Ethics and Morality Essay

Open, View, and/or
Download this Document

Total Length: 818 words ( 3 double-spaced pages)

Total Sources: 2

Page 1 of 3

Ethics

LC1: Contribution Margin and Break-Even Point

The contribution margin is the difference between a company's sales and its variable costs (Peavler, 2014). It measures a company's ability to maintain its variable costs at low levels. In other words, it shows the amount of money a company has to pay off its fixed expenses after all variable expenses have been settled. It also measures the amount of sales revenue that, after fixed costs have been deducted, contributes to the net operating loss or profit of the company. Thus:

Contribution margin = sales revenue -- variable costs

The per-unit contribution margin is calculated as;

Per-unit contribution margin = per-unit sales revenue -- variable costs per unit

The business' net operating profit or loss = contribution margin -- fixed costs

The break-even point is the amount of sales at which the sales revenue equals the total fixed and variable expenses, such that the company just breaks even, making neither profits nor losses. In terms of contribution margin, it is the level of sales at which the contribution margin equals fixed costs, and hence, the net operating profit or loss is zero (Peavler, 2014). Thus;

The break-even point in units = total fixed costs/contribution margin per unit.

5 LC2: Preparing Financial Statements on a Pro-Forma Basis

Pro-forma financial statements are often prepared alongside GAAP-adjusted statements; however, unlike the latter, whose preparation is guided by strict GAAP standards, the former are merely hypothetical figures computed on their perceived degree of relevance.

Stuck Writing Your "Ethics and Morality" Essay?

View All Our Example Ethics and Morality Essay

Have A Custom Example Essay Written

Towards this end, companies calculate the same on their own discretion, excluding items that they think reflect negatively on the company's position, and including other items that they feel reflect the firm's actual performance better.

In this case, therefore, the departmental tram could choose to prepare a pro-forma income statement in addition to the GAAP-adjusted statement; and since pro-forma statements are not guided by such strict regulations, any cost items that would reduce the level of reported earnings could be stripped off. This way, the department's earnings would appear better than they actually are; and the team can then convince the managers that even if they did not meet the GAAP-adjusted financial expectations, at least they were able to meet the pro-forma expectations.

6 LC1: Equity Feminism

Equity feminists argue that men and women are equal and should be treated as equals, with equal access to work and opportunities (Anne, 2013). The key benefit of this approach is its ability to bring….....

Show More ⇣

     Open the full completed essay and source list


OR

     Order a one-of-a-kind custom essay on this topic


Related Essays

Morality Relativism and Beliefs

that runs through all thinking about ethics and morality. As Goodman (2010) points out, relativism is not even necessarily the right way to think about conflicts in how we view the morality of actions. Context is actually more appropriate, and putting things into the right context can help people to better understand if one is being contradictory or rather if one is being discriminating. For example, Goodman (2010) states that “murder is wrong because it destroys a human subject. Warfare is not always wrong; it may be necessary to protect such subjects” (p. 88). This type… Continue Reading...

sample essay writing service

Cite This Resource:

Latest APA Format (6th edition)

Copy Reference
"Ethics And Morality" (2014, October 25) Retrieved April 24, 2024, from
https://www.aceyourpaper.com/essays/ethics-morality-193052

Latest MLA Format (8th edition)

Copy Reference
"Ethics And Morality" 25 October 2014. Web.24 April. 2024. <
https://www.aceyourpaper.com/essays/ethics-morality-193052>

Latest Chicago Format (16th edition)

Copy Reference
"Ethics And Morality", 25 October 2014, Accessed.24 April. 2024,
https://www.aceyourpaper.com/essays/ethics-morality-193052
   

Open, View, and/or
Download this Document
order custom essay example