Enzymes Limited Essay Example | Topics and Well Written Essays - 1750 words

Enzymes Limited - Essay Example As such, the company was also using the same method to calculate the cost incurred thereof. But, conceptually thinking of traditional costing methods brings about many errors in the modern era and therefore raises many doubts regarding its effectiveness in this changing module. There are numerous variables that add upon the cost structure of a manufacturing company rather than only labour or machine cost e.g. advertisement, customer, raw materials, and few others. Moreover, the traditional costing method applies a volume based allocation which often proves to be inappropriate in the modern market assuming something which is not adhered to the actual causes of costing (Averkamp, n.d.). But to take any kind of management decision regarding costs, the information about accurate product costs, resource allocations and many other variables is very significant part. Here the traditional method fails to work with accuracy and therefore has a very minimum contribution in managerial decision making. In this context the growing applicability of Activity-based method is non-negligible, as it emphasises on almost every aspects that traditional methods do not. Activity-based Costing Method assumes that cost variables causes demand for activities, which in turn causes expenditure, unlike the traditional method that assumes only variable cost as reasons of expenditure. Moreover it proves to be more accurate than traditional method in calculating the overhead costs of a product (Minbiole, 1998). Numerically, according to the traditional method, if the total overhead cost is $ 1, 00,000 and the total direct labour dollars comes to a figure of $ 1, 20, 000, the overhead cost per direct labour comes to be $ 0.83, (i.e. $ 1, 00, 000/$ 1, 20, 000). Again assuming the per unit labour cost to be $ 0.387, the overhead cost will stand at the figure of $ 0.32. In the case of Activity-based calculation,

National Government Essay Example | Topics and Well Written Essays - 2250 words

National Government - Essay Example The Constitution as the supreme law of the land empowers the government to the legal rights to control the operation of the businesses. There has been a rise in government regulation with time. Still, the business community has considerate freedom of action. Understanding the US Government business relations requires acquaintance with the characteristics of the economy itself. The United States has a well-diversified economy with an industrial base. It is a capitalist type of economy with bantam public enterprises and lots of privately owned corporations. The success of the economy is due to control rather than the ownership by the government. These corporations are far-reaching in search for markets, operating in openness, and judicial processes take a center stage in conflict resolution. Great respect is however owed to the existing legal and economic structures (Porter, 3) The government regulation is licensing and permission. Enterprises are required to be registered to start operations. The US also has a large number of corporations who, as a prerequisite, require a charter to commence operations. The same is required for the partnerships and limited liability companies. The policy makers, therefore, monitor the operation of these enterprises. The US economy experienced a total economic change in last three decades. In the 1974 Summit Conference on Inflation, thirty prominent economists made a report to the then President Ford together with the congressmen. The report gave strong recommendations to enhance the economy. These included restructuring pricing and doing away with obsolete legislations that resulted in inefficiency. These policies helped develop and strengthen the banking, transportation, telecommunications and insurance sectors (Porter, 10). In 1789, George Washingtons farewell speech had one important message concerning US foreign policy, "avoid entangling alliances". To some, these words were wise,