Managerial Accounting Practices Essay Example | Topics and Well Written Essays - 500 words - 4

Managerial Accounting Practices - Essay Example Another disadvantage of fixed costs is that they eliminate flexibility and make the job of managerial accountants much harder. Variable costs change depending on the level of sales. Also a managerial accountant can find ways to eliminate or reduce variable costs easier than fixed costs. A costs structure in which variable costs are more influential than fixed costs is more likely to have a lower breakeven point. The breakeven point is the amount of sales necessary to cover all expenses. There are many fixed costs in which Claire Corporation is incurring. Some of the company’s fixed costs include building rent, salaries of administration staff, and depreciation of equipment expenses. The company’s plan of expanding the amount of distribution centers is a move that will definitely increase the company’s fixed costs. The overall sales have to increase to justify that strategic choice. If variable costs are reduce it would increase the contribution margin of the company and raise its profitability. The situation of having to liquate merchandise due to excess inventory must be remedied immediately. If the company adjust its cost structure geared towards variable costs instead of fixed costs the plan of creating a just in inventory system would bring greater benefits for the company. There are ways for the company to begin the transformation process to moving away form unnecessary fixed costs. A fixed I had not mentions that is major problem in the company is maintenance costs of the equipment. Some of these machines are obsolete and should be replaced immediately. Buying new machine would eliminate most of the wastage and unnecessary maintenance costs. I also evaluated the company debt situation. The firm has multiple long term loans that were incurred when the firm’s credit score was low due to company being a newcomer in the industry. Now our business credit rating has gone up a lot. Refinancing

Why living in the city is better than living on a farm Essay

Why living in the city is better than living on a farm - Essay Example lot more exposure to a harsh and cruel outside world than the farm, which cushions a man and does not let him interact with the atrocities of the modern world. Nonetheless, both these areas have their own advantages and disadvantages as discussed further. A man that grows up living in the city can see all the lights around him; he is exposed to the tumultuous expression of emotions, is able to meet all kinds of different people, is able to cater to different surroundings which include an environment outside the zone of his comfort level, and is able to mould himself with respect to the people and society that he lives in. Growing up on a farm is very much different than the city and does not provide as much experience or challenge to a man. A country life helps a man grow in a very agrarian and slow manner which helps him grow accustomed to a more traditional and conventional way of living and thinking. Technology has surely taken a modern turn on farms nowadays as well, however, that does not stop people from not being exposed to a lot more culture in cities than they do on farms. Taking for example, a man growing up in a city like New York as compared to one growing up on the soft farms of Alabama; The city will be able to provide many more opportunities in terms of career and education prospects and will help the man understand himself and discover himself while being in the company of a lot more interesting people and cultures. People growing up in the city are also subject to many more people migrating and coming in from abroad and thus are able to have a more worldly perspective on life. Furthermore, they are able to access new forms of communication, information and technology and thus are able to gain a better perception of everything around them and are able to adapt to newer situations in a much better manner than people belonging to farm areas. In conclusion, growing up in a city is much better than growing up on a farm mostly because of the kind of