Saturday, January 11, 2020

Activity Based Costing †Glaser Health Products Case Essay

Introduction Glaser Health Products manufactures medical items for the health care industry. Production involves machining, assembly and painting. Finished units are then packed and shipped. The financial controller is interested to introduce an activity-based costing (ABC) system to allocate (or distribute) indirect costs to products. Indirect costs, as distinct from direct costs, cannot be unambiguously linked to specific products. The controller would like to calculate product costs based on ABC for planning and control, not inventory valuation. Under an ABC system, the allocation of costs to products is achieved through at least four analytical steps. Firstly, costs are grouped into activity levels. Secondly, cost drivers are selected for each activity level to link activities with costs. Thirdly, for each activity level, a cost function is defined to arithmetically describe the relationship between cost drivers and costs. Finally, a unit allocated cost is calculated for each product (Schneider, 2012). This paper outlines a process for introducing an ABC system at Glaser. The paper is divided into six sections. The first section groups cost categories identified at Glaser by division. The second section groups cost categories by division and activity level. The third section identifies specific cost drivers for each activity level. The fourth section explains preliminary stage allocation. The fifth section explains primary stage allocation. The final section summarizes the main conclusions. Cost Categories by Division Glaser is organized into three functional divisions – Operations, Sales, and Administration. Operations is the only cost or activity center. Glaser recognizes 22 cost categories. These cost categories are grouped by division in Table 1, shown in the appendix. Cost Categories by Division by Activity Level The second step in an ABC system involves grouping costs based on the level of activity at which they are generated. An activity involves the movement or handling of any part, component, or finished product within the relevant organizational unit. The rationale for this grouping is that costs at each activity level are determined by different cost drivers. Four levels of activity are commonly recognized – unit, batch, product and facility level.  Unit-level activities are the most granular level of activity. They are performed each time a sub-unit is produced. Unit-level activities are on-going and reflect basic production tasks. Direct labor or direct materials are examples. Costs of these activities mainly vary according to the number of units produced. Batch-level activities are relevant to batch (rather than continuous) production processes. They are performed each time a batch of product sub-units is produced. Typical examples of these costs relate to machine setups, order processing, and materials han ¬dling. Costs of these activities vary mainly according to the number of batches produced, not the number of units in each the batch. Product-level activities support production of each product. The costs of these activities vary mainly according to the number of separate product models. Examples include maintaining bills of materials, processing engineering changes, and product testing routines. Facility-level activities are common to a variety of different products and are the most difficult to link to individual product-specific activities. These activities sustain the production process at an overall production plant or facil ¬ity. Examples include plant supervision, rental expense and other building occupancy costs. Some firms, including Glaser, choose not to allocate facility-level costs to product costs. Based on these activity level distinctions, the 22 Glaser cost categories may be grouped by division and activity level as shown in Table 2. By way of digression, it is worth mentioning that as a broad generalization, unit-level activities tend to generate mainly variable costs while and facility-level activities tend to generate mainly fixed costs, although there can be exceptions. Activities in the other two activity levels tend to generate a mixture of variable and fixed (Hansen & Mowen, 2006). Cost Drivers by Activity Level by Division Cost drivers can be identified for each activity or cost category based on observation, discussions with management, simulations and statistical studies. The key is to determine the behavior of indirect costs with respect to activity or resource usage in each activity center (Leslie, 2009). These efforts have identified the eight cost drivers shown in Table 3. Direct  labor assembly costs are, by their nature, directly traceable to individual products. Therefore the relevant cost driver for this cost is the number of Direct Assembly Labor Hours. The other 21 cost categories are indirect costs. At the unit activity level, electricity assembly costs are likely to vary with Direct Labor Hours, Assembly. Similarly, the three machining costs grouped at the unit-activity level are likely to vary with by the number of Direct Labor Hours, Machining. Secondly, at the batch activity level, paint cost is likely to vary mainly with the Number of Batches Processed. Painting activity is the only batch activity at Glaser. Thirdly, at the product activity level, the two Operations costs are likely to vary mainly with the Number of Units Produced and the three Sales costs are also likely to vary mainly with the Number of Units Produced. Finally, at the facility-level, the five Operations costs are likely to vary mainly with the Number of Units Produced, the Square Feet of Building Space Used, Payroll Costs, the Number of Employees, and the Change in Number of Employees. The three Sales costs are also likely to vary mainly with the Number of Employees. The three Administration costs are likely to vary mainly with the Number of Employees, the Change in Number of Employees and the number of Square Feet of Space Used. In summary, eight separate cost drivers may be used by Glaser to link activities with indirect costs and finally allocate those costs to individual products. These cost drivers are summarized by activity level by division in Table 3. Preliminary Stage Allocation Direct costs can be linked immediately to a product without the need for a cost driver. This is not true for indirect costs. An indirect cost requires a cost driver to link that cost with an activity and finally a product (Kimmel, et. al., 2010, Chapter 5). The first step in allocating indirect costs to products is to complete a preliminary stage allocation. This involves allocating the support center costs to the activity centers. In the case of Glaser, there is only one activity center, Operations. The Glaser controller has decided that the ABC system implemented at Glaser should allocate all indirect cost categories to products except for the three Sales and three Administration categories classified as facility-level costs. The only non-activity center costs that need to be assigned are the three product-level Sales division costs. This allocation may best be demonstrated  with an example as summarized by Table 4 provided in the appendix. The table assumes Glaser produces two products, A and B, with 30,000 units of each product produced during the period. It also assumes that product-level Sales division costs total $300,000. Allocation of these non-activity center costs result in unit costs of $5 for Product A and $5 for Product B. These unit costs are identical at $5 because the number of units produced is equal at 30,000 units for Product A and 30,000 units for Product B. These non-activity center unit costs need to be added to unit costs derived from the primary stage allocation. Primary Stage Allocation In the primary stage allocation, activity center (that is, Operations division) costs are assigned to each of the two products. In the example summarized by Table 5, the 13 costs assigned to Operations totaled $2,041,000. Allocation of these costs based on the various cost drivers results in unit costs of $40.60 for Product A and $27.43 for Product B. Once the $5 non-activity center unit cost is added to each product, the total allocated unit cost is $45.60 and $32.43 for Product A and B respectively. Conclusions Accounting provides information about the financial health of a firm. That information is used by a variety of stakeholders and other interested parties including managers, investors, investment analysts, employees, suppliers, customers, financial journalists, and regulators. At the broadest level, the information is used to improve resource allocation. ABC is a good example of accounting data being used to raise resource efficiency. ABC allows management to methodically identify activities and resources used to produce a product. The system distributes indirect costs to individual products and in that way improves product costing and pricing which ultimately affects buying decisions by consumers and investment decisions by management and investors (Edmonds & McNair, 2012). Finally, the Glaser controller decided that the ABC system at Glaser will not allocate all indirect cost categories to products. The three Sales and three Administration division cost categories classified as facility-level costs are excluded from the allocation process. To that extent, costs are not fully distribute or allocated to products. The excluded sales and Administration costs must be recognized at some stage during the product price setting process otherwise those costs will not be recovered by the resultant product prices. References Edmonds, T.; Olds, P. & McNair, F. (2012). Fundamental financial accounting concepts. Kindle Edition. Hansen, D. R. & Mowen, M. M. (2006). Cost management accounting and control. Ohio: Thomas South-Western. Kimmel, P.D., Weygandt, J.J. & Kelso, D.E. (2010). Financial accounting: Tools for business decision-making (5th ed.). John Wiley Sons: Hoboken, NJ. Leslie, C. (ed.)(2009). Management accounting: information for creating and managing value. McGraw-Hill Australia. Schneider, A. (2012). Managerial accounting: Decision making for the service and manufacturing sectors. San Diego, CA: Bridgepoint Education.

Friday, January 3, 2020

Elements of Psychology and Sociology in The Lord of the Flies

Elements of Psychology and Sociology in The Lord of the Flies In viewing the aspects of the island society, the author William Goldings Lord of the Flies as a symbolic microcosm of society. He chooses to set the children alone in an unsupervised world, leaving them to learn ‘ the ways of the world’ in a natural setting first hand. Many different perspectives can also be considered. Goldings island of marooned youngsters becomes a microcosm. The island represents the individual human and the various characters represent the elements of the human psyche. In My readings I learned that there were deep physiological symbols which led me to investigate into numerous psychology and sociology books. I realized that Goldings world of†¦show more content†¦Freud saw this gratification to be one of the basic human needs. In much the same way, Golding portrayed the hunt as a rape with the boys ravenously jumping on top of the pig and brutalizing it. This alludes to Freuds explanation of the pleasure drive, he called the libido. The term serves as a dual intent in its psychodynamic and physically sexual sense. Jacks unwillingness to acknowledge the conch as the source of centrality on the island and Ralph as the seat of power is consistent with the portrayal of his self-importance. Jacks lack of compassion for nature, for others, and ultimately for himself is evidenced in his needless hunting. This is proved by his role in the brutal murders of Simon and Piggy, and finally in his burning of the entire island, even at the cost of his owns life. In much the same way, Piggys demeanor and very character links him to the superego, the conscience factor in Freuds model of the psyche. Golding marks Piggy with the distinction of being more intellectually mature than the others, branding him with a connection to a higher authority: At the very beginning of the story Piggy remarks to Ralph â€Å" aren’t there any adults at all?† this shows his nervousness being in a situation without anyone to supervise or watch over the actions of the ‘ children.’ the outside world. It is because the superego is dependent on outside support that Piggy fares the worst out of the three major characters due to theShow MoreRelatedWilliam Goldings Lord of the Flies Essay1510 Words   |  7 Pagesthe island society, the author William Goldings Lord of the Flies as a symbolic microcosm of society. He chooses to set the children alone in an unsupervised world, leaving them to learn the ways of the world in a natural setting first hand. Many different perspectives can also be considered. Goldings island of marooned youngsters becomes a microcosm. The island r epresents the individual human and the various characters represent the elements of the human psyche. In My readings I learned thatRead MoreEvil a Learned Behavior6329 Words   |  26 PagesGermany to the guerilla wars in Vietnam and Cambodia and presently to the devastating conflicts in the former Yugoslavia, Rwanda and Sudan. Evil is a learned behavior which is illustrated in dictators, school violence, and classical novels such as Lord of the Flies by William Golding and Night by Elie Wiesel. Humans are fundamentally good, and then are corrupted by their environment. Its because of evolutionary purposes. Every organism wants their species to continue (if they dont, they die off andRead MoreLiterary Analysis : An Inspector Calls 2046 Words   |  9 Pageswhich it is written or received,† exploring the relationships between the artist and society. 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Wednesday, December 18, 2019

Economic Growth During The Great Depression And The Recent...

The government has been implementing policies in the improvement of the growth in the UK. Such as improving economic growth during the Great Depression and the recent financial crisis. A brief history by (Pettinger, 2016) on the use of fiscal policy, Keynes promoted the use of fiscal policy as a way of boosting growth. Moreover, during 1970-1980s the government switched to using monetary policy in influencing the economy. However, the government later reverted to using the fiscal policy in the recession of 2008-2013. Whether or not fiscal policy is the key policy in the process of improving economic growth is the issue. According to (Parkin, Powell and Matthews, 2014) Economic Growth is defined as a sustained expansion of production possibilities measured as the increase in real GDP over a period of time. Achieving economic growth depends on the government fulling one of its macroeconomic objectives between them is stable economic growth, low level of inflation, low level unemployment, and adequate level of balance of payments. UK’s economic growth fluctuates significantly year to year as mentioned by (Fyfe and Threadgould, 2013, p.1) â€Å"The trend rate of economic growth of the UK economy has been assumed for several years to be between 2.5% and 2.75% per year†. The fluctuations can be seen in Figure 1 shows detail changes in economic growth. The â€Å"Credit Crunch†, from mid-2007 to 2009 UK’s growth fell from 2.7% to -2.3% resulting in a recession. However, UK has beenShow MoreRelatedThe World s Economy Was Devastated1732 Words   |  7 Pagesinto what is now known as the â€Å"Great Recession†. Its neighbour to the north, Canada also felt these affects as unemployment and poverty grew. 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Tuesday, December 10, 2019

Children in the Philippines No Time for Play free essay sample

Children in the Philippines: No Time for Play What brand of sugar are you using right now? Where was it made? Do you know what went into the making of your sugar? It could be the blood of a child, the sweat of a child, the tears ofa child. Now, as I read about child labor, I look down at the pack of sugar I am using. I twist it around in an attempt to get a look at the tag, I can read the plain white tape into the tag: Manufactured in Negros Occidental. As I slowly put the sugar on the table, I think about what it means. Negros Occidental is the major producer of sugarcane and a major home to child labor. According to DOLE, an estimated 3 5 million working children are there in the Philippines. As likely as not, the pack of sugar Im using is the product of some unfortunate child forced by circumstances to work away his or her childhood in a sweatshop. We will write a custom essay sample on Children in the Philippines: No Time for Play or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page It feels sad that what we use as our daily commodity is the work of the poor Filipino children. The child is the father of man. This famous line quoted by William Wordsworth refers to the importance of the child for the development of society as well as for the all-round development of the human race. Childhood is the time to garner the best hysical, intellectual and emotional capacity to fulfill this duty towards the nation and to ones own self. However, this simple rule of nature has been crippled by the ever- growing menace of child labor. If one conceives the idea of child labor, it brings before the eyes the picture of exploitation of little, physically tender, illiterate and under-nourished children working in hazardous and unhealthy conditions. As what we saw last Tuesday, September 7, 2010 in our film showing about Social Class at the Educational Media Center of CPL], it is very depressing that many Filipino children are under child labor. In Sudtonggan, Cebu children are carrying piles of marble stone on their head. In Diwalwal, Davao del Norte, children are laborers through the night. Children at about 12 years old are mining in deep tunnels. Mining is a very dangerous Job because going inside the tunnel is a 50/50 chance that you can get out alive. A lot has already been died inside the tunnel due to dynamite smoke, falling rocks, and avalanche. Many children also died because of mercury poisoning from the fish that they eat because in making gold the ore that the miners collect are mixed with water and mercury and the mercury deposits are disposed nto their lands leading to the sickness of their people and themselves. We also saw in the film, a girl named Angeli Cabrera, a 10 year old girl who lives at Manapla, Negros Occidental. Angeli used to work in a hacienda (a sugarcane factory) in their place and earn not as much as 50 pesos a day. Due to her work she is always absent lost one of her finger, her classmates used to tease her, she said to her classmates she got wounds not because of playing but because of hard work. There are also cases especially in Ormoc, Leyte where children are told or brainwashed by a recruiter that there is a good Job in their place. The recruiter will bring them into the ship to Manila and force them to work in a sweatshop instead of working in a good job as a saleslady. The worst part of it is that they are imprisoned. The children are not allowed to send letters to their parents. The imprisoned children struggled in the sweatshop. Hopefully the Kamanglayan Development Center retrieve the children in that sweatshop and imprisoned the recruiter behind it. Now the Kamanglayan Development Center are monitoring children that travel to Manila by the boat and the most successful organization for working children. Can you imagine that millions of children are working nowadays? Its a mere fact and a big frustration to us all. More and more children are forced to child labor because of poverty. They had suffered hunger and thirst, pain in the body and pain in the heart. They had sacrificed their life instead of playing they are working, instead of studying they are sweating. Working children are deprived of playing. Children are supposed to play and not to work in sweatshops because being a child doesnt last forever. They should enjoy their childhood and be happy with his or her amily; yet it is a big wake up call to us all that not all people live within their means. Filipino families suffer the economic crisis of our country. Many parents work hard and still cannot fully support their family and that is why children are forced to work because they pity their parents and they work in order to help them. The love that the Filipino children give to their parents is very noble yet the way they help their parents is too much, child labor is not the best way to help their parents. Children are suffering and shouting No time for play. Yes, poverty has greatly ruled the land yet when will this suffering end?

Monday, December 2, 2019

Social Capital and the Economy

There is a connection between economics and society, but neither sociologists nor economists give this connection much attention. Economic transaction influence society just as society determines economic exchange. One of the obvious connections that have been identified between society and economy is social capital.Advertising We will write a custom essay sample on Social Capital and the Economy specifically for you for only $16.05 $11/page Learn More Money is not the only form of capital, although economists ignore other forms of capital such as social/cultural capital. Social capital is gained through education and personal connection with the elite or influential members of the society (Biggart and Guillen, 1999). Some people have more of this capital due to being born into certain families and through inheritance. Influential people are members of certain exclusive clubs and being a member is very beneficial. Social exchange is maintained through th e exchange of symbolic goods. In the modern workplace, people are able to rise to the top are often those who are able to access senior managers and board members. These people are accessed in informal places such as exclusive clubs, churches, gatherings, and other social places. Developing social networks is a form of investment as the networks are important in getting a job or a promotion. Networking is therefore an investment in creating social capital. Being born into a rich and influential family gives a person contact with other rich and equally powerful people; hence, it is possible to get a good job or even capital to start a venture. Social capital introduces the element of inclusion as well as exclusions. From an economic perspective, social capital suggests that money is more than a measure of economic value. It can create meaning and identity and meaning can be ascribed to it as well.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Economic theory discusses elements such as perfect competition and other forms of economic relations, but at the heart of exchange is a social relation. People do now want money only for what the money can buy but its impact on social relations with others. A proper understanding of capital, therefore, goes beyond definition given in economic theory. Modern understanding of what capital was developed a few centuries ago after the rise of capitalism. The idea of capitalism has reduced all forms of exchange to mere mercantile exchange, which is oriented towards profit maximization. Related to social capital is the cultural capital. Cultural capital is converted into other forms of capital. Cultural capital such as higher education cannot be measured simply in monetary values or return. There are more returns achieved by investing in education that economists do not measure. It is through education that cultural capital is transmit ted from one generation to the next. Accumulation of social capital takes time, sacrifice, and not just monetary investment. Mastering calculus, for example, takes time and many sleepless nights. Possessors of education of some forms of cultural capital also gain additional benefits such as the distinction, respect, and even gains new friends and influence people in society. These gains can be transmitted to future generations of a person. The function of money is to give a value to all forms of capital. If membership of a certain club or possession of a degree gives a person the ability to make huge amount of money at some future date, then the social or cultural value accrued through the membership of the club of acquisition of the degree is tremendous.Advertising We will write a custom essay sample on Social Capital and the Economy specifically for you for only $16.05 $11/page Learn More In the modern world, money is becoming intangible and cultural. Relations matter a lot especially when getting credit. A person with a good reputation is likely to get a loan than a person who is not. In the article by Quinn (2008), the question about social relations within the society and economy is again highlighted. Economic theory principally dwells on the forces of demand and supply as the soul of the market. However, the question is whether markets should be amoral or aligned with acceptable morals and social values. Most people believe that life in itself is valuable and wagering on it is immoral and completely unacceptable. However, it is clear that some financial products created as a form of investment can be used wager on the death of others. From a market point of view, buying an insurance policy from a person who is terminally ill makes perfect sense. The buyer is likely to earn handsome profit, which is the essence of investment but is doing so right. Markets are not perfect and often they fail. Government intervention in an indu stry is desirable if there are imperfections that may lead to market failure. Buyers for instance, may get deceptive information from sellers through advertisement and hence make wrong decisions. In the long run, it is in the interest of the sellers to provide accurate information to avoid alienating potential buyers, but unscrupulous business people may want to maximize short-run revenue by duping buyers. Externalities also are a source of market imperfections that imposes a social cost on the society. Externalities that results from operating in a certain industry may further entrench the position of natural monopolies due to decreasing costs. The presence of market imperfections makes a strong case for government intervention. Health care is a scarce resource and like all resources, it should be rationed one way or another, either through market forces or through government intervention. Markets through prices ration better compared to government central planners.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More The most obvious reason for government intervention in health care is not to achieve distributional objective or social equity, but correct informational failures in health care markets. Without regulation, a few players would possibly dominate healthcare and this justifies government intervention. There is also the presence of externalities that call for regulation. Healthcare is an industry that does produce externality goods to some extent. For instance, vaccination and other devices supported by the government to curb some diseases do not only benefit individuals concerned but also the whole society. Healthy people have lesser chances of contracting the disease once proper interventions are put in place. Just as social capital is something that is generated from social relations and can be converted into economic capital, conditions in the market can affect the society. In the case of selling insurance in the secondary market, the basic premise on which insurance is built on ref use to hold. In situations such as these, the prudent thing is for the government to intervene through law laws or changing of policies. Life insurance is taken in order to support dependents of the insured in case of death. If so many people were left destitute and especially children after sudden death of their parents, the cost to the society would be tremendous. The actions of a free market can therefore negatively affect the society. Consequently, the government has a role to play to ensure that market conditions align with social values and objectives. Economics and society are intertwined and should be studied together. References Biggart, N. W., and Guillen, M, F. (1999). â€Å"Developing difference: Social organization and the  Rise of the auto industries of south Korea, Taiwan, Spain, and Argentina.† American Sociological Review (vol. 64, October 1999):722-47. Quinn, S. (2008). The Transformation of Morals in Markets: Death,  Benefits and the Exchange of Life In surance Policies. American Journal of Sociology, Vol. 114, No. 3 (November 2008), pp. 738-780 This essay on Social Capital and the Economy was written and submitted by user Kyler Wise to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

Wednesday, November 27, 2019

101 Los Boxers and Masculinity Professor Ramos Blog

101 Los Boxers and Masculinity Masculinity vs Toxic Masculinity Quick Write You are at your funeral, or the funeral of a man you respect. They say, He was a good man. What does that mean? Write for a couple of minutes on what it means to be a good man. What words come to mind? Masculinity vs Toxic Masculinity What is the difference? Los Boxers (130) Lets break down the story. Characters, themes, plot points.