Preview

Monopoly Power and Government Regulation.

Good Essays
Open Document
Open Document
533 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Monopoly Power and Government Regulation.
ACCOUNTING FOR MATERIALS

A company’s inventory records should show (1) the quantity of each kind of material on hand and (2) its cost. The most desirable method of achieving this result is to integrate the materials accounting system with the general ledger accounts. All purchases of materials on account are recorded as a debit to Materials in the general ledger. The materials account is a control account that is supported by a subsidiary materials ledger containing an individual account for each type of material carried in stock. Periodically, the balance of the control account and the total of the subsidiary ledger accounts are compared, and any significant variation between the two is investigated. Each of the individual materials accounts in the materials ledger shows (1) the quantity on hand and (2) the cost of the materials. To keep this information current, it is necessary to record in each individual account, on a timely basis, the quantity and the cost of materials received, issued, and on hand. Copies of the purchase order and receiving report are approved by the purchasing agent and sent to the accounting department. Upon receiving the purchase order, the accountant enters the date, purchase order number, and quantity in the ‘‘On Order’’ columns of the appropriate materials ledger account. When materials arrive, the accounting department’s copy of the receiving report serves as the basis for posting the receipt of the materials to the materials ledger account. The posting shows the date of receipt, the number of the receiving report, the quantity of materials received, and their unit and total cost.

When materials are issued, two copies of the materials requisition go to the accounting department. One copy is used in posting the cost of requisitioned materials to the appropriate accounts in the job cost ledger (individual jobs in process) and factory overhead ledger (individual factory overhead accounts). Direct materials are charged to the job to

You May Also Find These Documents Helpful

  • Good Essays

    RSM222 Midterm

    • 1583 Words
    • 9 Pages

    II. The journal entry required to record indirect labour costs includes a debit to factory overhead account…

    • 1583 Words
    • 9 Pages
    Good Essays
  • Satisfactory Essays

    A monopoly occurs when a company has such a large portion of the product market that it can set its own price despite the market equilibrium. Monopolies date back to Standard Oil Co. Inc. in 1870. Standard Oil Co. Inc. controlled also the entire oil market in its time and made huge profits by doing so. The Sherman Antitrust Act was put in place to combat monopolies and their power in the marketplace.…

    • 73 Words
    • 1 Page
    Satisfactory Essays
  • Satisfactory Essays

    Monopolies In The 1800's

    • 325 Words
    • 2 Pages

    Monopoly is the possession or control of the supply in a service. The government made monopolies illegal because they started to hurt the consumers by charging way too much for products. Also monopolies were so powerful they cause competitor companies to lose money and run out of business. Then they made monopoly illegal in the 1890’s was passed as the Sherman Antitrust Act. Work industries in the 1800’s were extremely dangerous, they didn’t have any equipment to keep them from getting hurt. They had children working also working there to get into cramped spots in machines and sometimes they would lost limbs and even their life. The work place was very unsanitary and busy. The Industrial Revolution was the transition to new manufacturing…

    • 325 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Chapter 9 Quiz

    • 1442 Words
    • 6 Pages

    provides a method for inventory control and facilitates determination of the periodic inventory for certain types of companies.…

    • 1442 Words
    • 6 Pages
    Good Essays
  • Satisfactory Essays

    There are many ways the the federal and state governments can regulate businesses in a very benificial way. For example, governements can create competition between two powerful companies in an industry thus preventing monopolies. Anouther very benificial role that governments play in businesses has to do with the customer. Fedural agancies (such as the FDA), are put in place to manage or regulate the food, product, or drug given to the consumer. This FDA aganciy will do its job well considering it pourpose in businesses is to control substance standards and ingrediants.…

    • 92 Words
    • 1 Page
    Satisfactory Essays
  • Satisfactory Essays

    The company uses the FIFO method of accounting for all inventories. Material A is used in the stamping department, and materials B and C are used in the plating department.…

    • 2559 Words
    • 11 Pages
    Satisfactory Essays
  • Satisfactory Essays

    In the time between the 1890s and 1920s, America experienced a massive amount of growth. People in poverty-stricken, overcrowded cities suffered greatly. In big cities, politicians kept power using several political machines. Companies created monopolies and controlled the nation’s economy. Many Americans were concerned about this, and believed that great change was needed in society to protect everyday people. As a result, these people, generally journalists, were called “reformers”.…

    • 69 Words
    • 1 Page
    Satisfactory Essays
  • Good Essays

    (1) One of the most well known, and successful leading entrepreneurs throughout the Gilded Age, was a man named John. D Rockefeller. John D. Rockefeller had “a Standard Oil Company [that] dominated the oil industry.” With the help of his “precision, order, and tidiness”, he was a strong candidate for a very successful business owner. Rockefeller was a pioneer and a leading example to many other business owners throughout the next decades. People are gravitated to his will and power to soar through business. But rockefeller had an important strategy that remains interlocked with his name, forever. Monopolies. What exactly are monopolies? According to dictionary.com, it means “the exclusive possession or control of the supply or trade in a commodity or service.” Rockefeller had complete control of business. He made tactics that was known as horizontal integration and vertical integration.…

    • 585 Words
    • 3 Pages
    Good Essays
  • Good Essays

    During the Progressive Era, the theory Social Darwinism was a belief conceived by many individuals. This theory was created after the philosopher Charles Darwin’s theory of survival of the fittest. Social Darwinism is a theory stating that every individual must compete against each other in order to achieve success. This theory message states that a person should take any necessary action to earn the highest income possible. Followers of this theory, including Andrew Carnegie, used this theory as fuel and became wealthy, greedy businessmen. Laissez-faire believers did not like this theory. They believed it caused corruption, and influenced people that there is a “sink or swim” economy. Railroad managers displayed little interest for patents. Many railroads manufactured most of their equipment and try to stay away from conflict with two patented items. At the time, because of the lack of different models of patents, thus infringement cases remained low. By the 1860’s, several railroads such as New York Central, The Baltimore Chicago, and Ohio .expanded and became more technologically advanced. More equipment were being used which made monopolies and other corporations vulnerable to infringement. People used this opportunity to try to receive large settlements from corporations for a corporation using a product that an inventor created. As time progressed, railroad technologies began being controlled by Corporate Research. The Federal Government and Corporations conflicted more, In Conclusion, Industrialization led to Monopolies, the railroad industry, and patents being used for corruption. Monopolies damaged the economy and caused fraud. Business owners became money hungry, and abused their control over the market such as overpricing goods and causing other related businesses to…

    • 273 Words
    • 2 Pages
    Good Essays
  • Good Essays

    During the Gilded Age technological innovation was king and so were the corporations that owned them. These corporations developed into monopolies that ruled over every aspect of the American people’s lives. These trusts owned the businesses, owned the money, owned the housing and owned most of the government. The Progressive Era was a time when the people and the government tried to rein in these trusts/monopolies and make life better for the American people. This Era focused on economic, government and social reforms.…

    • 808 Words
    • 4 Pages
    Good Essays
  • Good Essays

    This short article by Douglas A. McIntyre paints a very good picture of how many of the American Technologies companies are pure monopolies within this industry. McIntyre opens this article by saying “A monopoly is either what the government says it is or what a dominant company’s competitors claim. The Governments opinion is the only one that counts….” (McIntyre, 2012). McIntyre then mentioned that there was this Act that prohibits businesses from activities that are found to be anticompetitive that is called the 1890 Sherman Antitrust Act. After seeing this, I was curious of what was the true meaning behind this Act and after a few searches I found that according to Wikipedia, “The Sherman Antitrust Act is a landmark…

    • 715 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Journal Accounting

    • 8067 Words
    • 33 Pages

    The acquisition and payment cycle includes the system for purchasing all goods and services, including raw materials and purchased parts for producing finished goods. Purchase requisitions are used to notify the purchasing department to place orders for inventory items. When inventory reaches a predetermined level or automatic reorder point, requisitions may be initiated by stockroom personnel or by computer. In other systems, orders may be placed for the materials required to produce a customer order, or orders may be initiated upon periodic evaluation of the situation in light of the prior experience of inventory activity. After receiving the materials ordered, as part of the acquisition and payment cycle, the materials are inspected with a copy of the receiving document used to book perpetual inventory. In a standard cost inventory system, the acquisition and payment cycle computes any inventory purchase variances, which then enter the inventory system.…

    • 8067 Words
    • 33 Pages
    Powerful Essays
  • Best Essays

    There are many models of market structure in the field of economics. They include perfect competition on one end, monopoly on the other end, and competitive monopoly and oligopoly somewhere in the middle. In this paper, we will focus on the oligopoly structure because it is one of the strongest influences in the United States market. Although oligopolies can also be global, we will focus strictly on the United States here. We will define oligopoly, give key characteristics important to the oligopoly structure, explain why oligopolies form, then give an example of an oligopoly in today’s economy. Finally, we will discuss the benefits and costs in this type of market structure.…

    • 1779 Words
    • 8 Pages
    Best Essays
  • Good Essays

    Corporate Greed

    • 471 Words
    • 2 Pages

    Have you noticed people around the country protesting near a government facility? It started on September 17, 2011. One month later similar thousands of people have joined the protest. It has spread in different parts of the world; protesting against “Corporate greed”. The group started in a park next to Wall Street, mainly by college kids spreading the word in social networks. They created a grass roots movement with a slogan “We are the 99%. Saying we the regular people work for the 1% that control all the wealth in the U.S. and certainly the world. Their message is that corporations must make profits no matter what the cost is. They create pollution, destruction, monopolize markets, and break laws; lobbying in Congress to enact laws so they can continue to control their greed. For example the BP oil leak in the Gulf of Mexico, getting only a slap in their hands. For the past 20 years corporations have been gaining power from a law stating that corporations can be classified as legal entities. Having the same rights as individuals, but with little risk, in case they go bankrupt. During the Iraq war a corporation named Blackwater controlled security giving them power beyond the army. Halliburton was awarded trouble free pipelines filled with oil so they can charge anything to the American people. Mean while here at home, the pharmaceutical industry has paid millions of dollars to the Food Drug Administration (FDA) and the National Cancer Institute to sell exclusive drugs and patent procedures to combat cancer. The unfortunate thing is that the medications and procedures only kill people instead of helping them fight the decease. Take chemotherapy, it kills all the good cells to fight cancer hoping the body will create more good cells than bad ones. Since the early 70’s a clinic in Houston, Texas led by a Dr. Burzynski has treated cancer patients with a much better success rate than any other treatment available today. He discovered…

    • 471 Words
    • 2 Pages
    Good Essays
  • Good Essays

    The Interstate Commerce Act was passed in 1887, beginning a shift towards federal rather than the state regulation of big business. After the Interstate Commerce Act, the Sherman Antitrust Act was passed. It was the first measure passed by the U.S. Congress with the intention of controlling business and prohibiting trusts. The Sherman Act was the basis for the antitrust policies and laws created by the Progressive Party. During the Progressive Era, Congress created the Bureau of Corporations in 1903. It was set up as an investigatory agency within the Department of Commerce and Labor, with the role of studying and reporting on an industry, looking especially for monopolistic practices. President Theodore Roosevelt’s ideas helped to establish…

    • 481 Words
    • 2 Pages
    Good Essays

Related Topics