The purpose of accounting information is to help organizations make well-informed business decisions. Accounting allows organizations to understand the financial perspective of the organization, the inflow and outflow of organizational resources and their results. An important function of accounting is organized record-keeping which allows the organization to record spending and receiving patterns. This paper focuses on several accounting aspects of Guillermo Furniture Store. The paper focuses on how budgets and performance reports assist the furniture maker in the decision making process, and how ethics might influence his decisions.
Also included in the sum are the net exports; the total exports minus the imports. There are many purchases done between companies during development of a final product, the cost of these purchases do not count toward the GDP because the cost of those purchases are considered in the final cost of the finished product. There are two basic versions of the GDP,
The Real Cost of Things In his article “The Political Economy of Twinkies: An inquiry into the Real Cost of Things,” Richard Robbins discusses how the price of a Twinkie costs a mere $1.00 in the supermarket; however, that small price does not even come close to the real value – cost – of the Twinkie. So many factors go into the production of a Twinkie that consumers never see in the price of their delicious afternoon snack. Hidden costs of each ingredient in a Twinkie must first be examined, including the monetary and non-monetary expenses that go towards producing and distributing those ingredients, and then accounted for respectively. The price a consumer pays at the checkout of their local Wal-mart or Target never includes the costs producers hide – most notably is the costs that derive from the underpayment of labor. Robbins magnifies this hidden cost through the main ingredient of Twinkies: cane sugar.
Why should organisations collect, file and maintain accurate financial records? To have a record of how the business is running. To determine how the business is sitting financially and to inspire different processes to assist in growing the business. It will also display what money is going where and whether there is any room for alterations in staffing, produce, and marketing. Basically, it is used to anaylse the business as a whole and per section and to determine performance.
The manufacturing cost for LL Beans and the price at which the item is sold are relevant to the decision of how many units of that item to stock because with this the profit margin of each item is calculated giving an optimal balance of how much to of the item to stock. Question 3: What information should Scott Sklar has available to help him arrive at a demand forecast for a particular style of men’s shirt that is a new catalog item? Scott sklar needs the forecasted demand and the actual demand of the past new items of LL beans because he does not have access to past demand of the item. Moreover because not enough information is available, Scott Sklar can use the trends of similar products that competitors offer. With these collected information Sklar can analyze and find a trend in particular items.
The FLSA doesn’t provide (WPCP) wage payment collection procedures for an employee’s usual and/or promised wages, commissions in true excess of those required by the FLSA. However, some states do have laws under which those particular claims can be filed. The focus is on bridging the gap between minimum wage and livable wage. Should minimum wage balance with people being able to live on the wages
Short-run cost functions should be estimated using data for which the level of usage of one or more of the inputs is fixed. Usually time-series data for a specific firm are used to estimate short-run cost functions. Analysts should be careful to adjust the cost and input price data (which are measured in dollars) for inflation and to make sure the cost data measure economic cost. The following are the two possible problems that may arise when measuring cost for short-run cost estimation: Correcting data for the effects of inflation Economic analyses often use data from two or more calendar years. Price inflation causes the value of a dollar to fall over time, and so the same dollar amount in two different years will usually represent different amounts of purchasing power.
The degree to which demand for a good or service varies with its price is called price demand elasticity. Price elasticity of demand shows the relationship between price and quantity demanded and provides a precise calculation of the effect of a change in price on quantity demanded. Normally, sales increase with drop in prices and decrease with rise in prices. As a general rule, appliances, cars, confectionary and other non-essentials show elasticity of demand whereas most necessities (food, medicine, basic clothing) show inelasticity of demand (do not sell significantly more or less with changes in price). The Price Elasticity of Demand is also commonly known as just price elasticity it measures the rate of response of quantity demanded due to a price change.
He pays for the worker's "laboring power" for a set period of time. If the owner of capital (the means of production) paid directly for labor, exploitation would not be possible. The cost of maintaining labor-power is different than labor-power's expenditure in work. The first determines labor's exchange-value, the second determines its use-value. Marx discusses that the distinction between "labor" and "labor power" is only source of "surplus value."
The ratios help identify positive and negative trends that are financial. Ratios also allow a business to compare theirs to others, and can be used for financial research as well. It can also be used for comparing assets and liabilities. This helps to identify whether the business is losing cash or not. Ratios can tell if the business is using its assets appropriately, and if liabilities of the company are well-managed.