Cost Allocation

Cost Allocation

Cost allocation (also called cost assignment) is the process of finding cost of different cost objects such as a project, a department, a branch, a customer, etc. It involves identifying the cost object, identifying and accumulating the costs that are incurred and assigning them to the cost object on some reasonable basis.

Cost allocation is important because it the process through which costs incurred in producing a certain product or rendering a certain service is calculated. If costs are not accurately calculated, a business might never know which products are making money and which ones are losing money. If cost are misallocated, a business may be charging wrong price to its customers and/or it might be wasting resources on products that are wrongly categorized as profitable.

Mechanism

Typical cost allocation mechanism involves:

Identifying the object to which the costs have to be assigned,

Accumulating the costs in different pools,

Identifying the most appropriate basis/method for allocating the cost

Cost object

Cost object is an item for which a business need to separately estimate cost.

Examples of cost object include a branch, a product line, a service line, a customer, a department, a brand, a project, etc.

Cost pool

Cost pool is the account head in which costs are accumulated for further assignment to cost objects.

Examples of cost pools include factory rent, insurance, machine maintenance cost, factory fuel, etc. Selection of cost pool depends on the cost allocation base used. For example if a company uses just one allocation base say direct labor hours, it might use a broad cost pool such as fixed manufacturing overheads. However, if it uses more specific cost allocation bases, for example labor hours, machine hours, etc. it might define narrower cost pools.

Cost driver

Cost driver is any variable that ‘drives’ some cost. If increase or decrease in a variable causes an increase or decrease is a cost that variable is a cost driver for that cost.

Examples of cost driver include:

Number of payments processed can be a good cost driver for salaries of Accounts Payable section of accounting department,

Number of purchase orders can be a good cost driver for cost of purchasing department,

Number of invoices sent can be a good cost driver for cost of billing department,

Number of units shipped can be a good cost driver for cost of distribution department, etc.

While direct costs are easily traced to cost objects, indirect costs are allocated using some systematic approach.

Cost allocation base

Cost allocation base is the variable that is used for allocating/assigning costs in different cost pools to different cost objects. A good cost allocation base is something which is an appropriate cost driver for a particular cost pool.

Example

T2F is a university café owned an operated by a student. While it has plans for expansion it currently offers two products: (a) tea & coffee and (b) shakes. It employs 2 people: Mr. A, who looks after tea & coffee and Mr. B who prepares and serves shakes & desserts.

Its costs for the first quarter are as follows:

Mr. A salary                                                   16,000
Mr. B salary                                                   12,000
Rent                                                                   10,000
Electricity                                                            8,000
Direct materials consumed in making tea & coffee   7,000
Direct raw materials for shakes                            6,000
Music rentals paid                                              800
Internet & wi-fi subscription                              500
Magazines                                                              400

Total tea and coffee sales and shakes sales were $50,000 & $60,000 respectively. Number of customers who ordered tea or coffee were 10,000 while those ordering shakes were 8,000.

The owner is interested in finding out which product performed better.

Solution

Salaries of Mr. A & B and direct materials consumed are direct costs which do not need any allocation. They are traced directly to the products. The rest of the costs are indirect costs and need some basis for allocation.

Cost objects in this situation are the products: hot beverages (i.e. tea & coffee) & shakes. Cost pools include rent, electricity, music, internet and wi-fi subscription and magazines.

Appropriate cost drivers for the indirect costs are as follows:

Rent                                        10,000 Number of customers
Electricity                                 8,000 United consumed by each product
Music rentals paid                    800 Number of customers
Internet & wifi subscription    500 Number of customers
Magazines                                    400 Number of customers

Since number of customers is a good cost driver for almost all the costs, the costs can be accumulated together to form one cost pool called manufacturing overheads. This would simply the cost allocation.

Total manufacturing overheads for the first quarter are $19,700. Total number of customers who ordered either product are 18,000. This gives us a cost allocation base of $1.1 per customer ($19,700/18,000).

A detailed cost assignment is as follows:

                                                                        Tea & Coffee Shakes

Revenue                                                                  50,000 60,000

Costs:

  Salaries                                                                    16,000 12,000

  Direct materials                                                     7,000 6,000

  Manufacturing overheads allocated                             11,000 8,800

Total costs                                                          34,000 26,800

Profit earned                                                         16,000 33,200

Manufacturing overheads allocated to Tea & Cofee = $1.1×10,000

Manufacturing overheads allocated to Shakes = $1.1×8,000

source: accountingexplained

7 Things You Will Regret Not Doing In Your 20s

7 Things You Will Regret Not Doing In Your 20s

Is it even possible to have regrets in your 20s? After all, every failure is just another lesson to be learned, right?

Turns out there are quite a few regrets you can have as a 20-something (although the list is much shorter than in your 30s).

Redditors recently voiced things that they regret not doing in their 20s. Read their answers to make sure you won't have any regrets in some of the best years of your life.

1. Not getting fit

Your 20-something metabolism can make you complacent with your health, but start working on being fit and healthy earlier, and you definitely won't regret it. After all, exercising and a healthy diet can increase your happiness and make all your experiences better.

For example, if you're fit, you'll be able to take on bucket list trips that require a lot of endurance and a certain fitness level, like climbing Machu Picchu.

2. Not taking risks

So you're heading down the traditional path to play it safe. Think of your 20s as a time for new experiences and don't let your fears hold you back. You're only young once!

3. Rushing to be a grown-up

You're eager to get started on life, but take the time to really enjoy the experience of being in your 20s. You have the rest of your life to act like a grown-up. Don't feel obligated to follow a certain timeline.

"You don't have to rush out and get a full-time career job at 21. You don't have to shack up and marry the first person you meet at 24. You don't have to buy a house or car and have babies by 27," says Reddit user shewhogoesthere. "A lot of people I know who were in a hurry all through their 20s are now ending their 20s and feeling a bit depressed because they quickly extinguished their youth and hit all the goal posts and now they're like, 'What now?' You can't go back, you can't be young again; why throw it away so quickly?"

4. Not starting a retirement fund

Every personal finance expert recommends to start putting money toward your retirement fund as early as possible. This is because the earlier you make your contributions, the greater the rewards with the magic of compounding. This means the more money you put in earlier, the faster it grows.

5. Wasting time on people who don't deserve your time

Yup, the old toxic friend syndrome. It seems as if we have this regret in every decade of our life. But in your 20s, friends seem to take up more time and effort than other decades just because many of us are still looking for our significant others and haven't had kids yet. Make sure that the time you spend on your friends is well spent and that you're cultivating friendships that will last a lifetime.

6. Not studying or moving abroad

You usually have less obligations in your 20s, so it's a good time to pack up and actually live overseas for a while. It's a completely different experience from traveling, and it's worth doing if you can make it work. You'll be out of your comfort zone culturally and in every other way possible, which is a tremendous learning experience that will open up your perspectives and world view.

7. Staying in bad relationships

This goes hand in hand with friends you shouldn't waste time on. Your 20s will pass by in a flash, so make sure you're spending it with the right people! Bad relationships — be they romantic or platonic — can really do a number on your self esteem, so don't let them drag you down.

source : businessinsider

11 Things You'll Regret Doing In Your 30s

11 Things You'll Regret Doing In Your 30s

What better way to learn than from those who have been there and done that?

A Reddit thread recently had people chiming in on things they regret doing (or not doing) in their 30s.

Whether you are about to embark on the exciting journey of your 30s or nearing the tail end, learn from those in the know.

1. The shoulds

You'll feel societal pressures in your 30s more than ever before, but don't let the shoulds hold you back. You may constantly worry about how you should own a home, you should have kids, you should be married, or you should have a steady career.

Drop all those expectations, and live life the way that makes you the happiest. Don't feel like a failure just because your life happens to deviate from the norm — you've got one life to live, so live it your way.

2. Not spending time with parents

One common regret that many people in their 30s have is not spending time with their parents while they are young enough to actively participate. Simple pleasures like taking a walk, traveling, or even having a conversation may be harder to come by once your parents age.

3. Putting work first

Something to keep in your mind in your 30s: if you put work first, you're going to regret it. Spend time with people you love, because those are precious moments that money and moving up the ladder can't beat.

4. Spending time on negativity

And you thought those negative people would disappear from your life in your 30s. Nope, there may be some hanging around, so don't waste time on them. Watch out for people who don't make you feel good about yourself, and reevaluate your relationships with them.

Be careful of spending time on negative thoughts and issues that you have no control over. Just. Let. It. Go.

5. Thinking your 30s was old

"I'm too old for this!" may be a common phrase you use in your 30s. You know what? You're not. And I bet people in their 50s and 60s will agree. The world was your oyster in your 20s, and it still is. Take a chance, live, and enjoy life as the young'un you are, and never lose that child in you.

6. Not putting yourself first

Maybe you're putting everyone else first in your life but you. Snap out of it! Know that once you put yourself first, everything else can fall into place. Putting your needs first will make you a happy camper, which will result in better relationships — a win-win.

When you take care of yourself, you'll have fewer regrets in your 30s. The partner your life revolved around? You probably won't regret that as much if you had focused on your needs and chased your dreams as well.

7. Not taking better care of your body

It's quite the paradox — you say you're too old for something, and yet you still keep the junk-food-fueled and antiexercise habits of the younger you. Those habits are harder to drop, but treat your body right early, or it'll catch up with you before you know it.

8. Not taking chances

Maybe you're overly cautious at this age and perhaps it's the shoulds we mentioned earlier that are holding you back. Don't play it safe, and live a little.

9. Not saving and investing enough

This seems to be a huge, huge regret that a lot of 30-year-olds carry. If you start saving earlier, you'll be reaping bigger rewards by the time you retire. And if you don't put off saving and investing in your 30s, you'll be more likely to retire at the age you want.

10. Not traveling enough

The world is at your fingertips, so take off on a travel adventure! Don't keep procrastinating and putting this off — it'll be harder to make time for travel as you get older. Get inspired by this list of the 10 most beautiful travel adventures.

11. Caring too much about what others think

It seems we're guilty of this at every age. Don't waste more time on this useless habit in your 30s. Stop investing time and energy into caring about what people who don't care about you think. The ones who do care for you will accept you as you are.

Read the original article on POPSUGAR Smart Living. Copyright 2015. Follow POPSUGAR Smart Living on Twitter.

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source: businessinsider

Stop Playing the Victim with Your Time Management and Take Control

Stop Playing the Victim with Your Time Management and Take Control

When it comes to managing your time, many people feel like they have a crushing number of requests coming at them that make them a victim to their circumstances. "There's always too much to do. Everyone just keeps piling more work on me." Sound familiar? If so, you're not alone, but you should stop playing the victim and own the situation.

This post originally appeared on the Harvard Business Review.

They see forces outside themselves as the reason that they don't have time to exercise, can't leave work at a reasonable time, or just generally struggle to get everything done. Although there are occasionally situations that are outside of your control—that recent bout with the flu, for example—most aren't. And even though it can feel gratifying in the short term to blame others for your situation, this attitude toward your time investment will leave you truly powerless in the long run.

When you play the victim with your time, everything around you suffers. You're constantly on edge in your interactions with others because you fear that they'll pile yet one more thing on your already heavy load. Since you don't believe you can ever say, "no," your "yes" comes out of a place of obligation and resentment, not wholehearted commitment. Since your situation seems so difficult, you don't attempt to plan or work more efficiently because you believe that you will have to work all the time no matter what and are convinced that it's impossible to get everything done. You eventually stop trying because you believe no matter how hard you try—you'll fail.

In my work as a time coach, I've seen that individuals often have a much greater ability to influence their situation than they realize. But the breakthrough only happens when they start exerting their personal power instead of waiting for something around them to change. It's similar to when people who find themselves in debt blame the credit card companies, instead of accepting that they had a choice in spending more money than they had. Only by accepting that they can—and need—to change and then taking steps to do so can that balance go down.

The way to break out of this victim mind-set is to stop blaming others, and instead, take ownership of your time and take responsibility for changing yourself. Here are three practical steps to take back control of your time.

Be Mindful of How You React

Become aware of how you respond when your time investment becomes misaligned with your priorities. Do you always look for someone to blame? My boss always gives me too much to do. Do you pity yourself? Poor me, yet another stressful day. I'll get some ice cream to make myself feel better. Do you reject advice or suggestions? How dare my wife suggest I could work differently to get home earlier. That's just not possible. Do you ever say no to a new project? Do you ever set boundaries? Do you ever ask for support?

Recognize Your Role and Responsibilities

Understand that you are the decision maker when it comes to investing your time. There are certain situations where you simply need to do what it takes to get things done for a short time. That could be when you're approaching a major deadline, preparing for a new product launch, or drafting annual reports. But overload doesn't need to be the norm. It's not everyone else's fault if you have too much to do and you don't communicate that to anyone else. It's yours.

Even in top consulting firms known for their rigorous work schedules, there's room for open communication about time. For example, Boston Consulting Group established a formal global program called PTO (Predictability, Teaming, and Open Communication), which helps establish priorities and time-off goals for each team member. One component of this program is for team members to work together so that each one of them can have a period of time each week when they're completely off the project. To help make this happen, the teams have weekly check-ins that include talking about how they're feeling and the value they're delivering to clients. Each person recognizes their role to openly and honestly communicate about their needs, instead of expecting others to automatically know when they're overloaded. You must take on the same responsibility in your own organization with regards to your own time, even if you don't have a formal program encouraging you to do so.

Make a Commitment to Change and Take Ownership

Regardless of how you've behaved in the past in certain situations or with specific people, you have the opportunity to make the future different. Make a commitment to change; choose to respond your environment instead of simply accepting whatever comes your way.

Instead of becoming a victim, take ownership of the situation and your time. This could look like speaking up when you feel that someone makes an unreasonable request so that you don't end up overloaded. Have your project list on hand when you go to meetings so that if a new project is proposed, you can evaluate its importance in relation to your other commitments. If it doesn't seem like there's sufficient time for the new work, propose a discussion about priorities during the meeting or bring it up later with the appropriate parties.

Also, set clear rules and boundaries to prevent taking on too much from others. For example, if you manage staff members who tend to turn in work at the last minute with many errors, require that they turn in items earlier. That allows you to send it back to them to make corrections instead of doing them yourself because you're on a tight deadline.

Finally, if you're in a situation where setting better boundaries isn't possible (such as a job where you're on call 24/7) and you're finding your time investment troubles unmanageable, you may need to consider whether you're in the right job. There are some positions that will not create a sustainable lifestyle for you no matter what you try to do. It's okay to decide to get out.

By taking responsibility for your time investment choices, you stop wasting energy blaming others and start directing it toward a productive response toward the people and situations around you. With that focus, you can have enough time for what's most important to you.

Stop Playing the Victim with Your Time | Harvard Business Review

source Stop Playing the Victim with Your Time Management and Take Control

This Is What’s Keeping Teens from Getting Enough Sleep

This Is What’s Keeping Teens from Getting Enough Sleep

Up to a third of teens in the U.S. don’t get enough sleep each night, and the loss of shut-eye negatively impacts theirgrades, mental wellbeing and physical health. Biologically, adolescents need fewer hours of slumber than kids—but there's a bigger reason for teens' sleep loss, according to a new study in the journal Pediatrics.

MORE:The Power of Sleep

Katherine Keyes, an assistant professor of epidemiology at Columbia University, looked at survey data from more than 270,000 8^th, 10^th and 12^thgrade students at 130 public and private schools across the country, gathered between 1991 and 2010. Each student was asked two questions about his or her sleep habits: how often they slept for at least seven hours a night, and how often they slept less than they should.

MORE:School Should Start Later So Teens Can Sleep, Urge Doctors

She found that over the 20-year study period, adolescents got less and less sleep. Part of that had to do with the fact that biologically, teens sleep less the older they get, but Keyes and her team also teased apart a period effect—meaning there were forces affecting all of the students, at every age, that contributed to their sleeping fewer hours. This led to a marked drop in the average number of adolescents reporting at least seven hours of sleep nightly between 1991-1995, and 1996-2000.

That surprised Keyes, who expected to find sharper declines in sleep in more recent years with the proliferation of cell phones, tablets and social media. “I thought we would see decreases in sleep in more recent years, because so much has been written about teens being at risk with technologies that adversely affect the sleep health of this population,” she says. “But that’s not what we found.”

MORE:Here’s How Much Experts Think You Should Sleep Every Night

Instead, the rises in the mid 1990s corresponded with another widespread trend affecting most teens—the growth of childhood obesity. Obesity has been tied to health disturbances including sleep changes such as sleep apnea, and “the decreases in sleep particularly in the 1990s across all ages corresponds to a time period when we also saw increases in pediatric obesity across all ages,” says Keyes. Since then, the sleep patterns haven’t worsened, but they haven’t improved either, which is concerning given the impact that long term sleep disturbances can have on overall health.

Keyes also uncovered another worrying trend. Students in lower-income families and those belonging to racial and ethnic minorities were more likely to report getting fewer than seven hours of sleep regularly than white teens in higher-income households. But they also said that they were getting enough sleep, revealing a failure of public health messages to adequately inform all adolescent groups about how much sleep they need: about nine hours a night.

“When we first started looking at that data, I kept saying it had to be wrong,” says Keyes. “We were seeing completely opposite patterns. So our results show that health literacy around sleep are not only critical but that those messages are not adapted universally, especially not among higher-risk groups.”

content and image source This Is What’s Keeping Teens from Getting Enough Sleep

If You Do These 20 Things Every Day, You’ll Become Smarter

If You Do These 20 Things Every Day, You’ll Become Smarter

Although many people believe intelligence is limited to those with high I.Q.s, there are a number of potential methods to boost one’s cognitive abilities and become more effective at various professional and personal pursuits.

With enough motivation and determination, anyone can expand their mental capabilities and become smarter. Integrating new habits into your regular routine and providing proper stimulation can sharpen your intellect quickly and leave you inspired to take on new challenges each day. Brain health is an important key in complete physical health. The list below includes the best brain-engaging activities in daily life.

Inviting Novelty

To create new neural pathways and strengthen the brain, it’s critical for people to continually incorporate new experiences and information into their lives. At first, these moments might feel useless, but eventually, you will find yourself looking forward to quiet moments alone.

Visit New Places

Whether this means studying in a new coffee shop, taking a different route to work, or traveling to a different country, displacement is good for the brain. This might be difficult to recognize in the moment since it usually feels rather awkward – at least initially. At the coffee shop, you can’t order the “usual.” You have to study a new menu, pick something you have never tried before, and make a decision.

While this seems simple, people enjoy the comfort of habit. We like to know what to expect at all times. When you travel to a new country, the language is strange, the customs are unfamiliar, and the culture presents a strange new rhythm of life. Adjusting to these new elements forces the brain to tackle new, unexpected challenges. Learning how to communicate through a language barrier forces the brain to develop creative ways to express needs and emotions. Listening to new music, trying new foods, and navigating foreign streets all work to challenge your brain’s capacity to adapt to new situations.

Continue Your Education

Adult education is one of the best investments of time, money, and energy you can make. While education is valuable throughout childhood and adolescence, adults often underestimate their ability to learn new concepts and skills. Challenge yourself to take a class, academic or creative. Voluntarily choosing to continue education provides a perfect opportunity for your brain to create new connections and build higher intelligence.

Read and Watch the News

This is one activity that maintains the appearance of habit while nurturing healthy brain waves. Setting aside half an hour every morning or evening to read a newspaper or watch the news will help your brain stay active. Digesting new information is a good daily habit. The news introduces interesting topics to consider, and will leave your brain churning with new information.

Read Books

Reading is the most basic way to facilitate brain activity, but it often presents some of the most diverse opportunities for stretching brain capacity. Reading provides practical assistance by introducing new vocabulary, presenting examples of proper grammar usage, and showing the elegance of a well-written sentence. However, this is only half of the magic of reading.

Whether you choose fiction, non-fiction, historical literature, or poetry, reading offers an opportunity for the reader to make big-picture connections between the literature and real life. In this way, reading is an alternative way to make your brain travel to a new place. As your imagination works to create tangible people, places, and experiences from the words on the page, your brain is rewiring to understand all the new information.

Approach Work in New Ways

The workplace is a canvas for new experiences. Regardless of what type of job you might hold, everyone is at one time or another presented with opportunities to think outside the box, problem solve in a creative way, and contribute fresh ideas to the team. Instead of stressing over each new problem, it’s important to relax and starting imagining alternatives for reaching an end goal.

Challenging Yourself

Like a weightlifter who develops muscles, one must exercise the brain on a daily basis, pushing it just beyond its current capabilities. As Albert Einstein once said, “One should not pursue goals that are easily achieved. One must develop an instinct for what one can just barely achieve through one’s greatest efforts.”

This quote encapsulates what I believe about the brain. With enough focus and stretching, the brain can truly surprise people. Underestimating yourself holds you back from success. When people begin believing in their abilities, they often go beyond what they thought was possible.

Brain Train

Organizations like Lumosity offer fantastic daily brain training. With puzzles and games designed to increase neuroplasticity, Lumosity was created to challenge the brain to make new connections. A group of neuroscientists at University of California Berkeley developed this program to provide stimuli for the brain to push it to adapt and re-train itself in uncharted territory. Success stories abound concerning the results of this public experiment.

Ask 5 Whys When Encountering Problems

One of the most standard problem solving solutions, the 5 whys still provide a solid start to uncovering the root of a problem. Asking a question gets the brain working to find an answer. Instead of worrying about the problem, always start by asking why.

Eschew Technology to Keep the Brain in Shape

Technology does wonders for the modern world, but in some ways, technological dependence stunts the brain’s capacity for problem solving, adapting to new environments, and being a reliable resource for practical things like simple mathematics and navigation. Try going on a trip without a GPS. Work a few algebra problems without a calculator. Make your brain work for you; you’ll see the results.

Fostering Creativity

Finger-painting in preschool was not only a fun activity; it helped open up the mind to new possibilities and ways of solving problems. An artistic mindset creates new opportunities to find new solutions, fresh inspiration, and peaceful confidence.

The blend of these elements in both personal and professional environments allows ordinary people to shine by becoming an innovative thinker and inventive leader. Find ways to incorporate creativity into the dull grind of daily tasks.

Draw

You don’t have to be an artist to appreciate the benefits of drawing, which cultivates brain activity in a unique way. In addition to nurturing basic hand-eye coordination, it sends synapses to neurotransmitters to help more permanently and vividly store your memories. From doodles on a piece of scrap paper to charcoal portraits, drawing is a healthy brain activity for everyone.

Paint

Painting is an extension of drawing. It feeds the same areas of the brain, but unlike drawing, painting often introduces new and unfamiliar textures and colors to stimulate the brain. Painters often have a keen sense of awareness towards their surroundings. Engaging in painting encourages people to notice minute details of the world around them. Focusing the brain in this manner brings a heightened state of alertness.

Play an Instrument

Learning to play an instrument also has outstanding benefits for the brain. Hand-eye coordination, memory, concentration, and mathematic skills all improve through playing an instrument. While some are more challenging to learn than others, any instrument facilitates increased and improved cognitive functioning.

From training your fingers to master complex musical passages on the piano to counting the beats in a musical measure, instruments force various regions of the brain to work together to create music.

Write

Like reading, writing encourages vocabulary growth, grammar skills, and use of proper syntax. Writing helps the brain store information more effectively and fosters better memory skills. Studies show that students who regularly take handwritten notes during college classes consistently score better on tests. Writing forces a person to pay attention to their memories, experiences, and internal dialogues – a combination that increases brain function altogether.

Role-Play

Put yourself in someone else’s shoes, and your brain starts to rewire to help you think like a different person. For those struggling to form creative ideas, role-playing can help the wheels start turning in the brain to help develop unique solutions for difficult problems.

Working with Others

Although logical intelligence is important, emotional intelligence plays an equally vital part in overall success. Interacting with others helps people expand beyond their own limited thinking, gain new ideas, and see things from a different perspective.

People are challenging. Smart people often enjoy isolation because it protects them from being critical of others. However, this discomfort is necessary for truly smart people because it pushes them outside their bubble. When you start to believe you have all the right answers, start collaborating with others to expand perspective.

Teach and Share Information with Others

Whether this is achieved virtually or face-to-face, pursue colleagues and peers to share experience and wisdom. Fresh faces and new ideas spur inspiration and create an amplified learning environment for the brain. By creating a network for sharing ideas, your brain starts developing a new network for formulating and executing innovative concepts.

Talk to Interesting People

No two people share the same life experiences. Everyone interprets information uniquely, stores memories differently, and digests daily life with their own intellectual flare. This makes collaboration a necessity for brain health. Although we are all inclined to think our method is the best approach, gaining perspective from another person helps our brain consider new solutions and new techniques for both personal and professional issues.

Whether the conversation is centered on religion, finances, politics, or diet trends, people should practice being a good listener. Silencing your own thoughts while the other person speaks is often challenging, but the brain needs discipline to stay sharp.

Work in a Team Environment

Collaborative environments are essential for enhancing brain activity. Some people who enjoy working independently dread the moment when they are forced to participate in a team-focused workplace. However, these independent individuals are highly intelligent and can benefit the most from a little teamwork.

Author Steve Johnson’s book, Where Good Ideas Come From, focuses on the benefits of collaborating with peers and coworkers to develop original ideas and effective strategies for their execution. The modern workplace continues to shift towards this team-oriented approach.

Cultivating Physical Health

The body feeds the brain, and keeping oneself in top physical condition is crucial to adequate fueling and operation of the brain. Lack of motivation, mental fatigue, and absence of inspiration are typically connected to poor exercise, diet, and focus.

Exercise

Studies constantly show people who exercise regularly have higher I.Q. scores. In addition to maintaining a strong body, people who exercise regularly actually stimulate brain cell growth. A process called neurogenesis occurs during rigorous exercise, which increases the production of neurotransmitters. With side effects like increased dopamine, active people enjoy less stress, better concentration, and more energy.

Dr. Michael Nilsson of Sahlgrenska Academy and Sahlgrenska University Hospital in Sweden conducted extensive research on the topic. “Being fit means that you also have a good heart and lung capacity and that your brain gets plenty of oxygen,” the doctor said. His research focused on over a million Swedish military men, and Dr. Nilsson found a direct correlation between physical fitness and high scores on I.Q. tests.

Pursue Athletics

Multiple studies have shown active children typically do better in school and have a better chance of continuing their education after high school graduation. Although athletic pursuits can feel grueling at the time, the overall benefits of intense physical activity are wise for your future.

Whether it’s finding one thing you are good at, like basketball, running, or lifting weights, or trying something new every day, maintaining an athletic routine is important for optimal brain health.

Meditate

Controlling and calming the brain is as powerful as enhancing activity through instruments and puzzles. Doctors have been studying the effects of mediation on the brain for several years, and the results are impressive. In one famous study, Dr. Richard Davidson of the University of Wisconsin collaborated with the Dalai Lama to study what happens to the brain during meditation.

Transcendental Meditation yields impressive results for the brain. People who struggle with fear, anxiety, depression, and other mental ailments should experiment with meditation to calm themselves and develop a stronger sense of focus.

Maintain a Nutritious Diet

Children and adults interested in boosting brain activity should begin by transforming their diet. Research from the University of Bristol in England points to a strong connection between unhealthy diet and low I.Q. scores in children. To begin reversing unhealthy tendencies, try cutting out excess fat, sugar, and fast foods, and start adding more vegetables, fruit, and lean meats.

There are also a number of unusual drinks proven to help brain function. Matcha Green Tea, Raw Cacao hot chocolate, and Gingko Biloba tea all show benefits for the brain. Some scientist claim Gingko Biloba helps pump more blood to the brain, improving circulation.

Active Learning

Start children young with interactive video games, jump roping, juggling, and other activities to feed brain stimulation. Assign a musical instrument, a physical activity, or a Sudoku puzzle to get their brains moving. Parents, remember to join in the fun!

Creating daily routines to promote healthy brain activity doesn’t require the advice of a neuroscientist. While plenty of studies provide convincing evidence, increasing brain activity can be accomplished with a few basic steps. Be intentional about your time and energy to start working towards a smarter and more fulfilling life.

Featured photo credit: davidoa via flickr.com

source If You Do These 20 Things Every Day, You’ll Become Smarter