Tag: Methods

  • Observation Methods in Research Case Study Essay

    Observation Methods in Research Case Study Essay

    Case Study of Observation Methods in Research Essay; This essay will look at the difference between two research methods; Case Study and Observation. A case study is the understanding of complex issues or can extend experience or add strength to what is already known through previous research. It is an in-depth study of an individual, group, incident, or community. Case studies emphasize the detailed analysis of the event or conditions and their relationship.

    Here is the article to explain, Case Study of Observation Research Methods Essay!

    Sometimes researchers use the case study method for real-life situations and use sources of evidence to prove their study. Observation method of data collection in research methodology; The first step to take in the case study is to collect all data about the case and should organize to draw attention to important points in the case. The case study’s questions are most likely to be information questions “why “and “How “therefore these questions are helpful to focus on the study’s goal.

    David;

    In this case, study researchers gather facts from different sources, and conclusions made of these facts. Here is a case study of David’s behavior,” David, 13 year old who has been admitted to a detention facility in California. Police reports indicate that he and another boy stood arrested for breaking into a private residence. David grew up in an upper-middle-class section of California. David’s father is a professor at a college, and his mother is a dentist who works for a health care group. Even as a small child, David seemed unable to restrain himself. He would bound around the house, crashing into walls and objects, frequently breaking items or destroying house plants.

    David entered puberty at the age of 11, and at that time, his behaviors became more destructive. He frequently got in fights with his classmates, and would verbally assault teachers. His parents suspect that he may have tried smoking cigarettes and may have experimented with sniffing glue. After his arrest for breaking, David began to cry and told his parents that he felt bad for what he had done. He added that he was unable to control himself.”

    In David’s case study which took a long time to study David’s behavior from his childhood to his teenage and in different circumstances David’s behavior had changed and resources have been used to prove his behavior such as his parents or police.

    Another example for case study research;

    it’s Freud’s little Hans case study,

    “Freud used a case study method to investigate little Hans’ Phobia however the case study was carried out by the boy’s father who was a friend of Freud. Freud probably only met the boy once. The father reported to Freud via correspondence and Freud gave directions as to how to deal with the situation based on his interpretations of his father’s reports. Freud noted that it was the special relationship between Hans and his father that allowed the analysis to progress and for the discussions with the boy to be so detailed and so intimate.”

    “The first reports of Hans are when he was 3 years old. When Hans was almost 5, Han’s father wrote to Freud explaining his concerns about Hans. He described the main problem as follows:’ he is afraid of the horse will bite him in the street, at age 19 the not so little Hans appeared at Freud’s consulting room having read his case history. Freud believed that the findings from the case little Hans supported his theories of child development.”

    Observation involves looking and listening to the object very carefully. Researchers in observation studies an individual or group in their natural settings without being informed of the observation in advance. Observational data usually detailed information about a particular person, group, or situation and reveals changes.

    Non-participant observation;

    In a non-participant observation researchers observe the behavior of the subject without interacting with the subject whereas in participant observation the researchers put themselves in the subject’s position; so the researchers become part of the world of the subject while focusing on their study and indirect observation; people know that you are watching them, and there is concern that sometimes individuals change their actions; while not showing what you are looking for or what they look like.

    Research led by Charlton,

    “studied the effect of television on children’s behavior when it was introduced to an island of St Helena in mid-1990s, The researchers focused specifically on pro-and-anti-social behavior. Using video recording, they found that, compared with playground observation on three to eight years olds made four months before television started, five years after its introduction 5 out of 64 measures were showing a decrease in pro-social behavior. However for boys, only there was a significant increase on two pro-social measures and a significant decrease on two anti-social measures. In other words, for boys at least there was almost as much positive as a negative effect.”

    The research led by Charlton was a naturalistic observation that use to collect behavioral data in real-life situations. The data-gathering device in this research was the video recording, which taped the children’s interaction daily.

    There is another example of Whyte studies about Italian gangs for an Observation research study,

    “Whyte studied an Italian street gang in Chicago by joining it. It was obvious Whyte was not a normal gang member. His ‘cover’ was that he was writing a book about the area. He made the famous statement that ‘I began as a non-participating observer. As I became accepted into the community, I found myself becoming almost a non-observing participant.”

    Whyte;

    Whyte’s research study existed undisclosed participant observation. Whyte as an observer kept hidden his study about the gang from gang members; Whyte aimed the understanding of the gang by putting himself in their position; and observed gang members in their natural setting, as they were busy in their everyday lives.

    Ethical issues;

    Two ethical issues Consent and Deception, both are very important issues to concentrate on before deciding on psychological research. Consent should obtain in an early time of research; this would involve informing the participant about the grounds for the research and their role in the research; however, there are some cases where this does not require; if the research is something in public where they would normally expect to observe; they would need permission to observe on the other side in deception; participants should never deceive about any aspect of the study they are taking part in. Same as consent participants should be provided with sufficient information at the earliest stage.

    Other ethical issues;

    Other ethical issues are, the introduction where both sides’ confidence need between the researcher and the participants, and the data protection act protects participants in the research; therefore confidentiality and privacy are important to agree on both sides except in a situation where the human life is in danger. And participants must inform of their right to withdraw from the research at any stage of the research. After debriefing, participants have the right to ask for their details in the study to destroy in their presence. Participants should not ask to risk their lives in any circumstances during the study.

    The publication is another important part of the ethical issues; it’s the responsibility of the researcher to publish is his research; this is because if the research failed has cost a lot of time; and money someone else might have the same idea and might invest lots of time and money, which would waste.

    Colleagues;

    It’s the researcher’s responsibility to monitor his colleagues in research to ensure that code follow; and, if the researcher becomes aware of the participant’s problems in the study; the researcher should refer them to someone qualified to advise them on the issue if the participants wish to.

    In Zimbardo’s Stanford prison experiment, participants existed deceived and existed physically harmed; they do not inform properly about all that took place later in the research; therefore deception does not allow in any circumstances; and, all that is going to take place in research should talk to participant in an earlier stage. And the participant’s consent existed not obtained before the research and participants do not inform of the reason for the study

    This involves informing the participant of the reasons for the study and what is expected of them. There are few cases where this does not require; if someone is doing something in public where they would normally expect to observe, they permit to observe.

    Observation Methods in Research Case Study Essay Image
    Observation Methods in Research Case Study Essay; Image by Arek Socha from Pixabay.

    References; Case study and observation research methods. Retrieved from https://www.ukessays.com/essays/psychology/case-study-and-observation-research-methods.php?vref=1, http://www.holah.karoo.net/freud.htm

  • Top 4 Online Payment Methods for Small Business

    Top 4 Online Payment Methods for Small Business

    Top 4 Online Payment Methods like Payoneer, PayPal, Stripe, and Amazon Pay for Small Business; As a service provider seeking to enter eCommerce or Small Business markets on unique geographic coordinates, one of the best demanding situations you face is knowing what the maximum used online charge techniques are. Knowing which Online Payment Methods for Small Business is first-rate for that marketplace is paramount, as buyers are 70% much more likely to finalize a buy if their favored payment method is displayed as an option. Sure, you’ll be aware of cards’ and PayPal’s reputation; but is your enterprise catering to the preferences of all audiences you’re concentrated on?

    Here is the article to explain, Top 4 Online Payment Methods like Payoneer, PayPal, Stripe, and Amazon Pay for Small Business!

    Hello everyone, in this era of digitalization today we are going to look at some of the most used and the top online payment methods used around the world. These are safe and secure to do international transactions as well. Let’s move over the satisfactory fee methods online and see if there are any you’re omitting.

    1. Payoneer

    Payoneer is an international payment service that allows people to transfer money around the world quickly and easily. The company functions as an alternative to PayPal; because it’s much easier for people outside of the United States to receive payments.

    They have the lowest fees for international payments. Their services are also available on a variety of devices; so it’s easy to manage your account no matter where you are. They also have a subsidiary, Payoneer Card, which works as an alternative to credit cards for online purchases. The Payoneer card is a prepaid card that can be used at millions of locations, online, and it doesn’t require a bank account. There’s no need to open an account either. They provide free global debit cards that allow you to withdraw cash from any ATM in the world.

    Learn How to Create Payoneer Account & How to link Payoneer with PayPal.

    2. PayPal

    PayPal is the world’s most popular and accepted online payment system. Since its founding in 1998, PayPal has established itself as the standard for online money transfers. If you’re selling products online, it’s a no-brainer to accept PayPal. But did you know that more than a billion people worldwide have PayPal accounts? And it’s not just for online purchases – there are over 100 million active users who use the platform to send and receive money via their smartphones. Not only does PayPal offer free money transfers, but it can be used for internet purchases, personal payments, or business transactions among others.

    The only drawback some users have faced while using PayPal is that they usually don’t have good exchange rates; Top online payment methods like PayPal. So while checking out on your local currency you might want to try other methods for accepting payments.

    3. Stripe

    Stripe is a web and mobile payments company that builds software for internet commerce. Stripe’s mission is to enable people to build businesses online. It has become the default way for many online businesses to accept payments, with over five million charging customers, tens of thousands of developers building on top of Stripe, and billions in aggregate annual transactions across more than 100 countries.

    In addition to its standard functionality, Stripe offers additional tools and services that are valuable specifically for international use cases.

    4. Amazon Pay

    Amazon Pay is a simple, secure way to pay on Amazon.com and its trusted websites. Also, Amazon Pay lets you shop online, store your payment information, and checkout faster by using the same information you already have on file with Amazon for shipping addresses and credit cards. And because Amazon Pay doesn’t require entering or storing any of your payment information; it’s more convenient than ever to make purchases from your computer or mobile device (including Android devices). It’s even more amazing while shopping as refunds are super fast on Amazon Pay when compared to refunds by bank transfer or any other method.

    Conclusion;

    Hope you found the listicle informative. These are some of the most used payment methods around the world and these make transactions globally easier to do. So If you found this insightful consider sharing it with others.

    Top 4 Online Payment Methods like Payoneer PayPal Stripe and Amazon Pay for Small Business Image
    Top 4 Online Payment Methods like Payoneer, PayPal, Stripe, and Amazon Pay for Small Business; Image by Megan Rexazin from Pixabay.
  • 5 Remuneration Meaning Definition Methods

    5 Remuneration Meaning Definition Methods

    Meaning and Definition of Remuneration for unemployment with their 5 Methods; Remuneration is the full compensation obtained by way of a worker. It includes not the best base revenue but any bonuses, commission bills, beyond regular time pay; or other financial benefits that an employee gets from an agency.

    Here is the article to explain, What is the Meaning and Definition of Remuneration for unemployment with their 5 Methods?

    An activity perk may also or might not be a factor of employee remuneration. An on-site gymnasium or a Beneficiant excursion plan are perks but they are not cashing in a worker’s pocket. Remuneration may additionally consist of the direct price of money or taxable fringe blessings along with non-public use of a company automobile.

    Meaning and Definition of Remuneration for unemployment;

    Remuneration is any form of compensation or payment that an individual or worker receives as the price for their services or the work that they do for a business enterprise or company. It consists of something base salary an employee gets, at the side of other kinds of payment that accrue throughout their work; which includes fee account finances, bonuses, and inventory alternatives.

    Introduction to Remuneration;

    Rewards may define because of the compensations and benefits obtained by using an employee in change for their offerings. Remuneration forms a crucial subset of the entire rewards and comprises the one’s elements that may value in monetary phrases. Effective remuneration approach frequently underpins the success of the business; as its miles consider as one of the key elements to draw and motivate human capital. Herzberg (1993) asserts that insufficient remuneration is one of the key elements inflicting dissatisfaction amongst personnel. The term remuneration is often associated with primary pay.

    However, remuneration is a far broader period and can encompass an extensive range of strategies for profitable employees within the shape of salaries, bonuses, piece-based remuneration, fee, employee stock options, fringe advantages, deferred concerns, performance-related pay, and earnings-sharing amongst many others. One of the fundamental challenges for companies in the contemporary commercial enterprise environment is that of employee motivation.

    Motivation can define as; “the diploma to which a man or woman needs and chooses to have interaction in positive specific conduct”. The cause of this essay is to seriously examine diverse strategies of employee remuneration definition; and, determine its position within the strategic control of human sources for an organization by way of dropping the light on its key benefits and drawbacks. The essay will eventually conclude by using analyzing; if a specific method of remunerating employees fits all situations or prefer other methods of remuneration.

    5 Different Methods of Remuneration for unemployment;

    The following 5 different methods of remuneration below are;

    Performance-related pay scheme:

    As the name suggests, performance-related pay schemes reward employees by linking the level of reward with the performance of the employees. Typical examples of performance-related pay include bonuses, commissions, and deferred considerations.

    Advantages;

    One of the key advantages of performance-related remuneration is that; it provides an effective means of rewarding by distinguishing between good and poor performers. Other advantages of performance-related pay increase motivation amongst employees to improve performance, attract and retain high performers and talented individuals, and ultimately improve corporate performance.

    Nonetheless, empirical evidence highlights that performance-related pay has often been ineffective. Also, highlight that the link between the increases in performance-related pay and corporate performance has remained weak.

    Disadvantages;

    Performance-related pay is also criticized for inciting employees to take dysfunctional decisions; as it acts as an inducement for employees to take greater risks which could put an organization’s survival at stake. Their pay may also lead to a conflict of interest for the employees by inducing them to focus exclusively on areas that impact; their pay and ignore other important tasks that may be in the long-term interest of the company.

    Performance-related pay might often suppress the intrinsic motivation of employees. Asserts that intrinsic motivation reflects employees’ passion and interest in work; which has a stronger impact on the performance of an employee and the business.

    Lastly, Maslow’s theory of motivation elucidates that within every individual; there is the hierarchy of five needs – basic physiological needs, safety needs, belongingness needs, esteem needs, and self-actualization needs. That the needs lower than the self-esteem needs can accomplish through remuneration definition; whereas the higher-level needs of esteem and self-actualization for the senior management are unlikely to achieve through extrinsic rewards, such as performance-related pay. Thus, it may not act as a motivational factor for the senior management.

    Profit-Sharing;

    In contemporary times, increased numbers of business organizations have started linking; the level of remuneration offered to the employees with the profits of the organization. Stock options are a common example of this type of remuneration. One of the key advantages of this remuneration policy deems to be the higher level of commitment by the employee towards the company because of an increased level of mutual interest.

    Advantages;

    Another common advantage of profit-sharing schemes deems to be a change in the attitude of workers due to an increased sense of belongingness with the company. Asserts that feeling of an increased sense of belongingness leads to intrinsic motivation; which has a more direct and stronger relationship with the company’s performance. However, Empirical evidence highlights a lack of evidence of a relationship between this type of remuneration and the performance of the company.

    Disadvantages;

    One of the key criticisms of this type of remuneration is that any improvement in the company’s performance will reward both good and bad performers, resulting in poor motivation for high performers; as they may feel that part of the reward that they deserve is being enjoyed by the low performers. Furthermore, sometimes profit-based remuneration policies might fail to motivate the employees; as they often feel share prices are undervalued despite business outperforming the forecasts.

    Lastly, Argues that shareholders expect the board to reward employees when the company has outperformed the market. However, empirical evidence highlights that for executives to exercise the option profitably; the performance of the company need not be superior and executives can easily benefit in times of the rising market. Thus, if employees feel that the movement in share prices is independent of their performance; there is a risk that a profit-based remuneration scheme may not act as a motivational factor.

    Piece Based Remuneration;

    A piece-based remuneration definition scheme is historically one of the most commonly used incentive schemes in practice for manual workers and is based on the number of items they produce or the number of hours worked by them. Typical examples of piece-based remuneration schemes include individual time-saving schemes, measured day work schemes, group incentives, plant-wide bonus schemes, and commissions.

    Advantages;

    Advantages of such schemes typically include an increased level of control by the management over the production process; and, it also acts as a cost-control measure because the workers’ main goal is to do the task expediently and efficiently to achieve the goal. Furthermore, Maslow’s theory of motivation (1943), as mentioned above, highlights that extrinsic rewards; such as piece-based remuneration, might act as a motivational factor for manual workers; because these workers are likely to have lower-level needs as per Maslow’s theory.

    Disadvantages;

    Like other types of remuneration, piece-based remuneration has its own set of disadvantages. Remuneration definitions such as group incentives and plant-wide bonus schemes lead to additional pressure on employees; and, create interpersonal animosities because of high performers not being able to receive the incentives due to some low performers in the group.

    Furthermore, time-saving schemes and measured day work schemes may act as a deterrent to creativity; as individual employees’ focus is on standardization and predictability to complete the work in the minimum possible time. Motivation hygiene theory suggests that job satisfaction and job dissatisfactions are two independent experiences. Whilst extrinsic rewards, such as piece-based remuneration, can help the manual workers to avoid job dissatisfaction; they might not lead to job satisfaction as the employees do not intrinsically motivate by the work itself.

    Skill Based Pay;

    This is a remuneration policy where employees remunerate based on the skills and competencies they possess.

    Advantages;

    One of the biggest advantages of skill-based remuneration definition is that it promotes employees to acquire multiple skills; thereby, offering flexibility to the organization in terms of using the same employees for various purposes and responding to customer needs more efficiently. Such remuneration schemes also enable organizations to attract and retain skilled employees easily compared to their competitors as people are likely to reward appropriately for the skills they possess under this scheme.

    Disadvantages;

    The potential disadvantage with this scheme is that costs often outweigh the benefits; if the increase in productivity is not enough to compensate for the increased cost of hiring and training skilled employees. As the business operates in a dynamic environment; there is a risk of skills obsolescence and associated high cost of training. Lastly, the business might also bear the risk of losing a skilled employee; on whom the business has invested a significant amount in training, to a competitor due to a highly competitive labor market.

    Flexible and Fringe Remuneration;

    Fringe benefits can define as the benefits in kind provided to the employees and have substantial growth in recent years. The value of the fringe benefits paid to the employees reflect approximately twenty to fifty percent of the remuneration; and typically includes benefits like pensions, company cars, sick pay, private health insurance, mobile phones, staff discounts, maternity or paternity pay, crèche facilities, and relocation expense amongst many others. Flexible benefits provide options to the employees to decide how their remuneration should structure.

    Under such schemes, the gross value of the remuneration definition package is determined by the employer; however, the employees have the flexibility to choose the mix of cash; and other benefits as a part of the remuneration package. Examples of flexible benefits include the option to choose between additional holidays, access to company crèche, childcare vouchers, or cash, amongst many others.

    Advantages;

    The advantages of flexible benefits include the potential of increased employee motivation as they end up getting the rewards they desire. Savings in social security taxes could also make through comprising the salary for the desired benefits that might attract a lower level of tax. Furthermore, research has highlighted that flexible remuneration programs contribute to attracting new employees, improving retention of existing employees, and improving employee engagement.

    Disadvantages;

    The primary disadvantage of flexible benefits remuneration schemes increased; the cost burden for the employer due to rising in the amount of administrative work related to managing the individual choices of employees. Another criticism of flexible remuneration policy is that the expensive company cars; and glamorous lifestyle provided to employees have contributed little towards developing long-term commitment towards the business organization and retention of employees.

    Empirical evidence highlights that the employees do not completely understand the value of the flexible benefits; and, there is little evidence of the positive motivational impact of these remuneration policies on the employees. Nonetheless, it does not indicate that employees do not value the presence of these benefits and are likely to resist their removal.

    Conclusion;

    Based on the discussions in the sections above, it is evident that each method of remunerating employees has certain advantages associated with it. However, Maslow’s theory of motivation and Herzberg’s hygiene factors, as discussed above, have highlighted a common issue across all forms of remuneration, i.e. the extent to which extrinsic rewards can contribute to motivating an individual employee, thereby, improving the company’s performance.

    Asserts that whether remuneration is performance-based, profit-based, or piece-based, it might motivate employees in the short run; but would not contribute to long-term commitment towards the company. Nonetheless, it is not deniable that remuneration plays an important role in influencing employees’ decisions regarding the long-term commitment towards the company.

    However, no one method of remuneration deem to recommend over another method; and a business might use a combination of methods to remunerate the employees according to the needs and motivations of the employees. Employees at lower levels might motivate by the prospects of better remuneration definition through different tools; however, for senior management self-esteem and self-actualization needs would need to satisfy to motivate them. Thus, rewards need to be carefully crafted to support one another and incorporate both financial and non-financial remuneration.

    What is the Meaning and Definition of Remuneration for unemployment with their 5 Methods Image
    What is the Meaning and Definition of Remuneration for unemployment with their 5 Methods? Image by Mohamed Hassan from Pixabay.

    References; Various Methods of Remunerating Employees. Retrieved from https://www.ukessays.com/essays/human-resources/various-methods-of-remunerating-employees.php?vref=1

  • Best Natural Skin Care Methods, Tips to Combat Rosacea Help

    Best Natural Skin Care Methods, Tips to Combat Rosacea Help

    Best Natural Skin Care Methods and Tips 2021 – Steps, How to Combat Rosacea Help? Rosacea is an ongoing skin issue that outcomes in affectability and redness, ordinarily around the cheeks and nose; also, best skincare tips for acne-prone skin. If we talk about Cosmetic cream product brands, L’Oréal, Mary Kay Ash product, and also Kylie Cosmetics come first in minds. As indicated by dermatologists, different causes, including pressure, daylight, and an assortment of food sources and beverages, can irritate the symptoms.

    Here is the article to explain, Best Natural Skin Care Methods, Steps, Tips to Combat Rosacea Help 2021.

    Notwithstanding, despite it being a common condition, its careful causes are as yet unclear. Patients for the most part have delicate skin that is handily harmed by beautifying agents, creams, and chemicals. You should take additional care of your skin if you have this illness by utilizing the proper items; also, the best natural ingredients for skin lightening. The individuals who experience the ill effects of it know how seriously it can influence a person’s life.

    Methods of Dealing with The Condition; Here are a few tips or methods or steps for managing the condition appropriately to help one look and feel better, for the best natural Skin Care 2021.

    Use Sunscreen Daily

    Quite possibly the most continuous reason for flare-ups is sun openness. Indeed, even brown complexion-toned individuals may encounter flare-ups in the wake of investing energy in the sun. Discover shade and wear defensive attire, for example, wide-overflowed caps and UV-secured shades, any place conceivable to ensure your eyes and skin. Furthermore, consistently you will be outside, apply an expansive range sunscreen (SPF of 30 or higher) on totally uncovered skin. Guarantee that the sunscreen is without aroma, and check for dynamic fixings like titanium dioxide and zinc oxide. They are more averse to bother sensitive skin.

    Before Using New Products

    Perform test tests on a little space of your skin a long time before attempting any new item. Guarantee it doesn’t cause stinging, redness, or a consuming sensation.

    Keep away from Facials however Cleanse Your Face

    Pick a gentle, amicable chemical to use all over before hitting the hay and when you awaken. This helps to eliminate earth and oil that would somehow disturb your skin. Various skincare items utilized for facials, like microdermabrasion treatments and compound strips, will probably cause more damage than anything else if you experience the ill effects of this condition. While they might be ideal for others, they will probably irritate rosacea. If you need a restoring system to help your skin seem young or smoother, talk with your dermatologist on elective skincare choices.

    Know Your Triggers for Flares and Avoid Them

    Various individuals respond diversely to specific triggers like cosmetics, cruel climate conditions, stress, certain staples like fiery food sources, liquor, or cold drinks. Recognize your triggers, keep a diary, and stay away from them. Washing up may limit your triggers. If we talk about Global Branding Strategy and their International Marketing Cosmetic cream product, L’Oréal Cosmetic cream case study in minds first.

    Take a stab at Using Gels or Creams Before Applying Antibiotics

    Numerous skincare items will bother your skin on the off chance that you have rosacea. Utilizing gels or creams before applying anti-infection agents can make them gentler on your generally delicate skin. Albeit delicate saturating, purging, and sun insurance will help limit affectability, you can likewise choose your skincare, anti-infection agents, and cosmetics with care.

    Dermatologists encourage customers to peruse the fixing list before buying drugs. To limit the odds of purchasing a substance that would disturb your face, stay away from anything that contains lactic corrosive, liquor, urea, menthol, camphor, aroma, sodium tree sulfate, and glycolic corrosive.

    Quiet Down Flare-ups When They Occur

    To mitigate symptoms, apply ice packs to your face to lessen the irritation. Green tea concentrates can be quieting also. Nothing hot ought to be utilized since this would disturb the circumstance. Continuously watch out for the temperature of something you put on your sensitive skin.

    Be Gentle

    This condition might be exacerbated by whatever disturbs the skin, so you ought to abstain from scratching, scouring, or cleaning your face. Try not to utilize facial wipes, washcloths, or complete shedding on your skin. Accepting these tips as a piece of your skincare routine will help you care for your rosacea-inclined skin better.

    Utilize Gentle Cleansers

    With this skin condition, scouring is an off-limits area. The cleaning agent type you choose will influence your skin. Avoid items containing salicylic corrosive or retinoids. While rosacea may look like skin inflammation, most skin inflammation medicines will disturb. Along these lines, keep away from astringents and cruel chemicals and guarantee your cleaning agent is hypoallergenic and scent-free.

    When your dermatologist has suggested a treatment plan and you’ve been prompted what moves to make, follow it determinedly for it to be powerful.

    Best Natural Skin Care Methods Steps Tips to Combat Rosacea Help 2021 Image
    Best Natural Skin Care Methods, Steps, Tips to Combat Rosacea Help 2021; Image from Pixabay.
  • Arrangement of Assets and Liabilities by Marshalling Methods

    Arrangement of Assets and Liabilities by Marshalling Methods

    What are Marshalling Methods? Accounting Essay – When we perfect the arrangement of assets and liabilities their position in the balance sheet, then they call Marshalling. The main purpose of the Balance Sheet is to show the financial position of the business or the company’s current position. How to an arrangement of assets and liabilities by Marshalling Methods? Therefore, assets and liabilities in the Balance Sheet should show in such an order which helps to understand the financial condition easily of current years. To serve these main objectives assets and liabilities record in the Balance Sheet in a certain order written by the accounting operator; That’s the order of assets and liabilities in the Balance Sheet calls Marshalling.

    Methods of Marshalling: How to Arrangement of Assets and Liabilities? Explain Step by Step.

    The expression “Marshaling” alludes to the request where the different assets and liabilities appeared yet to determine sheet. The assets and liabilities can indicate either in the request for liquidity or in the request for perpetual quality. The way toward masterminding the accounting report things (assets and liabilities) in a particular request knows as the Marshaling of assets and liabilities.

    For instance, between two leasers, if one has responded to one wellspring of assets and different has a plan of action to two such sources, the court will marshal the assets, so the cases of the two banks are fulfilled most fairly.

    The following Methods of Marshalling is three types Permanence, Mixed, and Liquidity; all methods deeply explain below are;

    The Order of Permanence:

    By this method, the assets show according to their permanency i.e. permanent assets show first, and less permanent assets show afterward. This order is exactly the reverse of the above. Also, Assets and liabilities record in the order of their life in the company concern. Similarly, the fixed and long-term liabilities write first and the current liabilities afterward on liabilities columns. The following is the specimen of the balance sheet by this order is as below under by Marshalling Methods;

    Assets Amounts Liabilities Amounts

    Fixed Assets:

    • Furniture and Fixtures
    • Land and Buildings
    • Motor Vehicles
    • Plant and Machinery

    Current Assets:

    • StockPrepaid
    • Insurance

    Liquid Assets:

    • Debtors
    • Bills Receivables
    • Cash at Bank
    • Cash in Hand  
     

    Long-term Liabilities:

    • Capital
    • Mortgage Loan

    Current Liabilities:

    • Trade Creditors
    • Bills Payables
    • Bank Overdraft
     
    Total $$$$ Total $$$$

    Under this method, the assets orchestrate in the diminishing request of changelessness or also an order of permanence.

    Arrangement of Assets:

    The resource with the most noteworthy lastingness is put first (at the top) and the resource with the least perpetual quality is set to last.

    • Generosity views as the resource with the most noteworthy lastingness.
    • It moves out of the association just when the association broke up.
    • Money views as the resource with the least perpetual quality.
    • It continues to move in and out routinely.

    Lastingness can perceive as the converse of liquidity. Even though it’s anything but a prerequisite that a less fluid resource ought to have more noteworthy changelessness, this thought holds by and large. Consequently, the Order of changelessness views as the opposite of the Order of Liquidity.

    Arrangement of Liabilities:

    Each obligation is upheld to the degree of its worth, by at least one asset. Expecting all liabilities are gotten by paying out, we need money to clear the liabilities. To clear transient liabilities, we bank on assets that can rapidly change over to money. Since momentary liabilities are to clear at the short notification, we use assets with a short life expectancy, which are for the most part the ones that can expediently change over to money (more fluid assets) to clear the transient liabilities.

    Momentary liabilities like loan bosses, bank overdrafts coordinate with assets with a lesser changelessness (for more fluid example assets), while long haul liabilities coordinate to assets with a higher lastingness (for example assets that are less fluid).

    Since assets with higher changelessness are put at the top (first), under this method, the liabilities with higher perpetual quality are put first (so they coordinate the assets with higher lastingness) and the liabilities with lesser changelessness are put last.

    • Capital views as the obligation with the most elevated lastingness.
    • Paying out capital adds up to dissolving the association.
    • It must pay out simply after all other liabilities payout.
    • Bank Overdraft view as the risk with the least lastingness.
    • It must pay at the soonest.
    • It gets changed with each exchange carried on that includes the association’s financial balance.

    The Order of Mixed:

    According to this order of arrangement, the assets arrange in the order of liquidity; and, the liabilities arrange in the order of permanency on their sides. Also, The format of the Balance sheet prepared under this method is as below under by Marshalling Methods;

    Assets Amounts Liabilities Amounts

    Liquid Assets:

    • Cash in Hand
    • Cash at Bank
    • Bills Receivables
    • Debtors

    Current Assets:

    • Stock
    • Prepaid Insurance

    Fixed Assets:

    • Furniture and Fixtures
    • Motor Vehicles
    • Land and Buildings
    • Plant and Machinery
     

    Long-term Liabilities:

    • Capital
    • Mortgage Loan

    Current Liabilities:

    • Trade Creditors
    • Bills Payables
    • Bank Overdraft
     
    Total $$$$ Total $$$$

    The Order of Liquidity:

    What is Liquidity? Liquidity means convertibility into cash easily in accounting. By this method, the current and fixed assets of the company enter in the balance sheet in the order of the degree of ease with which they can convert into cash; and, the liabilities in the order of urgency of payable. Assets will say to liquid if it can convert into cash easily, they place at the top of the balance sheet on the assets side. Also, Liabilities arrange in the order of their urgency of payable on the liabilities side. The most urgent payment to make lists at the top of the balance sheet. The order of liquidity generally uses by the sole traders and partnership firms. The following is the format of the balance sheet under the order of the liquidity method is as below under by Marshalling Methods;

    Assets Amounts Liabilities Amounts

    Liquid Assets:

    • Cash in Hand
    • Cash at Bank
    • Bills Receivables
    • Debtors

    Current Assets:

    • Stock
    • Prepaid Insurance

    Fixed Assets:

    • Furniture and Fixtures
    • Motor Vehicles
    • Land and Buildings
    • Plant and Machinery
     

    Current Liabilities:

    • Bank Overdraft
    • Bills Payables
    • Trade Creditors

    Long-term Liabilities:

    • Mortgage Loan
    • Capital    
      
    Total $$$$ Total $$$$

    Under this method, the assets mastermind in the diminishing order or request of their liquidity. Also, Liquidity is the quality of a resource to getting changed over to money. The quicker a resource can be changed over to money, the more fluid it is.

    Arrangement of Assets:

    The most noteworthy fluid resource is set first (at the top) and the most un-fluid resource is put last.

    • Money views as the most elevated fluid resource.
    • We needn’t bother with any an ideal opportunity to change money over to money.
    • Generosity views as the most un-fluid resource.
    • It is appended to the association and can acknowledge just when the association broke up.
    Arrangement of Liabilities:

    Each risk is upheld to the degree of its worth, by at least one asset. Also, Accepting all liabilities are gotten by paying out, we need money to clear the liabilities. Since transient liabilities are to be cleared at the short notification, we use assets that can expediently change over to money (more fluid assets) to clear the momentary liabilities.

    Transient liabilities like lenders, bank overdrafts are coordinated with more fluid assets, while long-haul liabilities are coordinated with lesser fluid assets.

    Since assets with higher liquidity are put at the top (first), under this method, the liabilities to be paid out at the most punctual are put first (so they coordinate the higher fluid assets) and the liabilities to be paid out last is put last.

    • Capital is the obligation that is paid out last.
    • Paying out capital adds up to dissolving the association.
    • It must pay out exclusively after all other liabilities payout.
    • Bank Overdraft is the risk that must payout at the soonest.
    • It gets changed with each exchange carried on that includes the association’s ledger.
    Arrangement of Assets and Liabilities by Marshalling Methods Image
    Arrangement of Assets and Liabilities by Marshalling Methods; Image from Pixabay.

  • Trial Balance: Meaning, Objectives, Advantages, and Limitations

    Trial Balance: Meaning, Objectives, Advantages, and Limitations

    Understand the concept of Trial Balance [In Hindi]. Learn about its meaning, definition, objectives, advantages, methods, and limitations. It is a listing of all the accounts and their respective balances. It is a statement of debit balance and credit balance extracted from ledger accounts on a particular date. This article explains Trial Balance with the topic of Introduction, Meaning, Definition, Objectives, Advantages, Methods, and Limitations. It is a two-column schedule listing the titles and balances of all the accounts in the order in which they appear in the ledger. The debit balances lists in the left-hand column and the credit balances in the right-hand column. In the case of General Ledger, the totals of the two columns should agree.

    Here is the article explaining Trial Balance with the topic of Introduction, Meaning, Definition, Objectives, Advantages, Methods, and Limitations in accounting.

    We, now, know the fundamental principle of the double-entry system of accounting where for every debit, there must be a corresponding credit. Therefore, for every debit or a series of debits given to one or several accounts, there is a corresponding credit or a series of credits of an equal amount given to some other account or accounts and vice-versa. Hence, according to this principle, the total of debit amounts must equal the credit amounts of the ledger at any date. If the various accounts in the ledger are balanced, then the total of all debit balances must be equal to the total of all credit balances.

    If the same is not true then the books of accounts are arithmetically inaccurate. It is, therefore, at the end of the financial year or at any other time, the balances of all the ledger account extract and record in a statement known as Trial Balance and finally totaled up to see whether the total of debit balances is equal to the total of credit balances.

    Meaning of Trial Balance:

    They may thus define as a statement of debit and credit totals or balances extracted from the various accounts in the ledger books to test the arithmetical accuracy of the books. The agreement of the Trial Balance reveals that both the aspects of each transaction have been recorded and that the books are arithmetically accurate. If both sides of Trial Balance do not agree with each other, it shows that there are some errors, which must detect and rectify if the correct final accounts are to prepare.

    Thus, Trial Balance forms a connecting link between the ledger accounts and the final accounts. It is a statement of debit and credit balances taken out from all ledger accounts including cash books. The golden rules that “Accounting equation remains balanced all the time” and “For every business transaction there is an equal debit and credit” shall always prevail in the whole accounting theory. Therefore, the total of all debit balances must be equal to the total of all credit balances. To verify this, a schedule known as they prepare.

    Balances of debits and credits are to extract from all ledger accounts, including cash books, and shown in this schedule. This schedule prepares to assure the management of the arithmetical accuracy of books of accounts. This schedule facilitates the preparation of final accounts. Generally, it prepares at the end of each accounting year; however, it can prepare at the end of each month, quarter, or the end of any chosen period.

    Definition of Trial Balance:

    It is a list of debit and credit balances of all the ledger accounts extracted on a given date. Following are the main definitions of the trial balance;

    Accounting in the first definition is as,

    “Trail balance is the list of debit and credit balances, taken out from the ledger, it also includes the balances of cash and bank taken from the cash book.”

    Accounting in the second definition is as,

    “The statement prepared with the help of ledger balances at the end of the financial year (or at any other date) to find out whether debt total agrees with credit total is called a trial balance.”

    When one account debit, another account credit with an equal amount. Therefore, it is quite evident that the total of debit balances of the ledger accounts of given transactions will be equal to the total of the credit balances. It must state here that the total of the debit balance column must be equal to the total of the credit balance column. This is so because under the double-entry system, for each item of debit there is a corresponding credit, and secondly all the transactions recorded in the books of original entry transfer to the ledger.

    Objectives of Trial Balance:

    The following are the main objectives of preparing the trial balance:

    1] To check the arithmetical accuracy of books of accounts:

    According to the principle of the double-entry system of book-keeping, every business transaction has two aspects, debit and credit. They base on the double-entry principle of debit equals credit or credit equals debt. As a result, the debit and credit columns of they must always be equal. If they do, it assumes that the recordings of financial transactions are accurate.

    Conversely, if they do not, it assumes that they are not arithmetically accurate. Therefore, one important purpose of preparing trial balance is to provide a check on the arithmetical accuracy of the recordings of the financial transactions. So, the agreement of the trial balance is proof of the arithmetical accuracy of the books of accounts. However, it is not conclusive evidence of their accuracy as there may be certain errors. Which they may not be able to disclose.

    2] Helpful in preparing final accounts:

    They record the balances of all the ledger accounts at one place which helps in the preparation of final accounts, i.e. Trading and Profit and Loss Account and Balance Sheet [Hindi]. But, unless they agree, the final accounts cannot prepare. Final accounts prepare to show profit and loss and the financial position of the business at the end of an accounting period.

    These accounts prepare by using the debit and credit of all ledger accounts. Therefore, since the trial balance is a statement of the debit and credit balances of the ledger accounts, it provides the basis for the preparation of the final accounts. So, if the trial balance does not agree, errors locate and necessary corrections are made at the earliest. So, that there may not be unnecessary delay in the preparation of the final accounts.

    3] To serve as an aid to the management:

    By comparing the trial balances of different years changes in figures of certain important items such as purchases, sales, debtors, etc. ascertain and their analysis make for taking managerial decisions. So, it serves as an aid to the management.

    4] To Summarize the financial transactions:

    A business performs several numbers of financial transactions during a certain period. The transactions themselves can not portray any picture of the financial affairs of the business. For that purpose, a summary of the transactions has to draw. They prepare to intend to summarize all the financial transactions of the business.

    5] To Help to detect accounting errors:

    Since the trial balance indicates if there is any error committed in the journal and the ledger. It helps the accountant to locate the error because the starting point of locating errors is trial balance itself. It has been pointed out in an earlier paragraph that if they not agree, the accountant must locate such errors.

    The accountant must give equal emphasis or weight-age to both small and wide differences found in a Trial Balance. Because there may be several errors that have practically compensated the effect of one another producing a small difference.

    Advantages of Trial Balance:

    The important advantages of a trial balance are;

    • To help of summarizes all the financial transactions of the business. Also, presents to the businessman a consolidated list of all ledger balances.
    • It is the shortest method of verifying the arithmetical accuracy of entries made in the ledger.
    • If the total of the debit side/column is equal to the total of the credit side/column, the trial balance says to agree. Otherwise, it implies that some errors have been committed in the preparation of accounts.
    • It helps in the preparation of the final accounts i.e., Trading a/c. Profit and loss a/c and Balance Sheet.
    • To help in locating or detecting errors in accounting balances. As well as, helps the accountant to locate the error. Because, the starting point of locating errors is trial balance itself.
    • They serve as a summary of all the ledger accounts and provides a complete summary report of each account in the ledger.

    Methods of Trial Balance:

    A trial balance can prepare by the following three methods;

    1] Total method:

    In this method, the debit and credit totals of each account are shown in the two amount columns (one for the debit total and the other for the credit total). Under these methods, the trial balance prepares by taking up the total of debits and credit of all ledger accounts.

    2] Balance Method:

    In this method, the difference of each amount extracts. If the debit side of an account is bigger in amount than the credit side. Also, the difference is put in the debit column of the Trial Balance and if the credit side is bigger. The difference writes in the credit column of the Trial Balance. Under these methods, only the balances of all the ledger accounts take up to prepare the trial balance.

    3] Compound Method:

    The compound method is the combination of both the methods, total method, and balance method. Thus, the compound method also knows as a total cum balance method.

    Limitations of Trial Balance:

    The following are the main limitations of the Trial Balance;

    • They can prepare only in those concerns where the double-entry system of accounting adopts.
    • Though trial balance gives arithmetic accuracy of the books of accounts but there are certain errors. Which not discloses by the trial balance. That is why it says that trial balance is not conclusive proof of the accuracy of the books of accounts.
    • If the trial balance does not prepare correctly then the final accounts prepared will not reflect the true and fair view of the state of affairs of the business. Whatever conclusions and decisions are made by the various groups of persons will not be correct and will mislead such persons.
    • When the accountant makes an excess debit; or, excess credit entry although the same being neutralized by excess credit; or, excess debit respectively in the same or another account, such error recognizes as an error of compensation.
    • When if the wrong amount writes at the initial stage then also the error can not disclose through the totals of trial balance are agreed upon.
  • Diminishing or Reducing Balance Method of Depreciation

    Diminishing or Reducing Balance Method of Depreciation

    Diminishing or Reducing Balance Method; Under this method, depreciation calculates at a certain percentage each year on the balance of the asset which is brought forward from the previous year. The article from the calculation of Depreciation methods, the chapter of Depreciation in the Accounting Book. The amount of depreciation charged on each period is not fixed but it goes on decreasing gradually as the beginning balance of the asset in each year will reduce. Thus, the amount of depreciation becomes higher at the earlier periods and becomes gradually lower in subsequent periods, when repairs and maintenance charges increase gradually.

    Diminishing or Reducing Balance Method of Depreciation: Meaning, Definition, Advantages, Disadvantages, and Differences.

    What is the Diminishing or Reducing Balance Method? Reducing Balance Method, also known as declining balance depreciation or diminishing balance depreciation, the depreciation charges at a fixed rate like the straight-line method (also known as fixed installment method or straight-line depreciation). However, unlike the fixed installment method, the rate percent not calculates the cost of assets but on the book value of the asset, which in turn calculates by subtracting depreciation from its cost.

    Under reducing-balance, the rate of depreciation is deliberately calculated to be higher, so most of the benefits of deducting the depreciation expense are seen early on. Typically, the percentages used are 200% (the double-declining balance formula) and 150%. Because you’re subtracting a different amount every year, you can’t simply repeat the same calculation each year, as you can with the straight-line method. As mentioned earlier, this approach is particularly useful for a property whose value will decrease rapidly after you acquire it.

    Definition of Diminishing or Reducing Balance Method:

    Diminishing Balance Method of Depreciation also called as reducing balance method where assets depreciate at a higher rate in the initial years than in the subsequent years. Under this method, a constant rate of depreciation applies to an asset’s (declining) book value each year. This method results in accelerated depreciation and results in higher depreciation values in the early years of the life of an asset.

    The book value of an asset obtains by deducting depreciation from its cost. The book value of assets gradually reduces on account of charging depreciation. Since the depreciation rate percent applies to reduce the balance of assets, this method calls reducing balance method or diminishing balance method.

    Under the fixed installment method the amount of annual depreciation remains the same but under reducing balance method the amount of annual depreciation gradually reduces. This method is especially suitable for assets with long life, e.g., plant and machinery, furniture, motor car, etc.

    Under this method, the real cost of using an asset is the depreciation and repair expenses so this method gives better results because in the early years when repair expenses are less the depreciation is more. As the asset gets older repair charges on its increase and the number of depreciation decreases. So the combined effect of both these costs remains almost constant on the profit and loss of each year.

    Advantages of Diminishing or Reducing Balance Method:

    The following advantages below are;

    • It is a simple and easy method.
    • Every year, there is an equal burden for using the asset. This is because depreciation goes on decreasing every year whereas the cost of repairs increases.
    • The obsolescence problem gives due care since the major part of the depreciation charges in earlier years and the management may find it easy to replace the asset.
    • All items including additions are added together and depreciated at the same rate.
    • Income tax authorities recognize this method.

    Disadvantages of Diminishing or Reducing Balance Method:

    The following disadvantages below are;

    • It is difficult to determine an appropriate rate of depreciation.
    • The value of the asset cannot be brought down to zero.
    • It results in lower Net Income during the initial years of an asset as Depreciation is higher initially.
    • It is not an ideal method for those assets which don’t lose their value quickly like Equipment and Machinery.
    • Depreciation is neither based on the use of the asset nor distributed evenly throughout the useful life of the asset.

    Diminishing or Reducing Balance Method of Depreciation Image
    Diminishing or Reducing Balance Method of Depreciation, Image from Pixabay.

    Differences between the Straight Line Method and Diminishing or Reducing Balance Method:

    Key differences between the straight-line method and reducing balance method enumerate as following;

    Differences in Straight-line method:

    • Meaning; Under this method, the cost of an asset uniformly fixed divides into the number of years of the useful life of an asset.
    • The rate of depreciation and the amount remain constant.
    • The cost of assets each year forms the basis of determining the depreciation percentage.
    • As the asset ages, the cost of its repair goes up. But as mentioned in point number one, the depreciation amount remains unchanged. This diminishes annual profit.
    • The value of an asset at the end of its life is zero.
    • The computation of depreciation under the straight-line method is relatively easy and straightforward.
    • Straight Line Depreciation Method is ideal for those assets which require negligible maintenance expenses and are not prone to technological obsolescence.

    Differences in Diminishing or Reducing balance method:

    • Meaning; Under this method, a constant rate applies over the assets declining book value (Cost minus Accumulated Depreciation).
    • The rate of depreciation remains unchanged but the amount gradually decreases.
    • The book value of assets forms the basis of determining depreciation percentage.
    • As the asset ages, the cost of its repair goes up, but so does the depreciation amount. These two balance each other and hence there is little or no effect on annual profit/loss.
    • The value of an asset at the end of its life is never zero.
    • Computation of depreciation under reducing balancing method is always possible, but it comes with its share of complexities.
    • Declining Balance Method is appropriate for assets that require more repairs and maintenance expenses as they get older and also for those assets which are prone to technological obsolescence as it results in higher depreciation during the initial years of an asset’s life.

    Differences between the Straight Line Method and Diminishing or Reducing Balance Method Image
    Differences between the Straight Line Method and Diminishing or Reducing Balance Method.

  • Difference between Average and Super profit

    Difference between Average and Super profit

    Average and Super Profits; The valuation of goodwill depends upon assumptions made by the valuer. Meaning; The average profit is the average of the profits in the past few years; Or, super profit is an excess of average profit over normal profit. This article explains the difference between Average and Super profit; Methods to adopt in the valuation of goodwill would depend on the circumstances of each case and are often based on the customs of the trade.

    The distinction/difference between Average profit and Super profit.

    Methods of Goodwill Valuation; Goodwill is the value of the reputation of a firm built over time concerning the expected future profits over and above the normal profits. Also, Goodwill is an intangible real asset which cannot see or felt but exists in reality and can buy and sell. In partnership, goodwill valuation is very important. Thus, we will here discuss the various methods of Goodwill Valuation.

    The various methods that can adapt to the valuation of goodwill are the following:

    • Average Profit Method.
    • Super Profit Method.

    Now, explain each one;

    Average Profit:

    Average profit is the average of all the agreed profits of past years. It calculates by dividing the total profits by the number of years. This is the most common method of calculating goodwill.

    Average Profits = Total Profits/Number of years

    A buyer always wants to estimate the future profits of the business. Also, Future profits always depend upon the performance of the business in the past. Past profits indicate what profits are likely to accrue in the future. Therefore, past profits are averaged.

    The first step under this method is the calculation of average profit based on the past few years’ profits. As well as, Past profit adjust in respect of any abnormal items of profit or loss which may affect future profit. Also, Average profit may be based on a simple average or weighted average.

    If profits are constant, equal weight-age may give in calculating the average profits i.e., the simple average may calculate. However, if the trend shows increasing or decreasing profit, it is necessary to give more weight-age to the profits of recent years.

    Types of Average Profits Method:
    1. Simple Average: Under this method, the goodwill values at the agreed number of years of the purchase of the average profits of the past years.
    2. Simple Average: Under this method, the goodwill values at the agreed number of years of the purchase of the average profits of the past years.

    Super Profit:

    This Profit is the excess of average profit over the normal profit. It shows the exceptional ability of the firm to earn more profits in comparison to other firms in the industry.

    Super Profits = Actual Profits – Normal Profits

    It calculates by deducting the normal profits from average profits. Super profit is the excess of estimated future maintainable profits over normal profits. Super profit represents the difference between the average profit earned by the business and the normal profit i.e., the firm’s anticipated excess earnings. As such, if there is no anticipated excess earning over normal earnings, there will be no goodwill.

    An enterprise may possess some advantages which enable it to earn extra profits over and above the normal profit that would earn if the capital of the business was invested in some other business with similar risks. Also, the goodwill under this method ascertains by multiplying the super-profits by a certain number of year’s purchases.

    Types of Super Profits Method:
    • The Number of Years Purchase Method: Under this method, the goodwill values at the agreed number of years’ purchase of the super-profits of the firm.
    • Annuity Method: This method considers the time value of money. Here, we consider the discounted value of the super profit.

    Difference between Average and Super profit table
    Difference between Average and Super profit table.

    References:

    1. commerceiets.com/average-profit-vs-super-profit/
    2. www.toppr.com/guides/principles-and-practice-of-accounting/treatment-of-goodwill/methods-of-goodwill-valuation/
    3. www.yourarticlelibrary.com/accounting/goodwill/accounting-procedure-for-valuation-of-goodwill-4-methods/57243
  • Single Costing: Meaning, Characteristics, and Objectives

    Single Costing: Meaning, Characteristics, and Objectives

    The single Costing method of the ascertainment of the cost of production is suitable for those industries in which manufacturing is continuous and units of output are identical. You will be able to understand the Single Costing based on the points given to them; introduction, the meaning of single costing, the definition of single costing, characteristics of single costing, and objectives of single costing. One operation costing method of costing by units of production and adopts where production is uniform and a continuous affair, units of output are identical and the cost units are physical and natural.

    This article explains the topic of Single Costing: Introduction, Meaning, Definition, Characteristics, and Objectives.

    The cost per single determines by dividing the total cost during a given period by the number of units produced during that period. This method of costing generally adopt where an undertaking engages in producing only one type of product or two or more products of the same kind but of varying grades or quality. The industries where this method of costing uses are the dairy industry, beverages, collieries, sugar mills, cement works, brick-works, paper mills, etc.

    Meaning of Single Costing:

    Single or Unit or Output costing is the method of costing in which cost is ascertained per unit of a single product in continuous manufacturing activity. Every Single or per unit, the cost calculates by dividing total production cost by several units produced.

    This method knows as “Single costing” as industries adopting this method manufacture, in most cases, a single variety of products. This method also knows as “Unit costing”, as not only the cost of the total output but also the cost per unit of output ascertains under this method. Under this method cost units are identical. This method also calls “Output costing”, as the cost ascertains for the total output of a product.

    Definition of Single Costing:

    The following definitions below are;

    According to J.R. Batliboi,

    “Single or output cost system is used in businesses where a standard product is turned out and it is desired to find out the cost of a basic unit of production.”

    The Institute of Cost and Management Accountants, London,

    “output costing is the basic costing method applicable where goods or services result from a series of continuous or repetitive operations or processes to which costs are charged before being averaged over the units produced during the period.”

    From the above definitions, it is clear that this costing is a method of costing under. Which there is the costing of a single product, which produces by continuous manufacturing activity. Though under this method of costing a single variety of product manufacturers. It may vary concerning size, grade, color, etc. The example of industries that make use of this method of costing is; brick, sugar, cloth, coal, cement, fisheries, food canning, quarries, plantation industries, etc.

    Thus single costing adopts for cost ascertainment in those manufacturing organizations. Which is engaging in producing only one type of product or two or more products of the same kind but of varying grades or qualities? This method uses in industries like mines, quarries, oil drilling; breweries, cement works, brick-works, .sugar mills, steel manufacture and aluminum products, etc.

    In all those industries where single costing uses, there is a standard or natural unit of cost. For example, a tonne of coal in collieries, one thousand bricks in brick-works, a quintal of sugar in the sugar industry, a tonne of cement in the cement industry, etc. In this costing, the cost of production usually ascertains by preparing a cost sheet or a cost statement.

    Single Costing Meaning Characteristics and Objectives
    Single Costing: Meaning, Characteristics, and Objectives, #Pixabay.

    Characteristic or Features of Industries Which Use Single Costing:

    The following are the characteristics or features of the industries where the single costing method uses:

    • The cost per unit of output, determined under a single. Costing enables the management to make a real comparison between different periods and between different firms within the same industry, as the unit of output is a common factor between different periods and between different firms within the same industry.
    • Equality of cost is an important feature of this method. That is, under this method, identical cost units will have identical costs.
    • Production is on a large scale and is continuous.
    • The units of production are identical and homogeneous.
    • One cost is the method of costing adopt in concerns where there is a production of a product. Or, a few grades of the same product differing only in size, shape or quality by the continuous process of manufacture. The units of production or output are identical and the costs of units are physical and natural.
    • The cost units are physical and natural and capable of being expressed in a convenient unit of measurement.
    • This method is the simplest method of all the methods of cost; in the sense that the cost collection and the cost ascertainment are quite simple.
    • In most cases, the unit of measure is also the cost unit, viz., one unit (in the case of T.V., radio, camera), 1,000 units (in the case of bricks), one gross (in the case of pencils, slates, bolts, and nuts), one liter (in the case of paints), one tonne (in the case of coal, cement, and steel), one bale (in the case of cotton), etc.

    Objectives of Single Costing:

    Single costing is a very simple method of costing. Its principal objectives are as follows;

    • To ascertain the per-unit cost of production by dividing the total cost of production by the number of units produced.
    • To estimate per unit cost of production for the future and facilitate production planning.
    • Help in the preparation of tenders and fixation of selling prices.
    • To facilitate a comparison of the cost of production of two accounting periods.
    • To control the cost of the product through the comparative study of the costs of any two periods. Or, the comparison of the actual costs with the Pre-determined standard cost.
    • The analyze the expenditure by nature, classify them into the element of cost and know. The extent to which each element of cost contributes to the total cost.
    • To ascertain the profit or loss of production.
  • Techniques and methods of costing in Cost accounting

    Techniques and methods of costing in Cost accounting

    The techniques and methods of costing in Cost accounting are to explain their points one by one. First, Techniques of Costing: Historical Absorption, Marginal, Budget and Budgetary Control, Differential, and Standard Costing. As well as Methods of Costing: There are two methods of costing, namely; Job costing and Process costing.

    What are the techniques and methods of costing in Cost accounting? Discussion.

    In addition to the different costing methods, various techniques are also using to find the costs.

    Techniques of Costing:

    The following are the main types or techniques of costing for ascertaining costs:

    The techniques of costing in Cost accounting
    The techniques of costing in Cost accounting

    1] Historical Absorption Costing:

    It’s the ascertainment of costs after they have been incurring. It defines as the practice of charging all costs, both variable and fixed, to operations, process or products. It also knows as traditional costing. Its ascertainment of costs after they have been incurring. It aims at ascertaining costs incurred on work done in the past.

    It has a limited utility, though comparisons of costs over different periods may yield good results. Since costs are ascertaining after they have been incurring, it does not help in exercising control over costs. However, It is useful in submitting tenders, preparing job estimates, etc.

    2] Marginal Costing:

    It refers to the ascertainment of costs by differentiating between fixed costs and variable costs. In this technique, fixed costs are not treated as product costs. They are recovering from the contribution (the difference between sales and variable cost of sales).

    The marginal or variable cost of sales includes direct material, direct wages, direct expenses, and variable overhead. It is the ascertainment of marginal cost by differentiating between fixed and variable costs.

    It uses to ascertain the effect of changes in volume or type of output on profit. This technique helps management in taking important policy decisions such as product pricing in times of competition, whether to make or not, selection of product mix, etc.

    3] Budget and Budgetary Control Costing:

    A budget is a quantitative statement preparing before the defined period to help achieve certain objectives of the firm. When we talk about the techniques of costing, budgetary control is an important technique. This budget can be in the form of quantities or can be a monetary statement. A budget will lay down the objectives of this period, and the firm’s methods to achieve them.

    For example, a production budget will deal with quantities of goods to produce. On the other hand, a marketing budget will be a monetary statement. Another important feature of a budget is that it prepares ahead of time. So the budget can be for the next quarter or the next year or any such predetermined period.

    Budgetary control is the preparation of budgets and analysis of the actual performance of the firm in comparison to the budgeted numbers. If there is a lot of variation from the budget the firm can take corrective action. This is how budgetary control works.

    4] Differential Costing:

    Differential cost is the difference in total cost between alternatives-evaluate to assist decision making. This technique draws the curtain between variable costs and fixed costs. It takes into consideration fixed costs also (unlike marginal costing) for decision making under certain circumstances.

    This technique considers all the revenue and cost differences amongst the alternative courses, of action to assist management in arriving at an appropriate decision.

    5] Standard Costing:

    It refers to the ascertainment and use of standard costs and the measurement and analysis of variances. Standard cost is a predetermining cost that computes in advance of production based on a specification of all factors affecting costs. A comparison makes of the actual cost with a pre-arranged standard cost and the cost of any deviation (called variances) analyzes by causes.

    This permits management to investigate the reasons for these variances and to take suitable corrective action. The standards are fixed for each element of cost. To find out variances, the standard costs are comparing with actual costs. The variances are investigating later on and wherever necessary, rectification steps are initiating promptly. The technique helps in measuring the efficiency of operations from time to time.

    Methods of Costing:

    In this article, we are studying the topic techniques and methods of costing. After discussing the topic of Costing Techniques, so now we can study the topic of Costing Methods. The basic principles of ascertaining costs are the same in every system of cost accounting. However, the methods of analyzing and presenting the cost may vary from industry to industry. The method to use in collecting and presenting costs will depend upon the nature of production.

    The methods of costing in Cost accounting
    The methods of costing in Cost accounting

    There are two methods of costing, namely: Job costing and Process costing.

    A] Job costing:

    Job costing uses where production is not repetitive and is done against orders. The work usually carries out within the factory. Each job treats as a distinct unit, and related costs are recording separately. This type of costing is suitable for printers, machine tool manufacturers, job foundries, furniture manufactures, etc.

    The following methods are commonly associated with job costing:

    1] Batch costing:

    Where the cost of a group of product ascertains, it calls “batch costing”. In this case, a batch of similar products treats as a job. Costs are collecting according to batch order number and the total cost divide by the numbers in a batch to find the unit cost of each product. Batch costing generally follows in general engineering factories that produce components in convenient batches, biscuit factories, bakeries, and pharmaceutical industries.

    2] Contract costing:

    A contract is a big job and, hence, takes a longer time to complete. For each contract, the account keeps recording related expenses separately. It usually follows by concerns involve in construction work e.g. building roads, bridges, and buildings, etc.

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    B] Process Costing:

    Where an article has to undergo distinct processes before completion, it is often desirable to find out the cost of that article at each process. A separate account for each process opens and all expenses are charging thereon. The cost of the product at each stage is, thus, accounted for.

    The output of one process becomes the input to the next process. Hence, the process cost per unit in different processes adds to find out the total cost per unit at the end. Process costing is often found in such industries as chemicals, oil, textiles, plastics, paints, rubber, food processors, flour, glass, cement, mining, and meatpacking.

    The following methods are used in process costing:

    1] Output/Unit Costing:

    This method follows by concerns producing a single article or a few articles which are identical and capable of being expressed in simple, quantitative units. This uses in industries like mines, quarries, oil drilling, cement works, breweries, brickworks, etc. for example, a tone of coal in collieries, one thousand bricks in brickworks, etc.

    The object here is to find out the cost per unit of output and the cost of each item of such cost. A cost sheet prepares for a definite period. The cost per unit calculates by dividing the total expenditure incurred during a given period by the number of units produced during the same period.

    2] Operating Costing:

    This method is applicable where services are rendering rather than goods produce. The procedure is the same as in the case of unit costing. The total expenses of the operation are divide by the units and cost per unit of service arrives at. This follows in transport undertakings, municipalities, hospitals, hotels, etc.

    3] Multiple Costing:

    Some products are so complex that no single system of costing is applicable. Where a concern manufactures several components to assemble into a complete article, no one method would be suitable, as each component differs from the other in respect of materials and the manufacturing process.

    In such cases, it is necessary to find out the cost of each component and also the final product by combining the various methods discussed above. This type of costing follows to cost such products as radios, airplanes, cycles, watches, machine tools, refrigerators, electric motors, etc.

    4] Operating Costing:

    In this method, each operation at each stage of production or process is separately identifying and cost. Also, the procedure is somewhat similar to the one followed in process costing. Process costing involves the costing of large areas of activity whereas operation costing confines to every minute operation of each process.

    This method follows in industries with a continuous flow of work, producing articles of a standard nature, and which pass through several distinct operations sins a sequence to completion. Since this method provides for minute analysis of cost, it ensures greater accuracy and better control of costs.

    The costs of each operation per unit and cost per unit up to each stage of operation can calculate quite easily. This method is in force in industries were toys, leather, and engineering goods are manufacturing.

    5] Departmental Costing:

    When costs are ascertaining department by department, such a method calls “departmental costing“. Where the factory divides into several departments, this method follows. The total cost of each department ascertains and divides by the total units produced in that department to obtain the cost per unit. This method follows departmental stores, publishing houses, etc.