WHAT IS
THE EMPLOYMENT STATUS OF SANTA’S HELPERS?
Elf-employed!
WHY DID
SANTA HAVE TO FIT BOOSTER SEATS AND SEAT BELTS ON HIS SLEIGH?
Its
because of elf and safety!
Its is
our sincere hope that you get a pleasant visit from Santa J.
We hope
and trust you have a nice and pleasurable season and get well prepared for more
productive work next year.
God’s
blessings be with us all.
What is
tax evasion?
What is
tax avoidance?
Who is
asking? Why?
Never
mind the answer, it’s all legit!
CLASSIFICATION OF COSTS BY
BEHAVIOUR
Classifying
costs by behaviour requires you to classify the costs into-
-Variable costs
-Fixed costs
-Semi-variable
costs
-Stepped costs
Variable costs- these are costs that vary with the
level of production or activity. It is usually assumed to vary in direct
proportion to production. For example, if you make twice the number of chairs
then the assumption is that the amount of wood used would be doubled.
Fixed costs- these are costs that are not affected
by changes in the level of production or activity, hence costs that don’t vary.
For example, rent costs for a factory. It is assumed that if production
increases, the factory rent cost would not be increasing based on the
production volume.
Semi-variable costs- these are costs that have a fixed
element and a variable element. This means that if production were to double,
the cost of production will not double because of the fixed cost element in the
production cost, which will remain the same. For example, the cost of
electricity for the factory has a fixed element relating to lighting and a
variable element relating to power used in the production line.
Stepped costs- these are costs that remain fixed up to
a particular level of activity, but which rise to a higher (fixed) level, if
activity goes beyond that range. For example, a firm may pay £40,000 per year
to rent a factory in which they can produce up to 1 million units of product
per year. However, if demand increases to more than 1 million units, a second
factory may be required, in which case the cost if factory rent may step up to,
say, £80,000 per year and then be constant until we want to make more than 2
million units.
What do you believe about the career path you have chosen?
For most people this is a strange question - we rarely spend time thinking
about our own beliefs. A quick answer to this is- many people think that the
accounting profession is a well-paid profession, especially, when you are a
qualified Accountant.
The collection
of beliefs you hold about your career - is reflective in most of the choices
you make.
- How much risk you are prepared to take.
- What's risky and what’s not.
- What projects and initiatives to undertake.
- What kind of resources you need to succeed in your career.
- Who to partner with, if any.
- Cooperate or compete.
- What your employers should expect from you.
- How hard you expect to work.
And lots more….
If your belief is that the accounting profession pays well, what happens when that belief isn’t being met? You change career?
HIGH/ LOW POINT METHOD
Splitting of
semi-variable costs
Included
in semi-variable costs is an element of both fixed and variable costs. In cost
accounting it is important to be able to split these costs and identify the
variable costs separately from the fixed costs and this is achieved by using
the ‘high/low’ method.
The
idea behind the application of the high/low method is that if we agree that
fixed cost doesn’t change based on the activity level, that is, as you produce
more units, the fixed cost will remain the same. So, where the cost changes, as
activity is changing; this will be as a result of the variable costs element.
The high/low method of splitting semi-variable cost
picks the total cost at two different activity levels and finds the additional
cost incurred in making the additional units. The additional cost is then
divided by the number of additional units made and this leads to the variable
cost per unit, which is then used to calculate the total variable and fixed
cost by applying the unit cost to the high or the low activity level.
Question:
Solution:
Additional
cost= £24715-16480= £8235
Additional
units= 3150-1800= 1350
VC/
unit= £8235/1350= £6.10
Total
VC, using the low point= £6.10x1800= £10980
Total
FC, using the low point = £16480-10980= £5500
This
will be applied to all the activity levels in the question:
2100
units x £6.10= £12,810
2600
units x £6.10= £15,860
2900
units x £6.10= £17,690
What is the definition of an Accountant?
Someone who solves a problem you didn’t know you had in a
way don’t understand
Accruals, prepayments, adjustments to accounts are all legit
I’m sure you know that!!!
I’m hope you know what accruals and prepayments are!
They are just one of those things Accountants use to confuse
lay men and themselves!!!
TRIAL BALANCE
The
Trial Balance is used to check the arithmetical accuracy of the accounting
entries in the ledgers after the last transaction of a trading period has been
entered and before the preparation of the Final Accounts.
The Trial Balance shows the closing balances of each general ledger account on a periodic bases, so it is important to balance each ledger account correctly as these are the amounts that filter into the list of debit and credit columns in the Trial Balance. The debit and credit columns should be added up and the totals should be the same.
Question: Rama & Co Trial Balance
In order to correctly complete the trial balance, you will
need to know your cost classification and you could also apply the acronym
DEAD/ CLIC
Debit Expenses Assets Drawings / Credit Liabilities Income Capital
Answer: Rama & Co Trial Balance
We
pay tribute to His Royal Highness Prince Philip, Duke of Edinburgh (born on the
10th of June 1921) and died today, on the 9th of April
2021, at the age of 99.
Born
in to the Greek and Danish royal family, he was exiled from Greece when he was
18 months old. After educating in France, Germany and Scotland, he joined the
Royal Navy at the beginning of the second world war. He was one of the best cadets
in his class, and he quickly ascended the ranks within the Navy. In October
1942, he became first lieutenant of HMS Wallace, at 21 years old one of the youngest first lieutenants in
the Royal Navy. He was present in the Tokyo Bay aboard HMS Whelp when the Japanese surrendered, formally ending World War Two. Philip returned
to the United Kingdom on the ship in January 1946.
Queen
Elizabeth first met Philip in 1939, when she visited the Britannia Royal Naval
College, where Philip was completing a term as a cadet. They began exchanging
letters with each other, and the soon to be Queen fell in love. After returning
from the frontline, Philip asked the King for his daughter's hand in marriage.
1 year later, in 1947, he abandoned his Greek and Danish royal titles, marrying
Princess Elizabeth and becoming the Duke of Edinburgh. When Elizabeth became
Queen, he became her royal consort, accompanying her to ceremonies such as the
State Opening of Parliament in various countries, state dinners, and tours
abroad. He is the longest-serving royal consort to any British sovereign.
He
devoted much of his time to charity. Philip was patron of some 800 organisations, particularly focused on the
environment, industry, sport, and education. Notable ventures included being
the UK president of the World Wildlife Fund and setting up the Duke of
Edinburgh award, in order to give young people "a sense of responsibility
to themselves and their communities".
Prince
Philip served courageously in the armed forces during the greatest threat to
the nation, before devoting his time to his beloved wife, and various
charitable organisations around the world. A truly great man and a great
Briton- may he rest in peace.
Increase your productivity
An important key to long
term success is your dedication to continuous improvement. This will lead to
your increased productivity and a conscious awareness of the need to set clear,
specific goals for each area of your life.
Take responsibility for
each action and step you take and take the needed steps to achieving your
goals. Utilise your inborn talents and take the needed steps one day at a time
and continue moving towards your goals.
Have a clear head and make
sure you are taking a step at a time and gaining more and more skills and
knowledge.
Be at your best at each
stage you get to in your life, be determined not to make excuses and don’t
accept slack.
Our hearts and our condolences go out to our students and everybody out there that has lost a loved one. We've all been through this pandemic but thankfully, we've kept our heads held high and not let it get us down. We would like our students to join in the with us, and the rest of the country, in the one minute's silence at 12 noon.
OVERHEAD ABSORPTION RATE
JTM Ltd is looking to calculate the unit cost for one of
its products. It needs to calculate an overhead absorption rate to apply to
each unit. The methods it is considering are:
·
direct
labour hours
·
machine
hours
The factory activity forecast is as below:
|
Machine
hours |
15,000
hrs |
|
Labour
hours |
21,000
hrs |
|
Overheads |
£672,000 |
(i) Complete the table below to show the possible overhead
absorption rates that JTM Ltd could use.
|
|
Machine hour |
Labour hour |
|
Overheads
(£) |
|
|
|
Activity |
|
|
|
Absorption
rate (£) |
|
|
Answer:
|
|
Machine hour |
Labour hour |
|
Overheads
(£) |
672,000 |
672,000 |
|
Activity |
15,000 hrs |
21,000 hrs |
|
Absorption
rate (£) |
44.80 |
32.00 |
|
NUMBER PUZZLE |
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How quick and easy is this puzzle for
you? Using the numbers below, complete
these six equations (3 reading across |
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and 3 reading downwards). Every
number is used only once. |
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6 |
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8 |
9 |
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x |
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- |
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= |
15 |
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+ |
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x |
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+ |
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- |
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x |
3 |
= |
21 |
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- |
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+ |
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x |
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x |
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+ |
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= |
17 |
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= |
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= |
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= |
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10 |
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11 |
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84 |
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YOUR HAPPINESS IS IMPORTANT
What
makes you happy and what does happiness mean to you?
Some people will believe that making people happy will lead
you to being happy! Is that a myth?
There has been a lot of challenges and deem issues that so
many people would have been dealing with especially as we work through several
lock downs and restrictions which pose their own challenges in the midst of
confusion.
Amidst all doubt, reluctance, unwillingness; it is important
to seek happiness and a balance in wellness and mental health.
Take the needed first step in identifying what makes you
happy in a realistic context, because there may not be any need of identifying
the fact that going sky diving in Hawaii will make you happy when there may not
be any way for you to get to Hawaii in this current times. So, make it
realistic.
Take the needed second step in setting out a plan on how to
execute your happiness.
Take the needed next step in taking action to execute your
plan.
We will like to encourage you to identify, plan and execute.
Take it a step at a time and move forward towards attaining happiness and be
SUCCESSFUL.
Lets talk some more on the
movement of money in the cash book?
Dr-
Receipts
Cr-
Payments
When
money is received the bank balance increases and when money is paid out, the
bank balance reduces. J
Simple
hey!!!
Lets
see how you get on with this simple scenario:
·
Where
there is an opening debit bank balance of £12,030 and the totals recorded in
the cash book for the year ended 30 April 20X5 were:
|
Receipts |
£106,950 |
|
Payments |
£121,490 |
Assuming
there were no year-end adjustments, what will be the opening balance in the
cash book as at 1 May 20X5?
£_________
debit / credit
I’m
sure you would have got this correct and known that it will be……..
£2,510 credit since the cash book balance does not have money left in
it, so it will have a credit balance.
