U.s. Foreign Agricultural Production - 1492 Words

The U.S. has always been an importer of commodities that cannot be cultivated here such as bananas, mangos, cocoa and coffee. However, the U.S. has begun to import products that Americans are used to growing themselves. According to Phillip Abbot, a professor of agricultural economics at Purdue University, â€Å"the problem is that other nations have successfully grabbed the markets U.S. farmers were counting on. Exports of the U.S. s biggest commodities such as corn, soybeans and wheat have been flat for a decade as other nations boost production. At the same time, imports of pricier items like fruits, vegetables, processed foods and some meats are surging. The largest challenge for American farmers is that agricultural products can be†¦show more content†¦The USDA is working to enhance productivity and ensuring the safety of the food supply. It invests in research of new varieties and technologies to mitigate animal/plant diseases and increase productivity, sustainabilit y, and product quality. This research has supported American farmers in their work to produce a safe and abundant food supply. The USDA is also working on improving nutrition and confronting obesity by developing effective education activities to promote health and reduce malnutrition and obesity in children and high-risk populations. Conserving natural resources and combating climate change is also a main focus. Scientists are developing rice and corn crops that are drought and flood resistant and helping to improve the productivity of soil, as well as production systems that require less pesticides. The USDA is delivering science based information to farmers and ranchers which will help them make informed decisions and improve practices in environmental conservation. According to the United States Census Bureau the average educational level in the U.S. has increased in the past two decades. In 1995, 81.7 percent of adults were high school graduates and 23 percent

Cost and Management Sustainability Factor

Question: Discuss about the Cost and Management for Sustainability Factor. Answer: Introduction: The university management does not have to reveal the way of spending money, which makes it hard to calculate the exact cost required to educate the students.As per the websitereport ofnews.com.au, the universities have to spend a lot of money than the authority get from the government funding and the student fees.According to the opinion of Edgington (2015),5-10% funding of the students fees is being guided away from the education process and preferred sustaining the research actions of the universities. Calculation of cost is also essential to regulate the entire education system while providing teaching guidance and the other research tactics to the students. The students have been charged excessive fees, so that the universities can provide an further research to the students (Baporikar, 2009). As per the Higher Education and Reform Bill 2014, the universities have made frequent complaints of being underfunded in the absenteeism of cost indication. In the case of university unit costing per student is required to determine the suitable fee levels. In the opinion of Amos (2010), comparison of cost alternatives is essential for delivering a particular cost to the students. The Activity-Based Cost analysis is also helpful to carry out the calculation of cost per student. The chain activities guided by the teaching practitioners help to maintain the records of the assignments and records the marked assignments. It has been speculated that the recorded marks of the students file are maintained in a computerised database. As per the report of Deloitte Access Economics, the higher educating learning and teaching costs, in the year 2010 is $15,000 normally to educate a student with a particular degree program. The students have to handle the claims from the tutors and issues regarding the payments. As per the view of Brown and Carasso (2013),the full of cost of each marked assignment is the measure of the services provided by the unive rsities or institution as per the received payment. The students have to offer the overall expenditure for the related activities. According to the report of the Australian Bureau of Statistics, about 41% of academic university research endowment in the year of 2012 (approximately $3.7 billion) arrived from a medium that was not exclusive for the purpose of research (Culliney, 2014). It also includes the investment revenue, donations, contributions and the profits from the commercial operations of the university. The students taking admition from the foreign region, who pay much higher fees rather than the Australian students, are specifically prejudiced by the global positional tables. The difficulties associated with undertaking the calculations It is very difficult to calculate the cost of the education for a different student from the different domain. Apart from the ongoing debates concerning the university deregulation factors and its long-standing sustainability factor, the universities are more unenthusiastic to disclose its cost charged by a student during the entire course. As per the opinion of Potcharapanpong and Thongthew (2010),the student fees of the university wrap the expenditure of the course depending on the stream and subject matter. For an example, Edgington(2014) added that for medicine or veterinary degrees the general cost of the entire course is relatively higher compared to the other subjects like law, accounts, etc. The course of medical degree needs more equipment or research to educate a student for this particular degree. On the other hand, Jing (2014) mentioned that the course of law or accounting does not need this kind of equipment or additional research to conduct the entire course. Hence, the course fees of medical students are much higher rather that the students of accounting and law. The cost of course is also various based on the university tend and the impressive institutions tends to pay more on the research. Considering the opinion of Edgington(2015),a highly regarded academics can develop the teaching efficiency. On the other hand, it has been speculated that the research regarding the specific course needs a particular amount which cannot be quantifiable. The chargeable amount for the different course cannot be enumerated, which can be a trouble for calculating the cost of the course. Furthermore, in the opinion of Culliney (2014), the digital educational marketplace is the other example of the expensive cost of the education structure. On the other hand, the four year degree is highly long and expensive for the students as well as the universities. The process of learning of the different universities is different from each other which is the foremost reason to construct a general calculation for the course structure(Clarke, 2008). The instalment break up of the universities are framed in a narrow format which sometimes become difficult for the students to pay the university fees within the short time farmed (Brown and Rahn-Blakeslee, 2009).The technical issues regarding the education infrastructure could hamper the cost analysis of the course. On the other, it has been analysed that the education is the not the most ultimate focus of the universities. The selling of a business, students lifestyles, accommodation expenditure and the administration scholarship are the major factors to create difficulties in the costing of education. Australian National University is fortunate to have a Nobel Prize winner that turned up useful to attract both the universities and students(Callejo-PeÃÅ' rez and Ode, 2013). The report of news.com.au indicates that the international student fees are presently being used to subsidies the education practitioners and the course related examine cost in the universities. The responsibility of governing authority on the university funding actions There are a large number of appraisals for the university division that can define the necessity of the calculations to provide a reliable basis for the decision making process. According to the opinion of Brown and Carasso (2013),the Go8s call is significant to review the payment structure of the payments. This policy is comprised both of the major parties like the students and the universities. It has been observed that all the universities receive the similar amount of funding from the administration for the each lessons and course. Adding to this, the students of the university are equally paying the course fees as per the course structure. In the opinion of Broad and Goddard (2010),the universities could reduce the course fees, so that the university could get maximum number of students footfall in the college campus. Furthermore, both the students an the university authority needs to work jointly to offer a long term sustainable position in the university division. On the other hand, Baporikar(2009) added that the funding cost provided by the government to the universities is often cut depending on its actual cost to deliver the final process. It has been identified that the cuts announced in the Labours final budget in the year of 2013, may have lost the faith of the majority of the vice-chancellors from the funding system(Amos, 2010).Although,it has been assessed that the government appreciation and funding is highly required for a university forimproving the overall education system. Adding to this, the as per the report of news.com.au, the independent senator Nick Xenophon has voted for the deregulation of the billing system of the universities. Thus, the government has to make another review before funding the universities along with that an alternative opinion has to be given as its radical deregulation reforms. On the other hand, Culliney (2014) argued that the executive directors of the Regional Universities Network is not excited about the process of another assessment. It has been speculated that the executive directors has proposed the deregulation model to motivate the government contributors. Therefore, it would be possible to reduce the student fees, which, would assist to increase the number of students in the universities. References: Amos, S. (2010).International education governance. Bingley, UK: Emerald. Baporikar, N. (2009).Management education. Mumbai [India]: Himalaya Pub. House. Broad, M. Goddard, A. (2010) Internal performance management with UK higher education: An amorphous system?, Measuring Business Excellence, 14(1), 6066. Brown, R. Carasso, H. (2013) Everything for sale? The marketisation of UK higher education. London: Taylor Francis. Brown, S. Rahn-Blakeslee, A. (2009) Training school-based practitioners to collect intervention integrity data, School Mental Health, 1(3), 143153. Callejo-PeÃÅ' rez, D. Ode, J. (2013).The stewardship of higher education. Rotterdam: Sense Publishers. Clarke, J. (2008) Book review: Motivating your team: Coaching for performance in schools,Management in Education, 22(3), 3839 Culliney, T.W. (2014) Notes on predatory Behavi our in Rhinacloa forticornis (Hemiptera: Miridae ), Current Agriculture Research Journal, 2(1), 0104. Edgington, U. (2015). Performativity and accountability in the UK education system: a case for humanness.Pedagogy, Culture Society, 1(1), 1-6. Jing, L. (2014) The governments roles in transnational forest governance, Recht der Werkelijkheid, 35(3), 120 -122. Potcharapanpong, S. Thongthew, S. (2010) TEFL training program for local and cultural-based instruction: Case studies in Thai primary schools, Asian Social Science, 6(9), 657-695.

Management Accounting Project Report Cvp Analysis for a Firm Under Expansion Phase Essay Example

Management Accounting Project Report Cvp Analysis for a Firm Under Expansion Phase Essay The CVP analysis helps in taking more than one decisions in a firm. How would you substantiate this statement for a unit under expansion phase| | Abstract Companies commonly face major uncertainties in their product markets, particularly in the manufacturing industry where competition is often fierce and consumer tastes change rapidly. Managers need to estimate future revenues, costs, and profits to help them plan and monitor operations and to decide the mix and volumes of goods or services to produce and sell. They also use this information to evaluate profitability risk. Cost-volume-profit (CVP) analysis is the technique used to identify the levels of operating activity needed to avoid losses, achieve targeted profits, plan future operations, decide on expansion or contraction plans, monitor organizational performance and analyze operational risk as they choose an appropriate cost structure to help in the decision making process to sustain the firm. Table of Contents Introduction4 Marginal Cost Equations and CVP Analysis9 Cost Volume Profit (CVP) Relationship in Graphic Form14 Applications of Cost Volume Profit (CVP) Concepts17 CVP Analysis Illustrations Unit in Expansion Mode19 Illustration 119 Illustration 222 References28 Introduction To assist planning and decision making, management should know not only the budgeted profit, but also: * the output and sales level at which there would neither profit nor loss (break-even point) * the amount by which actual sales can fall below the budgeted sales level, without a loss being incurred (the margin of safety) In marginal costing, marginal cost varies directly with the volume of production or output. On the other hand, fixed cost remains unaltered regardless of the volume of output within the scale of production already fixed by management. We will write a custom essay sample on Management Accounting Project Report Cvp Analysis for a Firm Under Expansion Phase specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Management Accounting Project Report Cvp Analysis for a Firm Under Expansion Phase specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Management Accounting Project Report Cvp Analysis for a Firm Under Expansion Phase specifically for you FOR ONLY $16.38 $13.9/page Hire Writer In case if cost behaviour is related to sales income, it shows cost-volume-profit relationship. In net effect, if volume is changed, variable cost varies as per the change in volume. In this case, selling price remains fixed, fixed remains fixed and then there is a change in profit. Being a manager, you constantly strive to relate these elements in order to achieve the maximum profit. Cost – Volume profit Analysis is a logical extension of Marginal costing. It is based on the same principles of classifying the operating expenses into fixed and variable. CVP analysis is generally defined as a planning tool by which managers can evaluate the effect of a change(s) in price, volume, variable cost or fixed cost on profit. Additionally, CVP analysis is the basis for understanding contribution margin pricing, related short-run decisions, target costing and transfer pricing. Apart from profit projection, the concept of Cost-Volume-Profit (CVP) is relevant to virtually all decision-making areas, particularly in the short run. The relationship among cost, revenue and profit at different levels may be expressed in graphs such as breakeven charts, profit volume graphs or in various statements forms. CVP Analysis helps managers understand the interrelationship between cost, volume, and profit in an  organization  by focusing on interactions among the following five elements:   1. Prices of products 2. Volume or level of activity 3. Per unit variable cost 4. Total fixed cost 5. Mix of product sold Earning of maximum profit is the ultimate goal of almost all business undertakings. Profit depends on a large number of factors, most important of which are the cost of manufacturing and the volume of sales. Both these factors are interdependent. Volume of sales depends upon the level of production i. e. volume of production and market forces which turns in related to costs. Management has no control over market. In order to achieve certain level of profitability, it has to exercise control and management of costs, mainly variable cost. This is because fixed cost is a non-controllable cost. In other words, it helps in locating the level of output which evenly breaks the cost and revenues used. In its broader sense, it means that system of analysis which determines profit, cost and sales value at different levels of output i. . it establishes the relationship of cost, volume and profit. CVP Analysis helps to find out the profitability of a product, department of division to have better product mix, for profit planning and to maximize the profit of a concern. The decisions can include such crucial areas as pricing policies, product mixes, market expansion or contractions, outsourcing contracts, idle plant usage, discretionary e xpenses planning and a variety of other important considerations in the planning process. Thus cost volume profit analysis furnishes the complete picture of the profit structure. When the firm is in expansion phase, Funds are provided for the major expansion of a company which has increasing sales volume and which is breaking even or which has achieved initial profitability. Funds are utilized for  further plant expansion, marketing, and working capital  or for development of an  improved product, a  new technology, or an  expanded product line. Cost-volume-profit analysis can answer a number of analytical questions. These include, for example: 1. What products to manufacture or sell? 2. What pricing policy to follow? 3. What marketing strategy to employ? 4. What type of productive facilities to acquire? Cost-volume-profit analysis can also answer many other â€Å"what if† type of questions. Cost-volume-profit analysis is one of the important techniques of cost and management accounting. Although it is simple, it is a powerful tool for planning of profits and therefore, of commercial operations. It provides an answer to â€Å"what if† theme by telling the volume required to be produced. Following are the three approaches to a CVP analysis: * Cost and revenue equations * Contribution margin * Profit graph Before going into further details on the above three approaches below is described, the broad objectives of CVP analysis and the assumptions thereof n attaining these objectives. Further the limitations of the CVP analysis are detailed, which will help determine when, where and in which situations CVP analysis can be applied effectively in the various decisions that a firm needs to make to continue functioning. Objectives of Cost-Volume-Profit Analysis 1. In order to fo recast profits accurately, it is essential to ascertain the relationship between cost and profit on one hand and volume on the other. 2. Cost-volume-profit analysis is helpful in setting up flexible budget which indicates cost at various levels of activities. . Cost-volume-profit analysis assists in evaluating performance for the purpose of control. 4. Such analysis may assist management in formulating pricing policies by projecting the effect of different price structures on cost and profit. Assumptions Following are the assumptions on which the theory of CVP is based: 1. The changes in the level of various revenue and costs arise only because of the changes in the number of product (or service) units produced and sold, e. g. , the number of television sets produced and sold by Sigma Corporation. The number of output (units) to be sold is the only revenue and cost driver. Just as a cost driver is any factor that affects costs, a revenue driver is any factor that affects revenue. 2. Total costs can be divided into a fixed component and a component that is variable with respect to the level of output. Variable costs include the following: * Direct materials * Direct labor * Direct chargeable expenses Variable overheads include the following: * Variable part of factory overheads * Administration overheads * Selling and distribution overheads 3. There is linear relationship between revenue and cost. 4. When put in a graph, the behavior of total revenue and cost is linear (straight line), i. e. Y = ax + b holds good which is the equation of a straight line. 5. The unit selling price, unit variable costs and fixed costs are constant. 6. The theory of CVP is based upon the production of a single product. However, of late, management accountants are functioning to give a theoretical and a practical approach to multi-product CVP analysis. 7. The analysis either covers a single product or assumes that the sales mix sold in case of multiple products will remain constant as the level of total units sold changes. . All revenue and cost can be added and compared without taking into account the time value of money. 9. The theory of CVP is based on the technology that remains constant. 10. The theory of price elasticity is not taken into consideration. Many companies, and divisions and sub-divisions of companies in industries such as airlines, automobiles, chemicals, plastics and semiconductor s have found the simple CVP relationships to be helpful in the following areas: * Strategic and long-range planning decisions * Decisions about product features and pricing In real world, simple assumptions described above may not hold good. The theory of CVP can be tailored for individual industries depending upon the nature and peculiarities of the same. For example, predicting total revenue and total cost may require multiple revenue drivers and multiple cost drivers. Some of the multiple revenue drivers are as follows: * Number of output units * Number of customer visits made for sales * Number of advertisements placed Some of the multiple cost drivers are as follows: * Number of units produced * Number of batches in which units are produced Managers and management accountants, however, should always assess whether the simplified CVP relationships generate sufficiently accurate information for predictions of how total revenue and total cost would behave. However, one may come across different complex situations to which the theory of CVP would rightly be applicable in order to help managers to take appropriate decisions under different situations. Limitations of Cost-Volume Profit Analysis The CVP analysis is generally made under certain limitations and with certain assumed conditions, some of which may not occur in practice. Following are the main assumptions and limitations therein of the cost-volume-profit analysis: 1. It is assumed that the production facilities anticipated for the purpose of cost-volume-profit analysis do not undergo any change. Such analysis gives misleading results if expansion or reduction of capacity takes place. 2. In case where a variety of products with varying margins of profit are manufactured, it is difficult to forecast with reasonable accuracy the volume of sales mix which would optimize the profit. 3. The analysis will be correct only if input price and selling price remain fairly constant which in reality is difficult to find. Thus, if a cost reduction program is undertaken or selling price is changed, the relationship between cost and profit will not be accurately depicted. 4. In cost-volume-profit analysis, it is assumed that variable costs are perfectly and completely variable at all levels of activity and fixed cost remains constant throughout the range of volume being considered. However, such situations may not arise in practical situations. . It is assumed that the changes in opening and closing inventories are not significant, though sometimes they may be significant. 6. Inventories are valued at variable cost and fixed cost is treated as period cost. Therefore, closing stock carried over to the next financial year does not contain any component of fixed cost. Inventory should be valued at full cost in reality. Sensitivity Analysis or What If Analysis and Uncertainty Sens itivity analysis is relatively a new term in management accounting. It is a â€Å"what if† technique that managers use to examine how a result will change if the original predicted data are not achieved or if an underlying assumption changes. In the context of CVP analysis, sensitivity analysis answers the following questions: 1. What will be the operating income if units sold decrease by 15% from original prediction? 2. What will be the operating income if variable cost per unit increases by 20%? The sensitivity of operating income to various possible outcomes broadens the perspective of management regarding what might actually occur before making cost commitments. Marginal Cost Equations and CVP Analysis Break even is the level of sales at which the profit is zero. Cost volume profit analysis is some time referred to simply as break even analysis. This is unfortunate because break even analysis is only one element of cost volume profit analysis. Break even analysis is designed to answer questions such as  How far sales could drop before the company begins to lose money? † From the marginal cost statements, one might have observed the following: Sales – Marginal cost = Contribution(1) Fixed cost + Profit = Contribution(2) By combining these two equations, we get the fundamental marginal cost equation as follows: Sales – Marginal cost = Fixed cost + Profit(3) This fundamental marginal cost equation plays a vital role in profit projection and has a wider application in managerial decision-making problems. The sales and marginal costs vary directly with the number of units sold or produced. So, the difference between sales and marginal cost, i. e. contribution, will bear a relation to sales and the ratio of contribution to sales remains constant at all levels. This is profit volume or P/V ratio. Thus, P/V Ratio (or C/S Ratio) = Contribution (C)Sales (S) (4) It is usually expressed in terms of percentage, P/V ratio = (C/S) x 100 Contribution = Sales x P/V ratio(5) Sales = Contribution (C)PV Ratio(6) The above-mentioned marginal cost equations can be applied to the following heads: 1. Contribution Margin Contribution margin  is the amount remaining from sales revenue after variable expenses have been deducted i. e. difference between sales and marginal or variable costs. Thus it is the amount available to cover fixed expenses and then to provide profits for the period. The concept of contribution helps in deciding breakeven point, profitability of products, departments etc. to perform the following activities: * Selecting product mix or sales mix for profit maximization * Fixing selling prices under different circumstances such as trade depression, export sales, price discrimination etc. CVP analysis can be used to help find the most profitable combination of variable costs, fixed costs, selling price, and sales volume. Profits can sometimes be improved by reducing the contribution margin if fixed costs can be reduced by a greater amount. The contribution margin as a percentage of total sales is referred to as contribution margin ratio (CM Ratio). Contribution margin ratio can be used in cost-volume profit calculations. 2. Profit Volume Ratio (P/V Ratio), its Improvement and Application The ratio of contribution to sales is P/V ratio or C/S ratio. It is the contribution per rupee of sales and since the fixed cost remains constant in short term period, P/V ratio will also measure the rate of change of profit due to change in volume of sales. The P/V ratio may be expressed as follows: P/V Ratio = Sales-Marginal Cost of SalesSales ContributionSales = Changes in ContributionChanges in Sales = Change in ProfitChange in Sales A fundamental property of marginal costing system is that P/V ratio remains constant at different levels of activity. A change in fixed cost does not affect P/V ratio. The concept of P/V ratio helps in determining the following: * Breakeven point * Profit at any volume of sales * Sales volume required to earn a desired quantum of profit * Profitability of products * Processes or departments The contribution can be increased by increasing the sales price or by reduction of variable costs. Thus, P/V ratio can be improved by the following: * Increasing selling price * Reducing marginal costs by effectively utilizing men, machines, materials and other services * Selling more profitable products, thereby increasing the overall P/V ratio 3. Breakeven Point Breakeven point is the volume of sales or production where there is neither profit nor loss. Thus, we can say that: Contribution = Fixed cost Now, breakeven point can be easily calculated with the help of fundamental marginal cost equation, P/V ratio or contribution per unit. a. Using Marginal Costing Equation S (Sales) – V (Variable cost) = F (Fixed cost) + P (Profit) At BEP P = 0, i. e. BEP Sales – V = F By multiplying both the sides by S and rearranging them, one gets the following equation: Sales at BEP = F. S/S-V b. Using P/V Ratio Sales (S) at BEP = Contribution at BEPP/V Ratio = Fixed CostP/V Ratio c. Using Contribution per unit Breakeven Point = Fixed Cost/Contribution per unit 4. Margin of Safety (MOS) Every enterprise tries to know how much above they are from the breakeven point. This is technically called margin of safety. It is calculated as the difference between sales or production units at the selected activity and the breakeven sales or production. Margin of safety is the difference between the total sales (actual or projected) and the breakeven sales. It may be expressed in monetary terms (value) or as a number of units (volume). It can be expressed as profit / P/V ratio. A large margin of safety indicates the soundness and financial strength of business. Margin of safety can be improved by lowering fixed and variable costs, increasing volume of sales or selling price and changing product mix, so as to improve contribution and overall P/V ratio. Margin of safety = Sales at selected activity – Sales at BEP = Profit at selected activityP/V Ratio Margin of safety is also presented in ratio or percentage as follows: Margin of Safety SalesSales at selected activity ? 100% The size of margin of safety is an extremely valuable guide to the strength of a business. If it is large, there can be substantial falling of sales and yet a profit can be made. On the other hand, if margin is small, any loss of sales may be a serious matter. If margin of safety is unsatisfactory, possible steps to rectify the causes of mismanagement of commercial activities as listed below can be undertaken. . Increasing the selling price It may be possible for a company to have higher margin of safety in order to strengthen the financial health of the business. It should be able to influence price, provided the demand is elastic. Otherwise, the same quantity will not be sold. 2. Reducing fixed costs 3. Reducing variable costs 4. Substitution of existin g product(s) by more profitable lines e. Increase in the volume of output 5. Modernization of production facilities and the introduction of the most cost effective technology 5. Degree of Operating Leverage Managers decide how to structure the cost function for their organizations. Often, potential trade-offs are made between fixed and variable costs. For example, a company could purchase a vehicle (a fixed cost) or it could lease a vehicle under a contract that charges a rate per mile driven (a variable cost). One of the major disadvantages of fixed costs is that they may be difficult to reduce quickly if activity levels fail to meet expectations, thereby increasing the organization’s risk of incurring losses. The degree of operating leverage is the extent to which the cost function is made up of fixed costs. Organizations with high operating leverage incur more risk of loss when sales decline. Conversely, when operating leverage is high an increase in sales (once fixed costs are covered) contributes quickly to profit. The formula for operating leverage can be written in terms of either contribution margin or fixed costs, as shown here Degree of operating leverage in terms of contribution margin = Contribution marginProfit = Total Revenue-Total Variable CostProfit P-VQProfit Degree of operating leverage in terms of fixed costs = FProfit+1 Managers use the degree of operating leverage to gauge the risk associated with their cost function and to explicitly calculate the sensitivity of profits to changes in sales (units or revenues): % change in profit = % change in sales x Degree of Operating leverage Managers need to consider the degree of operating leverage when they decide whether to incu r additional fixed costs, such as purchasing new equipment or hiring new employees. They also need to consider the degree of operating leverage for potential new products and services that could increase an organization’s fixed costs relative to variable costs. If additional fixed costs cause the degree of operating leverage to reach what they consider an unacceptably high level, managers often use variable costs—such as temporary labour—rather than additional fixed costs to meet their operating needs. Cost Volume Profit (CVP) Relationship in Graphic Form Apart from marginal cost equations, it is found that the relationships among revenue, cost, profit and volume can be expressed graphically by preparing a  cost-volume-profit (CVP) graph or break even chart. Breakeven chart and profit graphs, which is a development of simple breakeven chart and shows clearly profit at different volumes of sales, are useful graphic presentations of the cost-volume-profit relationship. Breakeven chart is a device which shows the relationship between sales volume, marginal costs and fixed costs, and profit or loss at different levels of activity. Such a chart also shows the effect of change of one factor on other factors and exhibits the rate of profit and margin of safety at different levels. A breakeven chart contains, among other things, total sales line, total cost line and the point of intersection called breakeven point. It is popularly called breakeven chart because it shows clearly breakeven point (a point where there is no profit or no loss). Construction of a Breakeven Chart The construction of a breakeven chart involves the drawing of fixed cost line, total cost line and sales line as follows: 1. Select a scale for production on horizontal axis and a scale for costs and sales on vertical axis. 2. Plot fixed cost on vertical axis and draw fixed cost line passing through this point parallel to horizontal axis. 3. Plot variable costs for some activity levels starting from the fixed cost line and join these points. This will give total cost line. Alternatively, obtain total cost at different levels; plot the points starting from horizontal axis and draw total cost line. 4. Plot the maximum or any other sales volume and draw sales line by joining zero and the point so obtained. Uses of Breakeven Chart A breakeven chart can be used to show the effect of changes in any of the following profit factors: * Volume of sales * Variable expenses * Fixed expenses * Selling price A CVP graph or breakeven chart thus highlights CVP relationships over wide ranges of activity and can give managers a perspective that can be obtained in no other way. Profit Graph Profit graph is an improvement of a simple breakeven chart. It clearly exhibits the relationship of profit to volume of sales. The construction of a profit graph is relatively easy and the procedure involves the following: 1. Selecting a scale for the sales on horizontal axis and another scale for profit and fixed costs or loss on vertical axis. The area above horizontal axis is called profit area and the one below it is called loss area. 2. Plotting the profits of corresponding sales and joining them. This is profit line. Limitations and Uses of Breakeven Charts A simple breakeven chart gives correct result as long as variable cost per unit, total fixed cost and sales price remain constant. In practice, all these factors may change and the original breakeven chart may give misleading results. But then, if a company sells different products having different percentages of profit to turnover, the original combined breakeven chart fails to give a clear picture when the sales mix changes. In this case, it may be necessary to draw up a breakeven chart for each product or a group of products. A breakeven chart does not take into account capital employed which is a very important factor to measure the overall efficiency of business. Fixed costs may increase at some level whereas variable costs may sometimes start to decline. For example, with the help of quantity discount on materials purchased, the sales price may be reduced to sell the additional units produced etc. These changes may result in more than one breakeven point, or may indicate higher profit at lower volumes or lower profit at still higher levels of sales. Nevertheless, a breakeven chart is used by management as an efficient tool in marginal costing, i. e. in forecasting, decision-making, long term profit planning and maintaining profitability. The margin of safety shows the soundness of business whereas the fixed cost line shows the degree of mechanization. The angle of incidence is an indicator of plant efficiency and profitability of the product or division under consideration. It also helps a monopolist to make price discrimination for maximization of profit. Applications of Cost Volume Profit (CVP) Concepts CVP analysis thus involves the analysis of how total costs, total revenues and total profits are related to sales volume, and is therefore concerned with predicting the effects of changes in costs and sales volume on profit. The technique used carefully may be helpful in the following situations: a) Budget planning. The volume of sales required to make a profit (breakeven point) and the safety margin for profits in the budget can be measured. b) Pricing and sales volume decisions. c) Sales mix decisions, to determine in what proportions each product should be sold. d) Decisions that will affect the cost structure and production capacity of the company. e) Make or buy decisions – Analyzing and determining whether it is profitable for a firm to manufacture a particular component or product themselves, outsource the production to others or buy a component/product already available for their use. ) To decide whether or not to close down a factory, department, product line or other activity, either because it is making losses or because it is too expensive to run. This often involves long term considerations, and capital expenditures and revenues. But it can be simplified into short run decisions, by making certain assumptions. g) Assist in determining production or activity levels of employee s and their work schedules. h) Assist in determining discretionary expenditures and product emphasis such as advertising. While this type of analysis is typical for manufacturing firms, it also is appropriate for other types of industries. In addition to the restaurant industry, CVP has been used in decision-making for nuclear versus gas- or coal-fired energy generation. Some of the more important costs in the analysis are projected discount rates and increasing governmental regulation. At a more down-to-earth level is the prospective purchase of high quality compost for use on golf courses in the Carolinas. Greens managers tend to balk at the necessity of high (fixed) cost equipment necessary for uniform spread ability and maintenance, even if the (variable) cost of the compost is reasonable. Interestingly, one of the unacceptably high fixed costs of this compost is the smell, which is not adaptable to CVP analysis. Even in the highly regulated banking industry, CVP has been useful in pricing decisions. The market for banking services is based on two primary categories. First is the price-sensitive group. In the 1990s leading banks tended to increase fees on small, otherwise unprofitable accounts. As smaller account holders have departed, operating costs for these banks have decreased due to fewer accounts; those that remain pay for their keep. The second category is the maturity-based group. Responses to changes in rates paid for certificates of deposit are inherently delayed by the maturity date. Important increases in fixed costs for banks include computer technology and the employment of skilled analysts to segment the markets for study. Even entities without a profit goal find CVP useful. Governmental agencies use the analysis to determine the level of service appropriate for projected revenues. Nonprofit agencies, increasingly stipulating fees for service, can explore fee-pricing options; in many cases, the recipients are especially price-sensitive due to income or health concerns. The agency can use CVP to explore the options for efficient allocation of resources. Project feasibility studies frequently use CVP as a preliminary analysis. Such major undertakings as real estate/construction ventures have used this technique to explore pricing, lender choice, and project scope options. Cost-volume-profit analysis is a simple but flexible tool for exploring potential profit based on cost strategies and pricing decisions. While it may not provide detailed analysis, it can prevent do-nothing management paralysis by providing insight on an overview basis. CVP Analysis Illustrations Unit in Expansion Mode In an expanding market, managers take advantage of fixed costs to generate profitable growth as additional customers do not add much additional costs. In such cases cost structure dominated by fixed cost structure is a smart managerial decision. Whenever a decision is to be taken as to whether the capacity is to be expanded or not, consideration should be given to the following points: * Additional fixed expenses to be incurred * Possible decrease in selling price due to increase in production * Whether the demand is sufficient to absorb the increased production Based on these considerations, the cost schedule will be worked out. While deciding about the contraction of business, the saving in fixed expenses and the marginal contribution lost will have to be taken into account. If a branch office is to be closed down, and if the branch is giving a marginal contribution sufficient to cover fixed expenses the contraction may lead to a loss. Example: Branch B Sales – `20000 P/V Ratio – 20% Marginal contribution – `4000 Fixed expenses of the branch – `3000 The branch is giving an extra contribution of `1000. If it is closed, the fixed expense saving is `3000, whereas the contribution lost is `4000. Hence it is not advisable to contract the business by closing down the branch. Illustration 1 Nice and Warm Ltd. , manufactures and markets hot plates. During the first five years of operation, the company had experienced a gradual increase in sales volume, and the current annual growth in sales of 5% is expected to continue into the foreseeable future. The plant is now producing at its full capacity of one lakh hot plates. At the monthly Management Advisory Committee meeting, amongst other things, the plan of action for next year was discussed. Managing Director proposed two alternatives. First, operations could be continued at full capacity and with the existing facilities an output of one lakh hot plates at a selling price of `100 per unit could be maintained. Secondly, production and sales could be increased by 5% to take advantage of the rate of expansion in demand for the product. But this could increase cost, as to achieve this output the company will have to resort to weekend and overtime workings. However, a policy of steady growth was preferable to maintaining status quo. In view of the company’s competitors having a substantial share of the market, the Works Director was of the view that it was not enough for the company to maintain merely the present share of the total market. A larger share of the total market should be obtained. For that, the company should increase the production by 10% through a modest expansion of plant capacity. In order to sell the output of 110000 units, the selling price could be reduced to `95 per unit. Thinking on the same lines, the Marketing Director put forth a more radical proposal. The strategy should be to seize the competitive leadership in the market with regard to both price and volume. With this end in view, he suggested that the company should straight away embark on an expensive modernization programme which will initially increase volume by 20%. The entire output of 120000 hot plates could be easily sold at a price of `90 per unit. At this juncture Managing Director expressed concern about the probable behavior of the company’s competitors. They might also expand in order to produce more and sell at lowest prices. Suppose this happened, he wanted also the financial effects of the proposals of the Works Director and the Marketing Director, if in those proposals, the incr

My Worst And Best Friend Essays - Candy, Chocolate, Cooking

My Worst And Best Friend Essays - Candy, Chocolate, Cooking My Worst And Best Friend Sales by Management Responsibilities and Geographic Area Jan.Sep. Jan.Sep. Variation Real Internal Growth 2000 1999 Jan.Sep. 2000 in CHF billion % % TOTAL 59.5 54.4 + 9.5 4.2 Food Europe 19.4 19.8 - 2.0 1.9 Americas 18.0 15.7 + 15.2 3.6 Asia, Oceania and Africa 11.6 9.7 + 18.8 6.9 Other Activities 10.5 9.2 + 14.7 7.2 Vevey, October 20, 2000 As will be announced at the press conference beginning today at 10:30 (CET), the Nestl Group's consolidated sales reached CHF 59.5 billion during the first nine months of 2000, up 9.5 percent over the period January-September 1999. This confirms the generally good perspectives for the full year 2000. At comparable structure and constant exchange rates, sales growth amounts to 4.9 percent. Cumulative real internal growth at the end of September stood at 4.2 percent, even though the comparison basis was clearly more difficult than during the first semester. As expected, exchange rates had a slightly lower positive impact of 5.7 percent, while divestitures, net of acquisitions, lowered the consolidated sales by 1.1 percent. Nestl succeeded in making the necessary price adjustments amounting to 0.7 percent of turnover. European sales were strongly affected by the divestiture of the Findus operation (with annual sales of about CHF 900 million), as well as by the weakening of 1.8 percent of the Euro against the Swiss franc. Sales in the Americas benefitted from exceptionally strong performance in Mexico and a recovery in most Latin American economies. Zone Asia, Oceania and Africa registered continuing good growth in virtually all areas. Sales by Product Group Jan.Sep. Jan.Sep. Variation Real Internal Growth 2000 1999 Jan.Sep. 2000 in CHF billion % % Beverages 16.9 15.3 + 10.9 5.4 Milk/Nutrition 16.2 14.5 + 11.4 2.9 Culinary 15.3 14.6 + 5.0 4.1 Chocolate/ Confectionery 7.6 7.0 + 7.7 1.3 Pharma 3.5 3.0 + 19.7 7.7 Most product groups performed well, with especially strong growth in soluble coffees in Eastern Europe, Asia and Latin America. The water business also grew strongly, notwithstanding adverse environmental impacts (weather conditions in Europe and forest fires in the US). In the culinary sector, chilled products and frozen prepared dishes developed satisfactorily. Milks and nutrition saw good progress, mainly as a result of infant nutrition sales in Asia and of the powdered milk business. Chocolate and confectionery showed a welcome improvement, thanks mainly to Eastern Europe. Pharmaceuticals also experienced strong growth. Based on the figures available at this time, Nestl is confident of its ability to maintain a good growth rate both in sales and in profits for the full year 2000. | Top of Page |

Autism Psa

NAA provides many programs to help support individual with ASD as well as his or her family, including the Helping Hand Program, Big Red Safety, and Progress Research. NAA strives to help the autistic community while offering opportunities to support this cause. Before knowing what NAA is, it is important to have a better understanding of the disability called autism. Autism is a bio-neurological development disability which impacts development of the brain and areas of social interaction, communication skills, and cognitive function. Individuals with autism often have physical limitations such as allergies, asthma, epilepsy, digestive disorders, persistent viral infections, feeding disorders, sensory integration dysfunction, sleeping disorders, difficulties with verbal and non-verbal communications, social interactions, and much more. ASD is not just autism it includes other disorders such as â€Å"autistic disorder, Rett syndrome, childhood disintegrative disorder, pervasive developmental disorder-not otherwise specified (PDD-NOS) and Asperger syndrome† (Autism Speaks, 2012). There is much controversy as to why people have autism. The biggest argument is that autism is due to vaccinations because of the chemical exposure. Other exposures to the environment can cause autism if the immune system has certain conditions. Another argument is genetics, but the rate of increase of autism today makes genetics an unlikely reason. It was once believed the way a child is raised by their parents has an influence on autism. A few other arguments include: pesticide exposure, parental age, pharmaceuticals, freeway proximity, and limited prenatal vitamin intake. NAA suggests to families that if they have a child with autism, they should research various causes to become more aware and have a better understanding as to why a child might have autism. NAA has a mission statement that includes: â€Å"The mission of the National Autism Association is to respond to the most urgent needs of the autism community, providing real help and hope so that all affected can reach their full potential. † (National Autism Association, 2012) Having an autistic family member can be a challenge; NAA can help the family members as well as the person with autism in many different ways. NAA helps parents to understand â€Å"You’re Not Alone,† after explaining that they will help you find a support group close to you. This can be through the Yellow Pages or by going online to find a NAA chapter in your area. They also provide some links for support and discussions where you can ask questions, state concerns, or simply talk to others who may be in the same situation. In addition to providing sources to help families find support, NAA has many programs to help afflicted families. Through these programs, NAA’s goals are to strengthen autism families by providing support, giving them up-to-date information on research, funding research, and raising awareness. NAA provides support through the Helping Hand Program, Big Red Safety Box, and Progress Research. The Helping Hand Program is a program that helps families who cannot afford the medical expenses related to their family member with autism. NAA reaches out to families who make less than $50,000 a year by providing financial aid. This can be used for specialized medicines and therapy services for the treatment of autism. The Big Red Safety Box program, when funded, provides a life-saving tool kit at no cost to families with a member with autism. A donor can pay $35 to have a Box provided to a family. The Box provides tools to help keep a person with autism safe in their home. Some items include: education materials and tools, two door/window alarms with batteries, personalized engraved shoe ID tag, five stop signs for doors and windows, safety alert window clings, and a safety alert wristband. NAA supports research for ASD because they believe that one day a cure will be found. NAA’s research fund supports studies which show promise for children suffering now. Research seeks cures, discovers new treatments, answers questions, and promotes progress. Among the many challenges of having a child with autism is keeping the child out of harms way is one of the most difficult. The Big Red Safety Box mentioned earlier provides tools to equip the home with safety accommodations, but there are other dangers to a child with autism. NAA provides information on how to keep the child from wandering, gives advice on how to respond to bullying, and suggests methods for suicide prevention. A California research team showed that mortality of people with autism has high numbers in drowning as a result of wandering; in addition, there are other wandering factors that are the cause of death. NAA provides twelve ways to prevent ASD wandering. First, the caregiver should understand wandering patterns and prevent anything that would cause the person to wander. Second, teach the child about safety by showing pictures or use simple explanations familiar to the child. Third, secure the home with door and window alarms or even fencing in the yard. Fourth, have the child wear a wrist band or anklet with a tracking device in case of emergency. Fifth, have the child wear a medical ID bracelet with his or her name and telephone number and other important information. Sixth, enroll the child in swimming lessons. NAA provides a list of YMCAs that are available for special needs swimming lessons. Seventh, alert neighbors that the child may wander, and who should be notified when they see this. Eighth, alert first responders, so that if something may happen, they can improve response with the information given to them. Ninth, have a â€Å"tag, you’re it† strategy, where the child tags the closest adult who then becomes the person watching the child closely. Tenth, secure external settings such as school or camp know policies and inform teachers about wandering. Eleventh, learn from others by researching or asking people who also have children with autism. Twelfth, never have s false sense; as the child grows up, he or she will learn new things and have more abilities, so be sure to make changes as they grow and learn. These twelve steps can help prevent ASD wandering, and keep the child safe. Bullying is a serious issue in schools, especially in relation to students with autism. Children with disabilities are two to three times more likely to be bullied. There are multiple forms of bullying, and each one can be detrimental to a child’s learning and future. NAA has resources and provides information about bullying for parents of a bullied child and the student who is being bullied. NAA also provides information on suicide prevention and gives help via sources such as suicidepreventionlifeline. org. Whether a person has a family member with a form of ASD or ASD touches the heart, help can be provided in various ways. NAA helps the autistic community but they need donations and support to continue to do so. NAA provides a venue to collect donations. This can be done in honor of someone. The donor may choose to purchase items at NAA’s â€Å"Little Shop of Hope,† where the proceeds benefit NAA. It is possible to start an online fundraising site or choose rom other methods of raising funds. ASD affects more children than any other childhood disorder, yet it is the least funded disorder. Helping raise awareness of NAA can provide more resources for research to assist members of the autistic community. NAA is an organization that provides assistance to those in the ASD community. Because of NAA’s many ways of support, the autistic community is pro gressing to becoming more informed and supported. Autism is a large part of the world, and until there is a cure it will continue to be. It is important to remember that NAA needs the communities support to continue on in their Mission â€Å"to respond to the most urgent needs of the autism community, providing real help and hope so that all affected can reach their full potential† (National Autism Association, 2012). Works Cited â€Å"National Autism Association. † National Autism Association. N. p. , 2012. Web. 01 Oct. 2012. http://nationalautismassociation. org/. â€Å"Autism Speaks. † Autism Speaks. N. p. , 2012. Web. 01 Oct. 2012. http://www. autismspeaks. org/.

Effective Leadership Traits Assignment Example | Topics and Well Written Essays - 750 words

Effective Leadership Traits - Assignment Example The leaders should avoid panicking even though the situation does not work according to their expectations. Effective leaders should always work hard to assure their teams that everything is in control and that challenges always expected, but the most imperative thing is to focus on the main goal of the organization (Wart, 2012). The workers imitate their leaders; therefore, calm leaders will make workers calm and keep them working for better performance. Â  According to Wart (2012), effective leaders should be committed to performing their duties such as motivating their team and leading by example. A responsible leader sets the organizational goals and communicates them to their team. They build the capacity of the workers to pursue those goals by providing them with appropriate resources and motivating the workers to pursue organizational goals. Responsible leaders mobilize the organizational resources for the achievement of organizational goals and helping the workers to develop their careers and achieve self-fulfillment (Morse et. al., 2007). Therefore, effective leaders should have concern for both the organization and the workers by ensuring they grow together. Â  A leader is someone who has a vision of what the organization intends to achieve within a specified period both in the long-run and in short-term (Wart, 2012). There is a vacuum of knowledge between the leader and his or her team until that leader shares the vision with the team members. Effective leaders should be able to disseminate the knowledge they have to their team in a clear and concisely in order to enable them to move in the same direction.

Television is the most important source of news for young people Essay - 2

Television is the most important source of news for young people today. To what extent do you agree - Essay Example Therefore, television is no longer the most important source of news for the young people. This paper will present an argument on the decrease in the number of young television users and how the means of presenting the news have changed. Firstly, the conventional news on the television has become very unpopular among the young people as the number of skeptics has increased. According to recent polls in the United States, only one in every four Americans believes information they see on the main news channels (Dimmick & Hoplamazian, 2011). This is due to the increase in the number of news sources as well as the improvement in communication between different parts of the world making the one sided nature taken by most news channels very obvious and hence tarnishing their credibility among the citizens. More young people are now turning to alternative media for the news which they believe is less biased and has no interest in brainwashing them (McCombs et al., 2011). There is also the fact that the young population is no longer glued on to the television set like in the past decades. The nature of television whereby individuals have to sit and watch programs in a sequential process is no longer popular as the internet gives viewers the ability to access the exact information and program which they wish to view (Dimmick & Hoplamazian, 2011). There are also several other advantages on the internet which has made television a less popular news source. Individuals can follow different events through social networks. The young population today is extremely active on social networks and the application features that are constantly upgraded make these the ideal platforms for relaying news to the community. In fact all news channels have a page on a popular social network such as Facebook, Twitter or instagram. According to studies there are approximately 760 million daily Facebook users (Broersma &Graham,