Cost of Goods Sold or Manufactured

What is involved in the cost of goods sold or manufactured?

• Direct Labor
• Indirect Labor
• Cost of Materials
• Cost of Storing Materials
• Overhead Costs like
• Electricity
• Gas
• Water
• Telephones
• Office Supplies
• Building Maintenance
• Maintenance Supplies
• Equipment Purchases
• Quality Control
• Training

Two areas of which you may not be aware are Quality Control and Training...

Training

1. Employees must be training on company policies and procedures including safety standards and sexual harassment.
2. Employees must also be trained in how to operate any machines they are using and how to maintain and repair those machines.
3. Employees must be trained in simple math in order to make the calculation that are part of machine operations.(Because these employees did not learn algebra I and II in high school, the industry must do what the school systems did not do)
4. Statistical Process Control classes need to be taught to employees so that quality products can be made with reliability.

Quality Control

According to government regulations, all companies are required to make sure that they produce a quality product that is ultimately sold to the general public.  Ralph Nader was originally responsible back in the 1960s for this happening.

Without quality control, the public has no guarantees that what they are buying is actually reliable and works the way it is supposed to work.

If a company is 99.9% accurate, it is still producing 1500 out of spec parts per million.

How many of those out of spec parts would you like to have in the automobile you are riding in or the washing machine you are using?

Those 1500 parts have to be found and pulled out of production so that they are not inadvertantly sold.

SO...  if the high schools do not do their jobs with teaching students, then that burden and cost falls on industries and companies...  which causes them to increase their prices...

AND...  if our federal government imposes rules and regulations on our industries and companies for whatever reason, then that costs money which is then passed on to the consumer.

DON'T FORGET...  when employees demand more money, those increased costs are passed along to the consumer as well...

If a company pays an employee $50,000 a year, it ultimately costs that company $150,000 in benefits which include insurance, retirement, holidays, vacation and sick leave.

AWARENESS IS KNOWLEDGE

KNOWLEDGE IS POWER

Our Government Spending

In 2021, the government spent $6.82 trillion.

Like households, the federal government must live within the confines of a budget. However, those confines are much, much larger than the spending limits of the average household — or any household, for that matter.

How large? The federal government is projected to spend $5.7 trillion in 2021, according to the Congressional Budget Office. If you’re wondering where that money comes from and where it goes, here’s what you need to know about the federal budget and how it impacts you.
NOTE: Our government spent $1.1 Trillion than expected...

How the Federal Budget Process Works
If you think staying on top of your household budget is tedious, consider the process the federal government must go through each year. Actually, the process takes more than a year. The U.S. government doesn’t budget for the calendar year starting on Jan. 1 but rather a fiscal year starting on Oct. 1 and going through Sept. 30 of the following year. The process for creating the budget begins a year and a half before the fiscal year begins.

Step 1: Government agencies start compiling their spending proposals in the spring (1 1/2 years before the fiscal year begins) to submit to the White House Office of Management and Budget.

Step 2: Using the agencies’ request, the OMB and president create a budget request that typically is submitted to Congress by the first Monday in February.

Step 3: The House of Representatives and Senate budget committees draft budget resolutions. Then a House-Senate conference committee resolves the differences between the two resolutions to create one budget resolution that both the House and Senate are supposed to approve by April 15.   READ MORE...

In 2021, the federal government collected $4.05 trillion in revenue.
In 2021, the federal government spent $6.82 trillion.

Deficit: ($2.77) trillion

SOURCE:  Datalab

COVID PANDEMIC
The U.S. government spent at least $5.2 trillion to combat the covid-19 crisis. It stands as one of the most expensive, ambitious experiments in U.S. history. And it succeeded.

A final phase of that assistance could begin this week, when the Treasury Department starts a $110 billion program of child tax credit payments for millions of Americans. Those benefits are set to run through the end of the year.

But even that program will run out, assuming it is not renewed. And policymakers will be undertaking an equally uncertain experiment by letting most other covid-19 relief aid run its course. Businesses and households that were able to navigate the coronavirus pandemic with large levels of government aid will soon test their ability to forge ahead on their own.

Previous attempts to let pandemic-related benefits expire were met with last-minute extensions, as economic updates remained dismal and hardship remained prominent. But the White House appears ready to let the training wheels come off this year as positive indicators pile up.  READ MORE...