In the morning,Ms Florence saw me and asked what is happening she took me to her house she said that she will take me as her adopted child.I was startled and so happy to hear that starting from that day,I belongs to Ms Florence. In a mundane morning,Ms Florence when out to the outskirts town to buy some groceries,books and some goods.Unfortuntely, when she was driving on the road there was a Ferrari which is speeding towards her.Ms Florence was gone and not been founded, I was so sad.If she was out there,If she was somewhere and if she was moving on I will be waiting for her ever since she have been gone.I just want the way it was before, I just want to see her back at my front door.Three days later,Ms Florence was lying in the hospital for two months. Someone have met her and brought her to the hospital and I was right there beside her all summer long. Music starts playing like the end of a sad movie It is the kind of ending I don’t really wanna see.Beause it is a tragedy and it will only bring me down,now I don’t know what to be without you around.Ms Florence used to teach me how to cook, so since she was in hospital,I used to cook by myself. I cleaned the house and did the household chores.Everyday I will study two hours a day,I want to make Ms Florence proud of me when she woke up. Maybe I’m just a girl on a mission but I’m ready to fly.I need to be fearless in life.It is the absence of fear. All the things that I did was from Ms Florence,she is my mother and my teacher.Two months later,Ms Florence was confirmed by the doctor that she was strong enough to go home. Now,Ms Florence has getting well and we undergo our lives as usual.We are getting stronger now from things they never found.Life might be bigger but we were faster and never scared. Ms Florence taught me that no matter what happens in life, be good to people. Being good to people is a wonderful legacy to leave behind. The lesson I have learned the most often in life is that you’re always going to know more in the future than you know now.Thank you Ms Florence for being a good mother and a really worthly teacher for me. The way you walk,the way you talk it’s beautiful and wonderful don’t you ever change.

Lord of the Flies Central Thematic Dichotomy - 922 Words

Lord of the Flies By Alyssa Advano 10SH The theme of the central thematic dichotomy in lord of the flies is conveyed through many ways through out the first three chapters. The once majestic island has begun to seem as if it is only a mask for the true concealed â€Å"beastie.† The seemingly paradisiacal island is very similar to the Garden of Eden as it obtains beauty by the vast amounts of growing foliage such as the â€Å"blue flowers,† â€Å"candlebuds,† and dense green forest. On the crust the cool, calm and peaceful persona is vivid and clear however just below lies the greed and savagery of all man kind which in the biblical story says that evil was exposed through Eve when she gave into temptation and disobeyed god’s commands however, in†¦show more content†¦Also the fact that they took the glasses forcefully without Piggy’s consent is a sign that the children have not only begun to loose respect for items but also for manners which coincides with the theme that the boys are loosing respect for proper behavior and therefore loosing respect for civilization. This again also foreshadows the future because Piggy’s glasses are also broken just like the shattering of civilization on the island. Lastly the fire the boys create begins as a sign of hope, they try to create a signal so someone might rescue them however it slowly turns into a much larger fire than expected and sets fire to some of the trees and eventually kills a young boy. This is Goldings way of saying that even something that has good intentions can quickly turn into something heinous if given the chance. It is foreshadowing the boys development from good natured English school boys to savage, cold, cantankerous monsters of human beings. To conclude on the surface the boys and the island seem, pleasant, empyrean and majestic however, the inner core opposes the outer drastically and surfaces when times are tough. This shows that the primitive barbaric attitudes of our ancestors comes fourth when in a time of crisis and pressure even if we have the greatest of intentions in the end as Golding shows no-one has the ability to deny or defeat ourShow MoreRelatedWho Goes with Fergus11452 Words   |  46 PagesWho Goes With Fergus This poem is about the dichotomy of the thinker and the actor. Yeats, in love with Maud Gonne, was the thinker, the courtly lover -- the one who would brood upon loves bitter mystery. Yeats was Mr. Nice Guy. Yet Yeats wanted to be the actor - the alpha male - the Fergus. Note the sexualized subtext that permeates the poem, who will pierce the deep woods woven shade? Who will drive with Fergus. Finally, we get the reasons to be the alpha male - the man of action, in theRead MoreRastafarian79520 Words   |  319 Pagesperhaps the opportunities for adaptation, through a rational determination of means and ends.20 On the other hand, charisma produces change by effecting â€Å"subjective or internal reorientation,† which may then produce â€Å"a radical alteration of the central attitudes and directions of actions with a completely new orientation of all attitudes toward the different problems of the world.†21 Thus, charisma and rationalization do not really conï ¬â€šict. On the contrary, Webers treatment suggests that ongoingRead MoreOne Significant Change That Has Occurred in the World Between 1900 and 2005. Explain the Impact This Change Has Made on Our Lives and Why It Is an Important Change.163893 Words   |  656 Pagesof our increased recognition and understanding of these processes and their implications for life on the planet, as well as with an overview of some of the measures that have been proposed for bringing them under control. Taken together, the thematic essays included in this collection provide the basis for fashioning a coherent, inclusive, and wide-ranging approach to teaching and thinking about the history of the long twentieth century. As that designation suggests, they surmount the problems