Am I smart?

Yeah...I am. Relatively speaking of course. I know people younger than I with Masters. I know people my age with houses, dogs, and a paid off car. So in some ways...I'm not.

But here...I'm brilliant.

I've had accounting experience in life (duh). But I was never "classically" educated on the matter. I just picked it up as I went along. I do a decent job of "faking it" when necessary...and, oddly enough, I actually learn. I was a good accountant...when I wanted to be.

So I'm sitting in accounting class. This one guy comes in late, one of the more quiet guys, and sits next to me. I kinda know him 'cause he is Direct Entry like myself (in other words, he skipped HOI and HOII due to his prior education/experience).

Anyway the teacher (who is a really good teacher) is explaining about Direct vs Indirect costs. Personally I had no clue what those things meant before he started lecturing. But I picked it up. It wasn't all that hard to figure out. Let's say you are running a hotel. You've got rooms. The cost of restocking those rooms with new tiny bars of soap would be a direct cost. Or you've got a restaurant...the food costs would be a direct cost. However...in that hotel...you pay rent. You pay rent on the entire building as one unit. Therefore rent is an indirect cost...it is shared between the restaurant and the rooms. Same thing with admin costs, ultilities, etc.

Simple eh?

So this guy...as the teacher lectures...sits there with open mouth stare...like the teacher is speaking Latin. He gives up trying to listen to the teacher and instead copies my notes. Like word for word he copies my notes.

I've had people cheat off me in tests before...but off notes? Dear lord.

So after explaining the concept deeper the teacher then moves on to a example question. He runs through the whole process with us. He takes us through getting the answer step by step. It is fairly simple.

The instant he is done several hands shoot up.

"I don't get it."

"You add this, and subtract that?"

"This makes no sense."

I was, in a word, floored.

So after explaining the whole process again...he tells us to try the next question in the book...which is actually easier.

One of the things to figure out (this is just one part mind you...one step in the process)
"By closing the lounge in the restaurant, your profit from Rooms will decrease by 2%."
"The profit on the Rooms is $40,000."

Got it?

Do the math.

I'll wait.

Do be do be do.

The answer? $40,000 x 2% = the amount of profit decrease from closing the lounge.

$800. 40,000 - 800 = 39,200

He doesn't get it.

I circle the words Rooms, profit, decrease, 2%, $40,000.

He still doesn't get it.

...

At this point I'm not even sure how to explain it.

I loan him my calculator.

He uses it.

He writes down "6000".

I really hope he doesn't sit next to me next class.