Sample Essay on:
Looking At Accounts

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Essay / Research Paper Abstract

This 6 page paper looks at a case study supplied by the student recalculates costs for a project and outlines the constraints of using accounts to make decision. The bibliography cites 6 sources.

Page Count:

6 pages (~225 words per page)

File: TS14_TEquet14.rtf

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Unformatted sample text from the term paper:

are in stock and were bought at a lower price. The restocking for the usual orders would then be at a higher rate and not all materials are in stock as well as some of the process on the original estimate are wrong . In addition to this there are also increased labour costs due to time and a half overtime. To assess if this is a good order to accept we need to adjust the futures for the restocking costs and the additional costs that will be incurred. Therefore to gain the real picture we need to take the accurate figures for the materials that are not in stock and correct the inaccuracies in the initial estimate. For this we need to look at the impact of accepting the contract and the alterative of refusing the contract. The calculation below is the cost of accepting the contract, with the costs included and also the cost of 14 an hour included as this is a loss from another project of the 100,000 hours of skilled labour, as this is a cost because it prevents a profit being made. Materials Number of units required Cost per unit Cost Type P 25,000 6.50 162,500 Type P 20,000 10.75 215,000 Type Q 40,000 14.25 570,000 Type R 30,000 4.00 120,000 Type S 35,000 5.50 192,500 Material costs 1,260,000 Labour Hours Cost per Hour Cost Skilled at usual rates 10,000 12.00 120,000 Skilled overtime 30,000 18.00 540,000 Loss of 14 an hour form other contract 10,000 14.00 140,000 Semiskilled 30,000 8.00 240,000 Unskilled 25,000 6.00 150,000 Training costs 400,000 Supervision 70,000 Redeployment costs 22,000 Total labour costs 1,682,000 Overheads General overheads 355,000 Storage needs 20,000 ...

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