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1. Bullshit
International Accounting
Session 9 – Cost Allocations and Activity–Based Costing
Dr. Othman Cole othman.cole@faculty.hult.edu
1
Absorption Costing
In absorption costing, all manufacturing costs, both fixed and variable, are assigned to units of product. Units are said to fully absorb manufacturing
costs. Most countries require some form of absorption costing for both external financial reports and for tax reports. Also, most companies across the
world use absorption costing in their management reports. It is the most common approach to product costing throughout the world. It is also known as
Job–Order Costing.
2
Absorption Costing – Components
Direct Materials – can be easily traced to a particular unit Direct...show more content...
b. What is the unit product cost for the month under absorption costing? c. Prepare a contribution format income statement for the month using variable
costing. d. Prepare an income statement for the month using absorption costing.
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Activity–Based Costing
In activity–based costing (ABC), nonmanufacturing as well as manufacturing costs may be assigned to products (on a cause–and–effect basis). Further,
some manufacturing costs may be excluded from product costs. An ABC system uses a number of overhead cost pools, each of which is allocated to
products and other defined cost objects using its own unique measure of activity. In contrast to traditional absorption costing which is used mostly for

2. external financial reporting, activity–based costing is particularly useful for internal and strategic decision–making.
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Activity–Based Costing – key features
An activity is defined as any event that causes the consumption of overhead resources. An activity cost pool is a "bucket" that accumulates all costs
related to a single activity measure. An activity measure is an allocation base in an ABC system. It is also referred to as cost driver. § Transaction
drivers – number of times an activity occurs § Duration drivers – amount of time required to perform an activity
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Activity–Based Costing – key steps
1. Define activities, activity cost pools, and activity measures. 2. Assign ALL overhead costs to activity cost pools (first–stage
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3. Dipshit Cry Essay
We always hear the same old bullshit about the United States: "The l–a–a–a–a–a–n–d of the f–r–e–e–e–e–e–e, and the h–o–o–o–o–o–o–m–e of the
b–r–a–a–a–a–a–a–a–a–v–e." Thunderous applause and then some asshole shouts "play ball," most likely. Sure, some silly sporting event where we
watch a bunch of dipshits, who get paid ten million dollars a week to touch each other's butts, is likely the only time most of us ever hear that
damn song, but its central message has been so thoroughly ingrained into the fabric of American life that it seems nearly impossible to not believe
it, despite all the mounting evidence that none of that bullshit is true. How many people do you suppose there are that have actually taken a
moment to think about just how much "freedom" we really have here? I'm sure there are many. Hell, I've encountered many all over the country. I
have, also, sadly, encountered so many people in this country who so blindly believe in that freedom bullshit that it just reaffirms every negative
stereotype I've ever had about Americans. They hold sacred this fantasy that we are the only place that has ever had freedom to the point that they
will either try to fight me or give the same tired old saw, "Well, why don't you just leave, then?" when I talk shit about it. Not one of these people
ever offered to buy me a plane ticket, though, by the way. Think of all the free vacations I've missed out on over the years, because not one of those
heroes was serious about sending me
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4. On Bullhit Summary
Harry G. Frankfurt was a former philosophy professor at Princeton University. In 1986, he wrote the article "On Bullshit" that was published in the
Raritan Review. Two years later, it was published in a book, "The Importance of what we care about," with all Frankfurt's other philosophical essays
and then ended up being published as its own volume in 2005, which then became a number one seller for 27 weeks straight. In Frankfurt's article, he
tries to distinguish the difference between bullshit and lying and why there is so much bullshit. Frankfurt tells us there is no theory for bullshit, so he
tries to lay out a foundation philosophical analysis of what bullshit might mean to us.
Frankfurt talks about the definition of bullshit in the Oxford English Dictionary, which has multiple definitions that he goes on to elaborate on. He
refers to Max Black's essay, "The Prevalence of Humbug," saying that the word humbug is almost the same as bullshit. The definition of humbug goes
on...show more content...
He gives an example of Ludwig Wittgenstein saying about in the older days builders took pride in their work, not cutting corners or taking
shortcuts, in other words, no bullshit. Another example given was from a conversation between Fania Pascal and Ludwig Wittgenstein, "I had my
tonsils out and was in the Evelyn Nursing Home feeling sorry for myself. Wittgenstein called. I croaked: 'I feel just like a dog that has been run
over.' He was disgusted: 'You don't know what a dog that has been run over feels like.'" The purpose of this example was to show the difference
between a lie and bullshit. Just because she has never felt was a dog feels after being ran over, doesn't mean she lying about not feeling well. He goes
on to say that if she were feeling fine and then said the same statement it would be a lie because the truth is that she is fine. Her statement isn't
concerned with the truth, which is exactly what Frankfurt's belief of bullshit
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5. Pseudo-Profound Bullshit
Pennycook, Cheyne, Barr, Koehler and Fugelsang's paper "On the Reception and Detection of Pseudo–Profound Bullshit" (2015) was about multiple
studies done on the reception and detection of bullshit. Pennycook et al. examined the mechanisms behind bullshit reception and created valid
measures of bullshit receptivity. The goal of the study was to see if there were consistent and significant differences in the ability to detect
pseudo–profound bullshit. Pennycook et al. (2015) state "bullshit is something that implies, but does not contain adequate meaning or truth" (p.549).
They suggest that there is a spectrum of bullshit, and that pseudo–profound bullshit is an "extreme point" (p.550) on this spectrum; it is described as
vague and ambiguous....show more content...
Deepak Chopra's tweets were used as bullshit statements throughout the studies, and it was found that knowledge of who he is and his tweets are not a
confounding factor. Participants were asked to state the profundity of statements provided to them, and would then answer tests on verbal intelligence,
heuristics, religious beliefs, cognitive reflections, ontological beliefs, paranormal beliefs, numeracy, and analytical cognition (tests vary between
studies). In studies 1 and 2, Pennycook et al. (2015) found that participants often failed to detect bullshit statements and found correlations with related
variables, but were unable to tell what the associations were driven by. In study 3 they found that response bias plays a role in receptivity of bullshit
and may explain its association with analytic thinking. Study 4 results support the idea that the difference between profundity ratings for
pseudo–profound bullshit and motivational quotes can be used to measure bullshit sensitivity (p.552–558). When the results of all four studies are
looked at as a whole, Pennycook et al. (2015) prove that when vague, meaningless statements are rated as significant, it is can be considered a
psychological phenomenon that is related to "variables of theoretical interest" (p.559). They suggest that individuals that are more receptive to bullshit
are less reflective,
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6. Essay On Honesty
Honesty is the best policy. We have always been taught this and also that to lie is a bad thing to do. There is a certain beauty in living life with
honesty. While the benefits of and motivations for choosing honesty in life are many – including that truthfulness and honesty are integral to one's
sense of moral integrity – living a life of honesty ultimately means having little to regret. Living with honesty is less about persistently resorting to
truth over deception, and is more about living your life in a way that is "honest" to who you are on the inside – your strengths, your gifts, and your
passions, as well as your beliefs and morals. Being true to ourselves should undoubtedly help lead us to what most of us strive for in life –some form
...show more content...
In many situations it is a good idea to keep quiet or, better still, be diplomatic and tactfully handle sensitive issues. The line dividing honesty and
diplomacy is a thin one. We have to be careful in deciding when to be honest and when to be at our diplomatic best. We also have to decide whether
we should be absolutely candid, or use the truth as a matter of convenience.
Wars are won by words not weapons. For centuries people have tried to solve their problems by negotiation. To escape conflicts and wars they have
used words to persuade their opponents. That is where diplomacy begins. Diplomacy is an intellectual activity and decision making derived from
ongoing analysis of current situations. Diplomacy includes the combination of ways and abilities which any state can use for its worthy existence in
the world and for establishing cooperation with other members of international community.
In modern day and age, one has to practice diplomacy as it is essential to get one's way in a world that is highly competitive. What you say matters a
lot. One has to be careful while conveying issues as they would have an impact on one's surroundings. Building up of personal relationships depends
upon your choice of words, how you convey them to the concerned
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