레이블이 Low Cost Masters Degree Online인 게시물을 표시합니다. 모든 게시물 표시
레이블이 Low Cost Masters Degree Online인 게시물을 표시합니다. 모든 게시물 표시

2013년 11월 23일 토요일

About 'masters degree costs'|...take shape: part time work whilst I complete my degree via the Open University and then next autumn I... (colleagues) and our costs will be minimal (PC's including necessary...







About 'masters degree costs'|...take shape: part time work whilst I complete my degree via the Open University and then next autumn I... (colleagues) and our costs will be minimal (PC's including necessary...









               Introduction
               Costs               are               the               required               expenses               that               have               to               be               paid               in               order               to               maintain               a               business.

Eddison               Electronics               Company               (EEC)               must               be               vitally               interested               in               measuring               the               costs               associated               with               running               the               business               since               every               factory               of               production               will               have               expenses               associated               with               it.

Having               knowledge               of               the               costs               of               running               the               business               is               vital               for               the               controlling               and               planning               functions               related               to               the               business.

Being               the               financial               analyst               for               EEC               it               is               my               duty               to               explain               the               different               costs               associated               with               the               business.

Discussed               below               are               fixed,               variable,               and               mixed               costs               which               are               three               of               the               main               expenses               associated               with               running               the               operations               of               EEC.
               Fixed               Costs
               Fixed               costs               are               the               costs               associated               with               running               the               business               that               do               not               vary               with               the               changes               in               output.

In               other               word,               the               fixed               costs               of               the               company               will               stay               continuous               whether               there               are               alterations               in               the               levels               of               production               we               put               out               or               not.

Also,               the               fixed               expenses               of               the               company               will               have               to               be               paid               regardless               of               the               products               we               manufacture               for               our               customers.

Therefore,               the               level               of               sales               we               generate               will               not               change               the               cost               of               the               fixed               expenses               associated               with               running               the               operations               of               the               company.

The               fixed               costs               that               we               may               incur               while               running               the               operations               of               the               business               will               include               the               taxes               we               pay,               the               employees               who               are               on               a               salary,               and               the               rent               we               pay               for               our               facility               (Accounting               for               Management,               2009).
               Variable               Costs
               Variable               costs               are               costs               that               will               be               flexible               as               alterations               take               place               in               running               the               functions               of               the               business.

In               other               words,               the               variable               costs               associated               with               running               the               business               will               vary               in               relation               to               the               sales               or               products               we               directly               manufacture               for               our               customers.

The               variable               costs               will               be               a               direct               indication               of               the               volume               of               products               we               produce.

The               costs               associated               with               variable               for               the               company               will               rise               when               production               increases               and               fall               when               production               decreases.

The               variable               costs               that               the               company               may               incur               while               operating               the               business               include               unprocessed               materials               and               any               labor               that               is               directly               tied               to               manufacturing               our               products               (Accounting               for               Management,               2009).
               Mixed               Costs
               Mixed               costs               will               be               a               combination               of               both               fixed               and               variable               costs               for               the               company.

For               instance,               if               a               vehicle               is               needed               in               relation               to               operating               the               business               this               would               be               an               example               of               mixed               costs.

The               gas               to               drive               the               vehicle               would               be               variable               since               according               to               how               much               gas               was               needed               to               get               where               the               vehicle               needed               to               go               would               be               varied,               but               the               payments               and               insurance               on               the               vehicle               would               be               fixed               costs               since               they               would               be               the               same               each               time.

This               is               where               mixed               costs               would               come               in               since               some               of               the               expenses               associated               with               operating               the               vehicle               would               be               fixed               costs               and               variable               costs               (Accounting               Coach,               2010).
               EEC               2005               Journal               Activity
               According               to               the               2005               journal               activity               of               EEC               some               of               the               areas               that               would               be               classified               as               fixed,               variable,               and               mixed               costs               for               the               business               will               be               identified.

First,               the               fixed               costs               from               the               2005               Journal               Entry               of               EEC               are               insurance               factory               which               is               number               six,               factory               salaries               which               is               number               eight,               factory               property               tax               which               is               number               nine,               depreciation               expense               factory               which               is               number               eleven,               bad               debt               expense               which               is               number               twenty-one,               and               interest               expense               which               is               number               twenty-eight.

Next,               the               variable               costs               from               the               2005               Journal               Entry               of               EEC               are               selling               expense               which               is               number               three               and               direct               labor               factory               which               is               number               fourteen.

Finally,               the               final               cost               from               the               2005               Journal               Entry               of               EEC               are               mixed               costs               which               are               administrative               expense               which               is               number               four,               supplies               factory               which               is               number               five,               indirect               labor               which               is               number               seven,               maintenance               factory               which               is               number               ten,               and               utilities               factory               which               is               number               twelve.

There               are               other               items               on               the               2005               Journal               of               EEC,               but               none               fall               into               the               categories               of               fixed,               variable,               or               mixed               costs               for               the               company               (Journal               Entries,               2005).
               Fixed               Costs               Increase               or               Decrease
               As               previously               stated,               fixed               costs               are               the               expenses               for               the               company               that               will               stay               continuous               despite               any               alterations               in               the               activity               level               of               the               business.

The               rate               of               these               expenses               will               not               be               changed               by               the               activities               within               the               business.

The               total               amount               of               fixed               costs               related               to               the               business               will               remain               continuous               even               as               the               level               of               activities               increase               and               decrease,               but               if               changes               in               prices               were               to               occur               on               the               products               we               manufacture               this               would               cause               the               fixed               costs               of               the               business               to               be               influenced.

A               very               good               example               of               fixed               costs               the               company               may               have               to               pay               is               rent               on               the               facility               we               use               to               manufacture               our               products.

However,               confusion               can               be               created               if               fixed               costs               are               conveyed               on               a               per               unit               basis.

This               is               because               with               changes               in               activity               levels               on               a               per               unit               basis               the               average               fixed               costs               related               to               the               business               will               inversely               increase               and               decrease.

Even               though               costs               will               be               varied               on               a               per               unit               basis,               realization               is               that               any               costs               associated               with               a               cost               driver,               such               as               a               machine,               will               not               vary.

For               instance,               if               operating               a               machine               for               a               given               period               of               8               hours               costs               the               company               $1000,               the               cost               per               unit               would               be               would               not               be               dependent               on               the               amount               of               items               generated               by               the               machine               since               the               fixed               cost               would               still               be               $1000               to               operate               the               machine               for               the               8               hour               period               (Accounting               for               Management,               2009).
               Variable               Costs               Increase               or               Decrease
               As               previously               stated,               the               variable               costs               relevant               to               the               business               will               rise               and               fall               as               alterations               become               apparent               in               the               productivity               of               products               we               produce.

Thus,               as               the               levels               of               activity               within               the               business               increase               or               decrease               the               variable               cost               amount               to               produce               our               products               will               increase               or               decrease.

When               applying               the               variable               costs               on               a               per               unit               basis,               this               will               be               different               in               regards               to               the               per               unit               variable               cost               associated               with               our               products.

The               variable               costs               will               stay               continuous               on               a               per               unit               basis               as               activity               levels               within               the               business               increase               or               decrease.

In               other               words,               if               EEC's               amount               of               sales               were               to               decrease               the               total               variable               costs               would               decrease,               but               the               variable               costs               per               unit               would               stay               unchanged               (Garrison,               Noreen,               &               Brewer,               2010).

For               instance,               if               the               company               were               to               manufacture               one               product               unit               that               the               total               cost               of               material               was               $10.00               to               produce               it,               then               the               total               variable               cost               of               producing               100               unit               would               be               $100,               but               in               regards               to               the               unit               variable               cost               it               would               remain               the               same               which               is               $10.00               (Accounting               for               Management,               2009).
               Advantages               and               Disadvantage               of               Fixed               Costs
               The               advantages               of               having               most               expenses               fixed               include               a               consistent               structure               in               regard               to               accounting               for               all               expenses.

The               financial               reports               will               be               standardized               regarding               the               monthly               expenses               of               the               business.

It               will               be               easier               to               decide               how               many               products               we               need               to               sale               for               a               given               month               to               generate               a               profit.

But,               a               disadvantage               in               having               most               costs               fixed               is               that               if               a               surprising               increase               comes               into               play               in               the               demand               for               any               of               the               products               we               manufacture               a               shift               in               the               equalized               stability               of               manufacturing               our               products               could               occur.

We               would               then               be               incapable               of               generating               the               demanded               product               in               an               accurate               amount               of               time               for               our               customers.

Conversely,               if               a               situation               occurred               where               there               was               a               decline               in               selling               our               products,               then               we               would               be               left               with               products               manufactured               and               not               sold.

Then               we               would               need               to               add               to               the               amount               of               products               being               sold               to               make               up               for               the               sale               decrease               in               order               to               earn               a               profit               for               the               time               period               (Accounting               for               Management,               2009).
               Advantages               and               Disadvantages               of               Variable               Costs
               The               advantages               of               having               most               costs               variable               is               that               with               variable               costing               the               income               period               for               the               company               will               not               be               influenced               by               inventory               changes.

When               the               company               is               using               variable               costing               the               prices               of               selling               our               products               and               the               profits               we               generate               will               shift               in               the               direction.

Also,               the               data               contained               in               costs               related               to               variable               expenses               are               easier               to               estimate               in               regards               to               the               profitability               of               products.

However,               there               are               disadvantages               to               having               most               costs               variable.

One               main               disadvantage               is               that               if               the               company               tries               to               exercise               variable               costing               in               its               external               financial               statements               we               will               run               the               risk               of               not               conforming               to               the               Generally               Accepted               Accounting               Principles               (GAAP)               related               to               our               financial               reporting.

This               is               because               laws               related               to               filing               taxes               require               the               practice               of               some               type               of               absorption               costing,               like               manufacturing               costs,               to               fill               out               income               tax               related               forms               of               the               company.

But,               variable               costing               can               be               employed               by               management               for               internal               reporting.

Also,               another               disadvantage               is               that               when               sales               are               higher               than               production               a               greater               profit               in               relation               to               this               may               deceive               management               into               making               inappropriate               decisions               regarding               production               levels               associated               with               sales               (Accounting               for               Management,               2009).
               Conclusion
               It               is               evident               that               the               impact               of               profitability               related               to               the               company               will               impacted               by               all               costs               discussed               throughout               this               paper.

Respective               to               fixed               cost,               it               should               be               understood               that               the               more               produced               at               a               fixed               rate               by               the               company               the               fewer               each               product               per               unit               will               cost               and               the               volume               of               sales               for               the               company               will               be               better.

As               it               relates               to               covering               the               total               costs               incurred               with               the               operations               of               the               business               the               total               fixed               and               per               unit               cost               will               be               useful               in               regards               to               pricing               our               products               and               understanding               the               demands               of               income               we               require.

In               determining               what               degree               of               sales               are               allocated               to               fixed,               variable,               or               mixed               costs,               the               volume               of               sales               related               to               proportion               of               these               costs               will               be               directly               influenced               by               the               net               income               the               company               generates.

In               order               to               ensure               appropriate               submission               related               to               the               accounting               process               of               the               company,               the               mixed               costs               of               the               company               will               require               accurate               segregation               than               that               of               the               fixed               and               variable               costs               of               the               company               (Accounting               for               Management,               2009).

Once               these               costs               are               understood               and               broken               down,               management               will               be               allowed               to               make               better               decisions               regarding               the               operations               of               the               business               in               order               to               ensure               the               company               is               earning               returns               within               all               departments               of               the               business.

               References
               Accounting               Coach.

(2010)               What               are               mixed               costs?

Retrieved               from               http://blog.accountingcoach.com/mixed-costs-fixed-costs-variable-costs/
               Accounting               for               Management.

(2009).

Cost               classifications               for               predicting               cost               behavior:               Variable               and               fixed               costs.

Retrieved               from               http://www.accountingformanagement.com/variable_cost_and_fixed_cost.htm
               Garrison,               R.,               Noreen,               E.,               &               Brewer,               P.

(2010).

Managerial               accounting,               (13th               ed.).

New               York,               NY:               McGraw-Hill               Irwin.
               Journal               Entries.

(2005).

Eddison               Electronic               Company.

Retrieved               from               https://campus.ctuonline.edu/pages/MainFrame.aspx?ContentFrame=/Home/Pages/Default.aspx






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