legal system cannot enforce illegal contracts B u s i n e s s F i n a n c e

legal system cannot enforce illegal contracts B u s i n e s s F i n a n c e

Each week, you will be asked to respond to the prompt or prompts in the discussion forum. Your initial post should be 75-150 words in length, and is due on Sunday. By Tuesday, you should respond to two additional posts from your peers.

Overhead Costs Company Example

This week we covered Chapter 3, Process Costing and Chapter 4 Activity Based Costing. Process Costing is for manufacturers which assemble products that are identical. Activity Based Costing assigns costs to overhead activities and then assigns those costs to the assembled products. Using the company in your Week 1 post, please identify some overhead costs in the manufacturing operations. What makes these overhead costs and what cost driver should be used to apply the overhead costs to the products?

In your response to your peers try to provide an insight that they may have missed on how their chosen company might be affected by overhead costs. Alternatively, you could explain how your chosen company is similar or different from you peers in terms of overhead costs and why your cost drivers.

View your discussion rubric.

Kyle Ruge

week 2

COLLAPSE

As we know overhead costs are all indirect costs that incurred during the production process. I chose Coca cola, some overhead cost are depreciation of equipment/maintenance on machines used and utilities of the production facility. As the equipment used for the production of the materials depreciates over time after use that is an overhead cost as well as the taxes for the building that allows production to be made. The cost driver would be that we can track the cost of the utilites, for example electricity, so if it is high in the summer we know to adjust AC units or figure out other means of cooling down building for a cheaper expense. If we are over spending on maintenance on the machines, we can then see where the money we are spending is on and thinking about ways to cope with it.

Javorise Tunstall

Week 2

COLLAPSE

Overhead costs are the expenses that are ongoing in a business. The company that I picked on week 1 was Footlocker. Some of the costs for this company are for advertising, rent for the stores they have in the malls, bills, supplies, incomes for employees, taxes, and insurance. Considering that Footlocker is a retail store, these are overhead costs that they would have to continue to pay as long as the chain in operating in malls.

Each week, you will be asked to respond to the prompt or prompts in the discussion forum. Your initial post should be 75-150 words in length, and is due on Sunday. By Tuesday, you should respond to two additional posts from your peers.

Markets seek equilibrium, and the demand for goods and services will come to an equilibrium with supply of goods and services. When markets are not in equilibrium, surpluses and shortages, as well as underground markets, can exist. Sometimes, the government may want to intervene in markets to try to help reduce economic hardships.

Analyze the impact of an increase in the minimum wage from the current level to $15 per hour. How would the following be affected?

a. employment of people previously earning less than $15 per hour

b. the unemployment rate of teenagers

c. the availability of on-the-job training for low-skilled workers

d. the demand for high-skilled workers who are good substitutes for low-skilled workers

Review the mechanics of price floors and price ceilings. Why does a price floor lead to surpluses? Why does a price ceiling lead to shortages? Review consumer and producer surplus. A price floor will lead to a transfer of consumer surplus to producer surplus; a price ceiling will lead to a transfer of producer surplus to consumer surplus; both price regulations lead to deadweight losses, which is a loss of surplus to society. Why?

View your discussion rubric.

Eric Shepard

Week 2 Discussion

COLLAPSE

The impact of the increase of minimum wage could have a negative and positive affect. For example: for those workers who weren’t previously making $15 per hour would be able to afford better housing or housing period and possibly not have to struggle as they did before. Now on the negative side, i have seen that when you make more money then you tend to create more bills which will ultimately cause a person to have the same struggle as they were having in the beginning. The unemployment rate of teenagers would decrease because they wouldn’t mind working at a fast food restaurant for $15 per hour. The availability for on the job training may come to a halt due to most companies having the thought process of if we are paying you $15 per hour then you should already posses the necessary skills in order to work for that specific company. The high demand for skilled workings may be competitive due to those workers having the skills needed but no job will pay them what they feel is worth the work they will be doing and with the minimum wage increasing they would gladly accept. The reason why a price floor leads to because the price of the product is higher which causes the demand to be less and with the price ceiling the prices are lower and the demand is greater than the quantity supplied so the customers will buy out all of the product at that time because it is more affordable. The deadweight will be a surplus on both ends of the price floor and ceiling. The producer surplus will happen because the price floor is set too high and customers will not be able to afford or purchase the items in which it will be left up to the producer to find a way to sale, trade or possibly discard the surplus. Now for the consumer surplus that will happen due to the product being so affordable that they will purchase more than they will need which will cause those to have surplus to deal with.

Angela Mull

W2 Discussion

COLLAPSE

Analyze the impact of an increase in the minimum wage from the current level to $15 per hour. How would the following be affected?

a. employment of people previously earning less than $15 per hour.

There would be less people employed if the rate were to go from $7.25 p/hr to $15 p/hr. The cost of one employee at the rate of $15 p/hr would have been the cost of 2 employees at the rate of $7.25 p/hr.

b. the unemployment rate of teenagers.

Employers would be less likely to hire teenagers at the rate of $15 p/hr over someone who may have even minimal experience creating a much larger unemployment rate for teenagers.

c. the availability of on-the-job training for low-skilled workers.

At a $15 p/hr wage there would be minimal OJT as employers would be less likely to have someone in training for 2 weeks at that rate. People that have education or experience who may need a little tweaking for a particular job would be hired over those that have little to no experience and no formal education. This would be to mitigate the cost of training and having more productive people on the line from the time they start.

d. the demand for high-skilled workers who are good substitutes for low-skilled workers.

The demand for high-skilled workers who are good substitutes for low-skilled workers is already a thing. At one time having a high school diploma, set you apart when applying for a job, as time has progressed you see that the requirements for certain jobs require higher and higher degrees in those fields even to be able to apply. In certain areas you can make $15 p/hr if you have an associates degree or higher, that does not mean that the job requires a degree to be able to accomplish the job, but that is the only way you can make $15 p/hr.

Review the mechanics of price floors and price ceilings. Why does a price floor lead to surpluses?

A price floor such as an increase in minimum wage leads to a surplus of unemployed workers as employees will reduce the amount of people working to compensate for the increase in wages. They will now have 1 worker for the price of 2 workers.

Why does a price ceiling lead to shortages?

Price ceilings are caps on how much one can charge. If someone can only charge $600 for an apartment that may otherwise be valued at $900, they will find that the apartment complex will get filled and people will not want to leave, because if they leave they may have to pay more elsewhere, such as a house that is not controlled by the same parameters.

Review consumer and producer surplus. A price floor will lead to a transfer of consumer surplus to producer surplus; a price ceiling will lead to a transfer of producer surplus to consumer surplus; both price regulations lead to dead weight losses, which is a loss of surplus to society. Why?

In my perspective the price ceiling would create the greatest loss of surplus. With Government mandates imposing restraints, the once surplus of item X would now be within equitable reach for more people. The imposition of price restrictions would cause item X to be rapidly purchased, and what was once a surplus now becomes a deficit. With the deficit of item X, illegal ways of acquiring item X get introduced. The legal system cannot enforce illegal contracts or acts. Illegal activity effects us all in one way or another even if we do not see or feel the impact directly.