Historical cost accounting Advantages and disadvantages

Historical cost accounting Advantages and disadvantages Financial policy and accounting Financial policy is to determines hoe a business is to be financed, whether by equity or preference share capital, and extent to which reliance is to be placed upon long term or short term borrowing. In addition the credit and discount policies followed to be determined policies companies have a duty to publish account Historical costing Historical cost is the original monetary value of an economic item. Historical is based on the stable measuring units assumption Historical cost accounting is the situation in which accountants record revenue, expenditure and asset acquisition and disposal at historical cost: that is, the actual amounts of money, or moneys worth, received or paid to complete the transaction. Historical cost accounting is also called because it concern itself with the recording of actual cost on after the date when these are in cured. There are two basic costing system 1 is job costing and 2 is process costing. Actual cost is the part of most modern standard costing system but they are limited value. A basis for the treatment of assets in financial statements where they are recorded at their historical cost, without adjustment for inflation or other price variations What is historical cost accounting? Historical cost is a term used instead of the cost. Cost and historical cost usually mean the original cost at the time of a transaction. Historical cost is helps to distinguish an assets original cost from its replacement cost, current cost, or inflation-adjusted cost. Example, Land purchased in 1992 at cost of $80,000 and still owned by the buyer will be reported on the buyers balance sheet at its cost or historical cost of $80,000 even though its current cost,  replacement cost, and inflation-adjusted cost is much higher today. The cost principle or historical cost principle states that an asset should be reported at its cost (cash or cash equivalent amount) at the time of the exchange transaction and should include all costs necessary to get the asset in place and ready for use. Historical cost principle in accounting Historical cost principle means that assets and liabilities are recorded at their actual historical cost. When an asset is written off, the loss is recorded as the historical cost of the asset less any accumulated depreciation. Typically, the asset would be fully depreciated and thus no loss recorded but this isnt always the case. If the asset is sold the gain or loss is recorded as the amount received for the asset less the historical cost (net of any accumulated depreciation). In both cases, youre using the historical cost as your basis in the asset, but in the write off, you didnt receive anything in return for the asset. To record a sale, you must account for the payment you receive and that amount is of course, the current value of the asset at least its value to someone (the purchaser). Advantages and disadvantages of historical cost accounting Advantages Historical cost accounts are straightforward to produce Historical cost accounts do not record gains until they are realized Historical cost accounts are still used in most accounting systems Disadvantages Historical cost accounts give no indication of current values of the assets of a business Historical cost accounts do not record the opportunity costs of the use of older assets, particularly property which may be recorded at a value based on costs incurred many years ago Historical cost accounts do not measure the loss of value of monetary assets as a result of inflation. Standard costing Standard costing is an important topic of cost accounting. Standard costs are generally connected with a manufacturing companys costs of direct material, direct labor, and manufacturing overhead. Rather than conveying the actual costs of direct material, direct labor, and manufacturing overhead to a product, several manufacturers allocate the expected or standard cost. This means that a manufacturers inventory and cost of goods sold will begin amounts reflecting the standard costs, not the actual costs, of a product. Manufacturers, at rest to pay the actual costs. As a result there are almost always differences between the actual costs and the standard costs, and those differences are known as variances. Standard costing and the related variances is a valuable management tool. If a variance arise, management becomes aware that manufacturing costs have different form the standard (planned, probable) costs. If actual costs are greater than standard costs the variance is unfavorable. An unfavorable variance tells management that if everything else stays constant the companys actual profit will be less than planned. If actual costs are less than standard costs the variance is favorable. A favorable variance tells management that if everything else stays constant the actual profit will likely exceed the planned profit. The earlier that the accounting system reports a variance, the earlier that management can direct its notice to the difference from the planned amounts. If we assume that a company uses the perpetual inventory system and that it carry all of its inventory accounts at standard cost (including Direct Materials Inventory or Stores), then the standard cost of a finished product is the sum of the standard costs of the inputs:   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  1. Direct material   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  2. Direct labor   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  3. Manufacturing overhead   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  a. Variable manufacturing overhead   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  b. Fixed manufacturing overhead Standard costs are those cost which are established through identify an objective connection between specific inputs and estimated outputs. Standard costs are usually related to warily analyze phenomenon both in the laborator and in the work place. Marginal costing Marginal cost is the variable cost of one unit product or service. Marginal cost is alternative method of costing to absorption costing. Marginal cost is variable cost charged as a cost of sale and a contribution cost is calculate (sale revenue minus variable cost of sale). Closing stock of work in progress or finished goods are value at the marginal (variable) production cost. Fixed cost is treating as a period cost and charged into the profit and loss account incurred the period of accounting Marginal production cost per unit of an item usually consists of the following. Direct material Direct labour production overheads Direct labour cost might be excluded from marginal costs when the work force is given number of employees on a fixed wages of salary. Even so it is not uncommon for direct labour to be treated as variable cost. When employee are paid a basic wage for a fixed working period. If in doubt you should tread direct labour as a variable cost unless given clear indicator to the country. Direct labour is a often steep cost. With sufficiently short step to be make a labour cost in a variable. The marginal cost of asset usully consist of the marginal cost of production adjusted for stick movement plus the variable selling cost The most important feature of marginal costing is the division of cost into those which are marginal (variable) those which are fixed. The latter are not apportioned to cost centers or products as under and other costing system. Instead they are charged against sale revenues within the period in which are incurred. this deviation of the cost are there application in a appropriate manner is extremely use full in showing management the effect decision, particularly those connected with short term utilization of production capacity. Principles of marginal costing: The marginal principal costing are as Period fixed cost are same any volume of sales and production (provided the level of activity within the relevant range) . selling by an extra item product or service following are as Revenue will be increase by the sale volume of sold item Cost will be increase by the per unit cost Profit will be increase by the contribution amount earned from the extra item The volume of sales falls by one item. Profit will be fall by amount of earned contribution item Profit is measurement should be based on analysis of total contribution. When a unit product is made the extra cost incurred for the manufacture variable Production cost. fixed costs are unaffected, no extra fixed cost are incurred when output is increased. The valuation of closing stock should be at variable production cost Decision accounting The comparison of an alternative courses of action may be facilitated the use of cost data. Latter may be collected by part of a routine or deal with the special problems when it arise strictly speaking, this is not a separate system. It calls upon another information system which indicates the management project likely maximum profit minimum loss. decision on capital expenditure whether to make or buy., what price should be charged as to subcontract and other important matter may all be assisted by the employment of accounting information. A few words on the role of decision making are very appropriate stage. One of the most important function of top management is to make decision. Irrespective of the method of employed decision making implies a choice from a number of alternative. Ther are two basic selection methods First the selection of the particular field in which the final decisions to be made, production is increased, the labour force may large new machine may be introduced: if sale are to be expanded the initial choice between employing more sales men identifying the advertisement to other sale publicity. Once a initial selection has been made, second choice must be follow, if machine is to be purchased Control accounting The comparison of an alternative courses of action may be facilitated the use of cost data. Latter may be collected by part of a routine or deal with the special problems when it arise strictly speaking, this is not a separate system. It calls upon another information system which indicates the management project likely maximum profit minimum loss. decision on capital expenditure whether to make or buy., what price should be charged as to subcontract and other important matter may all be assisted by the employment of accounting information. A few words on the role of decision making are very appropriate stage. One of the most important function of top management is to make decision. Irrespective of the method of employed decision making implies a choice from a number of alternative. Their are two basic selection methods First the selection of the particular field in which the final decisions to be made, production is increased, the labour force may larger new machine may be introduced: if sale are to be expanded the initial choice between employing more sales men identifying the advertisement to other sale publicity. Once a initial selection has been made, second choice must be follow, if machine is to be purchased

Essay on the Gods in Euripides Medea :: Euripides Medea Essays

Antigone Medea has just killed four people which are Creon the king of Corinth, the princess whom Jason is in love with, and her two little children. Jason then prays to gods, especially Zeus, father of all gods, to punish Medea for her crimes. From the context of the quote, the chorus is addressing the audience about the unexpected and unbelievable end of the play. Medea then gets away to Athens with a chariot lent to her by Helios, the sun god and her grandfather. Euripides always uses this kind of conclusion to end most of his works. Euripides suggests that the general theme of the quote is gods are not like what we think they are supposed to be. In other words, we can not expect much from the gods. Instead, we have to handle our matters on our own. The phrase, "Many are the Fates which Zeus in Olympus dispenses," tells us that gods do not favor mortal people. Even if gods do help mortals, that's only because those mortals have some kind of relationship with the gods. So, Euripides tells this story not in favor of the gods. The general thems is gods are not as good as they are supposed to be. Medea has been exiled for three times: from her home country near the Black Sea, from Jason's homeland Iolchos, and now from the city of Corinth. We would naturally think that a woman like Medea, being exiled for many times, is the most vulnerable and most powerless woman. She has got no friend and no citizenship. At the time of Euripides, being an exile is not an interesting position that a person wants to be in. It is like a suicide. Most people at that time in Greece view strangers as barbarians with no intelligence at all. In addition, Medea is going to be an exile with two children. She is supposed to be in lots of trouble. On the other hand, Jason has won the princess of Corinth's love. He is going to be Creon's son-in-law. Jason abandon's Medea after all she has done for him. Jason doesn't fear Medea at all because he has support from Creon, king of Corinth. Jason is supposed to be more powerful than Medea. Jason is the son-in-law of the king and Medea is an exile. But, as Eur ipides suggests, what the audience expects doesn't come true at all.

Examination of A Performance I Was In

This term we have been working on a devised performance dealing with the theme of consequences and looking at lots the themes and issues. We have chosen the title to be ‘Consequences'. We came up with this title after the whole group had decided on what the theme would be, then once we new what the theme would be, we thought of ideas of what the title could be, and we chose ‘Consequences'. Overall the play ‘Consequences' took 4-5 weeks to put together and perform. I thought it was a worthwhile experience because this is the first time I had worked in this group as a whole class. The performance we done, took place in the main school hall because we needed the space for our traverse stage to be held in. We had the stage setting, with the audience split in half, and the performance space was in the middle so that we could be seen at all angles. To begin the topic our teacher put us into groups and then we had to think of ideas of what our play could be about. We all wrote down ideas, then read them out, and then we decided as a group to choose the best idea. The age group we wanted to aim it at is our own year 10. We chose this age group because they can relate to the issues that are being performed. They would understand about our play because they are the age we are aiming at, and could relate to what the play was. After we decided on the theme of the play we then improvised of how to get ideas and put them together, then we discussed how to script it and the structure of the play. In one drama lesson we started working on the first family scene where we were at the table scene were me and my group had to work on the family which was based on poverty. We rehearsed this so many times because we had to make this a sad family as they don't have that much money, but is was a good scene because we could make it funny as well. I played the character of a gay man, with my partner we adopted kids and we had hardly any money. My partner and I were always arguing, while the kids were around. But with my character I felt that I had to play him as a serious but emotional man, with a hard life, so to do this I had to change his tone of voice, and my body language and gesture. One moment in the scene we did was when we were sitting at the dinner table and my partner was setting there with me, and the whole family was in a bad mood, so then me and my partner started to fight, so then the kids started to fight as well, and I had to stop them. Then we all stopped and sat and at e our breakfast. While we were eating I started to tell a story about how I saw two girls stealing from the chemist. I was telling them that I hoped for them to never to do the same. But later in the play they do. We did this because we wanted to set up the next scene for us to show that are kids are so poor they are pulled into stealing. I personally feel that this scene was quite successful because we all stayed concentrated in the important time in the scene. I thought we improved the scene by keeping loud so all the audience could hear us. This made the scene more effective because it keeps up the atmosphere, and the tension of all the acting parts. One scene that was non-naturalistic was the opening scene to the play. In the opening scene we used the drama technique slow motion to a piece of music. We also used frozen images to the piece of music. The music we used was a soundtrack by ‘DMX' called ‘Slipping' the song represented everyone's downfall in the play. It complemented the action that was taking place. The stylised movement we also used was sound collage, we used the sound collage to build a atmosphere for the opening scene, by doing this we showed the audience what the play was about by revealing all the issues and gave an insight into the situation the character was in. We also used a technique called duologue so that the angel and the devil characters commented on the action. W began devising this scene by us all trying to think of strong images that could show how our family's lifestyle and the difficulties they had. The moment that was the hardest to rehearse was when we were doing the links in between each family. I thought that the audience who were watching would react to this scene by thinking that they are going to see all different consequences that happen to people when they do things. I feel that this scene did work to its full potential because when the music played, it built an atmosphere on which the audience can see, and as all the frozen images from all the families, I thought were very powerful. I feel that it worked and conveyed the desired message of community what the play was about. Overall I feel the best moment in the play was the end, because after the audience had seen all the consequences that each family had done. The ending of our play was were each main character said a few lines about what happened after all of what had been done. Some said about they wish they had never done so many things, or looked after their children better, or wished they had never put a pill in the girls drink, they were all guilty of their consequences. Each individual was to blame for his or her own downfall. As we performed this scene to the audience the characters that were being played made mistakes, but as they said their lines they knew they had done something wrong and they cant change that now, and live with it. I feel that the message we were trying to convey to the audience was ‘to think about the consequences of your action'. One moment that stood out the most and I feel conveyed the message was the end, when the audience saw the characters were saying all the things that they could of done but didn't. I feel that the message was getting across to the audience wasn't as successful because all of the audience could have been confused. I feel that it could of have been more successful if we chose an outside audience, not friends. On the scenes that we could have been improved was the scene on were we linked up to our other groups together. I felt that it would have been better if we also had more time on to set the play, and if the cast was there every day, so then we could rehearse and get every thing perfect. I feel that the work that I have been doing in my lessons this term has been quite successful because it has brought the group closer to work with each other, and it is good experience for the future. I feel that the whole experience of devising the play has been very enjoyable. I feel that it was enjoyable because this is what I like in drama GCSE. I feel as a performer I gained experience in a way that it makes me feel easier now to act in front of my friends, and now I am fully concentrated and confident in performing in front of an audience. I have learnt that for my performance next year I will be able to cope with the tension and hard work. Overall it has been a productive piece of work on what we done this term, which has been enjoyable.

Fields of destruction essays

Fields of destruction essays On March 24th, 1999, the NATO alliance, led by the United States, began bombing Yugoslavia. They bombed every day, with steadily increasing numbers of planes and escalating destructive power of bombs. The bombing was finally halted after 78 days, with an agreement for withdrawal of Yugoslav troops from Kosovo, to be replaced by a mixed force of NATO and The bombing of Yugoslavia was, overwhelmingly, of specifically civilian targets: homes, roads, farms, factories, hospitals, bridges, churches, monasteries, columns of refugees, TV stations, office buildings. The bombing was not intended to maximize civilian deaths, but neither was it intended to minimize them. The aim of the bombing was to destroy civilian installations on which people's lives and comfort depended, killing a few thousand random civilians for good measure, and thus weakening the will of the population to resist, so that they would submit to NATO occupation. Why did NATO bombed the small country like Yugoslavia? For this question there is a few different answers. First, NATO officials would say they did it to save thousands of lives from genocide committed by Milosevics/ Yugoslav army. However nobody ever mentioned the genocide that happened on the Serbian people. One of the biggest massacres on Serbian population happened in village called Klecka. Some of the news never got to the US people, because that was going against NATO objectives. US Envoy in Belgrade Christopher Hill said: I condemn the horrible massacres of serb civilians committed by Albanian terrorists.the united states are shocked by brutalities in village of Klecka. Whom ever did this must be punished. The united states do not support the armed battles of the KLA and condemn of any kind of aggression, as well as kidnapping of civilians.(www.gov.yu/terrotism/genocide.html) ...

Clinton scandal essays

Clinton scandal essays The evidence against President Clinton for sexual misconduct is very strong. There have been too many scandals that have surrounded his presidency. This forces the citizens of the United States to deny his plea of innocence. In the spring of 1995, Monica Lewinsky graduated from Lewis and Clark College. She then started an unpaid internship at the White House. Allegedly in November of that year, she became involved in a sexual relationship with President Clinton. Shortly after this point Lewinsky was hired as a full-time White House employee. She left the White House for a public affairs position at the Pentagon. Here she became friends with Linda Tripp, a former White House employee, who worked in the same office. During this time President Clinton apparently sent gifts to Lewinsky, most importantly in the case against him a dress, which she saved as a souvenir, had the President's DNA on it. With things heating up in the Paula Jones case, the President asked Lewinsky to lie about visits to his office. Turning her back on Lewinsky, Tripp taped telephone conversations between herself and Lewinsky about the affairs with Mr. Clinton to setup him up. Lewinsky, allegedly quoting Mr. Clinton, said, "Look them in the eye and deny it." After anonymous tips are given to a firm connected with the Paula Jones case, Lewinsky decided to leave the government and find a new job. On January 7, 1998, Monica Lewinsky signed a sworn affidavit in the Paula Jones sexual harassment case, stating she did not have an affair with the President. Following this, Linda Tripp brought the recorded phone conversations to Independent Counsel for the Paula Jones case, Kenneth Starr. With assistance from the FBI, Tripp wore a wire while Lewinsky lead her step-by-step through her entire sexual relationship with Mr. Clinton. The following day, Lewinsky gives Tripp points on how to respond to Paula Jones' lawyer's questions. After receiving ne ...

Social Movement Communities Essay Example | Topics and Well Written Essays - 2250 words

Social Movement Communities - Essay Example From the essay it is clear that discrimination based on sexual orientation highly targets the homosexual and bisexual individuals than heterosexuals. Because of the international and UK‘s existing laws to protect the disabled and homosexual individuals, discriminative members of the society may use indirect methods to fulfil their functions, which may put them at a particular disadvantage. According to the discussion findings BCODP has worked with different committees and locals DPOs to run and manage campaigns especially those concerning social service provisions. One of the most remarkably involvement of the organization in campaigns was for the initiation of the direct payment scheme back in the late 80s. According to the social security Act of 1948 that existed in the time, it only guaranteed the disabled people to receive local care and perhaps welfare benefits for the poor administered nationally, but made it illegal for local authorities to provide cash payments to them. While some counties in UK had implemented the scheme before, lack of clarity in the law led to it ban severally to early 90s. In order to change the law, BCODP independent living committee was formed whose purpose was to ensure disabled people had access to the independent living scheme that had begun across Europe. This committee had led the campaigns for direct payment and backed it up with prove research of its benefits and satisfaction to the disabled people than local services would achieve.

Maybelline new york Essay Example | Topics and Well Written Essays - 250 words - 1

Maybelline new york - Essay Example Originally, the mascara from Maybelline came in black color only because it was targeted at giving the eyelashes darker fuller look. Today, variety in terms of color has become an important and unique feature of the Maybelline Cake Mascara. The variety that exists with the colors actually forms what I like most about the company’s product. As far as fashion and quality dimensions are concerned, it can be said that there is so much justification and validity with the having different colors for the mascara. This is because as people adorn different types and colors of clothing, they have become aesthetically concerned with having matches for their clothing by way of how most other parts of their bodies appear, including their hair, eyebrows, and lately eye lashes. From every indication, Maybelline has taken fashion to the next level and this level is the dynamism with which conformation and harmony can be achieved through