Nobody downloaded yet

Cost of Production - Larson & Larson Company - Assignment Example

Comments (1) Cite this document
Summary
The author of the paper will begin with the statement that there are various costs incurred during the production of goods. Consequently there have emerged various methods for determining such costs which in themselves cause variations and lack of accuracy in one way or the other…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER92.9% of users find it useful
Cost of Production - Larson & Larson Company
Read TextPreview

Extract of sample "Cost of Production - Larson & Larson Company"

Download file to see previous pages ABC as a method or accounting model as developed in order to solve problems related to accounting that has actually evolved over time due to the change in technology as well operations within the industries (Warren, Reeve & Fess 2005). It is clear that overhead costs have been increasing in companies to the point that it may be extremely difficult to use the direct methods which only emphasized on resources as well as the absorbed costs of them out. This assumed at a great expense, the impact of operations and the many intermediaries involved which comprise of the majority of the overhead costs. ABC, therefore, is the only practical remedy to the inefficiencies of the traditional accounting methods. At the core of ABC there exist very important principles and arguments which contribute to differentiating it from other accounting methods. ABC holds that the cost objects will consume the activities contrary to the principle of other traditional accounting methods which argue that cost objects may only consume the resources (Naidu, Babu & Rajendra 2006). In normal operations, the costs actually will end utilizing the activities in the production line which actually depend on the resources. This aspect makes ABC more realistic and effective in determining the unit cost of production. Whereas other traditional methods base on volume allocation of the production resources, ABC considers the drivers at each level and their effect on production to determine the allocation. The drivers considered include activity drivers as well as the activity drivers which check every other production element and its cause-effect relationship to the output. Further difference and principle of ABC come from the fact that the traditional accounting is developed on the basis of structures while ABC actually depends on the process itself and therefore takes care of the variables that may occur in the process. ABC begins from the process as it moves upwards to assess the number of resources utilized and that might be required. Critically, ABC analyses the activities with the understanding that it is not easy or possible to manage costs but the activities causing the costs are manageable so that in the end, it is the activities that the organization takes or that is taken in the production process which will determine the costs (Pryor 1998). The analysis of the activities enables the production unit or the management to identify surplus activities in the process eliminates and eventually, they will be able to manage or actually reduce the costs. This will result in efficiency and effectiveness in production at the right costs. When comparing volume versus the drivers in production, where ABC as a method considers the drivers to the activities as opposed to the volume of output, in determining the production costs the method achieves the best possible or accurate costs of production. In this case, costs are not only assigned to direct labor but according to what causes the costs and their overall effect on the output (Young 2003). ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Cost of Production - Larson & Larson Company Assignment”, n.d.)
Retrieved from https://studentshare.org/business/1392981-faculty-of-business-environment-and-society
(Cost of Production - Larson & Larson Company Assignment)
https://studentshare.org/business/1392981-faculty-of-business-environment-and-society.
“Cost of Production - Larson & Larson Company Assignment”, n.d. https://studentshare.org/business/1392981-faculty-of-business-environment-and-society.
  • Cited: 0 times
Comments (1)
Click to create a comment or rate a document
ed
edwardowalker added comment 19 days ago
Student rated this paper as
The topic of "Cost of Production - Larson & Larson Company" is quite popular among the tasks in high school. Still, this sample opens a new perspective of seeing the issue. I’ll use the style for my own text.

CHECK THESE SAMPLES OF Cost of Production - Larson & Larson Company

The devin the the White City by Erick Larson

...? Order 521402 Topic: "The Devil the White by Erick Larson Introduction: The contents of the book by Erik Larson are unbelievable, but true. The author has cautioned about this aspect in the introductory stage. The deeds of the awesome “Devil” in the White City are ghastly and tough for the printed page to capture. The author has given an extraordinary account, that this can happen in this beautiful world and to what extent ‘a two legged devil’ goes to destroy the human beings, who must have come to his contact in good faith, some of them innocent children! The ways of the destiny are strange indeed! Those extraordinary geniuses like Daniel H. Burnham and Dr. H.H. Homes should be there on Planet Earth at...
2 Pages(500 words)Book Report/Review

Elasticity / Production and Cost

...-Oxley Act was enacted in 2002 in response to several accounting scandals such as Tyco International, Enron, WorldCom and many more. The act applies to all listed companies under the surveillance of Security Exchange Commission. Many call it an overly regulating legislation in the difficult market but the fact is that it helps check unethical behavior of the company officers. Thus, it increases the confidence level of investors in U.S. companies and in their financial statements. The compliance certainly increases the cost of the companies to a certain extent. The compliance cost is fixed in nature and cannot be called variable as it does...
3 Pages(750 words)Essay

In the Garden of Beasts by Erik Larson

...In the Garden of Beasts Eric Larson in his popular book in the garden of the beast depicts a highly nostalgic experience of the world history. The book strives to establish the efforts made by the German to rebuild their country after the world war two. It appreciates the need that Germany was one of the countries that suffered the detrimental effects of the First and the Second World War more so following the signing of the Versailles treaty. The book also reveals the relation of the American and the participation of America in the war and the foreign policies that America enacted during this period through their ambassador to Germany William Dodd. The book also dissects the private life of the William Dodd’s family and...
4 Pages(1000 words)Book Report/Review

Production and Cost Relationships

...that the goal of a firm is profit maximization (Brue and McConnel 2005). Economically speaking, all business organizations would want to maximize the use of its resources in order to make the maximum return possible given its limited resources (Brue and McConnel 2005). Profit is measured as the difference between the revenue generated deducted with the costs incurred. Thus, in order to maximize profits, the company could either ensure that it is generating the highest revenue possible by increasing price and quantity demanded or minimize the costs that it incurs (Pindyck and Rubinfeld 2005). This paper will focus on the latter. The following chapters will look at the relationship of...
6 Pages(1500 words)Essay

Isaacs Storm by Erik Larson

...Isaac’s Storm Isaac’s Storm is a much discussed literary piece which paved the way for many controversies centering round the theme dealt with in it.This work revolves round the story of the deadliest hurricane in U.S. history and the people whose lives were affected by it. When one reads the work between the lines, it will prove itself as symbolic in nature and it provides a fascinating glimpse in the American outlook and way of life. The real Isaac’s storm roared into Galveston, Texas on September 8, 1990 and between 6,000 and 10,000 people lost their precious life in this macabre calamity. (Isaacs Storm Erik Larson Book Review.). Symbolizing the storm, Mr. Larson quite clearly suggests his thesis as...
1 Pages(250 words)Book Report/Review

PRODUCTION AND COST

...products are increasingly manufactured abroad (Carbaugh 14) for a host of reasons, not least lower labor wages and lax environmental laws (Carbaugh 21). Indeed, globalization integrating’s impact on national economies cannot be more demonstrable as in law of comparative advantage (Carbaugh 14). By specializing in products, goods, or services which nations can best manufacture or provide, increasingly globalizing economies – by virtue of opening up financial services, lowered international [Insert Your Last Name] 4 transportation costs, and reduced, if not eliminated, tariff and non-tariff barriers – trading nations can achieve optimum efficiencies in production...
6 Pages(1500 words)Term Paper

Production Process for a company

...Production Process for My Replaylive Company My Replaylive is a company that attempts to offer solutions that supplement our everyday life and experiences. It aims at making available digitally some of entertainments that people miss because of unavoidable circumstances. These circumstances could be job hours, travel hours or even power failures. For example, many people love either live sports broadcasts or certain programs. Most of these programs are aired when people may be away for work. My Replaylive therefore comes in to offer solution to this challenge. A normal production process entails a team identifying and storing a live broadcast. Let us take for example...
2 Pages(500 words)Term Paper

Production and Cost

...of production (Babatunde & Arogundad, 2011). Arguably, there is great need to reduce costs by considering both variable and fixed costs. Variable expenses can always be regulated to minimize the resulting cost of production. These are costs that increases as the output goes up and decreases when output reduces. Variable costs may comprise of natural resources and direct labor costs. They include costs such as electricity and overtime wages paid to workers involved in direct production of goods. A company may therefore regulate its variable...
3 Pages(750 words)Term Paper

Biography of Rovin Jay and Jonathan Larson

...the show was cast and rehearsals began. Unfortunately, Larson died before his show could pick up. The show gained a lot of publicity and was transferred to Broadway. The show has won many awards including the 1996 Pulitzer Prize for Drama and Four Tonys (Larson page 59) Biography of Rovin Jay There is little information provided about Robin jay, however he an American based producer of rent and an Actor at Knotts Berry Farm. After rent moved to Broadway production it won Tony Award but the production closed soon after. The achievement of the show however led to several foreign productions. Later on the show moved to motion picture in which most of the...
2 Pages(500 words)Research Paper

Analysis of A Magnificent Catastrophe Book by Edward J. Larson

...Book Review: A Magnificent Catastrophe A Magnificent Catastrophe by Edward J. Larson is a book that seeks to illustrate the political climate that was prevalent in the United States before and after the administration of George Washington in the early nineteenth century. It depicts the intense rivalry between the main political actors in the United States at the time; namely Thomas Jefferson, John Adams, Alexander Hamilton, and Aaron Burr. Among the positive aspects of this book is that it shows the manner through which the leaders mentioned above often worked towards ensuring that the interests if the United States were protected at all costs. Furthermore, the book shows the friendship that developed...
5 Pages(1250 words)Book Report/Review
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Assignment on topic Cost of Production - Larson & Larson Company for FREE!

Contact Us