Accounting Module 5 SLP Assignment Example | Topics and Well Written Essays - 250 words

Accounting Module 5 SLP - Assignment Example Relevant costs are also called differential costs. If the future costs are going to be incurred regardless of the decision that is made, those costs are not relevant. Sunk costs are never relevant. The repair cost of $26000 is relevant to the decision on hand whether to sell the truck or get it repaired. The sale proceeds offered by repair shop of $10000 is also relevant. The purchase cost of used truck of $ 34000 is relevant to the decision. The amount offered by the insurance company of $30000 would be the same whether Pizzahut gets the truck repaired or disposes the truck and purchases the used truck. Since the amount is same under both the alternatives it is a non-relevant cost. Similarly, the original cost of truck of $50000 is a sunk cost and would be same under both the alternatives and hence it is also a non-relevant cost. The classification of costs into Relevant and non-relevant costs aids in decision making. The cost with respect to the alternative of disposing the truck is $34000 - $10000 which is equal to $24000. Thus, the gain to the company in choosing this alternative is $26000(cost of repair) minus $24000, which is $2000. Thus, the analysis helped the company reach a decision which resulted in a gain of $2000 to the company. 1. Dennis Caplan, Management Accounting: Concepts and Techniques, Retrieved on December 21st 2009, from Oregon State University, College of Business Web Site,

Is Neoliberalism in Crisis Today Term Paper Example | Topics and Well Written Essays - 3000 words

Is Neoliberalism in Crisis Today - Term Paper Example In the last months of the year 2008, following the financial crisis, people readily accepted that it was the demise of neoliberalism, and thus whether it was a total end of neoliberalism and would it lead to the emergence of new political and economic policies, and what form they would take were the crucial questions which require deliberate attention and time (Brand and Sekler, 2009, 5 – 8). The rise of neoliberalism came about as a result of the deep revolutionary changes in the global economy in the 1970s, it was, however, a passive and tacit revolution which strengthened the capitalist system by the means of complete transformation of the social, political and the economic system of the countries of the world from the ‘above’- which was the dominant political and social forces. The major aspect of the new concept was the liberalization of the market along with the deregulation of the political system. The system was a success initially and triumphed by encompa ssing the national economies of numerous nations across the globe. In the 1970s, the Keynesian approach in the post World War 2 era crumbled and marked the epoch of Neoliberalism (Altvater, 2009, 73). The end of the Bretton Woods system of fixed exchange rates in March 1973 and the liberalization of the financial markets under the governance of Margaret Thatcher in Great Britain was the beginning of neoliberalism. The decisions regarding the formation of the critical prices, such as the exchange rates around the world, and the interest rates charged on borrowing and saving, and therefore the regulatory policies were no longer regulated or officially controlled. Instead, these decisions were left at the disposal of the private sector, such as multinational banks, speculative investment and other funds and also the transnational corporations. The wave of privatization of the public services and goods began, and the newly formed private sectors set off to create financial innovations, forming new instruments to increase gains.