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Thomas Hobbes: Leviathan
Hobbes begins with a bleak picture of human nature. On his view, humans are governed by their selfish desires, with each person calling "good" the objects of his own desire. Because humans are roughly equal in bodily strength and mental faculties, each is roughly equal in his expectation of attaining that which he desires. This leads to competition for scarce goods, which in turn leads to distrust and eventually violence. The natural result, Hobbes claims, is a war of every man against every man, and a situation in which life is "solitary, poor, nasty, brutish, and short." In such a state, there is no such thing as property and nothing is right or wrong, just or unjust. Every person is simply at liberty to do whatever they deem necessary for their own preservation.
Fortunately, Hobbes claims, we can discover by reason certain laws of nature, general principles that forbid us from doing what is destructive of our lives. The first of these tells us that we ought to seek peace insofar as it is available, and otherwise use whatever means we have to defend ourselves. From this principle, Hobbes claims, there follows a second: each of us should be willing to forfeit our right to all things and content ourselves with as much liberty against others as we are willing to allow them against us. The social contract that is thereby created is beneficial to all parties, as it secures each from harm by the others, requiring in return that each person refrain from harming others themselves. Enforcing such an agreement requires the establishment of a coercive power; otherwise people could engage in force and fraud without impunity. This coercive power establishes justice by ensuring that all parties keep their agreements.
-Hobbes claims that each person should be content with only so much liberty as they allow others.
Finished Goods Account
An account used to track the value of products that are completed and ready for sale.
Factory Overhead Ledger
An accounting ledger that details the indirect costs associated with manufacturing, which may include utilities, depreciation, and salaries of non-direct labor.
Unit Costs
The cost associated with a single unit of product or service, including all costs incurred to produce, deliver, and sell the product.
Job Order Cost Systems
An accounting method that assigns costs to specific batches or job orders, tracking the direct materials, direct labor, and manufacturing overhead per job.
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