Introduction to Accounting and Finance Essay Example | Topics and Well Written Essays - 1250 words

Introduction to Accounting and Finance - Essay Example A mixing, filling, and labeling machine would cost me 45.000 pounds to purchase and install and I would need to invest 20.000 pounds in advertising. Initial stock of supplies would cost 6.000 pounds and I would have to employ two workers at 2.000 pounds/month each to cover two shifts with the machine. My gross salary is set at 4.000 pounds per month as I will be responsible for management and sales. We would start working immediately to set things up so our salary, accountant, and rent would include two additional months, i.e January through August in 2011 instead of six, while other costs and revenues are calculated on the basis of six months. I would have to pay accountant 200 pounds a month and that includes end year financial and tax statements. Marginal Costs Statements Our marginal costs are variable costs of supplies and marketing costs for selling additional products. The formula is Cost per additional jar = variable costs (or in our case costs of supplies for a jar) but in r eality we cannot purchase supplies in such small quantities so increments should be set per 100 jar package. Our marginal costs per unit between anticipated 15.000 unit sales and maximum capacity of 20.000 units are 50 pennies per jar or 2.500 pounds per month. ... Quantities over 20.000 units per month would probably cost more to make than quantities around 15.000 as I plan. If we were able to sell 20.000 units per month i.e. 5.000 more than we anticipated, and there would be no bottlenecks in production, we would get additional income of 10.000 pounds per month that would cost only 2.500 pounds per month. Our pretax profits would rise for 90.000 pounds a year. 3) Breakeven Point Breakeven point is a level of sales where revenues equal expenses. To calculate this point we have to divide our fixed costs on enough units. Formula is Breakeven Production = Fixed Costs / (Selling Price – Variable Costs) Breakeven Production = 13.200 L per month/1,5L per unit = 8.800 units per month In our case everything except supplies represent fixed costs. Our rent is set regardless of the products we make and sell, we have to pay salaries regardless of production and sales, we have to pay the accountant, advertising, and amortization and miscellaneous is completely detached from sales we make. The only real variable cost of producing additional unit is therefore the cost of supplies. From the graph below we can see that we anticipate to reach Breakeven point in second month of production and by fourth month we intend to reach our sales target that will remain constant until and if we decide to add capital investment and labor. 4) Proformance Financial Reports a) Proforma Cash Budget Proforma Cash Budget January February March April May June July August September November December Inflows 50,000 20,000 32,455 60,221 15,822 13,122 9,122 4,233 2,445 2,124 3,600 Investment for 40% stake in the company 4,300 10,324 9,800 5,787 6,458 5,457 9,500 3,100 1,200 2,457 3,000 Net Sales 12,122 12,000 12,800 14,500 10,300 8,000 16,000

Compare and contrast ideas developed in Crime and Punishment, and The Essay

Compare and contrast ideas developed in Crime and Punishment, and The Trial - Essay Example In The Trial, by Franz Kafka, the defendant, K, is put through an ordeal that has no meaning attached to it because his crime is not revealed to him. The nature of crime is in the knowledge of it, but often the concept of crime is divorced from society through an inability for the people within a society to connect to it. Crime can be defined, then, as the acts of individuals that are against the desires of the authority and elite of society. The nature of crime is controversial. According to Henry and Lanier (2001), when asked about the nature of crime one of the burning questions is whether or not a crime is a crime if the law that designates it a crime is repealed. There was a time when racially motivated actions, domestic abuse, and white collar crimes were not designated as crime through law. Did this mean that they were not crimes? If it was legal to beat one’s wife, was it criminal to do so? By defining crime through strictly law structured contexts, then anything not d efined as illegal is not a crime. The definition of crime is then seen as something that defies a law. Crime can be defined by looking at the context of an action as well. ... Few, however, would define theft of food as anything other than a crime. Taking resources that belong to someone else is considered theft, even when one party has abundance and the other is in need. Defining crime is important because, as Henry and Lanier (2001) write, â€Å"policy decisions concerning social control are made based on a particular definition of crime† (p. 1). An example can be seen through defining what is considered to be a right within a society. In American society there are no rights to food, shelter, or health care. In other societies there are a number of rights afforded to human beings through various structures that entitle them to those rights. If someone were denied health care in the United Kingdom where healthcare is socialized it might be considered a crime under the right circumstances. In the United States, if a doctor refuses to see a patient who cannot pay it is simply considered good business. Crime, then, is defined by the social priorities of a society as they address their beliefs and needs in relationship to how they structure their law. There are a number of approaches through which law is addressed. The first is through the consensus view of crime. This view suggests that crime is defined by what all members of a society designate as criminal. Victimless crimes, such as drug abuse, are defined as crime because the belief systems in society have determined that such an act deserves attention by the courts and is criminal. Society chooses to address the actions of people that are believed to be harmful, even when harm is individual. The conflict view sees society of a number of groups that are in conflict with one another. In this case â€Å"Criminal laws†¦are viewed as acts created to protect the haves from the