In this essay we will discuss about Standard Cost and Standard Costing. After reading this essay you will learn about: Objective of Standard Costing 3. It is very difficult to compare and find out the reasons of cost fluctuation through Historical Costing, as it ascertains costs after they have been incurred.
John Maynard Keynes did not call the great depression.
In fact, in Keynes said, We will not have any more crashes in our time. In he said others predicted a decline in prosperity for the next decade but he thought that was wildly mistaken ; however, it was Keynes that was wildly mistaken. Other Keynesian economists had no idea the current mess was coming.
The Federal government and the Federal Reserve make sure their economists are Keynesians. Keynesians think printing money is good.
The government likes having economists say it is good to print money, since the government gets to spend the money it prints. The Austrian Economists vs Keynesians is really private economists vs government economists. The Keynesian theory has a few clear problemslike assuming that investment is fixed so savings does nothing, or that the impact of government spending on the economy is always the same, even if it is spent on bridges to nowhere.
The original Keynesian theory is that the government should print more money and spend more money during bad times but contract the money supply during good times. This is a countercyclical policy.
In real life governments find it very hard to run budget surpluses in the good times to pay down the deficits from bad times, and few do that. They go so far as to claim all growth is from government printing money.
Now in Krugman called for making a housing bubble. He said, To fight this recession the Fed needs more than a snapback; it needs soaring household spending to offset moribund business investment.
So he well knows that the Fed printing money could cause a housing bubble, he recommended it. This same Keynesian wrote about how economists did not predict the economic trouble but fails to mention that Austrian economists, who think printing money causes troubles, did predict the trouble.
It is a bit amazing that in Krugman can recommend the Fed make a housing bubble and then say nobody could have predicted the bubble would pop. A good scientists throws out a theory that can not predict results and is contradicted by the evidence.
Unemployment and printing money The Keynesians say that printing money reduces the unemployment. From page 9 of "The General Theory" we read, "Now ordinary experience tells us, beyond doubt, that a situation where labour stipulates within limits for a money-wage rather than a real wage, so far from being a mere possibility, is the normal case.
Whilst workers will usually resist a reduction of money-wages, it is not their practice to withdraw their labour whenever there is a rise in the price of wage-goods. If government has a minimum wage rate that makes it so employers can not make money off some people at that rate then those people will be unemployed.
Most people think the minimum wage law is helping people, so one should never expect the government to admit that the minimum wage law causes unemploymentbut it does. In a similar way, mandated health care, higher taxes, more regulation, carbon taxes, etc.
When you inflate the money supply you lower the real wages. As the inflated money reduces the real wages more and more, at some point employers will be able to make money by hiring some of the unemployed. So the way printing money reduces unemployment is by reducing the real wages. It would be far easier on society if they would just lower the minimum wage rate; however, politically that is much harder to do.
Today many benefits, salaries, and wages are indexed to inflation.
So this does not work nearly as well as it used to.Aaron Feuerstein (born December 11, ) is an American businessman, philanthropist, and was the third-generation owner and CEO of Malden Mills in Lawrence, Massachusetts. I think the concept of treat yourself underlies the belief–or insecurity–that we’ll never realize our deeply held dreams.
And if we’re never going to reach our actual aspirations, then why not buy a bunch of random stuff to make ourselves feel better in the short term?
Costing Methods Paper Baldomero Garza, Carrie Davis Tsao, Chelse Monnier, Elizabeth Sanchez, although short-term costs do not necessarily change with the yields, they will change in a period of time with the product design, product mix, company’s product range and customer scope.
How important are various functions in standard costing?
3. Essay on Standard Cost and Standard Costing | Cost Accounting. Article Shared by. ADVERTISEMENTS: In this essay we will discuss about Standard Cost and Standard Costing.
After reading this essay you will learn about: 1. Standard Costing 2. we can say the term standard refers to predetermined rate against which performance is judged.
Clinical Trials Costing Tool. What is the costing tool The costing tool is an Excel spreadsheet template that can be used by sites to facilitate accurate trial costing and to . ACE Stands For: Advanced Engine Components Ltd | A Checking Experience | Accountability Creativeness And Efficiency | Accumulated Cash Equivalence | Adjusted Current Earnings | Air Canada Enterprises | Alice Calhoun Enterprises | Alternative Certification Educators | American Casualty Excess | American Coal Enterprizes | American Computer Estimating | Austin Chess Enterprises | Australian.