Toul On Library

Month: February 2017

Costs & Values

San Juan Cell Phones
Marianela Tavarez Torres
University of Phoenix
ECO/561 Puerto Rico ??“ Economics
Prof. Adelaida Torres Dilan
October 20, 2010


In this scenario of San Juan Cell Phones we could appreciate the difference between three types of cell phones to be made their costs, values and price. These phones need to be reliable to the customers and meet their spectators but need to be economic in production in other to fit the customer??™s pocket. We will find a way to get their production ready and keep it as profitability as possible in order to secured the 100,000 cell phone order.

Maria Perez a business development specialist at San Juan Cell Phones as accepted an order of 100,000 cell phones from a major chain and she wants to take the order to cover the company excess capacity coming up in the next three months. In order to proceed with this order she needs to verify their production costs in order to know the best suitable price for the major chain (Big Box) and her company. When we speak about production we are talking about inputs to outputs, also we need to consider the technology available for using equipment, plant, materials, labor, etc… Any improvements made to better their equipment in technology will result in a new production function. First of all we need to consider the accurate cost of the product and carefully take in consideration what is done and what is not done, and then been careful in the decision that will be made because of their benefits and relative cost. In this case San Juan Cell Phones need to visualize their current cost for the Alpha model. See if there is any already in stock according to the reading they have an excess in capacity of 70,000 cell phones units over for the next three months in which only 30,000 will be need it in order to complete the order. If there were to decide to use the Alpha unit prototype and complete the order with that model they will incurred in something call replacement cost.
This means the cost of duplicating a product by using the current technology. This differs from the accurate cost because in accurate cost, the product is already made, in replacement cost they will have to use the same technology used before. Why because if a company holds electronics components in inventory such as cell phones, the relevant cost for pricing purposes is replacement cost. In this scenario we could also mention opportunity cost which means forgone value associated with current rather than next best used of an asset.

Because is a choice of alternatives in price at least as great as the resource??™s value. This is considered in the prototype made by Original Equipment Manufacturer (OEM) for the Alpha Unit. As an alternative to complete the order of 100,000 I will consider the prototype made by Original Equipment Manufacturer (OEM) cause they could come up with 100,000 units in a shorter time, the phone performance will be the same as the product made by San Juan Cell Phones and its cost will be less per unit than usual made by them.
Original Equipment Manufacturer could produce the order secured by Maria who works for San Juan Cell Phones placed by Big Box in lesser time, their cost per unit is $14.00, and Big Box will pay $15.00 per unit no more than that. Which will be an increase, a positive profit contribution for them This decision will benefit them; cause could be a possibility of getting bigger orders in the future. In this situation the decision made by the manager need to ensure that only those costs actually affected by the decision are take in consideration. This incremental cost can include implicit and explicit cost. In this case I do estimate that their contribution analysis which will estimate their selling price and direct (variable) costs will meet their expectations.
Managers sometimes know with certainty the outcomes that each possible course of action will produce but sometimes they don??™t. That is called risk; this is a chance that a person is willing to take in order to obtain a negative or positive reaction from a business decision. In this case since I decided to go with the cell phone made by Original Equipment Manufacturer (OEM) this type of equipment could have a probability risk. Which means that is possible that the event will occur and that an expected value is anticipated. Also an absolute risk is possible cause is an

Overall dispersion of possible payoffs. This kind of possibilities could happen because of the kind of product to be build. Relative Risk is another one possible that will depend if there are any returns that will affect the profit.
If it was my decision to choose which alternative to take I will still go with option of OEM because the product is almost similar as the one build by San Juan Cell Phones. Their production would be quicker, cost lower and profit higher. There is only a question to be answer would their performance and durability is the same or as good as the ones from San Juan Cell Phones. Well that??™s something they need to find out. In that case I would made a few and test them before completing the order, in that way the company??™s credibility would not be put in risk and if the product needs some adjustment they could be made ahead of time.


In this particular case San Juan Cell Phones had to make a choice of whether taking the order or not evaluating the options and taking chances. Something positive was that cost of production was lower than theirs, and the profit to be made was more than, if they were made at San Juan Cell Phones. But life is all about taking chances cause is the only way to know what could be done, and find out what mistakes to fix. Taking the order and using the option given by OEM was a risk probably because not been sure how reliable this product is could involve a lot of things but also could be a big hit.

Managerial Economics (Revised Edition) COPYRIGHT ?© 2000 Thomson Learning, Inc., by Mark Hirschey

CERTIFICATE OF ORIGINALITY: I? certify that? the attached? paper is my original work. I affirm that any section of the paper which has been submitted previously is attributed and cited as such, and that this paper has not been submitted by anyone else.? I confirm that I have cited all sources from which I used? language, ideas, and information,? whether quoted? verbatim or paraphrased. Any assistance I received while producing this paper has been acknowledged in the References section.? I have obtained written permission or have included a release from the copyright holder for any trademarked material, logos, images from the Internet, or other sources. I further agree that my name typed? on the line below is intended to have, and shall have, the same validity as my handwritten signature.

Students? signature (name typed here is equivalent to a signature):
Marianela Tavarez Torres

February 28, 2017     0 Comments

Hp Company Analysis

The Consolidated Financial Statements include the accounts of Hewlett-Packard Company, its wholly-owned subsidiaries and its controlled majority-owned subsidiaries HP. HP reports in operating segments based on their product lines. They have seven reportable business segments for financial reporting purposes including Services, Enterprise Storage and Servers (“ESS”), HP Software, the Personal Systems Group (“PSG”), the Imaging and Printing Group (“IPG”), HP Financial Services (“HPFS”), and Corporate Investments. The business segments are based on this organizational structure and information reviewed by HPs management to evaluate the business segment results.
The Services segment provides consulting, outsourcing and technology services across infrastructure, applications and business process domains. Services segment is separated into four main business units including infrastructure technology outsourcing, technology services, applications services and business process outsourcing
The ESS segment provides storage and server products. The server offerings range from entry-level servers to high-end scalable. HPs storage products include entry-level, mid-range and high-end arrays, storage area networks, network attached storage, storage management software, and virtualization technologies, as well as data reduplication solutions, tape drives, tape libraries and optical archival storage.
The PSG segment provides commercial and consumer PCs, workstations, handheld computing devices, calculators and other related accessories, software and services for the commercial and consumer markets. Commercial PCs are optimized for commercial uses customers and for connectivity and manageability in networked environments. Consumer PCs are targeted at the home user to provide advanced graphics, computing, and large modeling capabilities.
The HP Software segment provides enterprise software and services. Enterprise IT management products and services, which are marketed as HPs business technology optimization portfolio, help customers to manage IT infrastructure and services, operations, applications, and business processes and to automate data center operations and IT processes. Business intelligence solutions enable businesses to standardize on consistent data management schemes, connect and share data across the enterprise and apply analytics. Communications and media solutions enable service providers, media companies, and network equipment providers to create, deliver, and manage consumer and enterprise communications services.
The IPG segment provides consumer and commercial printer hardware, printing supplies, printing media and scanning devices. IPG also focuses on imaging solutions in the commercial markets. These solutions range from managed print services solutions to addressing new growth opportunities in commercial printing and capturing high-value pages in areas such as industrial applications, outdoor signage, and the graphic arts business. Printer supplies include LaserJet toner and inkjet printer cartridges and other printing-related media.
The HP Financial Services segment supports and enhances HPs global product and services solutions, providing a broad range of value-added financial life cycle management services.
? ? ? ? ? ? ? ? HP has adopted the new Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards No. 141-R, related to business combinations. They have included the results of operations of the businesses they acquired in fiscal 2010 in HPs consolidated financial statementss as of the respective dates of acquisition. They allocate the purchase price of its acquisitions to the tangible assets, liabilities and intangible assets acquired, including in-process research and development (IPR&D), based on their estimated fair values. IPR&D arises when the acquired company has projects under development that have not reached completion. They record the excess of the purchase price over those fair values as goodwill. INPR&D is initially capitalized as an intangible asset on the balance sheet at fair value with an indefinite life and assessed for impairment thereafter. When the project is completed, an expected life is determined and the IPR&D will be amortized over its estimated useful life.
Post-deal earnings will be affected by the impairment or amortization of the intangible asset. Acquired contingencies from Statement 141R will require a new way of recognizing assets or liabilities arising from a contingency and establishes different recognition thresholds for contractual and noncontractual contingencies. For contractual contingencies, the assets and liabilities that occur from an acquired contingency will be recognized at fair value on the acquisition date. For all other (noncontractual) contingencies, the acquirer will recognize the asset or liability only if it is more likely than not that the contingency will give rise to an asset or liability as of the acquisition date.
Acquisition-related expenses and restructuring costs will also be subject to the Statement of Financial Accounting Standard 146, Accounting for Costs Associated with the Exit or Disposal Activity (FAS146). FAS 146 won??™t allow restructuring amounts to be recorded until the expense is incurred, which in the case of acquisition related restructuring, is not until the acquisition is completed. This will result in business combination charges to be recorded subsequent to the acquisition and reflected in the income statement. In fiscal 2010, HP recorded acquisition-related charges of $293? million primarily for consulting and integration costs, acquisition costs and retention bonuses associated with the acquisitions of EDS, 3Com, Palm, 3PAR and ArcSight.
In fiscal year 2010, HP finalized eleven acquisitions. The purchase price allocation for these acquisitions reflects various preliminary fair value estimates and analyses. They expect to continue to obtain information to assist them in determining the fair value of the net assets acquired at the acquisition date during the measurement period. Measurement period adjustments that HP determines to be material will be applied to the period of acquisition in HPs consolidated financial statements.
Hewlett-Packard Company and subsidiaries changed their method of accounting for noncontrolling interests with the adoption of Financial Accounting Standards No. 160 Noncontrolling Interests in Consolidated Financial Statements, which was issued by the FASB in December 2007 to amend Accounting Research Bulletin No. 51. The noncontrolling interest is the portion of equity in a subsidiary not attributable, directly or indirectly, to a parent. The purpose of the statement is to improve the relevance, comparability, and transparency of the financial information that HP provides in its consolidated financial statements.Consolidated Financial Statements

The combined financial statements of a parent company and its subsidiaries.

Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge
….. Click the link for more information.? The interests in subsidiaries held by parties other than the parent be clearly identified, labeled, and presented in the consolidated statements, separate from the parents equity. Also, the amount of consolidated net income that is assigned to the parent and the noncontrolling interest needs to be clearly identified and presented on the face of the consolidated statement of income.
Also in one of the disclosures of the Form 10-K of HP, the Chief Executive Officer and Chief Financial Officer of HP, certify, pursuant to 18 U.S.C. 1350, as adopted pursuant to Section? 906 of the Sarbanes-Oxley Act of 2002, that the Annual Report for the fiscal year ended October? 31, 2010 fully complies with the requirements of Section? 13(a) or 15(d) of the Securities Exchange Act of 1934 and that information contained in the Annual Report on Form? 10-K fairly presents, in all material respects, the financial condition and results of operations of HP.

References: Retrieved on July 22, 2011
This is the link that takes you to the copy of Hewlett Packard??™s 10K filing. This is the annual report that they are required to file for the Securities and Exchange Commission. It provides a comprehensive summary of the company??™s performance. It includes information like the company history, organizational structure, subsidiaries, and audited financial statements.
Hoyle, J. B., Schaefer, T. F., & Doupnik, T. S. (2011).Advanced accounting (10th ed.). New York, NY: McGraw-Hill
The book Advanced accounting (10th ed.)is the book we used during class. It provides a comprehensive and integrative coverage of essential accounting terminology. It helps students to think critically about accounting, focusing on past and present resolutions. It also shows the development of financial reporting as the result of intense and considered debate.
This link takes you to the homepage of the Financial Accounting Standard Board. This allows you access to all of the recent activity and latest news. It also has detailed information for all of the Accounting Standards, including FAS No. 141R and FAS No. 160. It allows academic accounting access for free.


Costruct and Support an Argument

Construct and Support an Argument
Henry Robaina
University of Phoenix
John Grabarczyk
October 18, 2010

Construct and Support an Argument
A few months ago I was working long hours at a dead end job, when I decided it was time for a change in my life. I realized that in this tough economy it was necessary to have more than just a Bachelor??™s degree. Friends and relatives have been annoyingly telling me to return to school for quite some time. Finally I took a step forward, and motivated myself to return for a run at an MBA program with University of Phoenix. The main reasons I determined to pursue an MBA degree was to fulfill my goal of acquiring a higher education, making more money, and eventually advance up the corporate latter into a managerial position.
According the (United States Department of Labor Statistics), ???Many top executives have a bachelor??™s or graduate degree in business administration, liberal arts, or a more specialized discipline.??? If this information is completely accurate, them completing an MBA will assist me in pursuing better employment opportunities for myself. Dr. Heather Allen stated in one of her many articles that education is the foundation for graduate students to have the leverage of choosing from many job opportunities not available to those who did not pursue education beyond high school. A higher degree translates in many forms like, earning more money, more knowledge, more recognition from coworkers and family members, better employment opportunities, bigger network of professionals, and ability to associate with productive members of this society.
(Allen, 2009) stated in one of her articles that, ???Specifically, the US Census Bureau reported in 2004 that, on average, a college graduate earns $54,704, significantly more than the $30,056 earned annually by someone with a high school diploma, or the $22,100 earned by a high school dropout.??? These statistics are self explanatory because it reassures me that I made the correct decision to continue educating myself. There is a significant difference in the amount of money people can earn by simply going to school. Of course just graduating from college is not an automatically qualifier to make more money in the real-world, and other factors must be considered such as consistency, time with the organization, responsibilities, and much more. I want to make the most out of my life by making the most money I can. (Allen, 2009) Also stated that ???the lifetime income of families headed by individuals with a bachelors degree will be about $1.6 million more than the incomes of families headed by those with a high school diploma.??? My mother always told me that education was the key to success, and she was right.
The (US Department of Labor Statistics) also stated ???many top executive positions are filled from within the organization by promoting experienced, lower-level managers when an opening occurs.??? So in efforts to fulfill my dream of being advance to upper management, not only is the educational background important but also the company??™s stability and future are important as well. Promoting within obviously informs me insights into how to proceed within my current organization if management is truly the route I want to pursue. Experience is also another factor that many industries seek for upper management and that makes perfect sense because how can someone manage a large corporation (e.g., General Motors, Coca Cola, and Starbucks) without any proven track record. I believe that pursuing an MBA program will place me in favorable position as a potential candidate for my current employer, and any corporation. Evidently, employers would prefer to hired individuals who have experience in the specific field, and have succeed.
The Jungian Personality self-assessment located on University of Phoenix student website gave me a better insight into how others may perceive me as an individual. My score was an INTP. Out of the 16 personalities on the self-assessment am classified as introverted, intuitive, thinker, and a perceiver. According to my score on the test, others may perceive me as socially cautious, enjoy problem-solving, and highly conceptual. I find this assessment to be assertive. Furthermore, the review of my personality revealed that my possible career paths could be software designer, mathematician, financial analyst, and a few other choices. I found that most characteristics revealed on this assessment were accurate. Now I am overly confident in my goals of pursuing a managerial position.
Finally, I am glad to be back in school and ready for the challenges ahead. Time is running and the clock is ticking. An MBA degree will simply supply me the leverage I need for a better financial future for my family and me. This degree will open new door and avenues previously inaccessible or restricted. A Master of Business Administration will finally fulfill my goals of having a higher education, making more money, and eventually climb up the corporate latter into a managerial position.
Allen, H. (2009). Why is Higher Education Important. Retrieved October 13, 2010, from
U.S. Department of Labor Statistics. (n.d.). Job Outlook for: Top Executives. Retrieved October 11, 2010; from


Hp Case

From the very origin HP had Participative Management Style which was open and relaxed in which the Emphasis was on the process & the organization structure was highly decentralised. As the organization grew, the need to formalize the work culture resulted in the formulation of the HP WAY in the year 1957. The existing values and culture of the organization formed the core of the HP way.

The HP Way ??“ HP??™s Corporate Objectives
The achievements of the organization are the result of the combined efforts of each individual working towards common objectives. These objectives were
??? Profit
??? Customers
??? Fields of Interest
??? Growth
??? People
??? Management
??? Citizenship

The HP Way ??“ HP??™s Organizational Values
These objective were realised through its organizational values which formed the backbone of the HP way.
??? To have trust and respect for individuals.? 
To approach each situation with the belief that people want to do a good job and will do so, given the proper tools and support.
??? To focus on a high level of achievement and contribution.
? In order to remain at the forefront in all our activities, people should always be looking for new and better ways to do their work.
??? To conduct our business with uncompromising integrity.
? As a practical matter, ethical conduct cannot be assured by written HP policies and codes; it must be an integral part of the organization, a deeply ingrained tradition that is passed from one generation of employees to another.? 
??? To achieve our common objectives through teamwork.
? Recognize that it is only through effective cooperation within and among organizations that we can achieve our goals. The benefits and obligations of doing business are shared among all HP people.
??? To encourage flexibility and innovation.
? Create an inclusive work environment which supports the diversity of our people and stimulates innovation. We strive for overall objectives which are clearly stated and agreed upon, and allow people flexibility in working toward goals in ways that they help determine are best for the organization.
In order to achieve this, the management techniques employed were also people centric, namely
??? Management by Objectives
??? Open Door Policy
??? Open Communication
??? Management by Wandering Around


Costing Methods

Costing Methods

Costing Methods
Super Bakery, Inc., was established in 1983 by a former Pittsburgh Steeler??™s running back Franco Harris. Super Bakery specializes in donuts and other baked goods into the food market. The strategies used by the management of Super Bakery will be discussed within this paper, along with why the management of Super Bakery made the decision to install an ABC system. The discussion will also talk about which system would have been better for Super Bakery a job order cost system or a process order cost system.
The beginning of Super Bakery the management at that time decided to use a strategy that would only handle the core functions of the business, while outsourcing all other functions of the business to brokers, which would handle the sales of the bakery goods. Super Bakery also contracted out manufacturing, warehousing, and shipping to keep cost down to a minimum. Super bakery was able to pull together a number of companies together and organize the work flow, which was a strategy of Super Bakery to add maximum value but at the same time reduce the amount of investment Super Bakery would have to make in permanent staff, fixed assets, and working capital. Super Bakery using this type of strategy allowed the company to leverage the maximum core competencies of the business, while adding maximum value to the company.
As time passed and the bakery industry grew more competitive Super Bakery management felt they needed to add an ABC system because of a wide variation in cost of serving customers in different parts of the country. Super Bakery was faced with the traditional method of cost, which was spread across its entire customer base. The objective of Super Bakery was to control the cost of outsourced activities. Super Bakery wanted to identify orders with high profit margins at the same time it wanted to accurately assign the cost of each order. The main purpose Super Bakery management wanted to install the new ABC system was to improve it??™s pricing while identifying cost associated with the different activities involved in each order placed by customers. Super Bakery before the new ABC system was using activity based costing to track its profitability of each customer??™s account and the performance of the outsourced activities.
The decision of Super Bakery making these changes, I would have to agree because the activity based costing can be understood by everyone involved in the company. The activity based costing uses unit cost instead of total cost, which makes the costing system more meaningful. The activity based costing is a more accurate system of cost of products, distributors, and suppliers of Super Bakery. The activity based costing will help Super Bakery identify the profitability of each customer and help concentrate on those customers that are more profitable than others. The activity based costing will be useful to Super Bakery to integrate the six sigma and other improvement type systems. Super Bakery will be able to reduce these items which will lead to greater value for Super Bakery and its business alliances. The main objective of Super Bakery is to increase its value and the activity based costing will help the company achieve these goals by enabling benchmarks. The activity based costing will give Super Bakery an insight into the fastest-growing and least visible element of cost. One of the most important things that the activity based costing system will do for Super Bakery is to monitor total life-cycle cost, improve effectiveness of budgeting and link strategy to operational decision making.
The reason why a job order cost system will not work for Super Bakery is that it focuses on products rather than on departments, activities, or partners. In case of process order cost system, it has been observed that inaccuracies are very common and so it is not suitable for Super Bakery. The reason for this is that production processes often include indirect costs or items that are not related to producing products. . In addition, process order cost system requires the tracing of unfinished goods through the entire process and this is difficult as well as unsuitable for Super Bakery.

Accounting Coach. (2012). Activity Based Costing. Retrieved from
Kimmel, P. D., Weygandt, J. J., & Kieso, D. E. (2009). Accounting tools for business decision making (3rd ed.). Hoboken, NJ: John Wiley & Sons, Inc.
Value Based (April 17, 2012). Activity Based Costing. Retrieved from

February 27, 2017     0 Comments

Hp and Tyson Foods


With a passion on technological inventions, Bill Hewlett and Dave Packard together created a company that changed the face of technology. Founded in 1939, Hewlett Packard (HP) introduces various inventions that captured consumers and major corporation interests. With operations worldwide, Hewlett Packard became successful generating more than $115 million in profits in 2008 alone (HP Corporate Information, 2010). Despite the company??™s accomplishments, unethical practices surfaced revealing the use of confidential e-mails and private phone records creating a public outrage. In 2006, Hewlett Packard appeared before Congress on criminal charges against numerous company officials including former Chairperson Patricia Dunn of unethical misconduct for unlawfully obtaining private phone records along with e-mails under false pretences in a form of pretexting. Pretexting is a controversial method of obtaining phone records and personal information under false pretences (Heritage Institute, 2007).
The aforementioned allegations facing Hewlett Packard created conflict between board leaders and directors leaking sensitive information to journalists. ???The matter came to a head when the most sensitive details of discussions at a board retreat ended up on the front page of the Wall Street Journal on January 24, 2005??? (Heritage Institute, 2007, para. 2). Right after Hewlett-Packard had regained control from missteps over previous years, scandals involving its board chairperson and officials about questionable techniques threatens the future of the organization. Hewlett-Packard??™s chairperson Patricia Dunn replies to the accusations by submitting to the law yet the case was dismissed.
HP upholds its leading position and success in its industry however, the lack of communication between board members and directors exists affecting leadership relationship. ???Overall, a perception of leadership is most often based on the leaders??™ communication abilities and opportunities. When employees are satisfied with the way in which their leaders communicate, the results can be significant??? (Hartman, 2005, p. 187). Therefore, Hewlett-Packard leadership must outline management responsibilities and roles with corporate governance to improve communication.
The current practices at McBride Financial Services are analogous to HP??™s unethical practices by operating its company lacking effective communication. ???Incentive plans often fail to achieve credibility because they are not explained adequately. Uncertainty creates doubt, and doubt undermines success??? (Chew & Gillan, 2005, p. 5). McBride Financial services must benchmark HP??™s collapse to comprehend the significance of unethical practices for company awareness before applying unlawful techniques in acquiring company information. In the case of McBride Financial Services, Hugh McBride does not permit his staff to manage the organization??™s stock options as well as instructing the staff to perform unethical activities when employing directors. Conversely, McBride Financial Services falls beneath the guiding principles of Sarbanes-Oxley Act. ???SOX mandated changes that will affect executive compensation, shareholder monitoring, and, particularly, board monitoring??? (Chew & Gillan, 2005, p. 8).
Hugh McBride must initiate an effective corporate strategy to delegate several responsibilities for the staff to improve and strengthen the company??™s operations. McBride Financial Services needs to apply some of HP??™s practices to educate its leaders by improving company??™s organizational goals and developing strong leadership skills to disseminate ethical decision-making process.

Tyson Foods
Founded in 1935 with headquarters in Springdale, Arkansas, Tyson Foods was known as the world??™s largest processor of chicken, beef, and pork meat. Tyson Foods is also known as the second-largest food production company in the Fortune 500 (Tyson, 2010). Controversial problems arise concerning business operations for Tyson Foods questioning its relation with former President Bill Clinton, campaign involvement, contributions, and unsanitary plant conditions dangerous for workers. Don Tyson along with his family and the board of directors in 2008 entered a settlement about rising issues over problematic business practices. The allegations were about unethical behaviors among directors and officers in correlation with stock options including party transactions. As a result, the settlement agreement in this case ordered Tyson to pay $4.5 million to their largest shareholders that required enhancements to Tyson??™s corporate governance policies (Tyson, 2010). Furthermore, Tyson Foods agreed not to involve in any unethical activity relating to party transactions without consent from Board members as well as hiring a consultant to assess the company??™s internal audit and control processes.
The board of directors at Tyson Foods immediately worked on the terms of the settlement agreement in creating an effective corporate governance structure to approve related-party transactions. With much emphasis on the company??™s internal controls including corporate governance, the board planned to ensure the organization will support it stockholders and investors. To remain successful in its industry, Tyson must restructure its position including company commitment to strengthen and support its long-term objectives. With the assistance of independent or impartial individuals, the company can implement appropriate changes to restructure shareholder trust and achieve company success. In addition, corporate governance actions taken include the implementation of an inclusive Code of Conduct along with Corporate Governance Principles. Furthermore, the board has appointed a non-management lead director and has changed director compensation to include a portion in Tyson Foods stock (Tyson, 2010).


Chew, D., Gillan, S., (2004). Corporate governance at the crossroads.
(1e). New York: McGraw-Hill.

Tyson (2010). Retrieved on August 29, 2010 from

Hartman, P. (2005). Perspectives in Business Ethics (3e). New York: McGraw-Hill.
Heritage Institute (2007). Hewlett Packards Corporate Governance Woes. Retrieved on
August 28, 2010 from

HP (2010). HP Corporate Information. Retrieved on October 21, 2010 from


Costing Methods

Clifford Brown
November 9, 2011
Wanda Rivers

Costing Methods
Super Bakery Inc. was a virtual corporation in favor of subcontracting its major business applications. This was with a view of reducing the cost of operation comparative to its levels of income. By Super Bakery Inc outsourcing, they are able to manage control of the flow of the actions that produced its revenue. This was without essentially attaining to take the responsibility of accepting the risks involved with every phase of production and operation. This explains the accomplishment of its goal to decrease expenses. Otherwise, the company encounters the expenses through the acquisition of pertinent assets for the numerous processes included. These processes consist of machinery for production of the various products, maintenance of the machines as well as their replacement when required, and the expense of production. Examples of outlays of production include the raw materials cost and other contributions as well as overhead expenses, to include the cost of water, electricity, wages and salaries for the larger number of employees who would have to be directly and indirectly involved in the process (Staubus, 1971). The costs for transportation, as well as finished goods to the countless distribution points is also purged, as is the costs of raw materials storage and finished products before transportation to the target market (Horngren & Foster, 2003).
Super Bakery Inc. utilize the traditional costing methods that depends on recording of the costs for the different businesses it had required to perform the assortment of responsibilities on its behalf. This involved the recording of the company??™s individual schedule for all businesses in a way their individual expenses and profits were not independent of Super Bakery??™s costs schedule. What this means is the closing cost per product was evenly spread out in its units of merchandise. Consequently, the company was not able to maximize on the very profitable units caused to their reasonably low costs because the small profit margin units whose production costs were high had a counterbalance effect on them. In perspective, the variation in the cost per unit structure is superficially hidden by the unification. It therefore makes it impossible to tell the costs per unit for individual lines of product. This explains the difficulty in controlling individual line of production??™s costs. This kind of problem is what the need for developing and adoption of activity based costing (Gomez-Mejia et al. 2008).
Activity Based Costing, ABC
This method is more efficient than the traditional methods because it puts emphasis on costs in relation to the actions that go with the real production of the individual products. Indirect costs for a particular product are reflected in its direct cost, thus giving Super Bakery a more accurate picture of the profitability of its various products. Additionally, the company can trace the flow of costs more effectively and competently besides enabling it prepare more incisive profit-related projections for its wide variety of products, thus receiving control of the costs for the departments involved.
However, this method is not a good idea for Super Bakery Inc. as the firm is inclined toward costs reduction as its ultimate avenue in pursuits of higher profit margins. This is because it assumes all the costs incurred in the production of its units can be directly attributed to that product. This is not entirely the case as there are costs that cannot be attributed to the product. Therefore, an aspect of false reflection is in terms of cost to the company. This aspect is further exploited by the different firms contracted by Super Bakery, increasing the company??™s burden in terms of costs because all firms can experience this falsification. Should there be reduction in costs for the company, it would not be as effective as would be the case had other methods more expressive been employed (Drucker, 1999).
It is also crucial to note that this ABC method is relatively costly due to its complex nature. This complexity is especially an issue due to the company??™s involvement in detailing cost per activity for its various sub-contractors. In the end, instead of limiting its costs as it intends, the firm is likely to incur more costs due use of the method despite having control on the activity costs for the various aspects of production. Super Bakery therefore requires a method that strikes a balance between its intended goals is cost controlling without additional costs that would in that case make its efforts ineffective if it is expensive. For these reasons, there is need for the adoption of a combination of the job order and process costing systems (Bradford, 2008).
Job Order and Process Costing System
As the company is involved with different products, job order system is ideal method. Application of this system in its costing with each stage of transaction by an independent company serving as a job in its listing it is possible to trace the cost of production per unit without necessarily involving unrelated costs. In its description, the firms which are involved with production, warehousing and shipping as well as selling are different jobs with a combination of costing for those jobs being a summary of the process costing of the individual companies. Process Costing becomes vital for those activities in sub contracted companies that deal with the production of identical units for Super Bakery. This implies that process costing for the individual companies would serve as ratification tools for Super bakery Inc., and in that process enabling it achieve its cost controlling objective (Cohen, 2002).

Bradford, T. (2008). Types of Accounting Costing Systems. Retrieved February 10, 2011 from
Cohen, D. S. (2002). The Heart of Change. Boston: Harvard Business School Publishing.


Howard Zinn

Reading the chapter, ???The Coming Revolt of the Guards???, by Howard Zinn, I agree with his argument for the most part. Americans have given over their voice in the body of politics; leaving the decision making to the rich and privileged. The government is controlled by the privileged, the middle class, or the guardians should revolt with the lower class to create a more balanced world.
Zinn breaks down the system used in the United States and its flaws. His argument is extremely compelling in the beginning of the chapter. For instance, Howard states, ???we have learned to look to the stars, leaders, and experts in every field. Thus, surrendering our own strengths, demeaning our own ability, obliterating our own selves??? I strongly agree with this, in times of crisis we always look to others to save us, which weakens our ability to think for ourselves, do for ourselves and learn how to be one as a people. This gives the government more control over the population.
Additionally Howard states, ???one percent of the nation owns a third of the wealth. The rest is distributed in such a way as to turn those ninety nine percent against each other???. This includes relationships between intellectuals/uneducated, property owners/none owners and the good looking/ none attractive. Thus, making me wonder who controls the people really Without the 99% (the poor) there will not be a 1% ( rich). Therefore, the people control the wealth, we just have been so accommodated to sharing the left overs that we forget what we deserve. There is so much vehemence and violence in todays society which is, exactly what the government wants to keep the guards from uniting to take control of the wealth and politics.
As the chapter progress Zinn proves that the middle class is being deprived of its rights and is well controlled by the upper class, because of his evidence I can see the differences in wealth between the upper, lower, and middle classes. Moreover, age, social status and race are elements that separate the classes. I have lived in lower class neighborhoods and in an upper class neighborhood for a decent amount of time while living in Chicago. The middle class and lower classes have been isolated from the wealthy. The wealthy is separated by bridges and train tracks from the lower class. Zinn believes that ???The American system is the most ingenious system of control??? For years, the economy has divided the wealth and has allowed the rich to be isolated from the poor. These inequalities have negative effects; as a result, gangs, street violence, and crimes have risen steadily. This competition for jobs and economic stability has also affected the middle class now that the threat of unemployment has spread and violence has risen. All of these signs, a higher unemployment rate, more crimes, and isolated people point to a flawed capitalist system, as Zinn argues, and the middle class should revolt.
There is the immense power that capitalism has over the people. For example, if the middle class along with the lower class rebelled against capitalism, as Zinn predicts, what would stop the government or the rich from using their army, National Guard, or police force from killing the rebels Since most of the lower and middle classes are not armed, if they revolted they would most likely be oppressed. An example of this is in the 1960??™s and 1970??™s at universities like Kent State, where college students protesting the Vietnam War were shot to death. This had led me to believe that the ???guardians??? have the ability to revolt and the power to impose change in the system.
However I think it will be another repeat of what happened at Kent state years ago. Many of the guards are educated by the rich (the Establishment) and are unconsciously taught not to recognize the issues and concerns that they are faced with. So unfortunately the ???guardians??? may not recognize that they have a reason to revolt.

February 26, 2017     0 Comments