Accounting And Control-Free-Samples for Students-Myassignment

In the present case following are the variable expenses Direct material hence variable expenses Direct material hence variable expenses Indirect material hence variable expenses Direct labor not permanent hence variable expenses Administrative (inspector’s monthly salary) Indirect labor not permanent hence variable expenses Administrative (inspector’s monthly salary) Revenue per unit is $8 hence contribution per unit become $8-$6.6=$1.4 per unit. Fixed cost i.e. cost related to Annual machine and building depreciations is $75000. Hence breakeven units (in KG’s) become $75000/1.4= 53572 Kilograms. In the present case expected production for the year is 50000 kilograms which are below then the breakeven level hence it is suggested to the organization to do not operate in the coming year. 2.As per Cost volume profit analysis, a company should operate when sale volume of the company becomes either equal to breakeven point or above than breakeven point. The breakeven point is a level of sales where company’s operation would result in neither profit nor loss. Whenever production of the company becomes higher than this level then company’s operation will result in profits. In the present case, it is recommended to the company to operate in the year 2018 only if when company sale become 53472 kilograms or higher. Cost volume profit analysis depends on three assumptions i.e. fixed cost remains constant, variable cost per unit remains constant and sale price per unit remains constant (Kryvinska, Auer, & Strauss, 2011). If all these three assumptions hold good then results formed from cost volume analysis become always relevant and become reasonable for the company in making a decision without actually incurring a loss. Subject: Advise for reduction of risk of operating loss Jerahm and Angel are facing the dilemma regarding the operation of the Crunchy chips problem due to the importation of Chinese potato chips. Jerahm and Angel could make profits by revising their cost structure and so that operation becomes started to give a loss. As per cost volume profit analysis cost structure of any organization includes two types of costs one is a variable cost, which changes due to change in volume of sale and other is a fixed cost which remains contestant at each level of production and will not change due to increase and decrease in the level of production (Hansen, Mowen, & Guan, 2007). In the present case, only fixed cost of the organization is depreciation and all other costs are a variable cost. When company’s operating level was 150000 kilograms company’s contribution margin was higher and eligible to set off fixed cost but when company’s operating level come down to 50000 kilograms company’s contribution margin become lower and become ineligible to set off fixed cost. In the present case change in cost structure is not profitable because whenever company’s production becomes lower then it is recommended to make fixed expenses as a variable expense, but in the present case except depreciation, all expenses are already variable. The way to reduce operating loss is to either reduce variable cost per kilogram or increase sale volume (Horngren, 2009). If it is possible for the company to reduce its cost per kilogram regarding any or all variable cost then company become able to reduce loss because the decrease in variable cost per unit results in an increase in contribution per unit and increase in total profit. Another way to reduce operating loss of the organization is to increase sale volume. Increase in sale volume will result in the same contribution per unit but the increase in the total contribution and such increase in contribution will result in increase total profit. Hence as per cost volume profit analysis, it is advisable to the orga nization to either increase sale volume of decrease variable cost per unit. Hansen, D., Mowen, M., & Guan, L. (2007). Cost management: accounting and control. Cengage Learning. Horngren, C. (2009). Cost accounting : A managerial emphasis, 13/e. Pearson Education India. Kryvinska, N., Auer, L., & Strauss, C. (2011). An Approach to Extract the Business Value from SOA Services. International Conference on Exploring Services Science , 42-52.

Need to justify investing in IT projects Essay Example | Topics and Well Written Essays - 500 words

Need to justify investing in IT projects - Essay Example Project planning involves guiding the execution of the project. A lot of resources are required in project planning since plans have to be useful and realistic. This paper looks at the need to IT projects investment justification. Best practices in governance of IT do identify efficient and effective IT investment as well as portfolio decisions as a significant objective and do insist on definition of the formal investment criteria for instance, Pay-back period, Net Present Value and ROI. In order for an IT investment to be justified, it has then to be linked to the investment’s business benefits, whereby the benefits have to be qualified and some monetary values allocated to the outcomes. One of the main reasons as to why IT projects have to be justified is that it involves a major capital investment. According to Computer Economics Incorporation, in certain industries, more than half of all expenditure is accounted for IT. This means that if executives of information systems need new systems to gain approval, then it is good for them to understand how the executive management expects justification of large capital expenditures (Computer Economics Inc., 2014). Despite the difficulties in the quantification of IT investments benefits, the senior executive are asking information system leaders tough questions with regard to the proposed IT investment project is going to improve the key business as well as financial metrics. Business benefits from IT projects happen to be indirect outcomes of interactions that are complex between business processes within which the technology is entrenched, and the technology itself. These benefits mostly include substantial intangible components. However, they take time to materialize because business processes and customer perception happen not to be instantaneous phenomena. A shortage of good processes for magnitude estimation as well as timing of business benefits that result from IT projects exists (ISACA, 2014).

Adventure Tourism Essay Example | Topics and Well Written Essays - 3000 words

Adventure Tourism - Essay Example In this context, tourism offered by the state is really important for people of ‘weak’ financial status, whereas tourism products that are designed specifically for people with a strong financial background, can be just a part of daily life without a significant value for the people involved (in terms of expectancy). However, in terms of pleasure tourism products are welcomed by people of all social levels around the world. It has to be noticed that tourism has been developed a lot especially the last decade where a series of tourism products have appeared and are offered to the public (or to a more limited part of the population). Under these terms, the adventure tourism products have expanded internationally and keep on gaining the preference of people in the global community. The types of these products are many, however because they have common characteristics they can all be evaluated simultaneously with just slight differentiations referring mostly to their ‘ structure’ and the facilities used for their ‘realization’. The development of tourism around the world has been in accordance with the potentials of each particular geographical area (in terms of landscapes and facilities provided) as well as the preferences of tourists as they are expressed through the tourism products chosen worldwide. In this context, it has been stated by Werner (2003, 141) that ‘within the past century, international tourists have increasingly sought exotic destinations in their pursuit of relaxation, escape, and adventure; recognizing the opportunity to earn valuable foreign currency, developing countries have catered to these desires by encouraging tourism development’. The types of tourism products offered by each country are depended on a series of parameters with most important its ability to respond to the requirements set by these products from a financial and environmental aspect as already expected above. For this reason, it is hardly