Mangerial Accounting Assignment Essay Example | Topics and Well Written Essays - 2000 words

Mangerial Accounting Assignment - Essay Example Amount of any write-down value of inventories that can be recognized as expense for the period A further disclosure of the reversal or write down made to Net Realizable Value. The firm should also disclose the circumstance that led to such reversal Carrying Amount of inventories pledged as security for liabilities Cost of inventories recognized as expenses: This includes operating costs recognized by the nature of cost like raw materials and consumables, labour costs and other operating costs. These operating costs are classified on the basis of nature of the costs and the amount of net change in inventories for the period. (b) Sylvester Sales Limited: Gross Profit under Marginal Costing: Details Year 1 Year 2 Year 3 Production Units 240,000 300,000 180,000 Sales Units 200,000 200,000 200,000 Price per Unit 26 26 26 Sales Value 5,200,000 5,200,000 5,200,000 Variable Costs: Direct Material and Labour costs 1,200,000 1,200,000 1,200,000 Variable Overheads 800,000 800,000 800,000 Total Variable Costs 2,000,000 2,000,000 2,000,000 Contribution 3,200,000 3,200,000 3,200,000 Fixed Manufacturing Costs 800,000 800,000 800,000 Gross Profit 2,400,000 2,400,000 2,400,000 Gross Profit under Absorption Costing: Details Year 1 Year 2 Year 3 Production Units 240,000 300,000 180,000 Sales Units 200,000 200,000 200,000 Price per Unit 26 26 26 Sales Value 5,200,000 5,200,000 5,200,000 Direct Material and Labr Costs...Inventories include assets representing fixed assets held for sale in the ordinary course of business, assets in the production process for sale in the ordinary course of business representing the work in process and materials and supplies that are consumed in production which covers the raw materials. In the valuation of stock, the standard cost and retail methods can be adopted. The only condition prescribed under the regulation is that the method of measuring the cost should result in approximate actual cost of the inventory measured. For items that are interchangeable the regulations allows the First in First out (FIFO) method or Weighted Average Cost methods. However the regulation discontinued the measurement of inventory under Last in First out (LIFO) method. Cost of inventories recognized as expenses: This includes operating costs recognized by the nature of cost like raw materials and consumables, labour costs and other operating costs. These operating costs are classified on the basis of nature of the costs and the amount of net change in inventories for the period. The year-wise gross profit figures as indicated in the marginal costing system shows identical profits irrespective of the different production levels.

Credit Crunch Essay Example | Topics and Well Written Essays - 500 words - 2

Credit Crunch - Essay Example But on that modest base, it builds an enormous balance sheet of two huge towers of cash: one of money borrowed, and the other of money lent or invested† (Davis). Banks thought that whatever the money they collected from the public in the savings accounts or term deposits need to be lent for a higher rate in order to make profit. So they tried to give loans to anybody approaching them without analyzing or checking the borrower’s financial capabilities. The high spending American people approached the banks for everything whenever they are in financial requirements and the banks were ready to satisfy them. â€Å"The American subprime mortgage firms, who made a rash of bad loans to people with poor credit, can find little to excuse their behavior† (Who is to Blame for Credit Crunch) Repayment period of loans allotted to the public was also fixed by the banks without any vision or purpose. Long periods were allotted to the borrowers for the repayment of loans. Moreover, the government also did everything to encourage the lending habits of the American public. Government encouraged the banks to reduce the interest rates of the loans they sanctioned and also to increase the repayment periods of the loans. Government miscalculated that the increased economic activities across the country would boost the economy. The main problem associated with the current credit crunch is that banks would force to increase the regulations on loans sanctioned to the public in future which will weaken the economic activities.