Income Measurement and Profitability Analysis Essay Example

Income Measurement and Profitability Analysis Essay Chapter 5 Income Measurement and Profitability Analysis exercises Exercise 5–1 Requirement 1 Alpine West should recognize revenue over the ski season on an anticipated usage basis, in this case equally throughout the season. The fact that the $450 price is nonrefundable is not relevant to the revenue recognition decision. Revenue should be recognized as it is earned, in this case as the services are provided during the ski season. Requirement 2 November 6, 2013 Cash450 Unearned revenue450 To record the cash collection December 31, 2013 Unearned revenue ($450 x 1/5)90 Revenue90 To recognize revenue earned in December (no revenue earned in November, as season starts on December 1). Requirement 3 $90 is included in revenue in the 2013 income statement. The $360 remaining balance in unearned revenue is included in the current liability section of the 2013 balance sheet. Exercise 5–3 Requirement 1 2013 cost recovery %: $234,000 = 65% (gross profit % = 35%) $360,000 2014 cost recovery %: $245,000 = 70% (gross profit % = 30%) $350,000 2013 gross profit: Cash collection from 2013 sales of $150,000 x 35%=$52,500 2014 gross profit: Cash collection from 2013 sales of $100,000 x 35%=$ 35,000 +Cash collection from 2014 sales of $120,000 x 30%= 36,000 Total 2014 gross profit $71,000 Requirement 2 2013 deferred gross profit balance: 2013 initial gross profit ($360,000 – 234,000)$126,000 Less: Gross profit recognized in 2013 (52,500) Balance in deferred gross profit account$73,500 2014 deferred gross profit balance: 2013 initial gross profit ($360,000 – 234,000)$ 126,000 Less: Gross profit recognized in 2013 (52,500) Gross profit recognized in 2014(35,000) 2014 initial gross profit ($350,000 – 245,000)105,000 Less: Gross profit recognized in 2014 (36,000) Balance in deferred gross profit account$107,500 Exercise 5–4 2013 Installment receivables360,000 Inventory234,000 Deferred gross profit126,000 To record installment sales 2013 Cash150,000 Installment receivables150,000 To record cash collections from installment sales 2013 Deferred gross profit52,500 Realized gross profit52,500 To recognize gross profit from installment sales 2014 Installment receivables350,000 We will write a custom essay sample on Income Measurement and Profitability Analysis specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Income Measurement and Profitability Analysis specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Income Measurement and Profitability Analysis specifically for you FOR ONLY $16.38 $13.9/page Hire Writer Inventory245,000 Deferred gross profit105,000 To record installment sales 2014 Cash220,000 Installment receivables220,000 To record cash collections from installment sales 2014 Deferred gross profit71,000 Realized gross profit71,000 To recognize gross profit from installment sales Exercise 5–5 Requirement 1 YearIncome recognized 2013$180,000 ($300,000 – 120,000) 2014- 0 2015- 0 2016 0 Total$180,000 Requirement 2 Cost recovery %: $120,000 - = 40% (gross profit % = 60%) $300,000 | | | | |Year |Cash Collected |Cost Recovery(40%) |Gross Profit(60%) | |2013 |$ 75,000 |$ 30,000 |$ 45,000 | |2014 | 75,000 | 30,000 | 45,000 | |2015 | 75,000 | 30,000 | 45,000 | |2016 | 75,000 | 30,000 | 45,000 | | Totals |$300,000 |$120,000 |$180,000 | | | | | | Requirement 3 | | | | | |Year |Cash Collected |Cost Recovery |Gross Profit | |2013 |$ 75,000 |$ 75,000 | 0 | |2014 | 75,000 | 45,000 $ 30,000 | |2015 | 75,000 | 0 | 75,000 | |2016 | 75,000 | 0 | 75,000 | | Totals |$300,000 | $120,000 |$180,000 | | | | | | Exercise 5–11 Requirement 1 20132014 Contract price$2,000,000$2,000,000 Actual costs to date 300,0001,875,000 Estimated costs to complete 1,200,000 0 Total estimated costs 1,500,0001,875,000 Gross profit (estimated in 2013)$ 500,000$ 125,000 Gross profit recognition: 2013: $ 300,000 = 20% x $500,000 = $100,000 $1,500,000 2014:$125,000 – 100,000 = $25,000 Requirement 2 2013$ 0 2014$125,000 Requirement 3 | | | | | |Balance Sheet | | | | |At December 31, 2013 | | | |Current assets: | | | | |Accounts receivable | |$ 130,000 | | |Costs and profit ($400,000*) in excess | | | | |of billings ($380,000) | |20,000 | | | | | | | * Costs ($300,000) + profit ($100,000) Exercise 5–11 (concluded) Requirement 4 | | | | |Balance Sheet | | | | |At December 31, 2013 | | | | |Current assets: | | | | |Accounts receivable | |$ 130,000 | | | | | | | |Current liabilities: | | | | |Billings ($380,000) in excess of costs ($300,000) | |$ 80,000 | | | | | | | problems Problem 5–2 Requirement 1 2013 cost recovery % : $180,000 = 60% (gross profit % = 40%) $300,000 2014 cost recovery %: $280,000 = 70% (gross profit % = 30%) $400,000 2013 gross profit: Cash collection from 2013 sales = $120,000 x 40%= $48,000 2014 gross profit: Cash collection from 2013 sales = $100,000 x 40%= $ 40,000 +Cash collection from 2014 sales = $150,000 x 30%= 45,000 Total 2014 gross profit $85,000 Requirement 2 013 Installment receivables300,000 Inventory180,000 Deferred gross profit120,000 To record installment sales Cash120,000 Installment receivables120,000 To record cash collections from installment sales Deferred gross profit48,000 Realized gross profit48,000 To recognize gross profit from installment sales Problem 5–2 (continued) 2014 Installment receivables400,000 Inventory280,000 Deferred gross profit120,000 To record installment sales Cash250,000 Installment receivables250,000 To record cash collections from installment sales Defer red gross profit85,000 Realized gross profit85,000 To recognize gross profit from installment sales Requirement 3 | | | | |Date |Cash Collected |Cost Recovery |Gross Profit | | | | | | |2013 | | | | |2013 sales |$120,000 |$120,000 |- 0 | | | | | | |2014 | | | |2013 sales | $100,000 | $ 60,000 |$40,000 | |2014 sales | 150,000 | 150,000 | 0 | | 2014 totals |$250,000 |$210,000 |$40,000 | | | | | | Problem 5–2 (concluded) 2013 Installment receivables300,000 Inventory180,000 Deferred gross profit120,000 To record installment sales Cash120,000 Installment receivables120,000 To record cash collection from installment sales 2014 Installment receivables400,000 Inventory280,000 Deferred gross profit120,000 To record installment sales Cash250,000 Installment receivables250,000 To record cash collection from installment sales Deferred gross profit40,000 Realized gross profit40,000 To recognize gross profit from installment sales Problem 5–5 Requirement 1 201320142015 Contract price$10,000,000$10,000,000$10,000,000 Actual costs to date 2,400,000 6,000,000 8,200,000 Estimated costs to complete 5,600,000 2,000,000 0 Total estimated costs 8,000,000 8,000,000 8,200,000 Estimated gross profit (loss) (actual in 2015)$ 2,000,000$ 2,000,000$ 1,800,000 Gross profit (loss) recognition: 2013: $2,400,000 = 30. 0% x $2,000,000 = $600,000 $8,000,000 2014: $6,000,000 = 75. 0% x $2,000,000 = $1,500,000 – 600,000 = $900,000 $8,000,000 015:$1,800,000 – 1,500,000 = $300,000 Problem 5–5 (continued) Requirement 2 | | | | | | |2013 |2014 |2015 | | | | | | |Construction in progress |2,400,000 |3,600,000 |2,200,000 | | Various accounts 2,400,000 |3,600,000 |2,200,000 | |To record construction costs | | | | | | | | | |Accounts receivable |2,000,000 |4,000,000 |4,000,000 | | Billings on construction contract |2,000,000 |4,000,000 |4,000,000 | |To record progress billings | | | | | | | | | |Cash |1,800,000 |3,600,000 |4,600,000 | | Accounts receivable |1,800,000 |3,600,000 |4,600,000 | |To record cash collections | | | | | | | | | |Construction in progress | 600,000 | 900,000 | 300,000 | |(gross profit) | | | | |Cost of construction |2,400,000 |3,600,000 |2,200,000 | |(cost incurred) | | | | | Revenue from long-term contracts (1) |3,000,000 |4,500,000 |2,500,000 | |To record gross profit | | | | | | | | | (1) Revenue recognized: 2013: 30% x $10,000,000 =$3,000,000 2014: 75% x $10,000,000 =$7,500,000 Less: Revenue recognized in 2013(3,000,000) Revenue recognized in 2014$4,500,000 2015: 100% x $10,000,000 =$10,000,000 Less: Revenue recognized in 2013 2014 (7,500,000) Revenue recognized in 2015$2,500,000 Problem 5–5 (continued) Requirement 3 | | | | | |Balance Sheet | |2013 | |2014 | | | | | | | |Current assets: | | | | | |Accounts receivable | |$ 200,000 | |$600,000 | |Construction in progress |$3,000,000 | |$7,500,000 | | | Less: Billings |(2,000,000) | |(6,000,000) | | |Costs and profit in excess | | | | | |of billings | |1,000,000 | |1,500,000 | Requirement 4 01320142015 Costs incurred during the year$2,400,000$3,800,000$3,200,000 Estimated costs to complete as of year-end 5,600,000 3,100,000 201320142015 Contract price$10,000,000$10,000,000$10,000,000 Actual costs to date 2,400,000 6,200,000 9,400,000 Estimated costs to complete 5,600,000 3,100,000 0 Total estimated costs 8,000,000 9,300,000 9,400,000 Estimated gross profit (actual in 2015)$ 2,000,000$ 700,000$ 600,000 Problem 5–5 (concluded) Gross profit (loss) recognition: 2013: $2,400,000 = 30. 0% x $2,000,000 = $600,000 $8,000,000 2014: $6,200,000 = 66. 6667% x $700,000 = $466,667 – 600,000 = $(133,333) $9,300,000 015:$600,000 – 466,667 = $133,333 Requirement 5 201320142015 Costs incurred during the year$2,400,000 $3,800,000$3,900,000 Estimated costs to complete as of year-end 5,600,000 4,100,000 201320142015 Contract price$10,000,000$10,000,000$10,000,000 Actual costs to date 2,400,000 6,200,00010,100,000 Estimated costs to complete 5,600,000 4,100,000 0 Total estimated costs 8,000,00010,300,00010,100,000 Estimated gross profit (loss) (actual in 2015)$ 2,000,000$ (300,000)$ (100,000) Gross profit (loss) recognition: 2013: $2,400,000 = 30. 0% x $2,000,000 = $600,000 $8,000,000 2014: $(300,000) – 600,000 = $(900,000) 2015: $(100,000) – (300,000) = $200,000

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Justification of a Business Plan for Hotel

Justification of a Business Plan for Hotel The Justification of a Business Plan for Rebeccas Hotel Introduction The significance of business plans in all types and sizes of business organizations can never be threaten. The entrepreneurial inquiry puts the entrepreneurs in situations that require judgment. Hence, the need and identification of an approach to address these situations arise (Foss, Foss Klein, 2006, p. 4-5). Such as the justification for business plans as one of the approaches to address business problems, particularly in the event of uncertainties. The use of a business plan is one such approach as it is defined as a formal declaration of what the business wants to achieve. During uncertainties entrepreneurs should find tools to manage them (Sull, 2004, par. 2). Guinipero, Denslow, and Melton (2008) indicated that high propensity risks increase the formality of business plans. A business plan allows the anticipation of risks and improbabilities. A carefully formulated business plan should be able to communicate to stakeholders about the intended direction of the company. Through this, stakeholders should be guided with an understanding of the business situation and subsequently enable them to execute appropriate actions (Honig and Karlson, 2004, p. 30-35). To protect their interests in the business, stakeholders can be guaranteed with action in expectation of favourable business outcomes. The justification for a business plan appears to raise the significance for business successions as they posture challenges. The transition of managerial control frequently simply do not work out (Dalpiaz, Tracey Phillips, 2014, p. 3). Since this paper is based on the succession of a family business, the case study about Rebeccas family business provides insight into the important of business plans even for a small family-run hotel. This paper shall explain the importance of a business plan for Rebeccas case and consequently convince her to undertake the preparation of a business plan. Her case shall be interpret considering the mitigating factors as to why the business plan is necessary. The mitigating factors The retirement of Rebeccas parents had generally prompt the need for a business plan. Nonetheless, the presenting scenario also questions its practicality as their business is started out by her parents, has possibly overcome various business challenges, and is still currently operating, all without a business plan. The need for a business plan is followed by these conditions. Beyond these circumstances, Rebeccas succession to manage the business also presents potential threats. Though Rebeccas work as a kitchen assistant and junior cook despite having those knowledge is useful for the business since the hotel includes a restaurant, but the operation and management of a bar and hotel would require competencies which may not be sufficiently provided by her short time because she went backpacking travel in South-East Asia. Additionally, a three-year backpack travel exposure may not be suitable for Rebecca to develop an understanding of the tourism industry in their locale since the act ivities and opportunities presented in the different locations can be varied. It is important to note the difference in the tourism needs and activities of a travel destination such as the marina compared to the tourism locale Rebecca visited in her three-year adventure. On the other hand, as part of the family, she could have obtained insight into the business operations and her parents management style and business practices. Nevertheless, family-run organizations encounter unique problems due to its inherent nature (Peters Buhalis, 2004; Agyapong Boamah, 2013). Supporting literature shall clarify this in the next section. Even though Kerstin is not a part of this family but because of her relations with Rebecca and also because of her competencies and training, she can be possibly consulted about these consequences. Though small businesses are less likely to hire specialists than large corporations (Wu, Bacon, Hoque, 2014, p. 7), by moral of Rebeccas relationship to her, Kirstens expertise might be confess or at least consulted. It is, however, uncertain that her international exposure at work and the level of training would be suitable for a small family-run hotel. The nature of family-run businesses Family businesses rely on paternalism (Peters Buhalis, 2004, p. 537). Successors operate under the path of their parents especially when the founders are still around. Successors may attempt to introduce new systems and approach which may run contradicting to the family tradition when running the business. But the predecessor may not be able to let go or to completely allow the decision making processes and the management of the enterprise under the new relative-manager. The vision and goals of this relative may be inconsistent with how the parents perceive the business. Likewise, Agyapong and Boamah (2013, p. 533) described family-based relatedness in their study, which appears to produce these problems. The dynamics of family relationships may get in the way of business operations. There may be a cause of separation of the family concerns and business matters, conflicts or inefficiency may be occurred in the business. Family-run businesses are also usually characterized by informal business practices. As a result, these enterprises lack planning or the use of a systematic approach to manage the business especially when problematic activity occur. In the family businesses they commonly use improvisation by the family members (Peters Buhalis, 2004, p. 5), which lead to inconsistencies. There are no product or service standardizations or appropriate consistent controls. The informality of the practice arises from the dynamics of the family relationship. This situation is further entangled by another informal business practice which is inaccurate financial recording that results in financial losses (Peters Buhalis, 2004, p. 6). Family members also make their decisions that tend to be irrational since there appears a lack of information to guide them. In addition, misjudgement of performance indicators also occur and consequently affect the quality of future business decisions. This information could be made consistent, reliable, and more permanent when a proper business plan is created. Succession in family businesses Succession in family businesses is considered an interesting area of research. Studies focus on examining the change which aid or hinder the transfer of power to the succeeding generation, family relationships, and the process (Dalpiaz, Tracey Phillips, 2014, p. 6). A more outstanding evaluation from the studies is the causation approach which indicates that family businesses evolve linearly. In a statistical perspective, the continuity of the family business is related to certain variables which indicate the future state of the business. In the causation approach, a set of goals is identified as one of the factors in which family businesses are described to be established on. However, the goals are recognised to lack systematic process due to the informal nature of family enterprises. Nevertheless, planning, among the other components such as intentionality and resource acquisition, are essential foundations of this approach. Therefore, the continuity of the family business relies on the continuity of establishing plans. However, this time for Rebecca, a conscious formulation and systematic approach for business planning must be used. A few studies shows the reasons why business plans become critically important for family-operated businesses. The studies of Peters and Buhalis (2004) and Agyapong and Boamah (2013) provide important insights into these types of business ownership, particularly in the hotel industry. Both types of research emphasize the need for competitiveness in the industry. Peters and Buhalis (2004) claimed that the competitiveness of destinations is characterized by the domination of small businesses in the tourism and hospitality industry, as such in the case of Austria, the studys research locale. The operations of 240 small family businesses in Austrias tourism destination industry were part of the study in 2003. Research findings suggested that training is an essential element to run family businesses. In addition, a key component of this training includes the development of plans, strategies and the development of conceptualisation of new products or services among other important areas of running the family hotel business. These specific areas are being pick to emphasize the important role of business plans in the small enterprise. This research further indicate the need to develop strategic plans, both as a competitive strategy and advantage for the small family hotels. Growth and future sustainability are indicated to be the likely outcomes when strategic plans are created and then implemented. Meanwhile, Agyapong and Boamah (2013) conduct in their research the effects of business strategies and leadership in family businesses. Family hotel businesses in Ghana were the focus of this study, covering 50 small hotels in the country. The vital findings relevant to this paper is that the use of strategies, which may be provided by business plans, offer the family business the ability to predict problems, to vision the future, and to maintain flexibility. The business environment in Ghana was described to be highly competitive, and thus, the need for well-thought of strategies enable good business performance to survive in a competitive market situation. Furthermore, the unique characteristics of family businesses can be apply in implementing particular business conditions such as cost leadership and differentiation strategies (Agyapong Boamah, 2013, p. 537). In the case of Ghanas family hotel businesses, competitive strategies were purposeful to provide the assertion of survival of the 50 small hotels. Hence, the advantage of the business plan is to help the family business to be competitive in its formation. Another advantage implied in the studies is that the business plan could help support the inherent characteristics of small family businesses. Considering the scope of these two studies and similar competitive situations, those research indicate a broad-applicable situation for small family-run hotels. Alternative studies illustrate the importance of business plans for entrepreneurs in general. Brinckmann, Grichnik and Kapsa (2010, p. 24) cleverly stated in the title of their study Should entrepreneurs plan or just storm the castle? the quote of whether to create a business plan or not. This analysis study specified that planning is beneficial, although that factors such as culture and the newness of the enterprise affect the planning-performance relationship. Relevant to this, the newness of the enterprise may not be a concern for Rebeccas case, since the business has existed during her parents time. Culture appears to be a critical factor as to refer to the norms, values, and relationships within the family. Since this is identified to affect the planning-performance relationship, the guarantee of success for Rebeccas family business is yet to be determined. Besides, another research, Zahrani, Nikmaram and Latifi (2014, p.245) specified the need for developing a strategic plan, which is especially useful for succession planning. It is important for the successor to have the right outlook about the business plans. Furthermore, according to Aronoff and Ward (2014, p. 2), shared opinion help conquer conflicts within the family organizations. It is believed that since visions are reflections of values, shared visions should also result in more unify outcomes for a family business. Visions and values can be clarify when they are justify out rather than assumed. Identifying and specifying them in a business plan should help in making decisions which link to the family expectations. Conclusion Successions in family-run businesses present potential problems. This is further complicated by the inherent features of family-operated enterprises since they lack planning and is characterized by informality which results in inconsistencies, conflict, and lack of control. Research has provided evidence based on the need to develop strategic plans to ensure the future performance of the business. The planning-performance link support needs for business plans as a family-oriented business culture is identified a plausible barrier to the business success. Business plans offer the business successor a means of continuing the business with the appropriate business outlook one that reflects family vision and values. Furthermore, business plans provide a means for avoiding the consequences arising from the inherited nature of family-run enterprises. Studies specific to the hotel industry have also identified that competitive market environments can be survived by developing strategic pla ns. Presented with the benefits of developing strategies and the analysis of Rebeccas situation, Rebecca should be convinced that a means for her successful succession of the family-run hotel is through the development of a business plan. References Agyapong, A. and Boamah, R. (2013). Business strategies and competitive advantage of family hotel businesses in Ghana: The role of strategic leadership. The Journal of Applied Business Research. Volume 29. Number 2. Accessed at: cluteinstitute.com. (Accessed 15 March 2017). Aronoff, C. and Ward, J. (2016). Family business values: How to assure a legacy of continuity and success. New York: Palgrave and MacMillan. Dalpiaz, E., Tracey, P. and Phillips, N. (2014). Succession narratives in family business: The case of Alessi. Entrepreneurship Theory and Practice. Accessed at: https://www.repository.cam.ac.uk/bitstream/handle/1810/245758/ETP%20Revision%20Final.pdf?sequence=1isAllowed=y. (Accessed 14 March 2017). Foss, Foss, and Klein, (2006). Original and derived judgment: An entrepreneurial theory of economic organization. Organization Studies. Accessed at: https://brage.bibsys.no/xmlui/bitstream/handle/11250/164282/soldp200601.pdf?sequence=1isAllowed=y. (Accessed 15 March 2017). Guinipero, L., Denslow, D., and Melton, H. (2008). Risk propensity, risk perception and business plan formalization: a conceptual investigation. International Journal of Entrepreneurship and Innovation Management. Volume 8. Issue 4. Accessed at: http://www.inderscienceonline.com/doi/pdf/10.1504/IJEIM.2008.022312. (Accessed 16 March 2017). Honig, B. and Karlson, T. (2004). Institutional forces and the written business plan. Journal of Management. Vol. 30. Issue 1. 29 48. Accessed at: https://www.researchgate.net/profile/Benson_Honig/publication/228264253_Institutional_Forces_and_the_Written_Business_Plan/links/54ae9e6a0cf21670b35862b8.pdf. (Accessed 17 March 2017). Peters, M. and Buhalis, D. (2004). Family hotel businesses: Strategic planning and the need for education and training. Department of Strategy and Tourism Management. Center for Tourism and Service Economics. University of Innsbruck. Accessed at: http://epubs.surrey.ac.uk/1109/1/fulltext.pdf. (Accessed 14 March 2017). Sull, (2004). Disciplined entrepreneurship. MIT Sloan Management Review. Accessed at http://sloanreview.mit.edu/article/disciplined-entrepreneurship/. (Accessed 15 March 2017). Wu, N., Bacon, N. and Hoque, K. (2014). The adoption of high performance work practices in small businesses: the influence of markets, business characteristics and HR expertise. The International Journal of Human Resource Management. Accessed at: http://irep.ntu.ac.uk/id/eprint/26446/1/3876_Wu.pdf. (Accessed 16 March 2017). Zahrani, M. Nikmaram, S. and Latifi, M. (2014). Impact of family business characteristics on succession planning: A case study in Tehran industrial towns. Iranian Journal of Management Studies. Vol. 7. No. 2. 243- 257. Accessed at: https://ijms.ut.ac.ir/article_36616_8ced89c13f3bb574ef88de90a9581858.pdf. (Accessed 14 March 2017).

Is American Beef Safe to Eat?- Exploring the Quality of Agricultural St

as Americans we have to be conscious of the foods that we eat that come from the different livestock. Everything that is not a vegetable comes from some form or another of livestock and sometimes we have to wonder; where is the food coming from? If you asked any five year old he would say â€Å"the grocery store†, however as consumers we have to be knowledgeable of the foods we put into our bodies and have good faith that they are coming from quality sources. the cattle industry and government to safeguard the food that we eat. There are already many standards in place, but are they enough? How can we increase the quality of these standards What do we need to be mindful of that decreases the value of these standards What are some of the actions being taken by private industry to ensure quality? Is the government taken the same actions to keep the American consumer safe? United States Department of Agriculture Standards Within the United State there is only one set of standards to grade beef and beef products being distributed interstate. The USDA put these standards in place after the Wholesome Meat Act of 1967 which states that, â€Å"USDA has authority to control movement of unfit meat and meat products and to require poultry products in interstate and foreign commerce to meet Federal inspection standards.† There are seven standards in place for commercial beef sale in the United States; they are on a sliding scale. Excellent quality beef is labeled as prime, which has a high degree of marbling or fat throughout the back, loin, ribs, and rump. Prime beef is going to be mainly used in steakhouses and restaurants throughout the nation. The quality of this particular type of beef is superior to the next standard of beef, choice... ...he different vessels of marketing and production. There are also several options for vaccination depending upon if it is being done prior to weaning the calf or during the weaning process. Texas A&M AgriLife Extension Program has gone through great lengths to ensure calves and cattle are being properly vaccinated. They have come up with a program that is conscious to the different financial and economical situations of the rancher. The most basic program is made up of only one shot per cow, and fails to cover the most common reproductive viruses, brucellosis, leptospirosis and campylobecteriosis. However, this basic vaccination is super cost effective, at only $3.11 per cow. The â€Å"best† program covers everything from 5-way leptospirosos, 8-way clostridal toxoid, to Pasteruella hemolytica. This program is almost ridiculous at a cost of $8.69 per cow.