Activity Based Costing system Essays

Activity Based Costing system Essays Activity Based Costing system Essay Activity Based Costing system Essay Describe the changes in cost structure that are likely to have occurred at Santa Cakes Pty Ltd over the last twenty years and explain their causes. Answer: Refer to this case which the company is named Santa Cakes Pty Ltd manufactures a wide range of delicious cakes and pastries. Previously, they just have three product lines and using very simple machinery and a lot of hard work. As time goes by, the customer demands are changing, some specific products become more and more popular. But these products can not be produced in large volume. In order to produce a wide range of low volume lines as well as make and sell a lot of pies and lamingtons, they want to develop their production lines, which involve a lot of extra machinery set ups and material handling. These changes would directly lead to the changes in cost structure of the company. In the past, the cost structure of company seems very simple; absorption costing system is easy applied to this structure. It is an inventory valuation and costing model that includes all manufacturing costs. For example, one is the direct material, those materials that become an integral part of a finished product and can be conveniently traced into it. Another is direct labor, those company labor costs that can be easily traced to individual units of product which are all kinds of cakes. The other is both variable and fixed manufacturing overheads, something like rent, insurance, power and utilities of the Santa Cakes Pty Ltd. Currently, the companys new cost structure is more complex than before, the traditional costing system is no longer suitable for current complicated conditions. So it is the time to adopt new costing system which is the Activity Based Costing system. This method computes the overall product cost taking into account the cost involved in the intermediate activities leading to delivery of the final product. ABC refines costing systems by focusing on individual activities as the fundamental cost object. It assigns costs to cost objects based on the activities undertaken to produce each product or service. This entails classifying the costs into one of four categories. These categories are unit level, batch level, product level, and product sustaining. Under this costing system, the companys cost structure is more reliable. Question 2 Do you think the existing cost system understates or overstates the cost of a lamington and a Danish pastry? Explain. Answer: The existing cost system used by Santa Cakes Pty Ltd is absorption costing system. If Santa Cakes Pty Ltd only manufactures some similar products like pies, finger buns, and lamingtons, absorption costing system is suitable because absorption costing tries to share overhead costs between products as fairly as possible, and these products can be produced in large volumes, using very simple machinery and a lot of hard work. Because these products can cause similar amount of production overheads, we just use the total productions overheads divided by a total base like direct material or labor hours, we can simply get equal amount of product overheads for every product. There may be some small inaccurateness to the production cost of different products, but it is acceptable. Since this costing system is very easy to calculate the cost of each product. And it is very easy to understand by everyone. Now, the company begins to develop their product lines. They adopt some computer controlled machines and replace a lot of direct labor operations. They also start to produce some specific new products, such as Danish pastries, donuts and vanilla slices. These changes bring some troubles in cost calculation. That is because the new products are very complex to produce; they can not be produce in large volume. In production process, a lot of activities are required to produce the new products, and these activities will definitely cause some costs in the process. These costs would directly lead to high production overheads. Under the existing costing system of the company, the high production overheads brought by new products would be distributed to every product equally. So the cost of old products like lamington would be calculated higher than the actual cost, and oppositely, the cost of new products like Danish pastry would be calculated lower than the actual cost. We can use a simpl e example to explain that. Suppose each lamington contains following costs: direct material $1, direct labor $2. The total production overheads are $2000. Under the existing costing system, based on direct material, producing 1000 lamingtons, the overhead cost per lamington should be calculated as follow: OAR = Total overhead cost / Total direct material = $2000/1000 = $2 So the total cost of each lamington is 1+2+2=$5 If the company produces 1000 Danish pastries, each Danish pastry contains following costs: direct material $1, direct labor $2, the production overheads is $4000 based on direct material. So the total cost of each Danish pastry should be 1+2+40001000=$7 If the company produces 1000 Danish pastries and 1000 lamingtons at the same time, the production overheads is $5500 also based on direct material. The cost per unit would be like following: Lamington 1+2+50002000=$5.5 Danish pastries 1+2+50002000=$5.5 The numbers calculated this time is much different from the above two. The costs of the two different products have been distorted because of the absorption costing system. It overstates the cost of a lamington, at the same time it understates the cost of a Danish pastry. Question 3 Explain how activity based costing could overcome the deficiencies inherent in the existing costing system. Answer: Generally, Activity based costing is better than existing costing system which is the Absorption costing. There are some reasons as following: Firstly, Absorption costing tries to share overhead costs between products as fairly as possible, but it does not show how much overhead cost each product causes. Therefore, the management accountant of Santa Cakes Pty Ltd may forget to ignore some costs. It is also difficult to control overhead costs because absorption costing makes no clear connection between overhead costs and what it is that causes them to increase. Moreover, it is hard to plan or budget for overhead costs if we do not know how changes in output will affect them. Secondly, Activity based costing was developed as an alternative costing methodology. There is a cost to all activities carried out within an organization, and activity costs are distributed to products in relation to their use. As that can gives more financial information about the products costs, therefore, it can help managers to control the products costs which concentrates on each cost driver consumed and overhead costs which highlights the cost per unit of each cost driver, that makes all costs to be more distinct, as Activity Based costing cover every activity, it is more scientific and explains in details the cost of every activity, where there are large volumes. Then, as sum up, ABC doesnt eliminate or change costs, it provides data about how costs are actually consumed. In this example, if Santa Cakes Pty Ltd wanted to reduce costs using traditional data that would have to decrease salaries, or decrease costs of supplies. They dont know enough to change the equipment or overhead costs. Using ABC data you can see that it costs the same to paint and inspect the door. Absorption costing system is inaccurate in the way that they allocate costs. Large batch or high volume products and services typically incur 50-200% LESS overhead than they are assigned. Small batch or low volume products and services typically incur 200-1000% MORE overhead than they are assigned. This means that products and services that are considered highly profitable may in fact be profit eaters. This inaccuracy is becoming more and more critical as companies move toward customer-defined products and services (which often mean a batch size of one). Thereby, in order to correctly associate costs with products and services, ABC assigns cost to activities based on their use of resources. It then assigns cost to cost objects, such as products or customers, based on their use of activities. This information assists company in making decisions about pricing, outsourcing, capital expenditures and operational efficiency. Therefore it could overcome the deficiencies inherent in the existing costing system.

Theatre Essay Example | Topics and Well Written Essays - 750 words - 1

Theatre - Essay Example The result was the final idea of building the â€Å"Thrust Stage†. The structure of the thrust stage contained three sides for audience to sit and the stage at the center of the whole stage. The purpose of the thrust stage trusted on the reaction and the reception of the audience. The thrust stage configuration was in such a manner that the audience could see and identify one another. All of them could witness the play in full angle. The actors had a close interaction with the audience in a thrust stage performance. Though plays of various playwrights were performed in those times Shakespeare’s plays were the most wanted among the audience and specially the Queen. There were advantages as well as disadvantages in a thrust stage. The advantages were that of a close confidence with the audience. Each side had longer rows of seats and the thrust stage was very helpful in performing plays with a intimate theme in order to gain the Support of the audience. The plays were produces at a lower cost as there was very less chance to provide changes in scenery. Only common scenery was painted on the upper stage so that all the audience could watch it. With out such special scenery background some plays were not been able to perform with the expected effect. The disadvantages were that the provision for special effects was completely little. And as mentioned above the frequent change of scenic background was not possible within a small place. Limitations on set designs were also there and this thrust stage will never suit for a large scale production. Since the stage configuration is straight the performance in a vertical angle was not possible. The intimacy as mentioned in the advantages may lead to immediate interaction of the audience with the actors, in such a situation it might have become very difficult to control the audience. The thrust stage was a stage for actor centered not for

Laplaces Conceptions of Spiritual Counseling Essay

Laplaces Conceptions of Spiritual Counseling - Essay Example In the words of Jean LaPlace from the 1975 book â€Å"Preparing for spiritual direction†, spiritual direction is defined as â€Å"the help one person gives another in assisting her to become herself in the faith.† This unbiased perspective of what is the role that God plays in each human’s heart (which is same, and nuclear) is what makes â€Å"Preparing for spiritual direction† such a great book, not just for future spiritual counselors, but actually for anyone who wants to understand his own conscience; similarly, it’s not just a good book for people who practice Christianity, but for any member of any religion, since it aims for an universal conception of God; Creeds are but perspectives, and despite the existence of many branches, the source is but One; and the source is within each man’s heart. A counselor is someone who has come to terms with his own heart, which grants him the ability to make fellow humans come to terms with theirs. The book is a clear and practical guide to assist any priest in offering counseling and spiritual direction. It’s structured in five parts, which reflect the progression that must be undertaken by anyone who wishes to be a spiritual director. First and foremost, one needs to be able to direct his own conscience, before he can except to be able to effectively help others; one cannot possibly expect to stabilize other spirits unless he has settled his own spirit first. Inner peace invites outer peace, in the same measure that inner turmoil only brings about outer confusion. So, the spiritual director must direct his own conscience before he attempts to illuminate anyone else's. Second, we who follow this path must understand the nature of the spiritual dialogue; we must understand prayer, and we need to learn listening to the silent voice of the heart, which is no other but the voice of God. We must learn to realize the universal currents that bind the whole of humanity together, we must learn to see God in our own lives before we expect to point out how god manifests in the lives of those we seek to advice. The spiritual director is a person of prayer and experience, who understands and accepts his strengths as well as his shortcomings, his sins as well as his virtues; he's someone who learns to understand and cope with his feelings, and trough such knowledge he is able to understand others and help them manage themselves. Third, LaPlace elaborates quite clearly on the details regarding the formation of a Spiritual Director. Not only must he be able to listen to his own inner voice, but he must also be able to listen to others, and reach out to them in order to help them find their own strengths. The director must be both a witness and a friend; he must be someone who helps, either by asking or listening, but especially by being able to discern the appropriate time for each. His every effort must be focused in bring about awareness, and he should direct the advisee into learning to direct his own conscience. Fourth, the author talks of the kinds of spiritual direction. According to Laplace, all persons should be regarded equally by the spiritual director, and there should be no distinction between persons, religious or otherwise and even priests. Although, each particular case prompts for a specific guidance; we must learn to adjust our methods accordingly. The spiritual director must be a sharp observer of human differences, in order to determine which road is more suitable to lead each person to himself. Finally, the last section of the book is about the psychology of the directed, which is a refining of the spiritual director's formation. This part offers practical advice about counseling and directing

Tool for Orientation for Four Generations Essay Example for Free

Tool for Orientation for Four Generations Essay In the current clinical setting, it is often common to find that evidence-based practice (EBP) is not being implemented. There are a number of causative factors that can be attributed to this observation. Some analysts have suggested that personal differences may be hindering implementation of EBP. It is therefore important to look into the validity of this factor with special emphasis given to age differences in the clinical setting. The question to be considered is whether or not there is an evidence-based tool available to meet the needs of all four generations of learners. The EBT tool needs to implement clinical references and other reviews as well as a case by case analysis over past and present generations to help form a small basis for future generational use of the EBT tool. In forming continually controlled studies one would be able to obtain current and ongoing evidentiary guideliens in which to more accurately determine the generational differences to determine if there is in fact any influences of with utilizing the use of EBT. Population of Interest In order to foster a productive and feasible atmosphere in clinical practice, it is imperative for members of the organization to appreciate and respect differences among the generations. This means that gender, racial and ethnic backgrounds need to be understood and accepted. The latter categories of diversity have been discussed at length in nursing practice and most people understand them well. On the other hand, the issue of intergenerational differences also can be problematic if nurses do not understand it properly. In order to place this matter in context, it is essential to review the historical background of these different generations. The population of interest includes four distinct generations (Cordinez, 2002). There are basically four generations that may be found within the clinical situation; these are Veterans (born between 1922 and 1945), Baby Boomers (born between 1945 – 1960), Generation X (born between 1960 – 1980), and lastly the Millennial Generation (Born after 1980). All these generations underwent different experiences that subsequently shaped their respective professional and personal values. The performance value of each of these generations differ. For example, it is well known that the Baby Boomers generation was much ado about peace and the different associated behaviors related to drug and alcohol use, thus inhibiting their generation compared to the more productive performance of the later generations. The first generation under consideration is the Veteran generation born during the Great Depression and the Second World War. This generation grew up under tough times but during their adulthood, the country’s economy began flourishing. Because of these matters, The Veteran Generation realized that hard work can be rewarded and that authority ought to be respected. Therefore, it can be said that the values most revered by this generation are authority, loyalty, and respect. The second generation of nurses in the field today is the Baby Boom generation. Members of this group were born during a time of economic prosperity that was still characterized by some traditional values. This generation grew up around two-parent households in which one parent was the breadwinner. However, there were still a number of issues confronting them. They began challenging status quo and did not respect authority. According to Baby Boomers, real heroes are those ones with the courage to change the system. This generation had a lot room for growth within the nursing profession owing to the fact that economic times were relatively good. This generation is not typically conversant with technology. Intervention EBP implementation in most health institutions is a recent development. Since the population of interest is multigenerational, it is imperative to find out whether their generational background could have led to learning differences within the EBT tool. In order to attribute the lack of implementation of EBP to this issue, it is essential to eliminate other causative factors. Problems causing the potential failure to learn may be unique to each generation. It is important to design a nursing orientation program that empowers all generations of learners to implement evidence-based practice. Comparison of interest After examination of the historical backgrounds of these groups, one can now understand the differences between the groups may be influenced by their past. Two of the four generations of nurses have different perspectives on authority, workplace structures, technology, and evidence based practice (Spitzer, 2001). This can be a problem because organizations have changed dramatically over the past few years. Most health institutions now respect team-based approaches requiring individuals from different organizational levels to work together. This challenges traditional organizational structures in which the older generation was highly respected. The current view is to utilize evidence-based practice. Further contradicting the education of the older generation, the advent of technology has flipped organizational relationships. Baby boomers who had grown up with a deep respect for authority now highly depend on younger nurses to explain to them the essentials of computer technology. This has created renewed tensions between the generations. Despite the dramatic change in organizational structures, nurse’s mental attitudes still remain relatively stagnant and this has hampered implementation of evidence-based practice. Some nurses have failed to recognize where behavior patterns originate from and thus misunderstand colleagues from other generations. For instance, Baby Boomers usually think of Generation Xers as being highly unreliable or disloyal. On the other hand, the latter generation regards Baby Boomers tendency to remain with one employer as a failure to cease new opportunities. There are different work relations approaches between the generations. Outcomes Evidence-based practice in most health institutions may not be properly implemented because a substantial number of clinics fail to prepare their nurses through practical training. This means that nurses may be aware of the concept through the literature but do not have the ability to implement it in practice. Implementing this as a required teaching throughout all the health profession will enable nurses to be able to have additional tools available so that they may have more information in which to perform their duties better. In other health institutions, nurses lack infrastructural support from hospital administrations accustomed to conventional methods. Such administrations fail to shift their clinical practice making it difficult for particular nurses to do the same. EBP is failing due to lack of proper orientation in these health institutions. Nurses lack a straight-forward way in which they can carry it out within a certain clinical setting. Consequently, the methods may end up failing. There is little literature to link EBP with diversity issues let alone generational differences (Hicks Hicks, 1999). Conclusion In order for health organizations to flourish, there is a need to acknowledge differences between various generations of nurses. However, when it comes to evidence-based practice, other issues take greater precedence over generation differences. Instead, clinics need to look for ways in which they can boost administrative support, offer proper orientation and training to nurses. Personally, as nurse liaison for new employees, I am empowered to make changes by collecting and making available comprehensive, ongoing, and readily accessible EBP information needed to provide optimal care. At the very least, I can assist in providing staff with an orientation tool which incorporates the EBP process to insure and promote positive outcomes. References Cordinez, J. (2002). Recruitment, retention and management of generation X. Health Care Management Journal, 47, 4, 237-249. Hicks, R. Hicks, K. (1999). Boomers, Xers and other strangers Location: New York: Harper Collins. Raines, C. (2003). Connecting generations. CA: Crisp Publishers. Spitzer, R. (2001). A new world and new generation to come: Seminars for Nurse Managers, 9. 1367. The problem of interest in PICO question format. (5 points) 4/5 Presented a question, but did not identify PICO components. I DON’T KNOW WHAT THESE COMPONENTS ARE AND ALSO DID NOT ADDRESS THE OTHER TWO GENERATIONS COMMENTED ON BY YOUR INSTRUCTOR AS I DID NOT KNOW WHERE YOU WANTED TO GO WITH THAT. 1. A brief description of the patient population/disease, intervention, comparison, and outcome. (10 points) 9/10 Presented thorough description of two generations. What about the remaining two generations? If they are being excluded, tell the reader the rationale for this decision. Also, the outcome you intend to achieve is increased use of EBP. That was not clearly articulated in the outcomes section.

The American Family Association :: Exploratory Essays

The American Family Association A simple observation of television commercials between segments of a sitcom can find many aspects of life that our founding fathers worked to eliminate. Those who laid the building blocks for this country built it with trust in God. They wanted to build a country based on the Bible. In today’s society, that goal is no longer a priority, and violence and sex are seen each and every day. However, there is one group that is working to re-establish these morals in today’s society. The American Family Association, or AFA as it is referred to, believes that the entertainment industry has played a significant role in the deterioration of the values on which our country was founded and which keep our families and society as a whole strong. As stated on the homepage, the American Family Association, founded in 1977 by Don Wildmon, is a non-profit organization that represents and stands for traditional family values, focusing primarily on the influence of television and other media on our society. The mission statement of the AFA gives a summation of their purpose: â€Å"The American Family Association exists to motivate and equip citizens in the culture to reflect Biblical truth (AFA Online).† The AFA believes that God has communicated the absolute truth to man through the Bible and that each person is subject to God’s authority at all times. The AFA trusts that a society based on Biblical truth best aids the well-being of a culture, and reflects the vision of our country’s founding fathers. The group believes in holding companies accountable for attacks on traditional family values, as well as approving companies who are responsible for the programs which they support. The American Family Association was organized in an indirect manner. As stated in the AFA homepage, President Don Wildmon tells about the group’s formation in his own words: One evening in 1977 I sat down with my family to watch TV. On one channel was adultery, on another cursing, on another a man beating another over the head with a hammer.

Contact Zones in Chicano Culture Essay

Meeting someone from another culture expands your knowledge of the world. As you receive new information, you are giving some of your own. The experience of two different people meeting is far less than the experience of two different cultures of people meeting. The most common outcome of these meeting is one culture dominates over the other. This domination eventually leads to hatred towards the oppressors, until the dominated are free. Over many years, the dominated population has integrated their culture with the dominant one but there is still conflict. In â€Å"Arts of a Contact Zone† Mary Louise Pratt writes about the effects of a contact zone, when two different cultures meet and interact, and why it is good. Contact zones bring people together to share ideas and cultures but it can also lead to slavery and conquest . We will focus on one effect: literate arts. Some of the literate arts are autoethnography, transculturation, bilingualism, critique, and denunciation. These literate arts are ways people use language to express a clash of two cultures. An â€Å"autoethnographic text†, a text that a writer uses to respond to the way other people sees their ethnic group, uses things familiar with a dominant race to make a point. Pratt gave us an example of â€Å"autoethnographic text† called New Chronicle and Good Government by Guaman Poma. The title New Chronicle comes from the name of the apparatus used by the Spanish to present their American Conquests to themselves. Poma uses this to create a new picture of the world by rewriting the Christian history with the Andeans at the center of the religion. The new â€Å"Christian-Inca† history resembled European manners and custom descriptions but included the meticulous details of information stored in the Inca societies. Poma used this manner to write his letter to make a parody the Europeans could understand. Gloria’s Anzaldua essays â€Å"Entering into the Serpent† and â€Å"How to Tame a Wild Tongue† are examples of an â€Å"autoethnographic text. † She uses her essays to destroy some of the stereotypes readers have before they read her essays. Some of the stereotypes of Chicano are they are hated by the US and Latinos and have a conflicted identity. The idea that Americans and Latinos hate Chicanos comes from the belief that they cannot identify with Standard English or Standard Spanish cultures. Since the Chicanos are born in the United States but are ethnically Mexican, they do not â€Å"belong† in the United States or Mexico. The hatred of Americans and Latinos caused the unknown identity of Chicanos. Transculturation occurs when two groups of people integrate different aspects of a culture with each other. An example of transculturation is Poma’s illustrations in New Chronicle and Good Government. The pictures had a European genre but they used Andean systems of spatial symbolism to express values and aspirations. In Anzaldua’s essays, we see transculturation in the religion. â€Å"My family, like most Chicanos, did not practice Roman Catholicism but a folk Catholicism with many pagan elements† (Anzaldua 73). The Roman Catholicism that was the religion of the Spaniards intermingled with Anzaldua’s â€Å"snake religion† to form the folk Catholicism version of la Virgen Guadalupe as Coatlalopeuh. Transculturation and autoethnography both manipulate language. Anzaldua wrote the essays in English and Spanish to identify herself with the Chicano and show us her experience with English speaking people. Poma’s wrote his letter in Quechua and Spanish so both cultures could understand the main points of the letter. In childhood we were told that our language is wrong. Repeated attacks at our native tongue diminish our sense of self. The attacks continue throughout our lives. Chicanas feel uncomfortable talking in Spanish to Latinas, afraid of their censure. Their language was not outlawed in their countries. But for a language to remain alive, it must be used. By the end of this century English, and not Spanish, will be the mother tongue of most Chicanos and Latinos (Anzaldua 89) The language of a culture identifies a person. If someone’s language is banned it makes the person feel unwelcome so to fit in they speak the main language but wonder what is wrong with their own language. When Chicanos speak Spanish they â€Å"spoil† the language and when they speak English they are traitors. This idea of having a wrong language causes confusion and shame, which will lead to not a Chicano identity but an American identity. By identifying with her culture, she creates a known identity for her people. Chicano Spanish is unlike English or Spanish but a combination of both, which results in bilingualism. Anzaldua’s first essay shows us what her religion meant to her, and she blames and criticizes the Catholics for taking away her sexual identity. Before the Spaniards conquest, the male dominated Azteca-Mexica culture had replaced all the female deities with male ones. This replacement split the female deities and the female self. If there were no female (spirit) deities then there was no female identity, according to Anzaldua. After the Conquest, Guadalupe became a virgin and all the other female deities (snake goddesses) were whores. The change in identity of these female deities encourages the virgin/whore dichotomy. This separation of mind and body made it hard for her to find her sexual identity. Pratt’s definition of a contact zone makes it a wonderful and horrible place to be but Anzaldua seems to disagree. Anzaldua’s experience with Catholic people seemed to be the worst thing that happened to her. These chapters from her book Borderlands/La frontera only show one type of opinion with no other positive outlooks. Her dislike of the Catholics inspires her to write these chapters to show us how her life was like and to â€Å"blame† everyone who reads her book. She was not able to have a true contact zone through her experience so she is unwilling to understand the Catholic religion. Anzaldua’s essays are another example for Pratt to use in her essay. The concept of literate arts is present throughout. The essays mainly show the bad parts of Anzaldu’s contact zones but that is the main result of contact zones with a dominant culture. Even though Anzaldua may not agree this is a contact zone. Her bias shows the readers the horrors of her cultures past to encourage a response.

Juvenile Delinquency The Basis Of Public Fear - 2219 Words

This essay will look at the way in which juvenile delinquency came into existence and became the basis of public fear. It will look at the way the concept of ‘childhood’ was developed and the way in which laws brought juvenile delinquency in to the media’s concern. In order to understand the way in which juvenile delinquency was legislated we need to understand the basis of juvenile delinquency which starts from the process of ‘childhood’. This concept of childhood was not in existence before the 17th century, there was also no concept of youth and adulthood, and therefore there was no social problem of ‘youth’s’. The perception that there was no concept of childhood was first introduced by the French scholar PHILIPPE ARIÈS in his†¦show more content†¦(Fionda, 2005) At this period, children were being exploited through tough child labour. The children were treated as miniature adults, they played a crucial role within the industrialization. However, there was no clear boundary between adulthood and childhood, in the pre-industrial period societies children worked together with adults in everyday life, they did not live in an isolated world or behave in a different way and were not treated to different understanding of morality. (Muncie, 2009, p.48).The way children lived in this era was no different in the way that adult life was lived, they were involved in drinking alcohol, physical – intensive working, gambling. In which today’s postmodern society would define as unsuitable and illegal way of living for children, In order to maintain their ‘innocence’ and morality’ (Empey, 1982, p.33). Late 18th century the concept of childhood was viewed as the loss of innocence and the attainment of adult abilities for evil actions and behaviour, therefore there was a need to protect the innocence of children. Hendricks identified this as the ‘Romantic Child’. Furthermore, there was a development of welfare approach and child welfare reform, which felt the need to protect children against the immorality of the world. The 1833 Factory Acts restricted that no child below the age of 9 was to be active in brutal working environments, children’s working hours cut down rapidly to ensure there they