Report On Product Costing For Dumbellow Ltd Essay

Report On Product Costing For Dumbellow Ltd - Essay Example Furthermore, the production manager considered re-organization of production activities and also the use of a cheaper component of product Z. though all these proposals are viable; they have various shortcomings which may outweigh their expected benefit. In addition, a comparison of marginal costing and full costing (absorption costing) is dealt with in this report. The advantages of using marginal costing instead of full costing, in decision making, are discussed. In conclusion, the shortcomings of the analyses of various proposals examined in this report are identified. Recommendations on the best way to handle the case of product Z are also discussed at the end of this report. Key strategies that were recommended include reorganization of the production processes and the termination of the product. 2.0 Background Information Dumbellow Ltd is a manufacturing company that produces three industrial valves which are incorporated into equipment used in the Oil and Gas industry. The boa rd of Directors of the company is meeting on 3rd of October to discuss the draft budget for the following year, a few months before the start of that calendar and financial year. They are concerned about two issues; the deterioration of product Z in terms of its profitability in the present period and the financial year and the failure of the company to make a total profit of at least ?400k to meet their required 20% return on capital. Owing to the dissatisfaction of the board, the managers of Dumbellow Ltd raised varying proposals on ways to boost the profitability of the company. These diverse views prompted the formation of a group of five members with an objective of writing this report and making recommendations to the board on the most optimal course of action (Lewis, 2001). 3.0 Marginal Costing and Absorption Costing Marginal costing, unlike full costing, focuses on the additional costs of producing one ore more units of a product or service. Under this method, the cost of ma terials and labour are the only components which make up the marginal cost. Other costs such as rent and taxes are considered fixed since they will have been covered. For this reason, marginal cost is easier to compute and thus preferable for quick decision making. Besides saving on time, marginal costing it helps in the generation of additional profit. Every organization aims at maximizing profits which in turn facilitates growth of the business organization. One of the ways of maximizing profits is through reduction or minimization of costs, mostly the costs of production. Dumbellow ltd, for example, through marginal costing can utilize the spare capacity available to produce more of their products. In this case, fixed costs will not be considered since they are already paid; only labour and material costs matters. This enables managers to see quick means of generating extra profit. However, if full costing is used by the company to access the cost of producing extra units, it wil l be found unprofitable or t result in negligible profits because of fixed costs included and it will require a lo of time (Elliot & Elliot, 2004). Marginal costing brings about better performances but significant risk is experienced. Businesses using full costing sets their prices by ensuring that all costs are covered and a profit margin is also included. This calculated profit

Lawrence Heights Youth Gun Violence Research Paper

Lawrence Heights Youth Gun Violence - Research Paper Example The theme of both the essays deal with the psychological and emotional aspects of soldiers involved in war and both try to emphasize on the grueling effects that war could bring upon the soldiers. Apart from the theme, there are quite a few similarities in the ideas discussed in these two essays and they are detailed below. An account of The Things They Carried O’Brien, the author of this essay, tries to bring out the emotional burden that the soldiers carry during war, through the space of opportunities created by the explanation of physical things carried by these soldiers. The mirage of fantasy that confounds their consciousness by feeding them misconceptions of reality is clearly described by the author through the character of Jimmy Cross. Cross accuses himself for the death of his team member Lavender, because, he was the person who failed to protect him in that grave hour. At that time, Cross was completely swept off from his feet by fantasy thoughts about his love, Mar tha and his doubts over whether she is virgin or not. If this story is considered to be a description of war between love and war, then the death of Lavender clearly signifies the victory of war over love. (O’Brien, 2009) O’Brien brings out the cynical nature of war through the depressive attitude shown by Cross after Lavender’s death. Through the description of those thoughts, the author also tries to indicate the fact that most of the people who were involved in war were young and youthful – people who should have experienced the joyous life of college, in their age. Instead, the emotional guilt and coward thought haunts them in every second of their life. However, the author ends up the essay on a positive intent by elucidating the thoughts of Cross who tries to erase the memories of his girlfriend by burning her pictures and decides to believe that, to lead is better than to love. Overall, O’Brien effectively persuades the reader to think deep and relate directly to the effects felt by the burden these soldiers carried day in and day out. (O’Brien, 2009) The Ecstasy of War and its Similarities Barbara Ehrenreich tries to distinguish the two needs of war – the material advantages and psychological dominance through this essay. Although she excludes discussing about the former need, she presents a critical thought and analysis of how the psychological impact presides itself in every human’s mind. The first similarity between the two essays is how the two authors present the emotional struggle that every person faces while going to war. Barbara here presents those points with the description of how people go to the level of committing suicide to avoid the struggles they have to face in war. The second similarity is in how Barbara expresses the experiences that a youthful person could have in leading a normal life rather than fighting in war. According to her, boys become men ready to face society only th rough their experiences with social interactions but the soldiers who are completely devoid of such experiences are bound to fear and feel emotionally stressed. Third similarity comes in the idea of inhumanness in approaching. As Cross chooses to lead leaving his love, Barbara also emphasizes on people leaving out all kinds of common human emotions and fight in the war like an animal, confronting everyone with