ACCT 311 DB1 Reply

Group Discussion Board Forum Grading Rubric

There will be 4 Group Discussion Board Forums throughout the course. The purpose of Discussion Board Forums is to generate interaction among students in regard to relevant current course topics. You are required to post 1 thread of at least 500 words, and you must post 1 reply of at least 250 words. For each thread, you must support your assertions with at least 2 citations other than the textbook, and the Bible may be 1 of those sources. Everything must be in current APA format.Outside research for the replies is encouraged but not required. All research must include an in-text citation to give credit to the source of the information.

Submit each thread by 11:59 p.m. (ET) on Thursday of the assigned module/week, and submit your reply by 11:59 p.m. (ET) on Monday of the same module/week.

1 day ago

Payton Coleman

Question 4

Collapse

Top of Form

Fixed cost is defined as, “a cost that remains constant, in total, regardless of changes in the level of activity” (Garrison, Noreen, & Brewer, p.31). Some examples of these costs would be manufacturing overhead which can include, “depreciation, insurance, property, taxes, rent, and supervisory salary” (Garrison, Noreen, & Brewer, p. 31). The impact that these fixed costs have on managerial accounting is constant. These are a cost that the companies accountant can rest assure will be on every statement and usually the same amount every time. When trying to plan, these costs are easier to predict for the company’s future. 

Variable cost is defined as the cost that, “varies, in total, in direct proportion to change in the level of activity” (Garrison, Noreen, & Brewer, p. 30). Some examples of these cost include, “cost of goods sold for a merchandising company, direct materials, direct labor, variable elements of manufacturing overhead, such as indirect materials, supplies, and power, and variable elements of selling and administrative expenses, such as commissions and shipping costs” (Garrison, Noreen, & Brewer, p. 30). The impact that variable cost has on managerial accounting is a little more intense because these costs are a lot harder to predict and pretty much just a guess from previous reports and statements. These are a cost that must be reviewed when considering things such as the company starting new projects that are going to include bigger purchases. They must realize that these costs may vary and they must be able to tend to them no matter how much they increase or decrease.

Mixed cost is defined as the cost that, “contains both variable and fixed cost elements” (Garrison, Noreen, & Brewer, p. 34) The impact that this cost has on managerial accounting can be compared to both fixed and variable cost, however I still feel like it is a little more difficult to predict than that of fixed cost. Even though there may be a fixed amount you are dealing with there is still those attributes that are going to cause the amount to fluctuate a little bit. This makes it important for the accountant to keep their eyes on these costs and make sure they are not overlooked.

When looking at this through a biblical prospective we can see that each one of us as Christian also has fixed, variable, and mixed cost that impacts our daily lives. One issue that I feel like we can see as Christian that this can apply to is that of tithing. If one has chosen to start a business and claim to be a Christian they must make the decision whether to tithe on the profits that they make. I feel like this decision would be considered a mixed cost because you have a set percentage of what you tithe, however, this amount can either increase or decrease based on how the business is profiting. In the book of Malachi, we can find that it is stated that, “Will a man rob God? Yet ye have robbed me. But ye say Wherein have we robbed thee? In tithes and offerings.” (KJV). We are also given a specific amount in which we are to tithe of the profits we receive we can be found in the book of Leviticus where it states, “Every tithe of the land, whether of the seed of the land or of the fruit of the trees, is the Lord's; it is holy to the Lord. If a man wishes to redeem some of his tithes, he shall add a fifth to it. And every tithe of herds and flocks, every tenth animal of all that pass under the herdsman's staff, shall be holy to the Lord” (KJV). This could be very hard decision to make, especially when you are not doing as well as you expect, but God will honor those that obey His commandments.

Reference:

Holy Bible: King James Version Bible. Christian Art Publishers, 2013.

Garrison, R. H., Noreen, E., & Brewer, P. C. (2018). Managerial Accounting Custom Package (16th ed.). New York: McGraw-Hill.