Contemporary Strategy Management

Question: Dissect the vital issues of the Vodafone Company that is the main organization in versatile correspondences. Answer: 1. Presentation Vodafone Group PLC is the universes driving versatile media transmission organization that is working system in excess of 26 nations just as has accomplice connect with in excess of 50 nations around the globe with huge nearness in Europe, the Middle East, Africa, Asia pacific and the United State (Vodafone, 2016). The organization was framed as auxiliary of Radal electronic PLC in 1908 and was built up to investigate the chance of the new cell innovation for remote correspondence. Besides, the companys methodology is concentrating on worldwide market and grow its image precent around the globe. The association has been overseen effectively more than 4 CEO with Vittorio Colao who is the fourth CEO and current CEO to deal with the organization. The principle point of the report is to dissect the vital issues of the Vodafone Company that is the main organization in portable interchanges. The fundamental issue that the organization is confronting is with keeping up the benefit of the organization. The principle point of the organization as of late is to move the techniques to improve the benefit of the firm rather than development. The goal is to oversee universal techniques all together increment the worldwide system. The report basically assesses the contextual analysis on Vodafone 2012: Rethinking universal system. Breaking down the contextual analysis the creator responds to the inquiries, for example, advantages of global extension in remote telecomm. The report offers guidance to Vodafone on its global procedure with respect to the business on which Vodafone ought to strip and contribute (Eden and Ackermann 2013). This report is led in the reason for recognizing key issues or issues that Vodafone is confronted which liable to influence the association universal execution just as investigation and assess every issue in detail and give proposal for Vodafone to have a superior improvement in its system and execution in worldwide market. Colao the new CEO of Vodafone organization targets improving the benefit state of the organization and growing the business in the universal market. It targets expanding the advantage that the organization can get from its universal degree. The association has been overseen effectively more than four CEO with Vittorio Colao being the fourth and the present CEO to deal with the organization. Besides, the companys procedure is concentrating on worldwide market and grows its image percent around the globe. 2. Distinguishing proof key issues and issues The primary advantages of growing business in global market are that it helps in making separated item offering favorable position to the organization. Different advantages of worldwide degree and offering its assistance to different nations are to offer consistent meandering help. It likewise permits adaptability of the limited time thoughts. It additionally permits advancement of new items. The principle advantage of universal degree in remote telecom is upper hand, item separation, economies of scale, hazard the board and innovative change. Subsequently so as to snatch these chances and grow its business in worldwide market the organization needs to recognize the global vital issues and issues. It should then target explaining these issues to serve the organization in the global market (Gamble and Thompson 2014). The quantity of contenders for the wirelesses correspondence is ascending in the global market that is making it fundamental for the organization to receive methodologies that will lead in universal reconciliation. To reach to top situation in the global market it is basic for the organization to audit its worldwide procedures to help the organization. The primary contenders of Vodafone Company are ATT, China portable and Nippon Telegraph and phone. To augment benefit, increasing upper hand is fundamental so the organization can make an interesting brand name to construct client unwaveringness (Ghezzi 2013). The key issues and issue which recorded beneath are exist in Vodafones current circumstance and execution. So as to improve the organization worldwide execution, these issues need to consider to have better methodology and advancement. 3.1 Differences in client inclinations innovation advancement, and innovation in working district The primary key issues happened in Vodafone universal methodology (One Vodafone), which drives One Vodafone system neglect to run and work all around, are the distinctions in culture, innovation, and innovation advancement. As One Vodafone system are attempting to utilize the single innovation stage in the market that the organization enters and works. Especially, the distinction in innovation advancement, innovation, and client inclinations in two markets, including Japan, The US have made Vodafone neglect to run and deal with its procedure effectively. The fundamental vital issue that influences the companys development in the worldwide market is the distinctions in the way of life of the individuals. The primary point of Colao ought to be to manage the distinctions in buyer inclinations so as to demand its technique effectively. The principle issue is contrasts in the mechanical culture between the nations that the organization was not having the option to deal with. , The US have made Vodafone neglect to run and deal with its system effectively (Galliers and Leidner 2014). 3.2 Vodafone has not deal with its portfolio viably (absence of command over its auxiliaries) Vital issues that exist in Vodafone worldwide technique (One Vodafone), which drives Vodafone to not deal with its global portfolio viably, are Vodafone absence of power over its auxiliaries in the US, Japan and France advertise. In spite of the fact that Vodafone has holding minority of stake of Verizon remote (45 %) in the US market and SFR (44%) in the France advertise, those two organization are not adjusted Vodafone while working in the market. It has demonstrated that Vodafone has not influence its assets to extend its worldwide nearness. The primary vital issue that influences the companys development in the worldwide market is the distinctions in the way of life of the individuals. The principle point of Colao ought to be to manage the distinctions in customer inclinations so as to require its technique effectively. The primary issue is contrasts in the innovative culture between the nations that the organization was not having the option to deal with. , The US have made Vodafone neglect to run and deal with its technique effectively (Frynas and Mellahi 2015). 3.3 Vodafone is delayed in reacting to industry advancement (changing industry assessment) Vodafone is easing back to react the market pattern because of its versatile concentrate just methodology. As per (Grant 2013, p. 690) a key market pattern was the coordination of fixed and portable correspondence through packaged contribution to client. While the greater part of local center administrator offered fourfold play packs including containing fixed and portable communication, broadband web access, and TV administrations, Vodafone is delayed to reaction in this pattern and has no system for intermingling. Moreover, Vodafone all out correspondence methodology is viewed as moderate response to the market pattern as they couldn't adequately give full an incentive to client in term of pack offering of portable and fixed line correspondence. Because of the business advancement, handsets showcase with their product, for example, Apple (IPhone, IPad), RIM (Blackberry) has move to be the key player in the business. In any case, Vodafone couldn't disseminates iPhone or offer their support of iPhone client until 2008. Moreover, the developing prevailing of Apple in portable web get to implying that they predominant flexibly remote application will constrain the worth Vodafone can offer to their client in term of remote application (Reddy et al. 2014). To improve its universal business execution to amplify its benefit is that Vodafone can extend its degree and can strip its business into diversion showcase. The organization ought to likewise focus on putting resources into joint endeavor with the nearby specialist co-op. Colaos procedure was to extend the business in the market where Vodafone came up short on a controlling stakes, for example, Japan, India and different nations. It is fundamental for Vodafone to build its pace of work. It is delayed in reacting to industry development. It likewise has absence of control of organizations in its universal portfolios, for example, United States and France (Ghezzi et al. 2014). 4. Investigation and assessment The investigation of the contextual analysis shows that the methodology set forth by Colao ahs helped Vodafone organization increment its development. It has strengthened its development as the universes most global media transmission supplier. The primary issue with Vodafone is to keep up and accomplish upper hand. The primary procedure of Vittorio Colao was to increment and improve the client esteem by giving them good items and diminishing the expense of creation. The subsequent point was to fortify the capital order (Grant 2015). 4.1. Distinction in client inclinations, innovation, and innovation advancement Upper hands inside worldwide substance investigation structure (supplement) are going to use so as to dissect Vodafone current issues and subsequently to help Vodafone to re recognize its upper hand in the universal market that they are enter and work, particularly Japan and the US advertise. As indicated by Grant (2013, p 319), upper hand in the universal substance investigation system causes the association to see how upper hand is accomplished in the worldwide market when the association coordinate its interior quality in assets and abilities. Besides, the system additionally calls attention to that picking up the upper hand in the universal market relies upon firm assets as well as the national condition that the firm enters to. Right off the bat,

Childs Ghost essays

Kid's Ghost papers The kid within todays adolescents isn't dead, nor is it a phantom meandering around fiercely fighting back against the world. Or maybe, it is lost, urgently attempting to locate a home or solace in something comparative. What it finds rather is anger, hopelessness, and savagery. The reason for which is the degenerate media and a ratty situation. What's up in saying that these youthful casualties are phantoms, notwithstanding, is that we expect this soul of adolescence is dead; that such purportedly lost spirits can not be spared, and can not be indeed a glad youngster. Things being what they are, the place precisely would they say they are discovering solace? In a home where there is no obvious caring guardian, the kid will locate another kind of family in a gathering of companions. Contingent upon the gathering, youngsters might be joining a group. This gathering offers insurance, a mindful like condition, regularly a home, and generally a family. As individuals we as a whole need that sentiment of having a place, It is discouraging to consider not regularly having somebody to be there for you, regardless of how autonomous you might be. As astounding as it might appear to be however, a vicious child may come out of a home of adoring guardians, yet guardians that don't have the foggiest idea how to direct or rebuff their kid. It is a touch of disrupting to stroll into a house were the kid runs the family, guiding the guardians and having them oblige each time like hirelings. We can not accuse just the guardians however; different factors, for examp le, low-salary conditions may drive teenagers to be awful. Not having cash to gracefully essential needs makes a youngster pitiful and irate, and still just being kids they don't see anything incorrectly in doing what ever it takes to get these things. Kids are casualties of their condition, disregarded here and there or the other that has driven them to specific boundaries. The very media that slam these kids additionally acclaim them as legends. There is for all intents and purposes no limit to the sum awful media that is in, what is currently a normal of more than 900 chan ... <!

Tonti, Henri de

Tonti, Henri de Tonti or Tonty, Henri de both: äNre ´ d? tôNte ´ [key], c.1650â€"1704, French explorer in North America, b. Italy. Serving in the French army, he lost a hand in battle; his skillful use of the appliance with which the hand was replaced was later to lead Native Americans to believe him possessed of special powers. In 1678, Tonti accompanied the explorer La Salle to Canada as his lieutenant and was dispatched to Niagara where, among hostile Native Americans, he constructed the Griffon, the first sailboat to ply the Great Lakes W of Ontario. Tonti preceded La Salle westward to Detroit and penetrated into the country of the Illinois, whom he won over to the French interest. In 1680, left by La Salle at Starved Rock to construct a fort, he was faced by desertion of his men and the hostility of the Native Americans and was forced to winter in Wisconsin. Meeting La Salle at Mackinac the following year, he traveled with him down the Mississippi to its mouth; they proclaimed the entir e Mississippi watershed the domain of France. Tonti returned alone to the Illinois River, where he was rejoined by La Salle, and together they completed (1682â€"83) Fort St. Louis at Starved Rock. When La Salle returned to France, Tonti was left in charge of the fort. La Salle did not return, for he failed in his attempt to find the mouth of the Mississippi by sea. Having no word, Tonti in 1686 descended the river in a hopeless search for La Salle. The following year he took part with a band of Illinois in the raid by the marquis de Denonville against the Iroquois. Tonti remained at Fort St. Louis, developing the new empire, until 1700, when he joined Iberville's colony at the mouth of the Mississippi. Pierre Margry included Tonti's account in Mémoires et documents pour servir à l'histoire des origines francaises des pays d'outre-mer (6 vol., 1879â€"1888; tr. Relation of Henri de Tonty, 1898). See J. C. Parish, The Man with the Iron Hand (1913); C. B. Reed, Masters of t he Wilderness (1914); E. R. Murphy, Henry de Tonty, Fur Trader of the Mississippi (1941). The Columbia Electronic Encyclopedia, 6th ed. Copyright © 2012, Columbia University Press. All rights reserved. See more Encyclopedia articles on: U.S. History: Biographies

Revolution of the year 1980 - Free Essay Example

Sample details Pages: 1 Words: 268 Downloads: 6 Date added: 2019/10/10 Did you like this example? This revolution of the year 1980 was sought to alter the American citizens’ attitude towards their government, their beloved country and hence their leaders. He started the campaign by considerably reducing the size of the cabinet. This was meant to reduce the wage bill to the Americans. Don’t waste time! Our writers will create an original "Revolution of the year 1980" essay for you Create order The wage bill was become one of the biggest recurrent expenditure by the time (3-6). Ronald Reagan also passed numerous laws that protected every American and protected the boundaries and basic rights of every American citizen more aggressively. This was mostly against external enemies especially the United States of Soviet Union. His leadership was mainly in developing United States into levels that they would feel proud of their mother country; moreover, he protected the United States citizen rights, freedoms and dignity within the boundaries and without. With all these positivity, President Ronald Reagan was able to lower taxes for the American citizen. This was intended to allow the basic goods and services more affordable to the common American As a coin has two sides, the strategy President Reagan chose cut two way. The negative side of his strategy was the creation of social classes and widening the gap. The strategies he chose favored the rich and oppressed the poor. This led to the increase of crime, homelessness and other social vices. Reagan also promoted the oppression of feminism, civil rights and environment movement group. The lack of proper legislation to uphold these important societal movements, he concentrated on development and making American as proud as they could with America. Within this time the United States economy nosedived, unemployment rates were increasing exponentially.

What Caused The Salem Witch Trial Hysteria - Free Essay Example

Sample details Pages: 2 Words: 715 Downloads: 8 Date added: 2019/05/28 Category History Essay Level High school Tags: Salem Witch Trials Essay Did you like this example? Witchcraft originally began in Europe in the 14th century and came to an end in the 18th century. Similar events occurred in the spring of 1692 in Salem, a small group of women testified to be controlled by Satan and blamed the local residents of Salem of witchcraft which caused a wave of hysteria and spread through Salem. A witch is a woman who signed a pact with the devil or sold her soul to the devil, a man was known as a wizard. In the 1600s when unusual physical characteristics were observed, the residents of Salem were not able to explain the growth of unusual flap of skin on the body, commonly known as a witchrs tit. When a person was accused of witchcraft, the residents of Salem would examine the person for a witchrs tit, which is basically a skin tag caused by diabetes. The picture in Document D suggests that people are looking for the witchs tit on the womanrs back which suggests that unusual physical characteristics were signs of witchcraft. Don’t waste time! Our writers will create an original "What Caused The Salem Witch Trial Hysteria" essay for you Create order Salem back then was a pure theocracy, which means that the people of Salem strongly believed that every word in the Bible was the true word of God and has to be followed. They also believed that witches existed and anybody could become a witch or a wizard by just signing a pact with the devil. In Document C it is indicated that devils and witches exist and the devil can possess anybody. Based off of Document A which says, Thou shalt not suffer a witch to live, which means that a witch does not deserve to live, which is why the punishment for witchcraft was death. Document H clearly suggests that fits experienced by adolescents and many adults were natural and might be a sign of convulsive ergotism. According to Document N accusers could have been suffering from a psychological disorder called convulsive ergotism, a condition caused by ergot a type of fungus found in rye and other grains. Rye and other cereal grains were mainly grown in the fields of Salem. Females had more chances of ergot poisoning than men. Children and pregnant women were more than likely to be affected by the condition. Symptoms include crawling sensations on the skin, trembling and shaking, wryneck, muscle spasms, confusions, delusions, hallucinations, vertigo, seizure-like muscle contractions in addition to a number of other symptoms. Rye was planted in April, harvested in August and threshing most probably took place before Thanksgiving. The symptoms of ergotism can be seen in children on December 1691. The next fall, in 1692, the hysteria ended. On 19 April 1692, Bridget was called for examination and when she came near the affected girls they started getting fits. The examiner thinks that she is hurting the girls and when Bridget nods her head they were tortured when she looked up and the affected girls also looked up, which implies that they were just acting. According to Charles W. Upham, the girls just wanted to create some excitement in the neighborhood and when they realized that their mischief had reached to a whole new level, they went along with the insanity they created. They were prosecutors of every person that was tried in the court. They were not punished for the madness they created and there probably can be no doubt that they were great actors. Based on Document F and Document G we can conclude that they were just acting. On the basis of Document K, Document L, and Document M one of the main reason why many people were accused of witchcraft could be hatred among the residents of Salem. Rebecca Nurse was accused of witchcraft by Ann Putnam Jr., she said that Nurse had affected her by biting, pinching, and pricking her. Ann Putnam Sr. also accused Nurse of witchcraft and said that Nurse murdered her children and tried choking her. Ann Putnam Sr. also feared and hated Nurse because she was from Topsfield, whose town officials had been harassing their family and Rebeccas husband was involved in a dispute with Ann Putnamrs father-in-law. The Salem Witch trials is still an unsolved mystery because nobody knows what caused such a major outbreak and nobody knows the fundamental reason for the outbreak and why so many innocent people were accused and hanged.

Decision Making †Cost Accounting Free Essays

Decisions Involving Alternative Choices Structure: 13. 1 Introduction Objectives 13. 2 Decision Making 13. We will write a custom essay sample on Decision Making – Cost Accounting or any similar topic only for you Order Now 3 Types of Costs 13. 4 Types of Choices Decisions 13. 5 Make or Buy Decisions 13. 6 Addition / Discontinuance of a Product line 13. 7 Sell or Process Further 13. 8 Operate or Shut down 13. 9 Exploring New Markets 13. 10 Maintaining a desired level of profit 13. 11 Summary 13. 12 Terminal Questions 13. 13 Answers to SAQs and TQs 13. 1 Introduction In the previous unit we learnt about Marginal Costing. Marginal costing is the ascertainment of marginal cost and of the effect on profit of changes in volume by differentiating between fixed costs and variable costs. Marginal cost is the amount at any given volume of output by which aggregate costs are changed if the volume of output is increased or decreased by one unit. Marginal costing is a very useful tool for management because of its applications. It is used in providing assistance to the management in vital decision-making both short term and long term. Differential analysis is the process of estimating the consequences of alternative actions that a decision maker may take. It is used both for short term and long term decisions. Short term decisions relates to fixing price for the product, selecting a suitable product mix, diversification of the product etc while long term deals with capital budgeting decisions. Objectives After studying this unit, you should be able to:  · Explain the steps involved in decision making process  · Know various types of decision choices  · Analyze and interpret various decision choices 13. 2 Decision Making Decision making is the process of evaluating two or more alternatives leading to a final choice known as alternative choice decisions. Decision making is closely associated with planning for the future and is directed towards a specific objective or goal. Decision model contains the following decision-making steps or elements: 1. Identify and define the problem 2. Identify alternative as possible solutions to the problem. 3. Eliminate alternatives that are clearly not feasible 4. Collect relevant data (costs and benefits) associated with each feasible alternative 5. Identify cost and benefits as relevant or irrelevant and eliminate irrelevant costs and benefits from consideration. . Identify to the extent possible, non-financial advantage and disadvantage about each feasible alternative. 7. Total the relevant cost and benefits for each alternative 8. Select the alternative with the greatest overall benefits to make a decision 9. Implement or execute the decision 10. Evaluate the results of the decision made. 13. 3 Types of Costs A decision involves selecting among various choices. Non routine types of decisions are crucial and critical to the firm as it involves huge investments and involve much uncertainty. Short term decision making is based on relevant data obtained from accounting information.  · Relevant Cost are costs which would change as a result of the decision.  · Opportunity costs are monetary benefits foregone for not pursuing the alternative course. When a decision to follow one course of action is made, the opportunity to pursue some other course is foregone.  · Sunk costs are historical cost that cannot be recovered in a given situation. These costs are irrelevant in decision making.  · Avoidable costs are costs that can be avoided in future as a result of managerial choice. It is also known as discretionary costs. These costs are relevant in decision making.  · Incremental / Differential costs are costs that include variable costs and additional fixed costs resulting from a particular decision. They are helpful in finding out the profitability of increased output and give a better measure than the average cost. Self Assessment Questions: 1. Relevant Costs are costs which would _________as a result of the decision. 2. ___________ are historical cost that cannot be recovered in a given situation. 3. Opportunity costs are _________________for not pursuing the alternative course 4. ____________ is also known as discretionary cost. 13. 4 Types of Choices Decisions The application of incremental / differential costs and revenues for decision making is known as decision situations or types of choice decisions.  · Make or Buy decisions  · Selection of a suitable product mix  · Effect of change in price  · Maintaining a desired level of profit  · Diversification of products  · Closing down or suspending activities  · Alternative course of action  · Own or Lease  · Retain or Replace Change or Status quo  · Export or Local sales  · Expand or Contract  · Take or Refuse order  · Place special orders  · Select sales territories  · Sell at split-up point or process further. 13. 5 Make or Buy Decisions Make or buy decisions arise when a company with unused production capacity consider the following alternatives a) To buy certain raw materials or subassemblies fro m outside suppliers b) To use available capacity to produce the items within the company. c) The quality and type of item which affects the production schedule d) The space required for the production of item ) Any transportation involved due to the location of production facility f) Cost of acquiring special know how required for the item. Illustration 1: The Anchor Company Ltd produces most of its electrical parts in its own plant. The company is at present considering the feasibility of buying a part from an outside supplier for Rs. 4. 5 per part. If this were done, monthly costs would increase by Rs. 1,000 The part under consideration is manufactured in Department 1 along with numerous other parts. On account of discontinuing the production of this part, Department 1 would have somewhat reduced operations. The average monthly usage production of this part is 20,000 units. The costs of producing this part on per unit basis are as follows. |Material |Rs. 1. 80 | |Labour (half-hour) |2. 40 | |Fixed overheads |0. 80 | |Total costs |5. 00 | Solution [pic] The company should continue the practice of producing the part in Department1. Illustration 2: ABC ltd plans utilize its idle capacity by making components parts instead of buying them from suppliers. The following are the data available for decision to make or buy: | |Unit cost | |Direct Material |12. 5 | |Direct Labour |8. 0 | |Variable manufacturing overhead |5. 0 | The company purchases the part at a unit cost of Rs. 30. The company has been operating at 75% of normal capacity. Fixed manufacturing cost is 17 lakhs. The cost to manufacture 50000 units is:    |Unit cost |Total cost | |Direct material |12. 5 |6,25,000 | |Direct labour |8. 0 |4,00,000 | |Variable manufacturing o/h |5. 0 |2,50,000 | |Total incremental cost |25. 5 |12,75,000 | |Cost to purchase part |30. |15,00,000 | |Net advantage in parts production |4. 5 |2,25,000 | Inference: The total incremental cost by producing the part in-house is Rs. 25. 50 while the cost incurred on purchase of the part from suppliers is Rs. 30. 00. There is a clear advantage to the company to produce the part in-house. 13. 6 Addition or Discontinuance of a Product line or Process The decision to add or eliminate an unprofitable produc t is a special case of product profitability evaluation. When a firm is divided into multiple sales outlets, product lines, divisions, departments it may have to evaluate their individual performance to decide whether or not to continue operations of each of these segments. Illustration 3: The Hi-tech Manufacturing Company is presently evaluating two possible processes for the manufacture of a toy, and makes available to you the following information: |Particular |Process A |Process B | | |Rs. Rs. | |Variable cost per unit |12 |14 | |Sales price per unit |20 |20 | |Total fixed costs per year |30,00,000 |21,00,000 | |Capacity (in units) |4,30,000 |5,00,000 | |Anticipated sales (next year, in units) |4,00,000 |4,00,000 | You are required to suggest: ) Which process should be chosen? Substantiate your answer. ii) Would you change your answer as given above if you were informed that the capacities of the two processes are as follows: A 6, 00,000 units; B 5, 00,000 units? Why? Substantiate your answer. Solution Comparative Profitability Stateme nt |Particular |Process A |Process B | | |Rs. |Rs. | |(i) Selling price per unit |20 20 | |Variable cot per unit |12 |14 | |Contribution per unit |8 |6 | |Total annual contribution (as per anticipated sales) |32,00,000 |24,00,000 | |Total fixed costs per year |30,00,000 |21,00,000 | |Total Income |2,00,000 |3,00,000 | |Process B may be chosen |   |   | |Total contribution (if utilized to present capacity and sold) |34,40,000 |30,00,000 | |Less : Fixed costs |30,00,000 |21,00,000 | |Total Income |4,40,000 |9,00,000 | |Process B may be chosen |   |   | |(ii) Total contribution (if capacity of A of 6,00,000 units and|48,00,000 |30,00,000 | |of B 5,00,000 units) | | | |Less : Fixed costs |30,00,000 |21,00,000 | |Total Income |18,00,000 |9,00,000 | Process A may be chosen. Illustration 4: Addition of second shift Ulfa Ltd produces a single product in its plant. This product sells for Rs. 100 per unit. The standard production cost per unit is as follows: |Raw materials (5 kgs @ Rs. 8 |Rs. 40 | |Direct labour (2 hours @ Rs. ) |10 | |Variable manufacturing overheads |10 | |Fixed manufacturing overheads |20 | |   |80 | The plant is currently operating at full capacity of 1, 00,000 units per years on a single shift. This output is inadequate to meet the projected sales manager has estimated that the firm will lose sales of 40,000 units next years if the capacity is not expanded Plant capacity could be doubled by adding a second shift. This would require additional out-of-pocket fixed manufacturing overhead costs of Rs. 10,00,000 annually. Also, a night work wage premium equal to 25 per cent of the standard wage would have to be paid during the second shift. However, if annual production volume were 1,30,000 units or more, the company could take advantage of 2 per cent quantity discount on its raw material purchases. You are required to advise whether it would be profitable to add the second shift in order to obtain the sales volume of 40,000 units per year? Solution Decision analysis |Particulars |Profit without expansion |Profits with expansion | |Sales revenue |Rs. 1,00,00,000 |Rs. 1,40,00,000 | |Less: variable costs: |   |   | |Raw materials (Rs 39. 0 x 1,40,000) |40,00,000 |54,88,000 | |Direct labour |10,00,000 |15,00,000 | |Variable manufacturing overhead |10,00,000 |14,00,000 | |Contribution |40,00,000 |56,12,000 | |Less : fixed costs (Rs. 1,00,000 x 20) |20,00,000 |30,00,000 | |Net Income |20,00,000 |26,12,000 | Yes, it would be profitable to add the second shift as it would increase profits by Rs. 6, 12,000. Illustration 5: Assume a company is considering dropping product B from its line because accounting statements shows that product B is being sold at a loss. | | | |Product |A |B |C |Total | |Sales revenue |50,000 |7,500 |12,500 |70,000 | |Cost of sales: | | | | | |D. Material |7,500 |1,000 |1,500 |10,000 | |D. Labour |15,000 |2,000 |2,500 |19,500 | |Indirect manufacturing cost (50% of |7,500 |1,000 |1,250 |9,750 | |Direct labour) | | | | | |Total |30,000 |4,000 |5,250 |39,250 | |Gross margin On sales |20,000 |3,500 |7,250 |30,750 | |Selling Admn |12,500 |4,500 |4,000 |21,000 | |Net income |7,500 |(1,000) |3,250 |9,750 | Additional information: a) Factory Overhead cost is made up of fixed cost of Rs. 5850 and variable cost of Rs. 3900. b) Variable cost by products are: A – Rs 3000, B – Rs 400 and C – Rs 500 c) Fixed costs and expense will not be changed if product B is eliminated d) Variable selling and administrative expenses are to the extent of Rs. 11000 can be traced to the product: A-Rs. 7,500; B- Rs. 1500 and C- Rs. 2000 e) Fixed selling and admn expense are Rs. 10000 Solution: [pic] If the sale of product B were discontinued, the marginal contribution would be lost and the net income would be reduced by Rs. 2,600. Assume that after dropping product B, the sales of product A increased by 10%. The total profit of the firm will not increase by this sales increase. Product A makes only a marginal contribution of 34% (17000/50000) |Sales revenue of Product A |50000 |100% | |Variable cost of Product A |33000 |66% | |Marginal contribution of Product A |17000 |34% | On additional sales of Rs. 5000 the marginal contribution would be Rs. 700 |Sales revenue 10% of 50000 |5000 | |Variable cost 66% |3300 | |Marginal contribution (34%) |1700 | This contribution is less than Rs. 2,600 now being realized on the sales of product B. it would take additional sales of product A of approximately Rs. 7,647 to equal the marginal contribution of Rs. 2,600 mow being made by product B: [pic]= Rs. 7,647 It is possible that dropping product B may result in reduction in some of the fixed c osts. Products B now contributes Rs. 2,600 towards recovery of fixed costs and expenses. Only if the fixed costs and expenses can be reduced by more than this amount, it will be advisable to drop product B. 13. Sells or Process Further A firm is frequently faced with the problem of continuing with the existing policies or plans or change to new ones. Such change could be in the form of selling a partially processed product (semi finished) or process further. While taking a decision about such matters, the management must keep in mind the long term consequence and the interest of the firm. Illustration 6: A firm sells semi finished product at Rs. 9 per unit. The cost to manufacture the semi finished product is Rs. 6. Further processing can be done at an additional cost of Rs. 3 per unit and the final product can be sold at Rs. 15 per unit. The firm can produce 10,000 units. The analysis is shown below: |   |Sell |Process Sell | |Sales revenue (10,000 units) |Rs. 90,000 |1,50,000 | |Less : Manufacturing costs |60,000 |90,000 | |Profit |30,000 |60,000 | There is a net advantage of Rs. 30,000 in processing the product further. The market value of the partially processed product (Rs. 90,000) is considered to be opportunity cost of further processing. The figure of net advantage of Rs. 30. 00 can be arrived at in the following manner also: |Revenue from sale of final product (10,000 x 15) |   |Rs. 1,20,000 | |Less : Additional processing cost (10,000 x 3 ) |30,000 |   | |Revenues from sale of intermediate product |90,000 |1,20,000 | |Net advantage in further processing |   |Rs. 30,000 | 13. 8 Operate or Shutdown Various factors both external and internal affect the functioning of the firm. In such situations it becomes necessary for a firm to temporarily suspend or shutdown the activities of a particular product, department or a unit as a whole. Illustration 7: A company operating below 50% of its capacity expects that the volume of sales will drop below the present level of 10,000 units per month. Management is concerned that a further drop in sales volume will create a loss and has under consideration a recommendation that operation be suspended, until better market conditions prevail and also a better selling price. The present operation income statement is as follows: |   |Rs |Rs | |Sales revenue (10,000 units @ Rs. 3. 00) |   |30,000 | |Less : Variable costs @ Rs. 2. 0 per unit |20. 000 |   | |Fixed costs |10,000 |   | |Net Income |   |0 | Suggest the management at what point should the operation be suspended. The fixed cost remains only Rs 4000 if operation is shutdown. The following income statements have been prepared for sales at different capacities: [pic] It would appear that shutdown is desirable when the sale volume drops below 6,000 units per month, the point at which operating losses exceed the shut down cost. 13. 9 Exploring New Markets Decisions regarding entering new markets whether within the country or other the country should be taken after considering the following factors:  · Whether the firm has surplus capacity to meet the new demand?  · What price is being offered by the new market?  · Whether the sale of goods in the new market will affect the present market for the goods? Illustration 8: The following figures are obtained from the budget of a company which is at present working at 90% capacity and producing 13,000 units per annum. |   |90% |100% | | |Rs. |Rs. |Sales |15,00,000 |16,00,000 | |Fixed Expenses |3,00,500 |3,00,600 | |Semi- Fixed Expenses |97,500 |1,00,500 | |Variable Overhead Expenses |1,45,000 |1,49,500 | |Units made |13,500 |15,000 | Labour and material costs per unit are constant under present conditions. Profit margin is 10 per cent. a) You are required to determine the differential cost of producing 1,500 units by increasing capacity to 100 per cent. b) What would you recommend fo r an export price for these 1,500 units taking into account that overseas prices are much lower than indigenous prices? Solution |Basic Calculation: |Rs. | |Sales at 90% capacity 15,00,000 | |Less: Profit 10% |1,50,000 | |Cost of Goods sold |13,50,000 | |Less : Expenses (Fixed, semi-variable and variable) |5,43,000 | |Cost of Material and Labour |8,07,000 | |Labour and Material at 100% capacity = |Rs. 8,07,000 x 100/90 | |   |= 8,96,667 | Differential cost analysis can now be done as follows: Capacity levels |90% |100% |Different cost | |Production (Units) |13,500 |15,000 |1,500 | |Material and Labour |8,07,000 |8,96,667 |89,667 | |Variable overhead expenses |1,45,000 |1,49,500 |4,500 | |Semi-variable expenses |97,500 |1,00,500 |3,000 | |Fixed expenses |3,00,500 |3,00,600 |100 | |   |13,50,000 |14,47,267 |97,267 | a) Different Cost = Rs. 97,267 (Rs. 14,47,267 – 13,50,000) b) Minimum price for export = [pic]= Rs. 64. 84 per unit At this price, there is no addition to revenue; any price above Rs. 64. 84 per unit may be acceptable. Note: It has been presumed that i) No capital investment is necessary ii) No export charges are incurred and ii) The export price will have no effect on the home market where the product will continue to be sold at the old price. It has also been assumed that necessary precaution have been taken to ensure that the product is not ‘dumped back’. 13. 10 Maintaining a Desired level of profit When deciding between alternative courses of actions the criterion should be to select the project which yields the greatest contribution. Illustration 9: A company is considering expansion. Fixed costs amount to Rs. 4, 20,000 and are expected to increase by Rs. 1, 25,000 when plant expansion is completed. The present plant capacity is 80,000 units a year. Capacity will increase by 50 per cent with the expansion. Variable costs are currently Rs. 6. 0 per unit and are expected to go down by Rs. 0. 40 per unit with the expans ion. The current selling price is Rs. 16 per unit and is expected to remain same under either alternative. What are the break- even points under either alternative? Which alternative is better and why? Solution [pic] The profitability after expansion is very good and hence it is better to expand. Illustration 10: Disposal of inventories ABC Ltd has on hand 5,000 units of a product that cannot be sold through regular sales. These were produced at a total cost of Re. 1, 50,000 and would normally have been sold for Rs. 40 per unit. Three alternatives are being considered. i. Sell the items as scrap for Rs. per unit ii. Repackage at a cost of Rs. 20,000 and sell them at Rs. 8 per unit iii. Dispose them off at the city dump at removal cost of Rs. 500. Which alternative should be accepted? Solution Exhibits the decision analysis [pic] Alternative II should be accepted. 13. 11 Summary  · Decision making is the process of evaluating two or more alternatives leading to a final choice known as alternative choice decisions. Decision making is closely associated with planning for the future and is directed towards a specific objective or goal.  · A decision involves selecting among various choices. Non routine types of decisions are crucial and critical to he firm as it involves huge investments and involve much uncertainty. Short term decision making is based on relevant data obtained from accounting information.  · Relevant Cost are costs which would change as a result of the decision.  · Opportunity costs are monetary benefits foregone for not pursuing the alternative course. When a decision to follow one course of action is made, the opportunity to pursue some other course is foregone.  · Sunk costs are historical cost that cannot be recovered in a given situation. These costs are irrelevant in decision making.  · Avoidable costs are costs that can be avoided in future as a result of managerial choice. It is also known as discretionary costs. These costs are relevant in decision making.  · Incremental / Differential costs are costs that include variable costs and additional fixed costs resulting from a particular decision. They are helpful in finding out the profitability of increased output and give a better measure than the average cost. 13. 12 Terminal Questions 1. Avon garments Ltd manufactures readymade garments and uses its cut-pieces of cloth to manufacture dolls. The following statement of cost has been prepared. |Particulars |Readymade garments |Dolls |Total | |Direct material |Rs. 80,000 |Rs. 6,000 |Rs. 6,000 | |Direct labour |13,000 |1,200 |14,200 | |Variable overheads |17,000 |2,800 |19,800 | |Fixed overheads |24,000 |3,000 |27,000 | |Total cost |1,34,000 |13,000 |1,47,000 | |Sales |1,70,000 |12,000 |1,82,000 | |Profit (loss) |36,000 |(1,000) |35,000 | The cut-pieces used in dolls have a scrap value of Rs 1,000 if sold in the market. As there is a loss of Rs. 1,000 in the manufacturing of dolls, it is suggested to discontinue their manufacture. Advise the management. 2. The ABC Company Ltd produces most of its own parts and components. The standard wage rate in the parts department is Rs. 3 per hour. Variable manufacturing overheads is applied at a standard rate of Rs. 2 per labour – hour and fixed manufacturing overheads are charged at a standard rate of Rs 2. 50 per hour. For its current year’s output, the company will require a new part. This part can be made in the parts department without any expansion of existing facilities. Nevertheless, it would be necessary to increase the cost of product testing and inspection by Rs. 5,000 per month. Estimated labour time for the new part is half an hour per unit. Raw materials cost has been estimated at Rs. 6 per unit. The alternative choice before the company is to purchase part from an outside supplier at Rs 9 per unit. The company has estimated that it will need 2,00,000 new parts during the current years. Advise the company whether it would be more economical to buy or make the new parts. Would your answer be different if the requirement of new parts was only 1,00,000 parts? 13. 13 Answers to SAQ and TQs Answer to SAQ 1. Change 2 Sunk cost 3. Monetary benefits foregone 4. Avoidable cost Answers to TQs: . Discontinue manufacture of dolls | |Readymade garments |Dolls |Total | |Total cost |134000 |13000 |147000 | |Profit (loss) |36000 |(1000) |35000 | 2. Decision analysis : 200000 units – The company is advised to make the new part. The differential costs fa vouring the decision of making the component is Rs40000 Decision analysis : 100000 units – The company is advised to buy from an outside supplier. Total cost to manufacture 100000 units is Rs. 9,10,000. How to cite Decision Making – Cost Accounting, Essay examples

Of Mice And Men Essays (966 words) - English-language Films

Of Mice And Men Of Mice and Men Of Mice and Men, by John Steinbeck, takes place on a ranch in the Salinas Valley of California, against the backdrop of the Great Depression. Steinbeck writes of two ordinary men trying to live the American Dream. Unfortunately they fail to fulfill those dreams. Steinbeck opens the book by vividly painting a picture of the Salinas River Valley. Two traveling laborers, George Milton and Lennie Small, are on their way to a job at a Californian ranch. George decides that they were to stay the night along the Salinas River's bank before reporting to work the next day. Over dinner George and Lennie discuss their plans. Through this conversation, Steinbeck reveals the contrasts between Lennie and George. Lennie is big and slow witted and George does the thinking for the pair. Lennie obeys George's every word like a dog to his master's commands. At this point in the book it becomes apparent that George and Lennie want to pursue the American Dream. Lennie asks George to tell him of their future home. It would be just George and him. They plan to have many orchards, pigs, cows, rabbits. They plan to live off the fat of the land. The next morning the two friends travel to the ranch to obtain their work assignments. As the arrive at the ranch they are greeted by a man name Candy. He tells them of the ranch and its inhabitants. When interviewed by the boss, George answers all the questions. He even answers for Lennie. Due to this, the boss becomes suspicious. While in the bunk the Boss' son Curly walks in looking for his father. Curly bullies Lennie, even though Curly is much smaller than him. George warns Lennie to stay away from him. At dinner, Slim introduces himself to George and is puzzled why they travel together. Later in the bunk George tells Slim about his life. He explains how Lennie likes to pet soft objects and how Lennie always gets them in trouble. George travels with Lennie because Lennie has nobody to look after him. George asks slim if Lennie could have one of his puppies. Lennie is ecstatic when Slim gives him a puppy. Curly's wife walks into the bunk looking for her husband. All of the men in the bunk drop their heads, but Lennie stares at her. The men told her that Curly isn't in the bunk. She leaves. George warns Lennie to stay away from her because she is trouble. Candy overhears George telling Lennie of their future farm and asks them about their future plans. At this point in the book it is apparent that Candy also wants to follow the American Dream. His dream is to live on their farm, hoe the garden, and wash the dishes for free. Curly enters the bunk again and spots Lennie smiling. He thinks that Lennie is making fun of him, so Curly begins taunting and hitting Lennie. Lennie refuses to fight back until George gives him permission. Lennie catches Curly's fist and begins to crush it. Lennie finally lets go of Curly's hand. The others threaten Curly that if he doesn't tell everyone that he got his hand caught in a machine that they would beat him up. They made this threat to prevent Lennie from being fired. The next day while the others are at a whorehouse, Lennie goes into the barn to pet his puppy. While in the barn he sees a light and goes towards it. Lennie enters the room of the black stable worker, named Crooks. At first Crooks objects to Lennie's invasion of privacy, but Lennie's good humor wins him over. Crooks explains the difficulties of being a black person on the ranch, and Lennie talks about his future farm. Candy enters the room and tells Lennie that he is going to put money towards the farm, Cro oks asks to be included, too. At this point Crooks wants to be part of the American Dream. The next day while the boys are playing horse shoes, Lennie is in the barn playing with his puppy. He handled the puppy too much and he broke the puppy's neck. As he tries