MANAGEMENT ACCOUNTING Essay Example | Topics and Well Written Essays - 2000 words - 1

MANAGEMENT ACCOUNTING - Essay Example For the purpose of understanding the importance of marginal costing system in the firm, let us start with the very fundamentals of marginal costing. Marginal costing is the system of ascertaining the marginal cost and its use for decision making. Marginal cost is the extra cost incurred for producing an additional output. The extra cost incurred usually is the one which is likely to change in direct proportion to the change in output. Such costs are known as variable cost and hence the costing system is also called variable costing system. The basic idea behind marginal costing system is that all variable costs are deducted from the sales to find out the contribution ( from which fixed expenses is later deducted to ascertain the profit) on the plea that fixed cost remains constant irrespective of the volume of output or sales. There are many applications of marginal costing in manufacturing concern. One of such applications is the decision with regard to the make or buy decision. In the make or buy decision, the management accountant undertakes a cost benefit analysis. Such a decision making requires the firm to know through marginal costing what contributes to fixed costs will result from a make decision. The points to be taken care of at the time of make or buy decision are: When the capacity is available it cannot be utilized for manufacture of other products, then the purchase cost is compared with the marginal cost or total cost is compared with the purchase cost plus fixed cost of manufacture to take the decision to make or buy. When the capacity is available and it can be utilized for manufacture of other products, the purchase price is compared with the marginal cost of the product and plus opportunity cost, i.e., the loss of contribution of other product replace When there is no additional capacity available and it is proposed to acquire additional facilities for

The Impact Of Social Networking On Our Daily Lives Essay

The Impact Of Social Networking On Our Daily Lives - Essay Example The paper tells that the development of formal and informal contacts takes place in the social networks, Facebook, Twitter, LinkedIn and Google plus. Statistics show that over 1.2 billion people use Facebook as a social network. Despite the fact that it can be termed by many as the greatest development of the twenty-first century, it is still a high predator against social values, social structures, and moral development. Most people believe firmly that social networks breed more good than evil in society. There are major positive impacts as a result of electronic information exchange. To start with is the promotion and facilitation of competition in trade. This can be achieved through harmonization of business practices, standardization of information, convenience in reaching out to sister companies and the market. Social networks have enabled consumers to maximize their freedom of choice. Organizations can, therefore, win consumers by producing only the best and also having an up t o date integrated informative system. Such as competition enhances economic growth and development. To add further on the impact of social networking to the global economics, millions of people today get employed by social institutions. These employments can be appreciated for alleviating poverty, higher standards of living and the decrease of the dependency ratio. The management of huge organizations can enjoy reduced costs of managing this can mainly be through, ease in channeling of information between and/or among branches, eased supervision, and coordination of decision making in different branches. The wind of technological social networking can also be rewarded for positive impacts on health matters. In the USA for instance, the increasing population of the old people as compared to the decreasing population of young people can be termed as one of the mysteries by the growth and development of social networking, the need of care providence increase with old age. The unavailab ility of young people to provide informal care to the old can be resolved by the use social networks. The people in need of care keep communicating with formal caregivers at the comfort of their homes. On social relations, social networking can enable people to communicate with acquaintances far away from their comfort. People can initiate, maintain and control relationships beyond geographical, political and economic boundaries. Students today can discuss with their colleagues and teachers through social networks. This has led to more products of research and academic performances on related fields. There still a myriad of other positive fruits of social networking ranging from indirect and direct improvements in job seeking, increasing the mobility of labor and taking religion to people yet unreached in the virtual world among many others. On the other hand, social networking can be termed to be a threat to the human society. To begin with, the young people are getting incapacitat ed to communicate on a face to face basis. This deprivation is a threat to the replenishing role entrusted to the family by the society.