Small Business enterprice Essay Example | Topics and Well Written Essays - 500 words

Private company enterprice - Essay Example In the United Kingdom, the little and medium ventures are the huge supplier of occupations to the masses and it is upon the capability of such little endeavors, even the national government banks. In the nation, such organizations are seen to be the activity makers as well as riches makers. Such associations get ideal help of the administration so that those could well flourish in to their endeavors (Ariyo, 2008). As indicated by the information of 2002, in the United Kingdom 94.7% of all the enlisted business had worker quality of under 10 and another 4.4% in the middle of 10 to 49. The little undertakings gave over 43% of the complete occupations in the nation. Another 11.9% workforce was utilized by the medium undertakings (representative quality in the middle of 50 to 249). The little and medium endeavors additionally had critical offer in the all out turnover as it contributed practically 52% of the whole turnover leaving other 48% to the enormous enterprises (that had representative quality of at least 250). The business of United Kingdom have consistently distinguished little and medium undertakings as the significant wellspring of development and flourishing as it generally produced huge portion of work. Route in 1930, the business of little and medium undertakings contributed with over 35% of complete work. It encountered steep abatement till the 6th decade of the only remaining century and remained practically stale for the following ten years at around 20%. Since 1970, the business has again taken sharp ascent and there has been no thinking back. It is evaluated that in the time of 2000, the part given over 45% of work to the number of inhabitants in the United Kingdom. As per the Enterprise Directorate Analytical Unit of 2007 (gave by Department to Business, Enterprise and Regulatory Reform), the little and medium ventures included 99% of the UK economy. The report likewise centered around the way that 14.23 million of the workforce (out of absolute workforce of 30 million) works

How to Improve a Students Self-Esteem

Step by step instructions to Improve a Students' Self-Esteem Weve since quite a while ago realized that when understudies like themselves, they are considerably more prone to turn out to be better achievers in the study hall. Encouraging can-do mentalities and building understudies certainty by setting them up for progress and furnishing positive input alongside visit acclaim are fundamental devices for the two educators and guardians. Consider yourself, the more sure you feel, the better you feel about the job needing to be done and your capacity to do it. At the point when a kid is liking themselves, its a lot simpler to spur them to turn out to be scholastically capable. Confidence Comes First Whats the following stage? As a matter of first importance, so as to help develop confidence, we must be cautious in the manner in which we give criticism. Dweck (1999), a defender of the development mentality approach,â argues that having a specific objective direction, (learning objective or execution objective) to put together criticism with respect to instead of individual orientated commendation will be progressively successful. At the end of the day, abstain from utilizing explanations like: Im pleased with you; Wow, you buckled down. Rather, center the recognition around the undertaking or procedure. Applause the understudies explicit exertion and procedure. For example, I notice you chose the shape a-connections to take care of that issue, that is an incredible technique. I saw that you didnt make any computational blunders this time! When utilizing this kind of input, youve tended to both confidence and youve upheld the childs inspirational level for scholastic objectives. Tips for Building Self Esteem Confidence is significant all through the study hall. Instructors and guardians can bolster confidence by recalling a portion of the accompanying: Continuously emphasize the positive: Do you ever see those experiencing a low confidence will in general spotlight on the negative? Youll hear explanations like: Oh, I was never any acceptable at that. I cannot keep companions. This really shows this individual needs to such as themselves more!Give kids the chance to disclose to you 10 things they like about themselves: Prompt them to state things they can progress admirably, things they like. You will be astounded at what number of youngsters experiencing low confidence experience issues with this undertaking - youll need to give prompts. (This is likewise an incredible start of the year activity)Avoid analysis: Those experiencing low confidence battle the most when given analysis. Be touchy to this. Continuously recollect that confidence is about how much kids feel esteemed, acknowledged, acknowledged, cherished and having a decent feeling of self-esteem. Having a decent mental self portrait. Comprehend that as guardians and instru ctors, you play probably the greatest job in how fortunate or unfortunate a kid can feel about themselves. The impact of a parent or instructor can understand confidence. Dont misuse it. Desires should consistently be practical: This obliges setting kids up for progress. Separated guidance is critical and goes far to guarantee that educators know their understudies and guarantees the sorts of errands/desires coordinate the childs qualities and capacity levels.See the learning in blunders or missteps: Turn botches back to front and spotlight on what was or will be found out from the mix-up. This enables a youngster to concentrate on the positive, not the negative. Remind understudies that everybody commits errors however its how those mix-ups are dealt with that has the effect. We have to consider them to be learning openings. Incredible learning can frequently be simply the consequence of a mix-up regard is a significant part to nearly everything youngsters do: Not just will it help with scholarly execution, it underpins social aptitudes and makes it simpler for kids to have and keep companions. Associations with friends and instructors are typically progressively po sitive with a sound portion of confidence. Youngsters are likewise better furnished to adapt to slip-ups, frustration, and disappointment, they are bound to stay with testing errands and complete learning exercises. Confidence is required long lasting and we have to recollect the significant job we play to upgrade or harm a childs confidence. Reference: Dweck, C. S. (1999) Self Theories: Their Role in Motivation, Personality, and Development. Hove: Psychology Press, Taylor and Francis Group.

What is a 1099 Form

What is a 1099 Form A 1099 form is an income tax reporting form. It enables you to file your tax with the IRS, Internal Revenue Services.You will normally receive this early in the year, showing you the income you received in the previous year.This form is however not applicable to every type of income.It is primarily for the income received through means other than that of employment.As such, it is common among the self-employed.These are the freelancers, independent contractors or those in any other form of self-employment.If you are employed, you could get a 1099 form if you have other sources of income.For example, you may be having a savings account.When your bank pays you the interest, that is counted as an earning.At the end of the year, the bank may send you a 1099 form showing the details of the income received from them.But there are times you will receive an income and not get the form.The main reason would be if your income did not pass the $600 threshold set by the IRS.When an organization has paid you less than $600 annually, then it is not legally required for them to send you the form.DIFFERENCES BETWEEN 1099 AND W-2 TAX FORMSThere are two forms used to report income. These are the 1099 and W-2 forms.As you might expect, though serving similar purposes, they are different.Here are three ways in which the two forms differ.1. Target taxpayer â€" form 1099 is issued to independent contractors indicating the money paid over the last year. Form W-2 is given to employees to show their annual pay. For the W-2, there will also be social security and medicare information.2. Who issues the form â€" form 1099 is issued by a client while W-2 is given by an employer. Although one organization can issue both 1099 and W-2 forms, they will be going to different people.The former will go to the independent contractor while the latter will be sent to the employee.3. Withholding income taxes â€" taxes which have been withheld will show on the W-2 form but not on the 1099. This is bec ause the pay of independent contractors is not subject to deduction at source. They are responsible for paying their own tax.The difference in these forms are brought about by the variation in types of workers.As a result, it is important that the differences be known.Things can get tricky when workers are classified wrongly.This could lead to wrong reporting of income, something which could cause trouble with the IRS.DISTINGUISHING BETWEEN EMPLOYEES AND INDEPENDENT CONTRACTORSTo prevent such a situation, IRS has provided guidelines which anyone making payments can use.It distinguishes between workers by looking at two factors.These are the degree of control held by the service receiver and the degree of independence held by the service provider.To ascertain this, the below considerations have to be taken into account.BehavioralThis is the control over, or the right of control over, what the worker does, how he does it, where and when.If the one making payments has this control, the n the person he is working with is an employee. Employees are the ones bound by such controls.They are provided with a working station, directed in the way the work should be done and their time is also controlled.On the other hand, independent contractors work differently.The client and the contractor will agree on the delivery of the work.As far as how, when or where the work is done, that is purely at the discretion of the contractor.The only important thing between the two is that the work has to be delivered on time.Of course, this agreement can include more than just the results.All the same, the way the work is done i.e. number of hours worked per day, working location etc are all to be decided by the worker.FinancialWho is in control of the business aspects of the worker? Who shoulders the burden of his expenses while working? Who provides him with the tools he requires for the work? How and when is he paid?If the one receiving services has control over all these, then he is working with an employee to whom he will give a W-2 form.But if he has little to no control over these things, then he is working with an independent contractor.To avoid confusion, let’s break these things down a little bit.Provision of tools and a working location is quite obviousâ€"the contractor takes care of that.But how do payments and expenses come in to determine the classification of a worker?Well, although there are negotiations and agreements during interviews for employees, the same happens slightly differently when it comes to contractors.Employees have very little power in these discussions compared to independent contractors.In most cases, employees will only go with what is offered.Contractors on the other hand, might push beyond what was initially thought would be the cost.Expenses incurred by the employee while running errands at work may be catered for using petty cash.However, this is something which cannot happen in the contractor situation.He will work out th e cost of his services bearing everything in mind then give the final figure.So as much as there will be an agreement, the contractor has more bargaining power in the negotiations than an employee.More than that, the agreement is not merely written by the one receiving the services. Independent contractors are actively involved in deciding what goes into the agreement.Type of RelationshipIs there a binding agreement on the benefits the worker will receive?Benefits here refer to pension, insurance, vacation pay etc.If the agreement has these, the worker is an employee. If not, then he is an independent contractor.Moreover, is the work being done for a set duration or is it more long-term?Employment agreements tend to be long-term while contracts are usually short-term.Most take 6-12 months with others going for 2 years. Rarely will they be longer than that.This is often because contractors prefer working for limited periods with one client.They opt for this kind of arrangement to all ow them work for more than one client at a time if they so wish.Or maybe just to be able to take care of other personal matters like family.In the event that a contractor has worked with you for a long time, it will likely be due to contract renewal.Also, with the renewal of every contract, the contractor might suggest changes.These will definitely have to be agreed upon by both parties. TYPES OF 1099 FORMSHaving seen that forms 1099 are for independent contractors, it will be good to realize that there are different types of the form.These are used to cater for the different scenarios of incomes.Here are the forms.1099-AThis form reports the sale of your home in a foreclosure. The form 1099-A which you receive from your lender will have the details to use in determining the gain or loss.The foreclosure is treated by IRS as a sale, thus an income.1099-BThis is income received through the sale of securities as well as bartering. Bartering usually takes places in bartering exchanges. The exchanges send a 1099-B form to the people who received their income through them.This form should be received by the income earner latest February 15th.1099-CForm 1099-C is for the income received in the form of debt cancellation. This mainly comes from credit card lenders who may decide to pardon you on some amount you request.That amount will be reflected on this form as your income.1099-CAPThis is your income reporting form if you received income in the form of cash, stock or other form of property from a corporation.The corporation gives you cash, stock or property on the basis of your shares. This will normally be occasioned by a change in the capital structure in the corporation. It could also result from the corporation’s acquisition.1099-DIVThis is for investors who receive distributions from investments made during a calendar year. These are meant to be reported during filing. The minimum amount which will warrant an investor receiving a 1099-DIV form is $10.it is im portant to keep in mind that not all accounts of an investment nature attract this form. For example, individual retirement accounts, money purchase pension plans and profit-sharing plans are exempt from this.1099-GThis form will show up in your mailbox if you have received any payments from the federal, state or local government. What is covered includes state or local income tax refunds, credits, offsets, taxable grants or agricultural payments.This form will also be used in your filing if you have received payments on a Commodity Credit Corporation (CCC) loan.The minimum amount paid to warrant the issuance of this form is $10.1099-HIf you have received advanced payments from your health insurance, then you will get this form.The recipients of these payments are usually those of eligible trade adjustment assistance (TAA), Alternative TAA (ATAA), Reemployment TAA (RTAA) or the Pension Benefit Guaranty Corporation (PBGC).1099-INTThis is for earnings which are a minimum of $10 coming from interest from financial institutions e.g. banks.This interest may not necessarily be taxable but it has to be reported to the IRS.1099-KThis form is used to report payments made through payment cards and third party network transactions. These include debit, credit and stored-value cards.This form will only be sent out if there are a total of more than 200 transactions and the gross payments total a minimum of $20,000.1099-LTCThis form is for reporting Long-Term Care insurance benefits. Your insurer will send you this if you received benefits lat year.These benefits could also include life insurance distributions as well as accelerated death benefits.1099-MISCThis is for miscellaneous payments. Among the 1099 forms, it is   the most common.This popularity is because of all the different payments that are reported using it. The payments best known to be under 1099-MISC are those made to independent contractors.Other payments reported using this form are royalties, rental income , crop insurance proceeds, payments to fishing boat crew members and even Indian gaming profits paid to tribal members.The form is sent out to anyone whose payments totaled $600 and above for contract payments. For royalties, dividends and tax-exempt interest, the minimum amount is $10.1099-OIDOID stands for Original Issue Discount. OID is the difference between the issue price and the stated redemption price at maturity. OID is seen as a form of interest, thereby being an income.There are some exceptions which apply in the case of 1099-OID. They are for tax-exempt obligations, U.S. savings bonds, short-term debt instruments and any obligations issued by an individual before March 2, 1984.1099-PATRThis is for taxable distributions received from cooperatives. The minimum amount for this form to be issued is $10.1099-Q1099-Q covers the distributions from Qualified Tuition Programs (QTP) or Coverdell Education Savings Account (ESA).Beneficiaries must be family members and can include s pouse, children, stepchildren, foster children, and their descendants.The parents of the designated beneficiary as well as their siblings, and in-laws are also allowed to be beneficiaries.1099-RThe 1099-R caters for pensions, life insurance contracts, annuities, profit-sharing plans as well as retirement plans.The form 1099-R is made available to anyone having a distribution of over $10.1099-SProceeds from the sale and exchanges of real estate are reported though this form.Real estate in this case covers land, permanent structures, stock in a cooperative housing corporation and non-contingent interest in standing timber.1099-SAThe 1099-SA is used to report distributions made from a Health Savings Account (HSA), Archer Medical Savings Account (Archer MSA), or Medicare Advantage MSA (MA MSA).The payments could have been made directly to the medical service provider or the account holder. Transfers from one account to another are not reported.SSA-1099This is the form that reports the b enefits from the Social Security Administration. Benefits cover the retired, disabled and survivors.RRB-1099This is the form detailing the payments done by the Railroad Retirement Board. Benefits include retirement, survivor, disability, employment, sickness, income tax and medicare.HOW TO ISSUE AND FILE FORM 1099If you run a business which has transacted with individuals who are not your employees, you will have to issue them with form 1099.This will be for every one of them.But if the amount paid out to them did not exceed $600, then you don’t have to send them this form.The process of issuing these forms is fairly easy. Below are the steps to follow.1. Gather the required information â€" the details you will use to fill the form will come from two sources. The first is your business records and the second is the W-9 form filled by the contractor you engaged.The W-9 form is where you get information about the contractor. The most important detail is his tax ID number. This will be required in the 1099 form.2. Fill the form â€" this form has 5 copies designed like carbon paper. What you fill on the top copy will therefore appear on the copies under it. Ensure you fill the right details in the right spaces.3. Confirm the details â€" it is always wise to confirm that the form has been filled correctly. This will help you make corrections early and avoid mistakes which might cost you once contacted by IRS.Check out some of the common mistakes made during this stage as mentioned in the next section.4. File the forms â€" all forms 1099 are supposed to be filed with the IRS by January 31st of the year following the payments. Filing can be done in either of two ways: electronically or by mail.For online filing, follow the directions provided in this document. If you find this to be the more involving option, then you can go the mailing route. With this route, you will have to fill form 1096 which summarizes the information on the forms 1099.5. Send copies to the r elevant people â€" this step can be taken as the second part of step 4 above because not all copies of the form will go to the same recipient. Below is the breakdown of who gets which copy of the 1099 form.Send Copy A to the IRS.Send Copy 1 to the state tax department/authority.Send Copy B and Copy 2 to the recipient of the income. They will file Copy B with their federal returns and Copy 2 with their state tax department as applicable.Keep Copy C for your records.COMMON MISTAKES TO AVOID WITH THE 1099 FORMAs expected, mistakes do happen. And they happen quite often.The first biggest mistake which may be unforgivable by the IRS is failing to file your forms on time.Consequences? Penalties.Not so good.Some other not-so-big mistakes can still cause you some problems and it will be best to avoid them.Here are some of them.Omitting decimal points or cents from the figures entered. This very small mistake could lead to serious problems as far as the correctness of your forms are concerne d. From reporting less amounts to huge ones, you can be sure of facing the wrath of IRS when the time comes.Using faint ink to fill the files. The forms need to be clear and the recommended ink color is black. Do not use colors like pink or yellow.Adding a dollar sign to the amount you are filling in the boxes. Avoid the desire to help IRS understand that you paid in dollars. It is the only currency they expect you to be reporting.Filling the wrong form â€" this can happen in two ways. The first is filling a W-2 form for an independent contractor and vice versa. The second is by filling the right form, but of the wrong year. Ensure you have the 1099 form dated the year the payments were done.Filling the wrong details can cause serious problems. This is why you need to confirm the details filled. Mistakes here could include filling the wrong amounts or the wrong details e.g. the wrong tax ID number.Sending the recipient copies to the wrong person â€" although the IRS won’t come aft er you if you did this, you will have inconvenienced the recipient. Remember that these forms need to reach the recipients by 31stBe careful with the addressing to avoid inconveniences both to yourself and the other party.CONCLUSIONThere you go.With an understanding of what the 1099 form is, you know what to do when you receive it.And in case you are supposed to issue it to someone, you have the steps to follow. You cannot get stuck.Share this article with your friends and help them tackle the tax filing stress.

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An Analysis of Cultural Influences in the 19th and 20th...

An Analysis of Cultural Influences in the 19th and 20th Centuries The 19th and early 20th centuries were a time of massive cultural mutation, out of which came varying worldviews that intermingled with and reacted against one another. As Professor Ambrosio (2011) states in A History of Suspicion, of the biggest intellectual and/or philosophical influences in that time period, Marx, Darwin, Freud, Nietzsche, and Dostoevsky each represents a decisively different view of history than the view of history previously dominant in Western culture. This paper will discuss the historical and cultural events surrounding these five thinkers and show how they shaped, concurrently with scientific developments, the course of human thought in the late 19th and early 20th centuries. Karl Marx, for instance, reacted powerfully against Hegels dialectic and produced a more poetic and yet more materialistic vision of mankind. Dispensing with Hegels rational spirit, Marx turned Hegels dialectical history of spirit upside down by creating historical materialism (A History of Suspicion, 2011). The means of production was Marxs focus. Marx examined Capitalism, Industrialism and ideology, and by viewing life in solely material terms developed the Communist Manifesto. This was a radical departure from Hegels attempt to spiritualize the world. If Hegel was the embodiment of one extreme, Marx was the embodiment of its opposite. Charles Darwins scientific analysis of the origin of theShow MoreRelatedThe Important Role of the Rivers in Russia Essay781 Words   |  4 Pagesbetween nature and urban dwellers in the study period. Perhaps the only published work characterizing the sanitary condition of Novgorod, the degree of contamination of its territories and environmental policies of the city government at the early 20th c., is a brochure of MD Alexander G. Kurkutov, published in 1915 . 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Reasons for Excluding Some of the Items †Myassignmenthelp.Com

Question: What Is the Information Form Control and Planning? Answer: Introducation Product costing system is a set of procedures which is responsible for accounting the organizations cost of products and is responsible for providing timely and accurate unit cost information form control and planning, financial statement preparation, pricing and inventory valuation. (AllBusiness, 2017). Product costing is one of the processes of accounting with the purpose of determining all the business expenses for creation of products of the company. These costs include wages of the workers, retail stocking fees, raw material purchases and product transportation costs. The purpose of products costing system behind the companys using this system is that it helps in planning a variety of business strategies which further includes costs of developing promotional campaigns and setting product prices (Polimeni, et al., 1999). The system is also adopted in order to find ways to derive maximum profits out of production costs (Lister, 2017). Product costs are calculated on the basis of p acking material cost and direct raw materials. Product costing system provides information to the organizations for the purpose of valuation of inventory for financial reporting purposes. The system helps the organization in providing timely and relevant cost information which further helps the company in strategic planning and profitability analysis (Manalo Manalo, 2011). The purpose of product costing system is that it helps the company is making accurate and long term decisions regarding the costing of the product and also helps in delivering extraordinary results. (Fisher Krumwiede, 2012; Marx, 2009) . Product costing system is important as it ensures the accuracy of business expenses. Accuracy is how much business can trace the expenses and to the accurate inventory values and product costs. Product costing system helps in increasing the accuracy of this process. It is specifically significant when it comes to variable costing in which involves assigning variable costs to cre ation of product units and leave fixed costs for other expenses. It also helps the business in attaching the cost to the value which was created throughout the business. Product costing system also helps in decision making as the information acts as the basis on which the decisions can be taken. The system helps in making decisions regarding how much profit a business will make in a particular period of time and also the decisions where there is return on investment. Product costing system also helps in the development of project which refers to creation of new products (Hansen, et al., 2007). In case a company plans for designing new product or new line of product or to recreate the existing product with advanced features, product costing acts as the most valuable source of information. It allows the business to attach the specific costs with products as well as product materials, abilities and features which can allow the business for highly accurate cost predictions regarding man ufacturing. Product costing system is important and serves as the purpose of facilitating project tracking. Project tracking means keeping an eye on budgets of products to ensure that whether the costs are matching the desired expectations or not. The system is helpful as it helps in analyzing the cash flows and also in determining the success factor of the project. (Lacoma, 2017). In this way product costing system is essential and purposeful for every business. Schedule of Cost of Goods manufactured and Cost of Goods Sold for the previous year of operations Preparation of schedules of Cost of Goods Sold and Cost of Goods Manufactured of the last year will help in ascertaining the situation of the company and will ultimately help in preparation and completion of the destroyed records. The schedule for the last year is presented in the below table: Table 1: Schedule of COGS and COGM for the previous year of operations Particulars Amount Amount Raw Material at the Beginning 12000 - Add: Purchase of Raw Material 180000 - Less: Raw material at the end -12000 - Cost of Material Consumed 180000 Add: Direct Labour Cost 182000 Add: Factory Overhead - - Depreciation - Factory Building 8000 - Depreciation - Factory Equipment 16000 - Indirect Labour Cost 118000 - Insurance on Factory 14000 - Repairs and Maintenance Factory 8000 - Land Tax on Factory 4500 168500 Factory Cost - 530500 Add: Opening stock of WIP - 4500 Less: Closing Stock of WIP - -33500 Cost of Goods Manufactured - 670000 Add: Opening stock of Finished Goods 11000 - Less: Closing Stock of Finished Goods -16000 -5000 Cost of Goods Sold - 665000 Thus, the COGS for the previous year of operations was $ 665000. Reasons for excluding some of the items from the schedules of Cost of Goods Manufactured and Cost of Goods Sold There are two types of costs which are generally incurred in a manufacturing concern. These are direct costs and indirect costs (Drury, 2005). Direct costs are those costs which are incurred by the company directly in relation to the manufacturing activities. These are generally accounted for in the trading accounts of the company. On the other hand, indirect costs are those costs which are incurred to facilitate manufacturing and production activities. Such costs are dealt with in the income statement of the company and are indirectly related to manufacturing activities (Drury, 2008). The above schedule so prepared is based on last years figures. However, while preparing the schedule all the costs that were incurred by the company was not considered. While calculating the cost of goods sold and cost of goods manufactured, only those costs are included which are incurred in the factory. However, such costs include direct as well as indirect costs that are incurred in the factory. The reason behind this is that only those costs are considered as costs of goods manufactured and sold which are incurred directly and indirectly in the factory where manufacturing is undertaken. Examples include depreciation, opening and closing inventory and material and labour costs. All the other costs such as salary and rents are considered as operating expenses and such expenses are a part of income statement. Preparation and Completion of T-accounts of cost related heads and determination of values of various individual items Since, due to a fire in the company manufacturing caravans which led to the destruction of all the books of accounts and necessary records, those associated with preparation of accounts had to gather all types of information to redraft the books. However, the major issue was related to collection of information. On the basis of available information such as charred accounts and interviewing people and bank statements, the accounts were prepared again as under: Calculation of Overhead Rate for determining amount of total manufacturing overheads Overhead Cost 1800000 Direct Labour 60000 Overhead Rate = Overhead Cost/ Direct Labour(per hour) 30 Total direct labour hours 5200 Total Overheads in the month of April 156000 Raw Material Account To opening balance of raw materials 12000 By Raw Materials Consumed 188000 To Raw Materials Purchased 176000 By Closing balance of Raw Materials 0 188000 188000 Work In Process Account To opening balance of Work in Process 4500 By Cost of Goods Manufactured 489000 To Raw Materials Consumed 188000 By closing balance of Work in Process 41500 To labour cost incurred 182000 To overhead cost incurred 156000 530500 530500 Finished Goods Account To opening balance of Finished Goods Inventory 11000 By Cost of Goods Sold 484000 To Cost of Goods Manufactured 489000 By Closing balance of Finished Goods Inventory 16000 500000 500000 Manufacturing Overheads Account To Actual Manufacturing Overheads incurred 168500 By Total Manufacturing Overheads 156000 By under application of manufacturing overhead 12500 168500 168500 Accounts Payable Account To opening balance of account payables 12000 By Payments for raw materials made during April 180000 To purchases of raw material in April 176000 By closing balance of account payables 8000 188000 188000 Cost of Goods Sold Account To Finished Goods Account 484000 By cost of goods manufactured 489000 To closing finished goods inventory 16000 By opening finished goods inventory 11000 By closing balance Cost of Goods Sold 0 500000 500000 Hence, the values of various items asked in the question are as follows: Work in Process at the end of April $ 41500 Raw materials purchased in April - $176000 Overhead applied in April - $156000 Raw materials used in April - $ 188000 Over- or under-applied overhead in April - $12500 Cost of Goods sold in April - $ 484000 Application of over and under applied overheads and the manner in which such variances can be dealt with The term overheads includes all the costs which are incurred by the manufacturer in the factory but this excludes the costs incurred with respect to material and labour used in the manufacturing of products (Gill, 2015). All the overheads which are incurred in the factory are required to be allocated (applied) appropriately based on a scientific method such as calculating a recovery rate of overheads based on direct labour hours which is usually predetermined. However, application of overheads based on such predetermined recovery rate generates a variance in the actual position and the planned one. The difference between those overheads which are actually incurred and the overhead cost which is allocated to the WIP based on a predetermined rate of recovery are termed and either over applied and under applied overheads (Shim Siegel, 2009). Over Applied Overheads- Over applied overheads means the overheads which are applied on products manufactured are more than the overheads actually incurred. Such an outcome where applied overheads are more than actual overheads is considered to be favourable because the company has spent less amount than was anticipated by it. Under Applied Overheads- The overheads which are actually incurred are more than what was expected. These are considered as unfavourable because the company has spent more amount of money than it had planned to and this also signifies that the company does not have enough jobs to allocate these overheads (Scarlett, 2005). There are various ways in which a company can deal with over applied and under applied overheads. One such manner includes debiting or crediting the overheads which are overvalued or undervalued in the profit and loss account of the company. This will help in reflecting the impact of such over application and under application on the balance sheet of the company(Hansen Mowen, 2017) . Whether ABC must be introduced or not Activity Based Costing (ABC) It is an accounting method which helps in identifying the activities that are performed by a firm and will assign the indirect costs to the products. Activity based costing system will recognize the relationships that exist in between costs, products along with the activities. With the help of these relationships, Activity Based Costing will assign indirect costs to the product less method over traditional methods (Investopedia, 2017; BusinessDictionary, 2017). It can also be explained as the accessing costs in a logical manner than that of the traditional approach in which costs are allocated on the basis of number of machine hours. ABC will first assign the costs to those activities which are the cause for overhead or which are of on-demand and then assigns the cost to those particular activities which are on priority and demanding the activity (Averkamp, 2017). Activity Based Costing is broadly used in manufacturing industry. This is because, ABC has the true capability to enhance cost data and hence help in producing true costs and better classification of costs that are incurred by the company during the times of its production process. Every ABC system of cost totally depends on the activities which are considered as an event and each unit of work will have a specific goal that has to be achieved. For example: setting up of machines in production, designing of products, distribution of finished goods or operation of machines etc (Investopedia, 2017; Mahal Hossain, 2015). Importance of Activity Based Costing In day todays environment of evolving globalization, when each of the organization is forced to improve their productivity with quality and hence benchmark its activity more efficiently in the world. Without firm based activity it is not possible to do activity based costing. A firm can hold up its market value if only it manages the value chain at each and every stage of productivity. Value that has been added at each stage of the activities is compared with the costs which are associated with the decisions that are based on cutting unnecessary activities that have been performed. So it is clear that each and every firm needs ABC to control and also enhance its value in this era to be competitive (Lodha, 2016). Activity based costing will make sure that it provides exact cost information which will help in improving and making managerial decisions more efficiently. In ABC, the focus will total be the activities that are being performed rather than focusing on a particular department. A department may consist of activities that are in large but those activities may not add value to the total outcome of the product. These types of activities are targeted so that the activities are pushed to downward and then concentrate on activities that will help the department grow in an effective manner (Lodha, 2016). Activity based costing will help in resolving inaccurate cost information present in an activity of a department or activity of single entity. It is considered as the modern approach for indirect cost allocation process. Activity Based Costing will not restrict itself for the allocation of indirect costs which is generally done in the traditional approach. Rather, ABC will recognize individual activity to be lowest unit and allocates cost indirectly. Costs that are allocated to each activity of a department or a single entity activity will represent the resources that are consumed by it. Activity Based Costing is built on the layer that the activities will eventually give rise to the costs. So there has to be a link that should be made in between activities and the products with the help of assigning cost of the activities to the products that are based on an individual project. Important characteristics that has to be noted on Activity Based Costing are: Simple and traditional distinction that is made in between fixed and variable cost will not be enough to guide and provide quality information for designing of cost system. Appropriate distinctions between volume (scale) (Lodha, 2016) and cost behavior patterns, diversity related patterns and event related patterns should be made accurately. Cost drivers should be identified and a cost driver is nothing but a structural determinant of the cost related activity. The logic that stays behind the cost drivers is that they dictate cost behavior patterns. For the sake of tracing overhead cost, behavior pattern related to cost should be understood in an appropriate manner and this help in identifying appropriate cost driver (Lodha, 2016; Account Learning, 2017). Thus, from the above detailed analysis of the meaning, limitations and benefits of Activity Based Costing, it can be said that implementation of ABC in the manufacturing division of New Age Caravans will be beneficial for the company. Hence, introduction of ABC must be considered by the management of the company to allocate the overheads in an appropriate manner based on activities and not on products. References Account Learning, 2017. Activity Based Costing | Meaning | Features | Objectives | Implementation. [Online] Available at: https://accountlearning.com/activity-based-costing-meaning-features-objectives-implementation/ [Accessed 18 may 2017]. AllBusiness, 2017. Product Costing System. [Online] Available at: https://www.allbusiness.com/barrons_dictionary/dictionary-product-costing-system-4945883-1.html [Accessed 18 may 2017]. Averkamp, H., 2017. Introduction to Activity Based Costing. 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