Activity-based costing Essay Example for Free

Activity-based costing Essay There are many different types of cost systems a company can choose from when calculating their costs. Two of the most frequently used cost accounting systems are a volume based cost system and an activity based cost (ABC) system. Each system has their own advantages and disadvantages and some are more common among certain industries. Wilkerson, like many other companies, used a simple/volume based cost accounting system. Under this system, Wilkerson was inappropriately allocating their costs by assigning the overhead expenses based on direct labor, thus calculating their total costs and operating income incorrectly. If Wilkerson continues to operate their company ignoring the fact that their costs are inaccurate, it is possible that they may make poor business and pricing decisions in the future. Although Wilkerson’s costs are currently being calculated incorrectly, if they decide to use an activity based costing system, they may achieve more accurate results. Using a simple cost accounting system is often easier and less time consuming than an activity based costing system, but it is also less accurate. Wilkerson’s implementation of an ABC system would most likely be very beneficial to the company in terms of both determining their costs more precisely and making overall better pricing and business decisions. An ABC system at Wilkerson would look very different than their current volume based system. Wilkerson’s ABC system would use machine-related expenses, setup labor cost, receiving and production control, engineering, and packaging and shipment as the cost pools. The revised per unit product costs under this system would be $46.17/valve, $58.20/pump, and 115.38/flow controller and the margins would be 46.3%, 33.1%, and -9.9%, respectively. The results when calculating product costs are so different depending on the cost system because we are now actually determining the costs per unit with multiple cost pools because each resource uses a different amount of the indirect resources rather than assigning the manufacturing overhead cost solely based on the direct labor costs. Based on this new accounting information I would recommend that Wilkerson try to make an improvement in their flow controller product. Since the gross margin for this line is negative, if adjustments are made but there is no improvement in its profitability, I would tell Wilkerson to consider dropping the line completely. Although Wilkerson would lose $420,000 in sales, their costs would be reduced by more than this amount, ultimately increasing overall profits for the company. Unfortunately, there are some limitations in our analysis of Wilkerson’s alternative cost systems. One limitation is that we are unable to easily assess how the market will react to a change in the flow controller line. A second limitation that we have to consider when looking at our analysis is that although our cost allocations are much more accurate than before, these costs are still the averages for each product, which could impact how accurate we are in determining the costs. However, if we are able to look past these limitations, our analysis of Wilkerson is beneficial in shaping how the company can more accurately calculate costs as well as be more profitable in general.

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The 1960s was one of the most eventful and perhaps the most troublesome decade in India’s post-Independence era. This decade saw major events like the two wars – one each with China and Pakistan, the annexation of Goa, the deaths of Nehru and Shastri, the Bihar famine,the abolition of privy purses etc. Near the end of the decade, the then prime minister of India, Indira Gandhi, took another major policy decision -- the bank nationalisation. In 1969 the Government of India decided to nationalise 14 major private commercial banks. Bank nationalisation was not a new concept for India as in 1955 the Imperial Bank of India was nationalised and renamed as State bank of India (SBI). In 1959 seven subsidiaries of SBI were formed by nationalising seven state banks. But it was the 1969 nationalisation that caused maximum impact on political and economic spectrum so much so that even Jayaprakash Narayan called this step as ‘a masterstroke in political sagacity’. Decision to nationalise the banks, which has both political and economic undertones, has to be analysed by considering the then prevailing conditions. After centuries of foreign rule and economic exploitation, the independant India had just started its march towards socio-economic development with a dream of creating equitable society by alleviating the widespread poverty. India had adopted the path of planned economic development which envisaged social i.e. governmental control over the means of production. First two plans laid stress on creating heavy industries which would serve as base of economic development. From third plan major emphasis was given on agricultural development with the aim of achiving self-sufficiency in food production and thus tackle the grave issue of ... ... like Uttar Pradesh, Bihar, Orissa etc. After nationalisation the professional management made way for public maganemet which caused lower efficiency. As social welfare took precedance over profits many banks started suffering heavy losses. The political interference in daily administration of banks increased which led to rampant corruption. Although the banking habits in rural areas improved significantly menace of illigal moneylenders could not be curbed in large parts of India. In conclusion, it has be accepted that despite all the demerits the nationalisation of banks was a major step in towards the creation of equitable society. Public sector banks later went on to become catalyst in success of green revolution. In an agrarian economy, bringing banking system under public control was a major shot in the arm for the socialist government of Indira Gandhi.

Family Witnessed Resusitation Essay

There are several legal and ethical issues relating to FWR. Some of the key legal concerns expressed by healthcare professionals include the potential for litigation, patient confidentiality, and the patient’s right to privacy (Mian et al, 2007; Critchell et al, 2007). Litigation and liability concerns arise from the fact that, in most cases, family members will have little understanding of the procedures used in the code room. The fear is that the staff’s actions could be perceived as detrimental or harmful to the patient in the eyes of the typical lay-person. The reality is that once healthcare providers become educated and experienced with FWR, this fear is alleviated, as found in a study conducted by Mian et al (2007). In this same study however, confidentiality and privacy concerns were unchanged, suggesting that this is an issue hospitals will need to address if they are to implement FWR. The ethical issues involved with FWR revolve around the mental and emotional impact that families and medical professionals may experience if a code is witnessed. Performance anxiety and the potential loss of professional distance from the patient for healthcare providers and how traumatic the experience may be for family members are major ethical concerns with FWR (Mian et al, 2007; Critchell et al, 2007). Mian et al found that nurse attitudes regarding potential trauma for the family improved with experience while physician attitudes did not. Studies of family member reactions suggest that the experience is not excessively traumatic for family and may actually be a beneficial part of the grieving process (Critchell et al, 2007). Performance anxiety for the staff seems to be the bigger issue. Though this factor seems to improve with experience (Mian et al, 2007), staff anxiety will still be a driving concern when it comes to the ethical consideration of whether or not it is beneficial for family members to be present. Discuss the viewpoints of various medical professionals in regards to FWR The general trend in opinions regarding FWR is that nurses tend to favor it while physicians tend to be against it (Critchell et al, 2007). The study conducted by Mian et al looked at attitudes pre- and post- FWR experience and in both situations found that nurses had a more favorable view of FWR (2007). While there are many potential reasons for this trend, one possible explanation is that nurses have more interaction with the patient and the patient’s family, thus establishing more of a connection which in turn makes nurses feel more comfortable with family members present. Discuss the patient and family experiences associated with FWR Most people believe that it is their right to be present during a loved-one’s resuscitation, should they so desire. Contrary to the fears of the medical community, family members who have been present during a resuscitation report that the experience was not traumatic for them and would in fact opt to witness it again. Also, being present seems to provide a sense of closure and security in knowing that everything possible was done to save their loved one’s life (Critchell et al 2007). What is your opinion regarding family presence during resuscitation ? Do you support this practice? Why or why not? I believe that the immediate family members should be given the option to be present during resuscitation of the patient. I believe that it is the immediate family members’ right to be present if they choose to be and if they are not disruptive to the medical team that is attempting to resuscitate the patient. I support this practice because of my own beliefs. I would want to be present if my family member was critically ill and needed to be resuscitated. It would give me the opportunity to support my loved one, to have closure, to have a sense of the severity of their illness, and to say my goodbyes if my loved one was not able to be resuscitated. If I were a patient, I would also want to have my immediate family at my side. I might be alert and scared during the resuscitation. Knowing that my family was at my bedside would be comforting to me.

The Seven Commandments In Animal Farm, By George Orwell

Napoleon eventually becomes virtually indistinguishable from the cruel humans that he fought against in the novella, Animal Farm, by George Orwell. The pigs’ ideals that are first established when the animals overthrow Mr. Jones, slowly evolve as the pigs gain more authority over the other animals. Simultaneously, the Seven Commandments that were established at the founding of Animal Farm suffer from multiple revisions. The progression of the pigs’ characters shows the theme of Orwell’s story and his views on how one is affected by power. By examining the evolution of the Seven Commandments, one can see how unchecked power leads to the corruption of both a leader’s ideals and morals. The original Seven Commandments establish equality†¦show more content†¦Every mouthful of food was an acute positive pleasure†¦there was more for everyone to eat. There was more leisure too†¦Ã¢â‚¬  (28). The animals’ quality of life under the pigsâ⠂¬â„¢ care is described to be drastically different than that under Mr. Jones’ care. Although the pigs see the other animals as intellectually inferior, they still consider them comrades. Because the pigs adhere to the Seven Commandments, everyone’s goals on the farm are aligned and collectively all animals reap benefits. When the pigs start gaining power, they revise the Seven Commandments in order to fit their needs and thereby deviate from their original ideals. Although Napoleon continues giving speeches about how much better off animals are, his words are nothing but lies meant to soothe any doubts the animals may be having. Each revision that is made to the Seven Commandments allows for the pigs to further adopt each one of man’s â€Å"vices† that Major opposes during the first barn meeting. As a result, with each of the Seven Commandments that is changed, the more human the pigs become and the less animal-like they seem. The changes also show how u nchecked power corrupts, as the changes in the Seven Commandments mirror the gradual erosion and eventual loss of Napoleon’s and Squealer’s ideals of equality – the principles that unite the animals together in the first place. Major states, â€Å"All the habits of Man are evil. And, aboveShow MoreRelatedAnimal Farm, By George Orwell, Uses Real World Examples1106 Words   |  5 PagesAnimal Farm, by George Orwell, uses real world examples to link a specific purpose to the unfortunate society. This novel is relevant to the world because in today’s society. Power is often misused and abused. Today’s world if full of scandals by people misusing funds, abuse of power, and taking advantage of the innocent.. To link this novel even more to the real word, Orwell compares Animal Farm to the Russian revolution, which leads to symbols throughout this novel. 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