Discussion post 1<\/p>\n
When material are stored in inventory that means still it\u2019s not in final production state any material which have prepared ahead of time and stored in inventory to future for final production that peace of production is called the WIP work in progress inventory it has been mixed with labor but has not reached the final good status along with other inventory accounts can be determined by various accounting methods across different companies. \u201cAccountants use several methods to determine the number of partially completed units in WIP.\u201d (Hayes, A) In most scenario accountants consider the percentage of total raw material labor, and overhead cost that have been incurred to determine the number of partially completed unites in Work in progress.<\/p>\n
US automotive industry is facing a difficult if not unprecedented period of competition and capital spending in its effort to compete with other automakers and to meet government regulations on emission control and safety. After Auto Workers union (UAW) and General Motors (GM) pay agreement they start helping GM motors after jobs cuts in GM motors GM start hiring the people again. After major shift of US car business the US market have seven manufactures GM, Ford, Toyota Motor Corp, Honda Motor Co, and Hyundai. \u201cUS auto sales rose 11% in December capping a year that suggests the industry is on verge of one of the most dramatic shifts in its history\u201d. (Wall street Journal). GM has plenty of cash to help it weather passing storms, and its repeated cost-cutting has made it learn enough to make profits even its produces fewer cars. If sales continue to recover they can hire more workers and still make profits.<\/p>\n
\u00a0<\/p>\n
References:<\/p>\n
Hayes, A. (2021, July 28). What work-in-progress really means. Investopedia.\u00a0https:\/\/www.investopedia.com\/terms\/w\/workinprogress.asp.<\/p>\n
Publication info: Wall Street Journal (Online); New York, N.Y. [New York, N.Y] 04 Jan 2011<\/p>\n
Discussion post 2<\/p>\n
Week 6 Discussion<\/p>\n
COLLAPSE<\/p>\n
Top of Form<\/p>\n
Accounting vs. Economic Cost<\/p>\n
In simpler terms, accounting cost is the overall cost of anything your business has paid for. The economic cost is a step further than typical bookkeeping basics and is often used by economists to compare two separate courses of action (McGuigan et. al., 2017). \u00a0It also looks at the impact each action would have on your business. While accounting cost focuses on the use of explicit costs only, economic costs look at a long-term time frame. Accounting cost determines profit or loss for a specific period of time while economic cost considers both explicit and implicit costs. Accounting cost is used for tax purposes or to determine the financial health of your business while economic cost is used to make long-term strategic decisions (McGuigan et. al., 2017).<\/p>\n
US Car Industry Affected by Economic or Accounting Cost?<\/p>\n
After going through the materials for this week, it is to the best of my understanding that the US Car industry is more affected by economic cost than accounting cost. Accounting costs would not have as big an impact as economic costs. These costs include the following: rent, utility expenses, travel expenses, supplies, any other expenses incurred during the normal course of business (Ross, Westerfield, & Jordan, 2011). The supplies which are nothing but the raw products that are used in the manufacturing of cars eventually will have to be used for successful shipments of cars and in my view would not matter much to the big players in the industry. But on the flip slide economic cost assists in making decisions regarding the future of her business, such as when creating financial projections (Ross, Westerfield, & Jordan, 2011). Using economic cost calculations can also be valuable if you\u2019re looking to maintain or expand your current business. In this scenario, if the number of cars is sold less for instance that has a huge impact on the economics of the company and can be a major factor for determining financial projections for the future just to give an example.<\/p>\n
References:<\/p>\n
McGuigan J., Moyer R., & Harris F. (2017).\u00a0Managerial economics: Applications, Strategies and Tactics. Boston, MA: Cengage Learning<\/p>\n
Ross, S. A., Jordon, B. D., & Westerfield, R. (2011).\u00a0Corporate Finance Essentials. McGraw-Hill.<\/p>\n
Bottom of Form<\/p>\n","protected":false},"excerpt":{"rendered":"
Discussion post 1 When material are stored in inventory that means still it\u2019s not in final production state any material which have prepared ahead of time and stored in inventory to future for final production that peace of production is called the WIP work in progress inventory it has been mixed with labor but has […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[10],"class_list":["post-78330","post","type-post","status-publish","format-standard","hentry","category-research-paper-writing","tag-writing"],"_links":{"self":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/posts\/78330","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/comments?post=78330"}],"version-history":[{"count":0,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/posts\/78330\/revisions"}],"wp:attachment":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/media?parent=78330"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/categories?post=78330"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/tags?post=78330"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}