Managerial Accounting Essay Example | Topics and Well Written Essays - 1000 words

Managerial Accounting - Essay Example This article mainly discusses Breakeven Analysis such that the first section highlights the definition of breakeven point along with its graphical representation. Next section describes the importance of breakeven analysis. Last part of this article outlines the implications of breakeven analysis followed by the conclusion which summarize the article. Breakeven Point The level of sales or production quantity which can bring the company in a position where it neither generates any profits nor incur any losses, that point is called as breakeven point or level (tutor2u). When a particular product is manufactured, it has mainly two components which are variable costs and fixed costs. In order to reach at the breakeven level of sales, variables costs are deducted from the sales to arrive at the contribution margin. The percentage of that contribution margin with respect to sales is then compared with fixed costs resulting in the breakeven level of sales. If the contribution margin is prov ided in per unit terms, then break even quantity to be sold would be found. Following are the formulae for Breakeven Sales Level and Breakeven Quantity: Breakeven Sales Level = Fixed Cost / Contribution Margin (%) Breakeven Quantity = Fixed Cost / Contribution Margin (per unit) Where, Contribution Margin = Sales – Variable Cost Graphical Representation Graphically, breakeven points can also be identified with the help of the following diagram, where it can be observed that the point of intersection between lines OA and BC where line OA describes the normal sales level and BC denotes the total cost of the product comprising both variable and fixed costs. The point Q denotes the breakeven quantity. It is important to note that at point P, the firm is neither incurring any loss nor generating any profit and that is the breakeven point for the sales level. Reasons for Breakeven Analysis There are different reasons due to which business managers are keen to undertake this analysis such that future planning of operating activities, setting sales objectives, avoiding losses, estimating sales and costs forecasts etc. All these reasons are discussed as under: Future Planning Breakeven analysis helps business managers in undergoing rigorous future planning about the different products. By virtue of this analysis, some products are removed from the product line which can no longer generate profits, some of the products are added in as they have the capacity to generate some profits. At the same time some existing products are also continued with as their breakeven analysis provides them the likelihood of earning some profits. Setting Sales Objectives In order to motivate the sales force, breakeven analysis is conducted and then sales force is provided some targets to achieve. As per meeting the different levels of target sales, the company’s profits increase at the same time it adds up more rewards to the sales force. Avoiding Losses The next major reason f or the breakeven analysis is the avoidance of losses. Since the most preferred objective of a company is to avoid losses at any costs, therefore the business managers, conduct this analysis which reveals as which product can be sold in what quantities in order to establish different quantity levels of sales. If a given product’s breakeven quantity is too high and the company does not realize that this much quantity they can actually sold, it means that product will surly incur some losses. So it is

Creative & Critical Assignment Example | Topics and Well Written Essays - 1000 words

Creative & Critical - Assignment Example However consistent the effects of that approach to achieving peace is, the fact remains that nobody wants to be involved in a war. No man would willingly become a soldier, ready to kill nameless others who have not done him personal harm but rather harmed his nation or a weaker one that needed protection. While numerous articles and opinion papers in the 21st century have condemned war and its outcomes to the best of the writers abilities, the most scathing condemnation of war was not done during our most recent times. Rather, it was written during the events unfolding within World War I by Wilfred Owen in his sonnet â€Å"Dulce Et Decorum Est†. The gravity of the poem can only be attributed to the fact that Owen wrote the poem while recovering from shell shock or in modern lingo â€Å"Post Traumatic Stress Disorder† more commonly known as PTSD in 1917, having served as a British war soldier. Writing many a war related poems during this time including â€Å"Strange Meeting†, â€Å"Insensibility†, and â€Å"S.I.W.†, this practice was actually one of the methods that he employed in order to help him deal with the trauma of the war and its lifelong effects upon him (Williamson, Andrew â€Å"Dulce Et Decorum Est†). It is from this highly graphic recall of his involvement in the war that led to the highly creative and almost 3-D like depiction of the war within his writing. While published posthumously in 1920 the sonnet translates into English as â€Å"It is sweet and honorable to die for ones country† (Williamson, Andrew â€Å"Dulce Et Decorum Est†). However, nothing about the lines from the sonnet depict war and the soldier experiences as being such. For example, the first stanza of the sonnet describes: Anybody who reads the above stanza without being told of the era that it was written it would absolutely swear that it was written by a modern day soldier coming home from