Finance and Management Essay Example | Topics and Well Written Essays - 1500 words

Finance and Management - Essay Example With the use of the budgets, businesses will produce different management reports to the various stakeholders. The reports will be important in the evaluation of the business performance and act as a motivation to the employees. Product cost can be defined a s the total costs that is incurred in the manufacturing of goods or the provision of servicers. Various cost elements are involved in the process of producing a product. These include material cost, labor costs, overhead costs, and other expenses (Polimeni, 2000). The sum of these costs constitutes product costs. Material costs are labor costs are direct cost that are associated with the goods and are easy to determine when determining the cost of products (Epstein & Lee, 2001). Material costs can be determined from the purchase receipts that are made. Labor expenses are also determined from the salaries and other allowances that are paid to the workers and other experts that are involved in the production of goods and services. The last component of product costs that includes the overhead expenditure poses a challenge to cost accountants on how to incorporate them in the product costs (Horngren, 2009). There are different cost accounting methods that can be used to allocate these costs to the products to determine the total costs of the products. Product costs are necessary for decision-making and for external purposes. Product costs can be determined using the following methods. First, marginal costing system can be used in calculating the product cost. In this method, only the variable costs are used in arriving at the product prices (Polimeni, 2000). The organization will therefore use these costs to make decisions. Fixed costs and sunk costs are not included in the calculation because they are past costs which cannot influence the future managerial costs. Product costs determined in this manner will only be important in making internal deci9isions and not for external uses. The second cost methodology that can be used is the total costing or absorption costing method. In this method, the prices of products are determined by adding all the costs incurred in production including the fixed costs and other overhead costs (Epstein & Lee, 2001). All the costs are considered relevant because the management incurred the cost in the process of making the product. The method of should be used in determining the selling price that is charged on the products because it incorporates all the costs involved in the process (Lucey, 2002). The prices can therefore be determined by adding a desired margin on the cost of the goods. Moreover, the product costs can also be determined by the use of activity based costing. Activity based costing assists in the allocation of overhead costs that are then summed up to the variable costs to arrive at the total product costs. In this method, the overhead costs are allocated to the various cost centers and using the cost drivers. The method helps in charging costs to the various activities. This method has been used widely to control the costs of activities and make managers do away with non-essential activities that do not add value to the product manufacturing. Through the elimination of the dummy and redundant activities, the management will be in a position to achieve efficiency and effectiveness in the process. The last costing methodology that can be employed is the throughout costing. This method is criticized by the accountants and is

New Product Development Accounting Project Math Problem

New Product Development Accounting Project - Math Problem Example Operating Profit $152,124,000 $2,112.83 *COMPUTATIONS FOR INCOME STATEMENT Sales = Total sales units * Total per unit sale = 72000 * 14,500 = $1,044,000,000 Total Variable Expenses = Variable cost per unit * Total sales units = 8,770.5* 72000 = $631,476,000 BREAK EVEN ANALYSIS Number of Sales Units for Break Even: Break Even Sales Units = Fixed Cost Price - Variable Cost per unit = 260,400,000 5729.5 = 45,449 units. Sales Volume In Dollars for Break Even Total Sales = Total break even units * Total sales units = 45,449 * 14,500 = $659,010,500 Profit if the Sales is 6000 Units Per Month Sales per year = 6000*12 = 72000 units Profit per month = $152,124,000 Sales per month = 6000 units Profit per month = 152,124,000 / 12 = $12,677,000 Required 3: Based on the contribution income statement, the operating leverage ratio and margin of safety are calculated below: OPERATING LEVERAGE RATIO: The formula to compute the operating leverage ratio is: Operating Leverage = Contribution Margin/Net Income = $412,524,000/152,124,000 = 2.71 Operating leverage indicates what change in net income can be expected from a change in sales volume. An operating leverage of 2.7 implies that the change in net income will be 2.7 times as large as the change in sales volume. Therefore, for the projected profitability of Water Play Inc. that if sales increased by 10%, net income should increase by 27%. The net income of Water Play Inc. would be 2.7 times greater than its sales volume. MARGIN OF SAFETY: The margin of safety is measured in either dollars or units. It measures... This would be a discretionary cost for the company as the cost on research and development arises form management decision to spend a particular amount and management can reduce it in the short term if it is needed. The management can minimize this cost by delaying for short term, the unnecessary maintenance and repair expenses in the office. Reduction in these costs does not cause an irreparable loss to the company's operations. Operating leverage indicates what change in net income can be expected from a change in sales volume. An operating leverage of 2.7 implies that the change in net income will be 2.7 times as large as the change in sales volume. Therefore, for the projected profitability of Water Play Inc. that if sales increased by 10%, net income should increase by 27%. The net income of Water Play Inc. would be 2.7 times greater than its sales volume. Margin of safety reveals the amount by which actual sales can drop before a firm will incur Loss. The larger the margin: the lesser the risk. (Sales can fall by a larger percentage before the company will show a loss.). The Margin of safety or Safety stock of Water Play Inc. is 26,551 units. It means that the company should maintain 26,551 units as safety stock in order to avoid the risk.

Nestle case study - Creating Shared Value in the Supply Chain

Nestle - Creating Shared Value in the Supply Chain - Case Study Example This paper outlines ways through which nestle creates shared value within the supply chain relating to the cocoa production. It also outlines the importance of applying corporate social responsibility principle in a business activity. The paper also outlines some of the key players in Nestle Cocoa supply chain and the factors that drive the Nestle supply chain. Finally, paper discusses the ways Nestle creates value and the challenges that come with that process. The Nestle Cocoa Plan Nestle has implemented this through creating greater values for the societies. This includes improvements of water, nutrition and rural development. The supply chain activity that is specified includes transforming the raw materials and other natural resources into finished goods consumed by the end consumers. The processes involved are linked to consumers, human rights and labor practices, employees, suppliers and customers and the environment. The consumers are the larger group that consumes the produc ts manufactured by Nestle. Every stage in the supply chain process adds value to the end product (Nestle Case Study). The major key players in this supply chain are farmers, cooperatives, processors or manufacturers, retailers and consumers. The cocoa farmers are tasked with the job of growing the crops that produce cocoa. The cooperatives represent the institutions that manage the sale of the crops by the farmers. They act like unions of farmers who form them to control the market for the crops. Nestle fall under the stage of manufacturers or processors. These are tasked with the production of products which are the end products from the raw materials. Nestle for instance manufactures chocolate and their equivalent from these raw materials. The retailers represent those channels that receive orders from nestle. These channels distribute the products to the end users or rather the consumers. The consumers, who are the last players in the supply chain represents the individuals who p urchase the end products (Nestle Case Study). The chart above represents the process of activities that are involved in the supply chain of the Cocoa plan. In order to coordinate the raw materials that Nestle uses to manufacture the end products, it has to coordinate the way farmers are handled in terms of the market and wages (Nestle Case Study). Factors Driving the Cocoa Supply Chain Shared value that is created by Nestle is based on a number of factors that majorly can be categorized under the corporate social responsibility. Nestle carries out its business based on the international laws and codes that define the conduct and the company business principles, as well as, compliance to environment sustainability regulations. The company, however, under the creating shared platform came up with other factors that would drive the supply chain. The principles that are set by international organizations such as the United Nations help in guiding the company in its value creation in the supply chain through its approach in the corporate social responsibility. An example of this according to the Nestle case study is the principles that incorporate the UN Global Principles. This relates to the Human rights, labor, corruption and environment (Nestle Case Study). The company, for instance, has helped the farmers to eliminate

Digital Communication and Death of Print Journalism Essay

Digital Communication and Death of Print Journalism - Essay Example According to the paper findings, it can, therefore, be said that digital communication tools such as blogs and micro-blogging sites have taken journalism to a whole new different level. Digital journalism can be instantaneous and can spread news faster than any other mass media. Also, it gives the power of journalism to individuals not represented by any corporation. Individuals who are not professional journalists also can report news and put it out as the open source. Digital communication has built a platform for sharing unbiased news and at the same time getting numerous perspectives. More importantly, it is an interactive forum and allows for a debate on the news from the general public (Schultz, 1999).  Digital journalism is now starting to pose a serious threat to print journalism. Digital journalism has numerous advantages over traditional print journalism. Many daily newspapers are now starting to have a digital presence. In today’s world, people lead a high-tech an d busy life. People are always on the move and go to the internet for all they need. Print media is slowly losing reader base to digital journalism (Zafra, 2007). The one communication style and delay in reporting is all contributing to the decline of print journalism. It is definitely clear that in the near future print journalism will be completely replaced by digital journalism.

For Profit Healthcare Organization Essay Example | Topics and Well Written Essays - 750 words

For Profit Healthcare Organization - Essay Example Supervisory management is there to allocate work to individual employees and groups of employees and is there to ensure that the assigned tasks are carried out. The top management makes decisions with the help of middle and supervisory management. There is a collaborative environment in the hospital (Sentara Healthcare). Collaborative environment means that the management shows interest towards the problems and issues of employees and also work for their betterment. Employees are given rewards for their good performance and for bad performance, they are also punished. The management of the hospital considers employees as its assets and acknowledges their contribution towards the advancement of the hospital. The internal environment of the hospital is disciplined as the employees have to follow certain rules and regulations that are known to them. In case the rules and regulations are disregarded, the employees have to face the consequences. According to the hospital management, for the betterment of a hospital environment, the rules should be followed by all the employees to ensure that the hospital remains well-reputed in people’s view. The safety of patients is also a major concern of the hospital (About Sentara Healthcare 2008). The patients are also asked to follow the particular rules that are designed for them such as the meeting timings and medicinal timings. The inner environment is structured in a format according to which, the employees are required to remain disciplined. The management is also interested in the behaviors of employees towards the patients. The management makes sure that the patients are dealt with patience and care. A collaborative environment is there due to which, employees help each other and consult with supervisory management in case of any problems or issues. As far as external environment is concerned, the

Identifying Problems and Offering Solutions Essay

Identifying Problems and Offering Solutions - Essay Example For instance, if one of the students was making noise in class, Nick would candidly to stop talking in class because that was the rule. This quite irritated his classmates and hence got him on the wrong side of the school bullies. They would spit in his lunch, knock over his books, call him names such as gay and faggot, and this really hurt his pride. Unfortunately, when Nick’s parents complained to the school authorities about their son’s predicaments, all they got was nothing more than ‘boys will always be boys’ or ‘we’ve done all we can’. One unfortunate morning, Nick Perry changed his pajamas and wore his favorite T-shirt and pair of jeans. Having had enough, Nick strapped a belt around his neck and hanged himself from the top of the shelf of his closet. When his father found him, it was too late to save him. Nick’s life had been cut short at his young age. Bullying in schools is a global problem and as Nick’s suicide case shows, it can have dire consequences. This article therefore looks into the causes of bullying in schools, its impact on students, the short and long term effects it has on the bullies and victims before discussing some of the strategies such as revision of school policies as solution to bullying in schools. Bullying can be defined as aggressive behaviors or actions that are done with the intent of making the victims feel belittled or hurting them. Bullying in schools can further be described as unwanted behaviors among students driven by either perceived or real imbalances of power. Bullying bears the following characteristics: Imbalance of power- the students who act as bullies, use the power at their disposal such as physical strength, popularity, seniority, or access to some embarrassing information about their victim, to control others. However, this imbalance of power is subject to change from time to time depending on the situation. It has to be

Strategic Management Essay Example | Topics and Well Written Essays - 500 words - 6

Strategic Management - Essay Example mpany to simplify entire transaction completing cycle since it does not include any complicated features that are difficult to understand and implement. It benefits management in a way that it reduces total employee training costs and time. As far as core technical benefit of POS is concerned, it is worthwhile to mention that it is extremely helpful in initiating promotion activities because it reduce dependence on manual process (that may take up to 48 hours from stores) currently used at MYER store. After induction of POS, the Myer store will have access to and be able to manage all in-store information relating to promotions and pricing directly from company headquarters. Secondly, the system enables the company to offer additional services to customers besides routine services because it offers flexibility and adaptability. Needless to mention that the system has ability to enhance service speed thereby improving customer satisfaction and perceived loyalty. Thirdly, POS help in r ecognizing customers as it records their facial expressions and other information besides keeping individual transaction records. In addition, POS offers a unique feature of keeping inventory records and stock availability options that facilitates top and middle managers in decision making and problem solving. In short, Point of sale is a real time information system that manages all areas of a business organization including sales back office, inventory management, warehousing, data mining, distribution center and others etc. In simple words, it is a multipurpose system that increases organizational productivity, efficiency and effectiveness besides reducing total business