Sunday, February 23, 2020

Variable costing Assignment Example | Topics and Well Written Essays - 1000 words

Variable costing - Assignment Example Despite the various methods of pricing a firm based on its industry should select the most effective method to the firm. Costing is the main function in every firm, the rational being every firm exists in its industry with the main aim as profit making. References 8 VARIABLE COSTING Executive summary This is a report about a review of marginal costing as used in the managerial accounting system. Certain terminologies associated with the concept of marginal costing are identified in the report. The report also defines logically certain terms like variable costs, fixed costs, CVP and breakeven analysis as the key concepts. It goes ahead to prove the rational and marginal costing concepts as used in short term decision making. Being a costing technique, several assumptions such as division of cost element into fixed costs and variable costs, variable cost being considered directly proportional to the production volume, fixed costs being constant throughout the production levels and is b eing shared according to the volume of production per unit, cost is only influenced by the volume output, and at all levels, the selling price would remain unchanged, are associated with it. The report analysis gives logical evidences in manufacturing, hospitality and airline industries, as where the technique is used. Through appraisal and evaluation, it has been found to be the basis for product and service costing; hence, it is critical to identify its strengths and weaknesses (Maher, Lanen & Rehan, 2005). A recommendation has been made in this report for the marginal costing to be used in the three industries for a short term after its comparison with other alternative methods. Reconciliation of absorption and marginal costing methods has been recommended in order to cater for both short term and long term decisions. In summary, every firm is advised to use a costing method which is relevant to the firm’s decision. Introduction Variable costing is a managerial accounting concept, which according to Managerial Accounting by Ray H. Garrison, Eric W. Noreen, and Peter C. Brewer, is a costing method which has only a variable cost in the unit product cost. From its definition, Variable costs are the costs that vary with corresponding changes in the level of production. Thus, we can say variable costs are directly proportional to the volume of production. The technique is majorly for short term decision making instances rather than for outside purposes. Other methods of costing may include manufacturing cost that does not consider differentiating the costs into either fixed or variable costs (Drucker, 1999). In manufacturing cost, we consider the direct materials, direct labor and manufacturing overhead. Under this managerial accounting concept, a logical relationship between direct materials inventory and the expenses (direct labor and manufacturing overhead) incurred in the production of the end product which is delivered to the market for sale. In this case, the inventory does not fully absorb the firm’s costs. The method considers cost of goods sold to be made solely as a variable cost because it does not include fixed manufacturing overhead from the cost of inventory. Since fixed inventory is always expensed in the current period, it is normally treated as a periodic cost as the capitalizing cost which forms part of the inventory cost is often referred to as product cost (Maskell & Bargerly, 2003). When marginal costing is used to mean the cost of goods which only includes variable in its unit product cost, then variable costing may also be linked to this meaning. Variable costing

Friday, February 7, 2020

Global Issues in Youth and Community Development Essay

Global Issues in Youth and Community Development - Essay Example One of the ways this is achieved is through enhancement of local-global development themes that can be practiced locally through learning from the larger global context; this is particularly because globalization has transformed the world into a ‘global village’ (Sallah, 2014, p.6). Technological developments in communication now enables youth across the world to learn from each other and interact in real time through social networks and other platforms that are increasingly being used to enhance community development education (Bourn and McCollum, 1995, p.26). The main theme under discussion in this paper and for which an education manual will be prepared is self-enhancement of youth through small and micro enterprise. Self-enhancement of youth through enterprise is a theme that has been promoted and encouraged in the local and global contexts in many countries across the globe (Bourn, 2008, p.11). As indicated above, many programs and projects continue to emerge in both developed and developing countries across the world with the aim of streamlining the energy and innovativeness of youth towards socio-economic development (Cohen et al., 2013). Globalization and the internet have brought about the concept of the ‘global village’, this is based on the fact that is now possible for communication to take place between people globally in real time. Young people can therefore be able to learn what their peers are doing at the local level in other parts of the world while they are also able to share their activities through the sam e channel to a global audience (Sallah, 2014, p.8). This implies that youth can learn from each other globally as well as locally with regard to development of small and micro enterprises for their socio-economic enhancement and advancement of their communities. Youth self-enhancement through enterprise is a significantly useful theme as it targets the most active and viable portion of