Premium Essay

Challenge Economic

In: Business and Management

Submitted By dindaa22
Words 6695
Pages 27
CHAPTER 4
ACTIVITY-BASED PRODUCT COSTING
QUESTIONS FOR WRITING AND DISCUSSION
1. Unit costs provide essential information needed for inventory valuation and preparation of income statements. Knowing unit costs is also critical for many decisions such as bidding decisions and accept-or-reject special order decisions.

represent a significant proportion of total overhead costs.
8. Low-volume products may consume nonunit-level overhead activities in much greater proportions than indicated by a unit-level cost driver and vice versa for high-volume products. If so, then the low-volume products will receive too little overhead and the high-volume products too much.

2. Cost measurement is determining the dollar amounts associated with resources used in production. Cost assignment is associating the dollar amounts, once measured, with units produced.

9. If some products are undercosted and others are overcosted, a firm can make a number of competitively bad decisions. For example, the firm might select the wrong product mix or submit distorted bids.

3. An actual overhead rate is rarely used because of problems with accuracy and timeliness. Waiting until the end of the year to ensure accuracy is rejected because of the need to have timely information. Timeliness of information based on actual overhead costs runs into difficulty (accuracy problems) because overhead is incurred nonuniformly and because production also may be nonuniform.

10.

11.

An overhead consumption ratio measures the proportion of an overhead activity consumed by a product.

13.

Departmental rates typically use unit-level cost drivers. If products consume nonunitlevel overhead activities in different proportions than those of unit-level measures, then it is possible for departmental rates to move even further away from the true consumption ratios, since the

Similar Documents

Premium Essay

The Challenges of Economics

...The Challenge of Economics Q1: What opportunity costs did you incur in reading this chapter? This chapter talks about the challenge of economics. I will attach a file that has summary in it and another page you may need. Opportunity cost of a resource according to economists is the cost of the next best alternative use of that particular resource. For example, I have spend time reading this chapter. I could have spend this time doing something else like watching a movie or doing some freelance work. It seems that my next-best option to reading this chapter is watching a movie or working freelance, therefore the opportunity cost of reading this chapter is the time spent plus the pleasure I relinquish by not watching a movie. Or it could the money I forgo by not working freelance. Q2: If taxes on rich were raised to provide more housing for the poor, how would the willingness to work be affected? What would happen to total output? The issue of raising the taxes of the rich has been a centre of high political debate. Just recently, billionaire Warren Buffet made a proposal to the Congress to raise the taxes of the rich so as to reduce America’s current budget deficit. In other fronts, raising the taxes of the rich is also seen as a way of reducing the wide gap between high income earners and low income earners. In our case, we are trying to analyze the implications of tax increases on high income earners in a situation where a transfer is made to improve housing for the poor...

Words: 603 - Pages: 3

Premium Essay

Eco Economic Challenges

...1. List a few major challenges you think would impact the future economic well being of the United States. Explain why these are crucial challenges and how they can be overcome. Your response must make references to short term fluctuations as well as long-term economic growth prospects. As I see it, the U.S. national debt is one thing that will have a huge impact on the future economic well being of the United States. As of July 19, 2015, the U.S. national debt equals $18,158,174,556,882.73 (U.S. National Debt Clock), which is 101.53% of the gross domestic product (Trading Economics, 2015). From an individual’s perspective this exorbitant national debt will potentially lead to higher taxes, reduced benefits (for example Social Security), and higher interest rates. The national debt has continued to increase approximately $2.05 billion dollars per day since September 2012 (Trading Economics, 2015). If the U.S. government doesn’t find a way to curb the current expansionary fiscal policy, the United States could find itself in a situation similar to Greece over the past few weeks. As a healthcare provider and someone who sees the firsthand effects of the current system on patients and healthcare organizations, I am very interest in healthcare reform and its impact on the Federal budget deficit. With healthcare expenditures in the U.S projected to reach 34% of the GDP by 2040, the case for healthcare reform is a no-brainer, and President Obama’s monetary policies sought...

Words: 956 - Pages: 4

Free Essay

Socio-Economic Challenges of South Africa and Policies That Could Be Implemented

...Along Change | Socio-economic Challenges of South Africa and Policies That Could be Implemented | | John JH Scheffer 22770933 | | 14 April 2015 Class Participation Assignment for CCMM515 | Introduction Since the dawning of a new era in 1994 South Africa has faced many challenges. Naturally change brings a long a new frontier and as one would expect many rough terrains. South Africa has thus far been a colossal beast charging through the constant strife of these rough terrains despite the constant lashing of its riders ever since it received its independence, however many fear the last straw is about to be placed on this beasts back. Current affairs threaten the future economic viability of South Africa and although recent assertions have been made to ensure the economic growth, the governments have done little or nothing to achieve these goals. Whether because of sheer incompetence, narrow vision focused on the past or the lack of proper management is arguable however there is little to be achieved by discussing the shortcomings of the government. This essay focuses on a more challenging viewpoint where the current socio-economic challenges of South Africa will be discussed and the policies that could be implemented to resolve these issues. The propositions in this paper are proposals that would be suggested for implementation as policies to resolve socio-economic issues if I were president...

Words: 2393 - Pages: 10

Premium Essay

Entrance Essay

...The reason why I’m pursuing a college education is because with the uncertainty that I had experienced and the nervousness that I felt looking for a career in these economic times without a degree, has made it difficult to live a better life for me and my family. I want to be able to pursue any career that I want, and know that I have enough education and work experience to succeed. I feel if I have a college degree there will be a great opportunity for advancement in my current career with Philadelphia Corporation for Aging, I also have a sense of what the business world is like. I would feel a since of great accomplishment as each semester begins and ends. Learning new skills in my field and building my knowledge will give me more confidence to succeed. The first of my three goals are to get college education, as classes have become more challenging, I have to study harder and have found I can overcome these challenges. As I overcome these challenges, I find that I look forward to the next challenge and the one after that. Going to college will give me the opportunity to express myself and to believe in myself. I know that I can establish myself in the field I have chosen and become a success in this field. My second goal is to fix my home; with the cost of living it is difficult to get exactly want I want for my household. I know that I’m not building enough to get the plush and beautiful things that I want, which is very disappointing. The last goal that I have is to get...

Words: 290 - Pages: 2

Premium Essay

Young Adult Challenge

...Challenges Young Adults Face Today Being a young adult today has many difficult stages of life that can be quite challenging, even under the best circumstances. During puberty, young people are invaded by a series of new emotions and feelings. Daily pressures faced by teachers and peers. They are exposed to the heavy influence of television, film, music and the Internet. Hence, a United Nations report defines adolescence as "a period of transition that is often characterized by stress and anxiety." Today, young people looking for a quick solution to their problems, for example in drug addiction, prostitution, euthanasia, bullying, suicide, among others. In this case drugs affect our body, losing their logical thinking , and making the forget all those problems that have been disturbing them. Sometimes they just have influences that affect a person for lack of will and likewise assessed, fall into the same temptation of drugs, both legal and illegal like. There are people who have everything but if they lack love and security they seek this out, or just out of curiosity mind and then create a rollercoaster of a problem. Drug addiction is a touchy subject, because many people go so far as to sell everything they have and leave everything for a single dose of what make them happy, drugs. The only treatment to come out of this is the support from hi/hers family and most of all depending on thee person who is at the moment with this addiction has the willpower to go to rehab...

Words: 901 - Pages: 4

Free Essay

Big Data

...Challenges and Opportunities with Big Data A community white paper developed by leading researchers across the United States Executive Summary The promise of data-­‐driven decision-­‐making is now being recognized broadly, and there is growing enthusiasm for the notion of ``Big Data.’’ While the promise of Big Data is real -­‐-­‐ for example, it is estimated that Google alone contributed 54 billion dollars to the US economy in 2009 -­‐-­‐ there is currently a wide gap between its potential and its realization. Heterogeneity, scale, timeliness, complexity, and privacy problems with Big Data impede progress at all phases of the pipeline that can create value from data. The problems start right away during data acquisition, when the data tsunami requires us to make decisions, currently in an ad...

Words: 7700 - Pages: 31

Free Essay

Recommondation for Mba

...admission into your program at your renowned university. I have known Mr. Li Linan since he took my course International Finance in his junior year. When he was a junior student, I instructed him to complete his graduate paper. I am strongly impressed by this young man. In my class, Li could make a clear comprehension of what I taught and use his knowledge to analyze current issues. After class, he often prepared some questions about hot issues of the subject or doubted the experts’ arguments, which he would ask or challenge me in the next class. His performance shows that Li is greatly interested in business and he is a person with original idea as well as challenging spirit. Both of them, I believe, will become two wings, with which this girl abounded with dream can fly higher and higher. In the spring of 2009, as his advisor, I instructed Li to write his graduate paper. During this time, I know him better. I find he always holds his own perspective on economic or business issues. Before starting to write his graduate paper, Li visited me several times and talked with me about his views. From our conversation, I realize that his extensive reading covers finance figures’ investment methods, such as Warren Buffett etc. Targeting his investment concept, Li put forward his own opinion. His diligence and deep thinking allow him to accomplish his paper successfully. According to what I know about Mr. Li Linan, I am convinced that he will make achievements in his academic pursuits...

Words: 304 - Pages: 2

Premium Essay

Abstrast

...Thesis: The challenges of being a single parent include managing finances, responsibilities and resources The challenge of being a single parent has become harder over time. The fact is that over time things have changed but not for a single parent. Statics show that there has been a steady rise for five decades and that the births to unmarried women has crossed a threshold. An example of this would be, a single mom that can’t provide day care for her child because her income is not enough to pay the bills and day care. The challenges of being a single parent include, managing finances, responsibilities and resources, their work is never done nor are their struggles. One of the challenges a single mom has raising her son and daughter would be getting up at 4am taking 3 buses to transport her children to her mother (who lives on the other side of town). Spending 2 hours getting there and another 3 buses and a hour and a half getting to work. There is a limit on everything she does because she does not have the opportunity to get an education, she has to work and provide for her family. Pawning valuables to make ends meet when money is short, living from pay check to pay check. Child support is another challenge for a single mom when the children’s father does not work, all the financial responsibility is on the single parent. Another challenge to a single mom is that because she is a woman, to keep from being taken advantage of, she will pay more money for rent to keep...

Words: 602 - Pages: 3

Premium Essay

Yyyyy

...making it. A lot of things have happened in my life and in the world today but I am still making it. Having children created a big fear, I had many questions in my head-(will I be able to provide for my children? Will I be able to combine going to school family and paying bills?) All these fears combined with the global fear of shooting in America, shooting in the primary school, bombing, accidents, and hardship created more fear and anxiety knowing that the world is a difficult place to live in. with all these challenges in the world I am determined to succeed. How well- prepared do I feel for school? I started preparing myself the moment I had the feeling of going back to school. I reviewed my math and English and came to ITT to take the entrance exam which I felt very happy when I passed. I am ready to work hard in school, I am determined to succeed. Hard work is the key to success and I am ready. What challenges do I anticipate in this class? Staying focus can be challenging especially working full time and taking these classes but I am determined to stay focus and always put my best effort. Writing and...

Words: 492 - Pages: 2

Free Essay

It/206 Ms Word Assignment

...Situation 1: Identify a general approach for facilitating the customer over the telephone. What are the possible challenges in the given situation? What strategies would help you overcome the challenges? My general approach to this situation would be to ensure that I understand exactly what the user is intending to do, and what version of Excel they are using. A possible challenge to this situation is that the customer wants to use a program that is completely new to him. To overcome this challenge, I will speak to the customer slowly so that they can understand the basics of Exel. If causes to the problem or question described by the customer are unclear in the situation, explain how you would further diagnose the problem or question. I would go over each step that the customer wants to learn, and offer to send them an email with step-by-step instructions on what he needs to do. Once the causes are identified, describe a step-by-step troubleshooting process to help the customer complete the task. -I would ask the customer to gather all of the receipts and expense logs. -Have the customer fill in all the required fields on the spreadsheet that pertain to the company. -Total the amounts -Calculate hard copy expense report and or receipts. -Check all of the information entered If the customer has problems understanding or following your instructions, briefly explain an alternative situation. If the customer is still having problems...

Words: 279 - Pages: 2

Premium Essay

Three Rewards and Three Challenges

...the career you chose a job or is it your work? I feel a job is just something you go to everyday, but work is something you do that will make a difference in someone's life. I'm hoping that it won't just make a difference in my life, but that of a child's life too. This is the reason I choose this career path in becoming a teacher. “What are three rewards and three challenges that you will face as a teacher?” I'll be talking about these challenges and rewards in the next few pages, on how I feel teaching make a major impact on not only my life, but hopefully the lives of thousands of children to come. At the end of the day I'm hoping to be that one teacher that my students will remember forever. What greater gift could I be given than to make a positive impact in a child's life and future? So, with that said let me begin with the rewards! The first one that comes to mind is the achievements of my students, in more detail student discoveries and the exciting new things they will learn through me teaching in my classroom. In doing so, I can show them how to untangle things they are struggling with, challenges they face, or problems that might occur; by showing them a different light. The smile that comes across a child’s face symbolizing that they understand or I've got it! Is one of the best feelings I feel, a teacher could have. This would show to me that I'm doing my job well and I helped a child cover new exciting things! In hopes that they would not be stuck at...

Words: 1037 - Pages: 5

Free Essay

Amazing Race

...the owner and ask if you can use one dryer for a few hours. If they agree, collect a bunch of funky clothes to have waiting for the teams in the dryer when they arrive. You can put together your own set of funky clothes. We used 3 pair of extra large sweat pants, 5 goofy extra large shirts, 1 sweater, 2 knitted winter hat, 1 baseball cap, 2 scarves, and a pair of thick gloves. Have the challenge details card taped to the outside of the dryer door so they know what they are looking for. On the note they will find the challenge: Each player must put on all of the articles in this dryer AT ONCE and have their picture taken. When everyone is finished with the task your team will receive the next clue. DETOUR!! Detour clue card reads:You are on your way to winning this race,Hopefully this detour won’t slow your pace.From two challenges you must choose,Make sure to choose wisely and you can’t lose! | | The challenge details read: Ok players, here are the two challenges, remember you only have to complete one. You also have the option of changing your mind at any point and switching challenges. Here are your options: Option A: Your job is to find a penny marked with the year the birthday girl (or guy) was born. Check anywhere you can. Each of you will be given a quarter to help trade for pennies if you choose this...

Words: 329 - Pages: 2

Premium Essay

Challenge the Boss or Stand Down

...Authority could exists in every fields which usually is a significant part to ensure the normal operation. Although it could benefit the operation, it may cause some issues. Accompany with authority, there could be many challenges. Challenges refer to some different thoughts which are happened between the superiors and the subordinates. The dilemma is whether do as what the boss told or follow the original heart. This dilemma is the main focus of Tom and Frank’s case study, ‘Challenge the boss or stand down?’ (2011). ‘Challenge the boss or stand down?’ concerns a general issue in the company D7 Displays. A rising star Tom challenged his new boss Frank in the public, and they have different opinions. Tom is facing the dilemma which may lose his job, and he has to choose a better method to solve this issue. As a diligent employee, Tom wants to do his best and gain reliance from his boss. He argues that the airline kiosk business is hurting by the web service and the only way to compete is developing the kiosk-based services which could make profit or provide more benefits. However, Frank, who is his new boss, is firmly holding the different opinion. Frank points out that the airline kiosk business presents a mature market and clients will not resign it. In addition, the hotels and car rental markets are wide open, and the company should develop these areas. Frank asserts that Tom was out of line and focus on the part not belongs to him. Advice about this dilemma is given...

Words: 359 - Pages: 2

Premium Essay

Questions to Ask in Interviews for Auditing

...of the recruiter as the "big picture" person. They can give you an overview of the company and the department as a whole. (Save very specific questions about the job for the hiring manager.) The recruiter is also the best person to answer questions about the hiring process. Some questions to ask the recruiter: * How would you describe the company culture? * What type of employees tend to excel at this company? * Can you tell me more about the interview process? The Hiring Manager: Your Future Boss The hiring manager will likely supervise you if you get the job. They're the most knowledgeable people about the position and its requirements. You should direct specific questions about the job, its responsibilities and its challenges to them. You may also want to ask what kind of candidate they're seeking. Some questions to ask the hiring manager: *What are the most important skills for the job? * How would you describe your ideal candidate? * What's a common career path at the company for someone in this role? The Executive: The Industry Expert Senior managers and executives are likely to be most knowledgeable about the latest happenings in their industry. If you'll be working closely with an executive, you can ask them some specifics about the job. But you should focus most of your questions on the future of the company and the industry. This is your chance to show off your industry knowledge! Some questions to ask a senior manager or executive: ...

Words: 409 - Pages: 2

Premium Essay

Change Wheel Reflection

...March 27, 2014 Unit 1, Assignment 2 Change Wheel Reflection; Fri AM After working for JPMorgan Chase for 7 years I was laid off April of 2013 and it’s a year that I have been without a job has made me realize that I had to change my life around, plan for a new career and going back to school really put a damper in my life. Change in a new career is very scary and thought of going back to school that I have not attended since my oldest daughter was born was even scarier. Not only those challenges occurred but during this time I was engaged and married a few weeks before I was laid off. Now I have brand new family to care for, my wife, her two kids and my high school daughter came to live with us. Moved in to a one bedroom apartment with 5 people, no job, receiving unemployment, my wife also had no job except for what she receives for her son’s SSI got really challenging. Yes, of course negative thoughts and negative attitude started settling in. Job application after job applications no calls and no interviews for 4-6 months. No one was hiring and especially I being over qualified for some jobs or no degree set me back even more. This was a huge life changing experienced in my life ever. Knowing that my sisters and mom had their own families to care for and my wife’s family going through the same similar situations got even harder. My unemployment was running out and knowing that there was no extension by the end of December was another negative outcome to the situation...

Words: 716 - Pages: 3