Benefits of computing gross profit on sales in contrast to contribution margin

The computation of gross profit on sales, which can be derived under the absorption costing approach, is a profitability measure normally conducted under financial analysis.   This accounting ratio outlines the gross profit generated from every $100 of sales.   Such measure is highly useful in financial analysis, because it provides indications on the profitability potential and cost efficiency of the company.  Ã‚   For instance, if there was an increase in sales of 10%, but the gross profit margin declined by 4%. This indicates that the cost efficiency of the organization deteriorated during the period.   Such analysis cannot be conducted under the contribution margin approach, because gross profit is not present.   However, under the contribution margin approach one can calculate the contribution to sales ratio which indicates the contribution determined from every $100 of sales.   This would also provide indications on the control of variable costs once compared over time. Difference in Net Income arising from different approaches. In the example of ABC Company the profit under the two methods is the same.   However, this is not always the case.   Profits under the two methods differ whenever there is movement in inventory.   This is due to the fact that since under the absorption costing technique fixed manufacturing costs are included in the cost of goods sold, a proportion of fixed costs will be included in inventory leading to such a difference. Contribution margin approach not allowable for external reporting. The contribution margin approach, despite being highly useful to provide valuable information for decision making, is not acceptable for external reporting.   This is due to the fact that it does not comply with the Generally Accepted Accounting Principles (GAAP). For example, under the GAAP the income statement layout should clearly outline the gross profit made by the company.   Under the contribution margin method this is not highlighted.   Another important reason why the absorption approach is allowable for external reporting and not the contribution approach is due to the way in which the income statement is classified. The GAAP state that the income statement is classified by function, like under the absorption method.   In the contribution approach it is classified by cost behavior.   Indeed separation between fixed and variable costs is made under such method. This conflicts with another requirement of the GAAP. Reference: Drury C. (1996). Management and Cost Accounting. Fourth Edition. New York: International Thomson Business Press.

Situation problem and solution and evaluation Essay

Situation problem and solution and evaluation - Essay Example Burning of fossil fuels results in green house gas emission (Adger, 2005, p.23). It pollutes the atmosphere. On the other hand, deforestation results in lesser rain. Limited reserve of rain water is increasing the temperature of earth’s surface. Global warming can negatively impact on the survival of earth’s life. Just a difference of few degrees in the earth’s average temperature can result major climate change (Arnold, 2011, p.121). Whole world is experiencing this climate change since 19th century. Global warming has become one of the most important global phenomenons. Greenhouse Gas emission is the major consequence of global climate change or global warming. All countries are co-operating with each other and collaboratively trying to minimize the impact of global warming on the society. Increasing green house gas emission due to unethical business practices of several organizations is posing real threat for future generation. It is assumed that if the greenh ouse gas emission increases at continuous rate, then several animal species can get wiped out from earth within next 100 years (Jamieson, 1992, pp.139-153). It is important to control the greenhouse gas emission in order to control the effect of global warming. Problem Both greenhouse gas emission and global worming have critical intergenerational effects. Carbon dioxide is considered as the most deadly and prominent greenhouse gas. The temporal diffusion of climate change can develop various collective ethical problems. Environmental damage and global climate change become most critical global threats (Maslin, 2007, p.43). Heating up of earth’s surface due to carbon dioxide and methane gas emission is prominently affecting modern civilization. Several unethical human activities are responsible for this rapid global climate change. People are trying to implement the potential opportunities that are developed due through globalization and modern technology (Postel and Richter, 2003, pp.34-35). Number of consumption of vehicles rapidly increased over last few decades. Every single individual are trying to satisfy their comfort level by application of advanced technological instruments. Refrigerators and washing machines are important daily-life consumer durable goods. Global warming is the consequence of increasing Ozone layer in atmosphere (Rijseberman, 2006, p.12). Deadly CFC released into the atmosphere by the havoc usage of refrigerators and washing machines. Moreover, consumption of fossil fuels largely increased over past few decades. Burning of fossil fuels increases the emission of methane and carbon dioxide. The number of serious human diseases, such as cancer, TB, mental disorder and respiratory problem are increasing due to atmospheric pollution and increasing GHG emission (Vanderheiden, 2008, p.34). Deforestation is highly responsible for loss of rainfall. Water is the source of life. People are cutting down rain forest in order to develop ind ustries and complexes. Day-by-day, several species of birds are wiping out from earth due to deforestation. It is affecting ecological balance as each and every animal has effective contribution in effective ecological balance. Solution It is clear from the above discussion that government of all the countries, leading global organizations and present human generation has the responsibility to control and reduce the effect of global warming. Following

Does the electronic cigarattes a good replacement of the traditional Essay

Does the electronic cigarattes a good replacement of the traditional cigarettes - Essay Example There has been a recent surge in the use of e-cigs promising to actually help smokers replace the old habit of smoking the much dangerous and potentially life threatening traditional cigarettes. However, a debate remains as to whether the e-cigs are good alternative replacements of the traditional cigarettes or not. One of the key reasons as to why the traditional cigarettes are being opposed by various organizations is the potential health impacts of the smoke on the overall health of the smokers. Traditional cigarettes tend to cause cancer, asthma and other related diseases. It however, is still unclear as to whether the e-Cigs have any demonstrated health advantages negating the harms of smoking traditional cigerrates. The World Health Organization issued warnings in terms of informing the users no to use the e-Cigs until their benefits or use is being endorsed by any of the leading health regulatory authority at the national as well as international level. It has also been suggested that e-Cigs are relatively safer however they may not be entirely safe to smoke. Though the related side effects of them are still need to be determined however, it has been suggested that their use may not be as safe as it may be perceived. The safety benefits are however, relatively larger as compared to the traditional cigarettes as the nicotine burning rate is relatively slower as compared to the traditional sources of nicotine. As a result of this the release of nicotine in bloodstream is slowed down and as such these are considered as safer as compared to the traditional sources. (FDA para. 12) Since the leading regulatory bodies still have not allowed the regulatory approvals to the e-Cigs therefore there is still a lack of manufacturing oversight on these e-Cigs. As a result of this lack of oversight, it is often argued that their manufacturing may have faults which can cause greater health concerns once such health hazards are identified. Some of the studies on

Wills World Cup Cricket Match Personal Statement

Wills World Cup Cricket Match - Personal Statement Example So Sri Lanka got points for the first two games and went directly to the quarter-finals. This never happened before or since in the Cricket World Cup. All the games after that were played in Pakistan or India. The Group A games between Australia and the West Indies were marvelous. All the players on the Australia team were very young. They did not have much World Cup level experience. Their captain, Mark Waugh, also was one of the best scorers of the tournament. They proved they were fighters. The Australians played their hardest against the West Indies veterans. Now the West Indies, as you know, is not one country, but a group of many islands in the Caribbean Sea. It was wonderful to watch how all these players put their skills together to make one terrific team. Brian McMillan and V. Chanderpaul were the team's star players. In one of the semi-final games, the "Windies" as they were called, threw everything they had at the Aussies, but it was not enough. The Australians charged into the final game, defeating the Windies by a score of 207 for 8 in 50 overs. All four of the Group A teams: West Indies, Australia, India and Sri Lanka advanced to the semi-finals. Sri Lanka and Australia played the final, and Sri Lanka was victorious in a dogged match over the Australians, 245 for 3 in 46.2 overs. The Sri Lankans captured the victory by seven wickets to take home the World Cup for 1996. The skilled players from India fascinated me during this tournament. Even though they did not play in the final match, two of their best players took the top awards in the Wills World Cup. Sachin Tendulkar scored an amazing total of 523 runs in all the matches he played. His teammate, Anil Kumble, was the top wicket scorer with 15. I remember the announcer talking about Sachin Tendulkar during the India semi-final game. He told us that Tendulkar was very young, in his early 20s, and had just married before the start of the tournament. He suggested to young men everywhere, "See what a happy marriage can do for you," meaning that Tendulkar played so well because he was very happy and contented. I always wonder if many young cricket players watching the Wills World Cup soon asked their girlfriends to marry them because of this advice. Very different from the India and Australia teams was the South African squad. Every player had played in at least one World Cup before. They were led by the legendary player Hansie Cronje (crow nyee). All of them were white. Apartheid had ended in South Africa, but there were no black players chosen for the team. Cronje was a tall, solidly built man. He had a strong-featured face, a beaky nose, piercing pale eyes and thin lips. He was very intimidating to his opponents. The South Africans fell to the hurricane speed pitches of the Windies, who beat them 264 for 8 in 50 overs. Hansie Cronje remained the permanent captain of the South Africa team for several more years. I was deeply saddened to hear of his death in a small plane crash in 2002. Another thing I remember clearly from the Wills World Cup was the players' uniforms. We are all used to seeing cricket players dressed in snow-white from collar to shoes. But not at the World Cup. The players wore polo-style shirts, short sleeved with two buttons at the top, in vibrant colors. The colors were usually taken from those in the country's flag, except the Windies,

Health Promotion Teaching Plan Research Paper Example | Topics and Well Written Essays - 750 words - 2

Health Promotion Teaching Plan - Research Paper Example at the rules stipulated in the memo can be reviewed and a thorough checking be conducted in order to ensure that the students have obeyed them to the letter. The historical exercise of â€Å"hands on† teaching in healthcare professions, whereby students learn through practice on real stress reduction strategies, diet and exercise under supervision, may not be justifiable as the principal model for preparing healthcare experts. This challenge could be aggravated by the advance of directed health plans; patients paying for their own healthcare may refuse to serve as â€Å"teaching material,† the price traditionally paid for receiving care at a teaching hospital or public clinic. Consequently, real people with wellness problems are needed to avoid of caregivers shortages under such situations ( Riley, 2008). The instructor will listen to how the other nursing students respond to a given incident and provide guidance where needed. The observational notes will be look over during the next class with all students. Nursing students learn in two ways, through text books, and by being in a hospital environment, which allows them to familiarize themselves with real life situations; as such, the lesson provide a way for the students to practice in an environment that is comparable to a real life situation. This will better prepare the students for their upcoming healthcare nursing studies (Loyd, Lake, & Greenberg, 2004). The main challenge faced by nursing students is that they are not familiar with carrying out proper procedures during circumstances that are covered in their textbooks, and it is for that reason that nursing students need to be able to have a way to practically apply the proper procedures of the medical field’s practices, especially in health and wellbeing. The practice of using role-playing scenarios at random throughout a course of study considerably helped students to be prepared to act on any situation as if they were in a real situation ( Sanchez,

Bed And Breakfast Business Plan Term Paper Example | Topics and Well Written Essays - 2000 words

Bed And Breakfast Business Plan - Term Paper Example The business intends to capitalize on personalized services, and its unique location to attract new customers and retain the existing customers. The business also intends to create an environment that will facilitate a pampered comfort that is far beyond the projected business competitors. The business will as well incorporate contemporary technology in its operation to holistically renovate the flow of tourism in Georgia. Services The business plans to create rental units that will target foreign tourists. Secondly, the proposed bed and breakfast business also projects to tender a guideline services to foreign tourists on the most eye-catching tourist sites in the areas. The business as well projects to work together with others tourists’ agencies and businesses in order to offers packing slot at a special rates. A part from offering tourism services, the business also plans to offer breakfast services such as preparing breakfast foods to its customers as well as preparing hi gh quality and delicious meals to its customers. General Staffing For a starter, the business plans to employ 91 employees. Among them, seven professionals with be mandated with the responsibility of the general management of the business will the others will be regular employees with specific responsibilities. The business intends to employs over 40 well qualified and trained chefs. The business will recruit 20 tour guides who will be responsible of guiding tourists in the business’s area of coverage. The recruitment exercise in the business will purely be based merit and experience. There will be not favors in the business recruitment and promotion exercises. Rationale Lodge and hotel businesses have over years played an exceptionally decisive role in the success of tourism activity in Tybee Island and in the entire world. However, despite the encouraging benefits of tourism business in the Tybee Island, there are awfully limited hotels and lodging services in the area. The refore, the new bed and breakfast business intends to offer a prevalent, quality, and affordable rental facility to foreign and local tourists. On the other hand, the local government also intends to advance tourism business in the area by encouraging entrepreneurs to invest in hotels and development of rental units. Therefore, the projected business will to some extent be acting in response to the local government proposal to invest in hotels businesses. Benefits of the Business The business is projecting to attract more tourists in the area by offering quality services to foreign and local tourists. Moreover, tourists in the area will increase the Island income thus minimizing the poverty level in the area. The business will create more employment opportunities in the area. Most of the business employees will be proficient members of the surrounding communities. Finally, the business will benefit the area residents by offering quality and affordable breakfast services to the inter ested community members as well as local and foreign tourists. Chart of Accounts The rationale Based on the reality that, most small businesses relies on lenders and creditors to develop their operations, the choice of Charts of Account is incredibly essential in the analyses of the business available resources, the expected resources and how the business intends to use the available and borrowed resources. Charts of Account are as well especially vital in providing the interested parties with adequate understanding of the financial position of the proposed business. Assets Assets Amount Cash $ 4, 538 Accounts receivable $ 740 Other current assets $ 670 Long term assets $7, 000 Accumulated depreciation $9, 413 Total assets $12948

U.S. Education Today and Tomorrow Essay Example | Topics and Well Written Essays - 500 words

U.S. Education Today and Tomorrow - Essay Example Market based education reforms such as charter schools are not going to aid in the improvement of education for students in the United States. Promises of de-regularized governance structures in schools have not achieved their stated objectives. Nationally, charter schools do not perform better than charter public schools. Additionally, implementation of these market-based school reforms, i.e. charter schools and school choice show a higher level of inequity in the academic achievements of the students. Market based education reforms are not going to affect the American education system in a satisfactory manner. The best policy for the improvement of public schools would be to invest directly in proven reforms that focus on the implementation of practices that can improve the school’s curriculum, rather than focusing on the business side of schools (Wraga, 2010). Another education trend that aims at effecting change in the U.S. education system is a high school reforms. Recent education reform in Idaho, known as Students Come First, adopted advanced academic standards for its students. This project involves giving the teachers tools that they require to engage today’s learners and individualize teaching. These reforms will have the effect of expanding digital learning for students so that they have access to educational opportunities wherever they reside. Via building connections with post-secondary education and career opportunities, the project aims at giving all high school students an opportunity of taking college entry exams, as well as college credits while still students in high school. It is expected that, by making the education curriculum in high schools more relevant and rigorous, the students, may actually elect to stay in school rather than dropping out, which cannot be achieved by the present strategy that