Accounting MemoFeasibility of Bookstore Business
Dear Sir or Madam,
You had asked me to study and pore over the feasibility of taking your book store project into a self-sustaining career that would allow you to dedicate your full efforts to. To that end, I have prepared a data sheet and this brief memo to explain what challenges you face, what you have going for you and the overall feasibility of moving forward with this business endeavor.
Fixed Costs
As people in the accounting sphere know, fixed costs are the costs that are present in revenue/cost of revenue situation no matter what the sales figures and prices are. In general, the higher the overhead, the more money that has to be made just to break even. In the case of the bookstore business, there is $11,000 in overhead that must be absorbed by the revenue that comes from producing sales volume (Business Terms & Decisions, n.d.; Slideshare, n.d.).
Variable Cost
Variable costs are those that ebb and flow with the sales or production volume. In the instance of the bookstore, the shipping cost would be an example of a variable cost. While the size and scope of the variable cost is not nearly as expansive as it is with fixed costs, the margin between the variable costs the revenue garnered from the volume is important because that is what will eat into the overhead mentioned above. Only when the revenue after variable costs is aggregately more than the overhead is a profit...
Accounting Ethics Ethics of Accounting There have been breaches in the ethics of accounting in recent times. With that in mind, evaluate whether or not the current trend in the regulation of business establishments is favorable to ethical behavior. Supply supportive evidence to your answers (Jeter, 2003). The generally accepted principles of accounting and the standards of auditing in contemporary practice stipulate that the financial statements of any establishment should contain the following
Given this situation then, it is required that any modification in stocks be operated in the financial statements as well. As such, when an executive resigns and forfeits on his stock before vesting, the financial statements will reflect this situation. On the one hand, the stocks would be registered as new equity. On the other hand, they would be presented to the other stakeholders -- already existent ones or new
Accounting and Intrusion Detection In a report issued by Paladin Technologies, Inc., entitled: "Security Metrics: Providing Cost Justification for Security Projects," 273 organizations were surveyed on the topic of security. The report illustrates in quantifiable terms the depth and reach of intrusion detection on the financial viability of the organization. The combined reported losses from the firms surveyed totaled $265.6 million in 1999. The highest loss categories were reported as follows: Type
As required under Statement of Financial Accounting Standards No. 144, Accounting for the Impairment or Disposal of Long-Lived Assets, WB must evaluate the carrying value of PC and T. against the fair value, as determined by the market capitalization of the two companies at the official spin-off date. In this case, both PC and T. will qualify as discontinued operations because after the confirmation of the transaction neither will
Accounting Operating income it typically defined to include all operating expenses other than depreciation and taxes (Investopedia, 2011). Because the airplanes are leased, there is no depreciation for West Coast Airlines to take into consideration anyway. The operating income is as follows: Revenue AVG Passengers Variable fuel Revenue/pass Food & Beverage F&B/pass Fixed Lease Ground Services Flight Crew Operating Income The company right now is losing $31,012.50 on every one-way flight to Fiji. If the company lowers the cost of the flight in
Accounting Theories and Business Decisions: The Business World Case Facts Application of theories Other cases of stakeholder theory application Accounting theories and business decisions: The business world There are many theories that explain the complexity of relationship between different groups of people directly and indirectly related to an organization. Two of the most comprehensive and most discussed theories are stakeholder theory and agency theory. Both the theories describe what the main purpose of each group
Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.
Get Started Now