Factors influencing Activity Based Costing Samples for Students

Questions: 1. Describe the Changes in Cost Structure that are likely to have occurred at Cravings for Cakes over the last 20 years, and Explain their causes. 2. Explain whether the existing Costing System understates or overstates the cost of a) Lamington b) Danish Pastry 3. Explain how Activity-based Costing could overcome the deficiencies inherent in the existing Costing System. 4. What factors should Ursula B. Bright consider when deciding whether to use Activity based Costing. Answers: Executive Summary In the given case, Cravings for Cakes Pty Ltd was engaged in the business of manufacturing a wide range of delicious cakes and pastries. The company was started 20 years ago where at that time the company was engaged in the manufacturing of pies, finger buns and lamingtons. The margin of the goods was good and the company was using only simple machinery but lot of hard work. Currently, the company along with its ongoing products has started the manufacturing of Danish pastries, donuts and vanilla slices. These are low volume line products but they have a good margin. The workers use to complain for these products as they involve a lot of hard work and are of low volume a well but being they have a god margin thus the company is preferring these product as well. Over the last 20 years, the factory certain changes have been taken place. The company has introduced computer-controlled mixing machines and ovens which replaced a lot of direct labor operations, and now more emphasis has bee n placed on quality and delivery performance. But in spite of these changes the profit of the company are declining on a continuous basis which has been alarming for the management. The management has asked the workers to concentrate on increasing the productivity especially for the high margin goods. 1.Changes in the Cost Structure Cost structure refers to the combination of fixed and variable cost that has been incurred by the business. In the given company, the cost structure has witnessed multiple changes. Earlier being it was highlighted that the company was using simple machinery and there is lot of work been carried out manually, thus, the company has to incur more of the labor cost in producing the cakes. But with the passage of time, the things have changed and the company has now started using computer-controlled mixing machines and ovens which replaced a lot of direct labor operations, and now more emphasis has been placed on quality and delivery performance. Thus as result of these changes cost structure of the company moved from more of the labor cost towards overhead costs. The cost structure which was earlier being concentrated more towards and has a high percentage of labor cost has now moved towards overheads cost which includes depreciation, maintenance cost of the machinery etc. In the traditi onal cost structure the proportion of the fixed cost was relatively high. This was majorly on account of the high labor cost the company use to incur. Similar is the case with Cravings for Cakes Pty Ltd, looking at the business model of the company, the management must have hired more permanent staff with itself keeping the fixed cost as high. But with the passage of time and the automation that has taken place in the company, the same fixed cost has decreased. The main reason for the changes that has been taken place is mainly because of the automation that has been witnessed in the entire industry. This has resulted in reducing of the manual process and ultimately the labor hours and its associated cost has reduced in multiple folds. At the same time, being the cost has reduced but at the same time the cost related to asset maintenance, depreciation etc has increased. Although the increment in the cost is not as much as the decrease that we have witnessed in the labor cost. But with the all these process, the competition has increased in the market. Thus, in order to survive in the market one has to make their prices more competitive than its competitor. This has a direct impact on the sales prices and one has to reduce the same to survive in the industry. Thus, overall, the cost that one has saved in the first process has been occupied by the decrease that he has witnessed in the sales prices on account of growing competition. Another ma in reason behind the change in the cost structure is the changes that we have witnessed in the traditional and the modern cost theory. 2.Understatement and Overstatement of cost The company has been working since last 20 years. Earlier the company has been using the traditional costing method under which they were manufacturing a wide range of delicious cakes and pastries. The company was able to survive in that market at times when they were engaged only in the production of cakes and pastries but at soon as the company went into the automation phase where they started using computer-controlled mixing machines and ovens which replaced a lot of direct labor operations, and started emphasizing more on quality and delivery performance, there profit declined and they started facing troubles relating to their survival. Being the automation that has been carried out is done with an intention to reduce cost and dependence on the fixed cost but it has worked other way round for the company. This shows that the modern costing theory that has been placed by the management has made the cost structure correct which was not well effective in the past. This shows that th e cost structure that was there in the past for the company was not correct and the cost was understated. Thus through the modern costing technique, the management came to know about the understatement cost and when they correct that the profit got reduced. This has majorly impacted the fixed cost of the company as result; the management of the company has asked the employees to work on increasing the sales volume of the company. Thus considering the above logic, it has been proved that the existing cost system has understated the cost of the finished goods that has been produced by the company. 3.Activity Based Costing Under the activity based costing the cost is allocated based on the different activities that have been carried out in the organization based on the actual consumption that has taken place in each activity. With the help of activity based costing, the activities in the organization is identified ad cost has bee allocated to each activity based on the actual consumption that has taken place in each activity. Through the help of activity based costing, a company can estimate the cost of the products, activities and services. This will help the company in decision making in relation to the products whether they wanted to continue with the existing products or any changes are required to be made in the product structure. Through the help of activity based costing, the company can determine the products which are relatively over priced and the management can work o reducing their cost so as to make the product more competitive in the market. This process cab further help in identifying ad eliminating the production processes that are ineffective in nature ad at the same time we cab determine the production process that are more effective considering the nature of business that has been carried out by the company. Through the help of activity based costing, one can better understand the product, customer cost and the profitability of the production processes. Traditionally the overhead cost has been allocated to the products based on the machine hours that have been spent on manufacturing the product. In the ABC costing technique the cost is first been allocated to the activities that have caused the overhead to happen for the product and then once the cost has been allocated to the activities, they are further been added to the product who actually depends on the activities. The difference between the two methods can be well understood with the help of an example. For example: A company manufactures two products. The first product a low volume item and the company required additional testing and some special engineering along with some machine hours set up to make the product. On the other hand, the second product is required in high volume. Being the product has been manufactured continuously, it requires less attention and no additional special activity is required. Now, in this case, if the company is using the traditional method of a llocating the overhead cost based on the machine hours, then very little cost will be allocated to the first product being the same was manufactured on lower quantity. On the other hand, high overhead cost will be allocated to the second product being the same has been manufactured in large quantity although in reality less overhead has been spent on the product. Thus through the help of the traditional costing technique the cost that has been determined for both the products are not correct and the results are misleading. This shortcoming of the traditional method can be overcome by the Activity base costing where the overhead cost are allocated based on more than one activity other than the machine hours. In case of the given company, the company has been engaged in manufacturing many different varieties of pies, finger buns and lamingtons. Currently, the company along with its ongoing products has started the manufacturing of Danish pastries, donuts and vanilla slices. Looking at the overall picture, being the company has been dealing in different product now, there seems like the overhead cost hasnt been allocated adequately among the different products that has been manufactured by the company, Through Activity base costing, the management of the company would be able to determine the product among the ones they are manufacturing whether the same is giving them an adequate amount of profit or not. Through this process they can work out whether to close the production of the products which are giving them limited or no profit. The correct allocation of the overhead amount will reduce unnecessary pressure from the products of the company and the management can realize the products fo r whom they are likely to concentrate in future in increasing the production. Being currently the management has no view as result before working out the correct product, they have just asked the employees to increase the production without realizing an determining the correct product which they should concentrate on. The management has asked the employees to work on increasing the sales of high margin products, but without adequate allocation of the overhead, the correct margin of the goods cannot be determined making the entire difference for the company and making things worse for the employees. The major difference that has been made in the last 20 years is the overhead allocation. It has been specified that the later products like Danish pastries, donuts and vanilla slices are being manufactured by the company in low volume but these are high margin goods. This shows that the overhead cost allocation is not consistent and this the major deficiency in the cost structure and theory adopted by Cravings for Cakes Pty Ltd. 4.Factors required to decide for Activity based Costing In order to adopt Activity based Costing, management is required to consider certain factors. In order to adopt activity based costing, it is important for one to understand the different business activity. Though the help of these business activities the cost can be assigned and from these activities, ultimately the cost is transferred towards the products where the activities are related to. In the modern world, the management of the company has placed more emphasis on these costing theories being the same has helped the management in better decision making. There are certain factors that need to be focused in by the management of Cravings for Cakes Pty Ltd for adoption of Activity based costing. One of them is the determination of the critical activities of the company. In activity based costing the cost is allocated based on the different activities that have been carried out in the organization based on the actual consumption that has taken place in each activity. With the help of activity based costing, the activities in the organization are identified and cost has been allocated to each activity based on the actual consumption that has taken place in each activity. Thus, the first factor that needs to be considered by the management is the adequate determination of the activities for the business. The next factor is understanding the importance of ABC costing techniques for decision making purposes. Ursula B. Bright should determine whether the traditional costing method that they are using is able to provide them sufficient informa tion which is required for making adequate decisions in the business especially those related to the products. This factor will force the management of the company to go for ABC costing techniques. By looking at the current financial position of the company, it does not looks that the company is in a goo state. The management has already highlighted to the employees to work on increasing the production as it has become difficult for the company to continue in the current state, this shows the decision making of the company is not in a good state and the company is suffering and required some adequate base on which the management can rely for adequate decision making. The next major factor for the company is determination of sufficient of cost distortion. For an organization to adopt ABC costing there should be high potential for cost distortion. The cost distortions tend to impact the decision making of the company specially those related to the profitability analysis. In order to a dopt ABC costing technique, the management of the company is required to put proper attention to it. In order to ensure this, the management of the company is required to adopt adequate information system in the organization. Thu, the ABC costing technique requires considerable time and effort from the management and that can be done only when the management has sufficient time for ABC. Further, the size of the company is also an important factor that needs to be kept in mind at times of adopting ABC technique. For the ABC technique to be effective, the sales of the company are required to be between the ranges of $100 million to $500 million. Further ABC costing generally takes longer time to implement being the outcome of the same is being used for decision making. Thus, time is the major factor in determining whether the company should go for the ABC costing or not. Conclusion The Cravings for Cakes Pty Ltd was engaged in the business of manufacturing a wide range of delicious cakes and pastries. Because of the traditional costing technique the management of the company was unable to allocate the correct cost among its products. In this case, the management should get for ABC costing technique. With the help of activity based costing, the activities in the organization is identified ad cost has been allocated to each activity based on the actual consumption that has taken place in each activity. Through the help of activity based costing, a company can estimate the cost of the products, activities and services. This will help the company in decision making in relation to the products whether they wanted to continue with the existing products or any changes are required to be made in the product structure. The company will be able to determine the accurate cost for the products and this will help them in adequate decision making. References Accounting coach.com, Activity Based Costing, viewed on 7th May 2017, Retrieved from https://www.accountingcoach.com/activity-based-costing/explanation Ibrahim D, 2017, Factors influencing Activity Based Costing adoption in the manufacturing industry, viewed on 7th May 2017, Retrieved from https://businessperspectives.org/media/zoo/applications/publishing/templates/article/assets/js/pdfjs/web/viewer.php?file=/pdfproxy.php?item_id:1485 Reference for Business.com, Activity Based costing, viewed on 7th May 2017, retrieved from https://www.referenceforbusiness.com/small/A-Bo/Activity-Based-Costing.html Isa C, 2010, Factors Influencing Activity-Based Costing Success: A Research Framework, viewed on 7th May 2017, Retrieved from https://www.ijtef.org/papers/26-C130.pdf Krumwiede, K. R. 1998. ABC: Why it's tried and how it succeeds. Management Accounting (April): 32-34, 36, 38. https://maaw.info/ArticleSummaries/ArtSumKrumwiede98.htm Wright T, 2017, What Types of Businesses Do Activity-Based Costing?, viewed on 7th May 2017, Retrieved from https://yourbusiness.azcentral.com/types-businesses-activitybased-costing-28437.html

Social Responsibility and Civic Engagement examples Essay Example For Students

Social Responsibility and Civic Engagement examples Essay Reevaluation At the beginning of this course I wasn’t sure what was meant by social responsibility and civic engagement. During this course I realized the meaning of both and the responsibilities that both imply. A definition of social responsibility that I found particularly poignant and concise comes from Entrepreneur Magazine, â€Å"Acting with concern and sensitivity, aware of the impact of your actions on others, particularly the disadvantaged† (Entrepreneur Magazine.com). Social responsibility can be as simple as paying your taxes or recycling your glass bottles. Social responsibility can be as complex as finding solutions to global warming or hunger in Africa. You can be personally socially responsible or you can be socially responsible in your work environment, as a church group, Girl Scout troop or just a concerned neighborhood. Social responsibility can take many forms and faces. . It is those who act that win rightly what is noble and good in life (Arthur Scalet, 2009). . On my journey through this course I found myself becoming more aware of how my actions and reactions to others were changing. For example: instead of just being angry at my government for its’ enormous waste of my money, I’m writing to my representatives and responding to their invitations to attend, â€Å"Town Hall meetings.† I will probably still be angry but my voice will be heard along with others and that at least will give me a sense of satisfaction that I didn’t sit quietly on the sidelines. I also see social responsibility as being unselfish and seeing how everyone and everything we do has a connection in this universe. We fail to tune up our car and we waste fuel; now more oil must be drilled from the ocean floor which causes a disturbance i. . e a responsible, civically involved citizen is to be in touch with the organic world and those of us who live in it. It means to be able to see past ourselves and our own needs and to focus on the needs of all people. To receive greatness in life you must give greatness in your life. I thank my instructor and my fellow students for enlightening and re-energizing my spirit and soul to do good works for all of us. Works Cited Arthur, J. Scalet, S. (2009). Morality and moral controversies: Readings in moral, social, and political philosophy. (8th ed.) Upper Saddle River, NJ: Pearson Prentice Hall Entrepreneur Magazine. (2011). Definition of Social Responsibility. Retrieved from http://www.entrepreneur.com/encyclopedia/term/82646.html Loeb, P.R. (2010). Soul of a citizen: living with conviction in challenging times. (2nd ed.). New York: St. Martins Griffin

Writing Sample Character Essays

Writing Sample Character EssaysIf you want to get better at writing essays, a good exercise is to create a sample character essay. Writing a character essay will test your ability to describe, develop characters. Character essays are often used to help students improve their academic writing skills.How do you write a character essay? First, write the character in the simplest way possible. Give them the most basic personality trait. Do not try to be too complex or overcomplicate their situation. You should write about what you know about the character.Next, add any characteristics that may be considered to be part of the character. It is okay to write what you know about the character, but there may be exceptions. For example, if you write about your student's love of books, you should write about other things that are important to that character. Perhaps they read a lot of books.Finally, describe the characteristics that make the character unique. Think about any reasons or incident s that make the character unique and important. For example, a student who has a thing for stamp collecting would probably fit the description of a character who loves stamps. A student who works in a publishing house would probably fit the description of a character who is very picky about the books he reads. Even if you write about a character who does not have many characteristics, you still need to describe the characteristics in a way that makes sense.After you have given the character some basic traits and a few more important character traits, you can start to describe the more important parts of the character. Do not ever write about the 'lowdown' on the character unless it is critical to the story and if the character has a major role in the story.As an alternative to using sample character essays, you can also use fictional examples of characters. The word 'fictional' refers to a story that does not actually happen but is presented as if it did. Many online resources provi de samples of fictional stories so that you can see how the fictional characters should sound or behave.There are also ways to improve your ability to write a character essay. One of the easiest ways to improve your writing skills is to read the work of other writers and see how they have developed their characters. Most writers will provide tips on how to write successful characters.If you are interested in learning how to write a character essay, there are many online tutorials available. Many of these tutorials are provided free, but there are some that require a fee.

Report On With Malice Toward None By Stephen B.Oates Published By Ment

Report on "With Malice Toward None" by Stephen B.Oates Published by Mentor Books written (ripped off) by Adam Klosowicz :) 551-77-7284 Oct 15, 1996 About the Author -------------- Stephen B. Oates is a professor of history at the University of Massachusetts, Amherst, and the author of eight other books, including The Fires of Jubilee and To Purge This Land with Blood. His task in this biography was to perpetuate Lincoln as he was in the days he lived. His purpose of this biography was to bring the past into the present for us and his students. The Life of Abraham Lincoln -------------------------- Although other states such as Indiana lay claim to his birth, most sources agree that Abraham Lincoln was born on February 12, 1809, in a backwoods cabin in Hodgeville, Kentucky. In an interview during his campaign for the presidency in 1860 Lincoln described his adolescence as "the short and simple annals of the poor." (p 30). His father Thomas was a farmer who married Nancy Hanks, his mother, in 1806. Lincoln had one sister, Sarah, who was born in 1807. The Lincoln family was more financially comfortable than most despite the common historical picture of complete poverty. They moved to Indiana because of the shaky system of land titles in Kentucky. Because the Lincoln's arrived in Spencer County at the same time as winter, Thomas only had time to construct a "half-faced camp." Made of logs and boughs, it was enclosed on only three sides with a roaring fire for the fourth. The nearest water supply was a mile away, and the family had to survive on the abundance of wild game in the area. Less than two years after the move to Indiana, Mrs. Lincoln caught a horrible frontier disease known as "milk sick.". Thomas Lincoln returned to Kentucky to find a new wife. On December 2 he married Sarah Bush Johnston, a widow with three children, and took them all back to Indiana. Although there were now eight people living in the small shelter, the Lincoln children, especial ly Abe, adored their new stepmother who played a key role in making sure that Abe at least had some formal education, amounting to a little less than a year in all. To support his family it was necessary that Abe worked for a wage on nearby farms. "He was strong and a great athlete, but Abe preferred to read instead. Although few books were available to a backwoods boy such as himself, anything that he could obtain he would read tenaciously" (p 56). Although his formal education had come to an end, his self-education was just beginning. After a three month flatboat journey along the Ohio and Mississippi, the 19 year old Lincoln returned to Indiana with an enthusiasm for the lifestyles that he had just encountered. Unfortunately, his new-found joy did not last long as his sister Sarah died in childbirth on January 20, 1828. In 1830 the Lincoln family decided to leave Indiana in hopes of a better future in Illinois. It was soon thereafter that Abraham became a leader in the town of Ne w Salem while operating a store and managing a mill. The next step for such an ambitious man was obvious--he entered politics, finishing eighth out of thirteen in a race for the Illinois House of Representatives in August of 1832. Abraham Lincoln was a strong supporter of Whig founder Henry Clay and his "American System." This system that arose from the National Rebublicans of 1824 was in opposition to the powerful Democratic party of President Andrew Jackson. Lincoln agreed with Clay that the government should be a positive force with the purpose of serving the people. Internal improvements were high on both mens' lists, and this stand made the relatively unknown Lincoln popular in rural Illinois from the start. As the Whigs rose in stature throughout the 1830's, so did Lincoln, but not without paying his dues along the way. For eighty days in the spring and early summer of 1832 Lincoln served in the military. On a constant search for Black Hawk, war leader of the Sauk and Fox Indi ans, he never saw any fighting but he did prove to be a

Ford Losses

Ford Losses Free Online Research Papers Ford Australia posted a $274 million after-tax loss last year as consumers, already battered by the global financial crisis, shied away from large cars. Capping off one of the roughest years on record for car makers here and abroad, Ford Australias revenues fell 7.4 per cent to $3.3 billion for the year to December 2008. Ford Australia made 108,564 vehicles, 5319 fewer than in 2007. While Ford had the newest large car on the market with the FG Falcon launched in May last year it was beaten in the sales chart by the Commodore of its rival Holden, a car that has been the top selling car for 13 years. Large-car sales plummeted last year after petrol price rises rattled buyers. Last year 119,559 large cars were sold a 14 per cent decline representing just under 12 per cent of total new-vehicle sales, of which the locally made Falcon accounted for 31,936, versus Commodores 51,093. This is but a microcosm of the fallout in the world car-making scene, with General Motors in the US filing for Chapter 11 bankruptcy protection this month with debts of $US172.8 billion ($215.2 billion), following Chrysler, which did the same in last month with $US6.9 billion of debt. So far Ford in the US has avoided the bankruptcy court, but global demand for cars is falling and only a radical turnaround can arrest the groups long-term decline. Ford Australia sought to put the best light on the results, saying that the underlying operating loss was just $14 million, compared with $99 million in 2007. The president and chief officer of Ford Australia, Marin Burela, said: This was a challenging year as the Australian market was affected by the global economic slowdown, but Ford Australias underlying business continued to improve with strong new vehicle launches and our continued progress in lowering costs and gaining efficiencies. Mr Burela returned to Australia to take the helm at Ford last November, after his predecessor, Bill Osborne, left the company after just six months in the role, filling a vacancy left by Tom Gorman in January. It meant Ford Australia had three different chief executives last year. One-off items also battered the bottom line. These included $110 million in restructuring costs and long-term asset write-downs of $52 million, while superannuation expenses cost more than $151 million. Mr Burela said the business was on track to improve on last years tripling in losses. We are continuing to improve our business fundamentals and implement our strategic plan as we move through 2009. Holden is yet to announce its 2008 results. While Holden has been first to announce fuel-saving technologies, such as cylinder deactivation on its V8s (they run on four cylinders when coasting), recalibrating engines for better economy, with plans for compatibility with ethanol fuels, Ford Australia is still two months away from deciding its future fuel-saving technologies for its Falcon and Territory ranges. Both Holden and Toyota Australia have projects in the pipeline that qualify for grants under the Federal Governments $1.3 billion Green Car Innovation Fund, a scheme that is regarded as a critical in keeping factories going. Ford is yet to approach the Government for specific projects, although it is expected to participate at some point. Mr Burela told the Herald last week: Weve been quiet on this. I dont want to go to Government every five minutes talking and asking for their support and engagement on things were not ready to make a statement on. Research Papers on Ford LossesTwilight of the UAWAnalysis of Ebay Expanding into AsiaDefinition of Export QuotasNever Been Kicked Out of a Place This NiceMarketing of Lifeboy Soap A Unilever ProductPETSTEL analysis of IndiaLifes What IfsThe Project Managment Office SystemPersonal Experience with Teen PregnancyOpen Architechture a white paper

Sexual Assault in Prison Research Paper Example | Topics and Well Written Essays - 750 words

Sexual Assault in Prison - Research Paper Example Prison violence includes rape, gang fights, duty manipulation and death as a resultant. The paper will be a focus on rape as a form of prison violence. Rape cases are familiar in all genders. However, masculine prisons record the highest number of prison rape victims. Rape is defined as the act by which sexual relations are obtained through physical force, threats or intimidation. The rate of prison rape cases have grown significantly in recent years. The issue has become sensitive that special groups have been given the mandate to find lasting solutions. Sexual violence in male prisons is a very sensitive issue when being tackled within the prison. Due to fear of being raped, victims and fellow prisoners choose not to report cases of rape. It is found that under assurance of secrecy and security, prisoners give out information on their sexual experiences while in prison, (Smith, pp. 97). For instance, there was a prisoner interview held in the Philadelphia correctional facilities. I n the exercise, 3,304 prisoners were interviewed. 156 prisoners interviewed admitted to be victims of sexual violence. This gives about 4.7% of the prisoners in the institution. This can lead to an assumption that the rape cases are no different for the past prisoners in the institution. ... In another report, a prison in Nebraska has the highest rate of staff-inmate sexual abuse of 12.2%. September 4th 2003: The day when the National Prison Rape Elimination Commission was founded under the Prison rape elimination act of 2003. The commission was issued with the mandate of the detection, analyzing and finding solutions to reduce prison sexual abuse. With the commission, abused prisoners are able to step up and report these cases of abuse. Rather than having the feeling of justice being done, it also gives them psychological confidence. Boosting psychological confidence of a sexual victim is the first way to recovery and forgiveness. Human right groups also influence greatly on the cases of prison abuse. These agencies may force a prison reshuffle and provision of medical care that the victims must be provided with. Agencies also push for prison staff alignment. With a proper and just prison staff, the welfare of prisons will be in good hands. This will also reduce the num ber of staff-inmate abuse. To curb this menace, a proper program and design should be established and implemented. The design should be able to rattle all stakeholders in prison facilities. The program should cover from top shelf management, to the bottom prison guard and warden. The design should be in a way that inmate-staff manipulation will be stopped. The design should mostly focus on prison management. With a proper management, there will be a proper staff and, hence, a proper open environment in the prisons. Most of all, the design should be able to give sexual abuse victims the room to report the incidences. After the report has been filed, the design should be able to find the appropriate way to

Strict Liability Essay Example | Topics and Well Written Essays - 2500 words

Strict Liability - Essay Example The present study would focus on a strict liability offence is defined as one where â€Å"no mens rea need[s] be proved as to a single element in the actus reus†. Strict liability is also apparent when it has at least one element in the actus reus, even without the related mens rea. Strict liability lacks the mens rea element in relation to one of more elements related to actus reus. One of the classic examples of this case was seen in the R v Prince case where the conviction was based on the fact that the Offences against the Person Act 1861 were violated. In this case, Section 55 stated that whoever was to take an unmarried girl, one below the age of 16 years, out of the possession and against the will of her father or mother would be strictly considered liable for a misdemeanour. Strict liability is sometimes used interchangeably with absolute liability. As such, confusion is often seen between these two terms. Nevertheless, it must be understood that absolute liability ref ers to the liability without mens rea in conjunction with actus reus and without any defence like duress or compulsion â€Å"other than the fact that the defendant is under 10†. Strict liability is the liability imposed regardless of mens rea (in relation to actus reus); on the other hand absolute liability is liability even with the lack of mens rea (in conjunction with actus reus) â€Å"without the availability of any defence other than the defendant is under 10†. ... 141). Strict liability is the liability imposed regardless of mens rea (in relation to actus reus); on the other hand absolute liability is liability even with the lack of mens rea (in conjunction with actus reus) â€Å"without the availability of any defence other than the defendant is under 10† (Oxford University, n.d, p. 141). In instances when a state has favourable reasons for wanting to reduce certain acts and incidents, the reasons behind such prohibition may be associated with the harm principle, where incidents which would cause harm are being prevented. An example of an act which may be regulated by the state is driving. This is an act which can be defined without having to refer to a mental element (University of Pennsylvania, 2003). There may however be instrumental reasons which can be used to define the prohibition and regulation of the act as a strict liability act. In reviewing the benefits of imposing strict liability, a benefit may be seen in terms of cost. B ased on administrative assessments, costs before and during the adjudication of a case would likely be reduced with the application of strict liability policies (Oswald, 1993). The elements which have to be proved and tried in court would be reduced and issues encountered also largely minimized. The element of cost is significant because criminal justice often racks up significant costs (Page, 1986). If states would require proof for the commission of any offence in compliance with the elements of actus reus, the implementation of criminal justice would be largely unaffordable and significantly challenging for both the offended parties and the state. Strict