Management accounting for business Essay Example | Topics and Well Written Essays - 1500 words

Management accounting for business - Essay Example It needs to be fully aware of the costs it takes to run the business, to produce and to distribute its products. It also needs to have the knowledge of different methods of cutting down the costs in order to design an effective pricing strategy, to enhance the profit for its business. In this process, the management has to take many decisions upon choosing best suitable alternatives in different situations. These decisions encompass various steps in a business cycle. They range from deciding upon the right quantity to produce, right price for the product, acquisition, liquidation, investment involving several alternative options. All these decisions rely upon the company’s financial records for the current as well as previous years. This is the step where accounting information is required. Therefore, accounting information needs to be evaluated at the first step of the decision making process because management can be enabled to decide upon different alternatives only if the company’s complete accounting information is readily available. The management is the major user of accounting information who uses this information to decide upon choosing different alternatives to influence the product costs so as to fix a price for that particular product. Management uses cost accounting to determine the accurate costs incurred in producing and distributing a product. These costs may be Avoidable costs that can be reduced fully or partially by choosing an alternative or they may be relevant costs that differ between various alternatives and here, the management has to enter into the decision-making process. Therefore, the accounting information required in the management and organisational decision making process must include the following steps to deal with the constraints, as given by Goldratt, E.M. (1990) in the theory of constraints: The accountants should identify the

Financial Statement summary of your analysis Essay

Financial Statement summary of your analysis - Essay Example These ratios reveal the bottom line of the company and the returns it offers to its investors (Kieso et al. 2011). Profitability ratios show the general efficiency and performance of the company. Net profit ratios increased from 9.48% in 2012 to 9.76% in 2013 indicating an increase in profitability. It decreased from 9.76% in 2013 to 9369% in 2014 indicating a reduction in performance of the company. Generally, the company’s performance and efficiency,  its operations have fluctuated throughout the period. Compared to the industry, Nike is less profitable because its ratios are lower than those of the competitors. This category of ratios shows how well a company is managing its liabilities. They also show how effectively a company is using its assets to generate revenues (Wahlen et al. 2010). The days sales outstanding decreased from 49days in 2012 to 44.9 days in 2012. This implies that Nike is profitable to convert its sales into cash quickly. In 2014, it increased to 45.1days from 44.9 days in 2013, implying a reduction in profitability due to slow conversion of sales into cash. Inventory turnover increased to 7.72 in 2013 from 7.24 in 2012 meaning it used fewer inventories to generate more revenue. In 2014, it used more inventories to generate less revenue since inventory turnover reduced from 7.27 in 2013 to 7.04. Total asset turnover decreased in 2013 to 1.44 from 1.50 in 2012 and increased to 1.49 in 2014 from 1.44 in 2013. Nike is more efficient in its operations than the industry average; it uses fewer assets and inventories to generate more revenues unlike other firms in the industry. It also collects its receivable more quickly than the competitors (Kapil, 2011). Debt ratios determine the long-term solvency of the company (Warren & Reeve, 2009).   The debt to equity ratio increased from 0.48 in 2012 to 0.58 in

Rebranding to Queens Museum of Art Essay Example | Topics and Well Written Essays - 1500 words

Rebranding to Queens Museum of Art - Essay Example The paper tells that despite housing the current Queens Museum, the New York City Building has served numerous purposes including housing the first United Nations General Assembly headquarter between 1946 and 1950. Afterwards, the building was remodeled for reasons of accommodating the New York City Pavilion at a different World’s Fair. For most New Yorkers, the southern half of the New York building has great memories as it was the place they took their first skating lessons like I and most of my friends did. Since 1952, the southern half occupied an ice-skating rink that has served generation after generation. For the Queens Museum of Arts, the foundation year was 1972 and the museum has been occupying the Northern half of the New York City building. The museum’s growth is mostly attributed to the World’s Fair attractions and proudly incorporates the original fair exhibits. From the 1964’s Fair, the four prominent and still standing attractions to the Mu seum are gigantic steel sphere, towers seemingly capped with flying saucers and two rocket ships. According to Harpaz, each of the landmarks has a meaning. For the two rocket ships, they represent an era during which NASA had the great quest for space exploration and have man landing on the moon’s surface. These rocket ships are found outside the New York Hall of Science in Queens. The steel sphere of the globe or the Unisphere is a globe made from steel and comprising 12-stories. The Unisphere is located in Flushing Meadow’s Park outside the museum. The towers seemingly topped with flying saucers form the New York State Pavilion. Founded by Phillip Johnson, the Pavilion was established to embody the world’s hope for the future as well as for New York State to be a cultural and Technological Center. In 1964-1965, The United States of America was anticipating having a man land on the moon but these ambitions tampered news like an assassination of President John F Kennedy, Vietnam Casualties, and turbulent civil rights clashes. This monumental concrete structure comprised of a theatre, 100-foot high open-air egg-shaped ring, and three surveillance towers.

Army Values Essay Example for Free

Army Values Essay In the US Army we are taught to live up by the 7 ARmy Values. They are broken down to us in the acronym LDRSHIP. Loyalty Bear true faith and allegiance to the U.S Constitution, the Army and other soldiers. Duty Fulfill your obligations. Respect Treat people as they should be treated. Selfless Service Put the welfare of the nation, the Army and your subordinates above your own. Honor Live up to the army values. Integrity Do whats right legally and morally. and Personal Courage Face fear, danger or adversity (physical or moral). All 7 values have an impact on each other, and are integral part of ones moral standing. In my personal opinion, Loyalty means being a person that other’s can count on. That when the time comes, you will be there to do what needs to be done. You will be true and faithful to them no matter the outcome. If that loyalty is not observed by both parties involved however, then that sense of loyalty may eventually change or even fade. Duty to me is accomplishing a task that needs to be done, no matter how much you’d rather be doing something else. Whether you love it or hate it. The task is there to be done. If one does not fulfill their duties on a regular basis, then those around them have to pick up the slack, and any sense of loyalty begins to become tarnished. Everyone wants to be respected. It’s in our nature, but in order to obtain respect, first of all†¦.one has to respect oneself. Second, one has to show respect to others in order to gain respect from them. If one doesn’t show respect to someone, that person may often feel slighted and lose.

Market Segmentation Essay Example for Free

Market Segmentation Essay An organization cannot satisfy all the needs and wants of all the consumers. Therefore, Market is divided into different segments so an organization can focus on the needs and wants of the specific consumers who share similar needs and demonstrate similar buyer behavior. In the world, there are different types of buyers with their own needs and behavior. Segmentation is the process to match groups of the purchasers with same needs and wants. Market segmentation: The division of a market into different groups or the process of splitting customers in a market into different groups or segments, within which customers show similar buying behavior and share a similar level of interest in the same set of needs and wants satisfied by a marketer is called Market segmentation. Reasons for segmentation of market: The reason for segmenting a market is to allow your marketing program to focus only on the segment that is most likely to buy your offering. Market segmentation makes possible how to use marketing mix for different target markets. A company is then able to determine which groups of customers are best suited to serve and which product and service offers will meet the needs of the customers and will satisfy them. Therefore, the main objective of segmentation must be how to win and retain the customers you want to serve. If the segmentation process is done properly then it will insure the maximum return for your marketing and sales expenditures, depending on what you are selling and whether you are selling your offerings to individual consumers or a business. Levels of Market Segmentation †¢Segment Marketing †¢Individual Marketing †¢Niche Marketing †¢Local Marketing Segment Marketing: Dividing the market into different segments on the basis of homogenous need. Segmented on basis of broad similarity with regard to some attributes. Segmentation is also sometimes identifying, capturing retaining potential new markets. Individual Marketing: Extreme marketing in which marketers focus on individual customers. Keep track of individual tastes preferences of individual customers. Many companies are approaching individuals through e-mails to promote their products. Niche Marketing: Marketer’s effort to position their product or service in smaller markets that have similar attributes and have been neglected by other marketer. Segment further divided into sub segments to cater unsatisfied needs of small group is called as niche. Local Marketing: Marketers offer customized products to suit the local markets. McDonalds introduced â€Å"Muslimized† or â€Å"Arabic† products such as Big Mac, Halal Chicken, Mac Arabia, and more†¦ Variables to Segment the Market: There are a number of segmentation variables that allow an organization to divide their market into homogenous groups. These variables will be discussed briefly below: †¢Geographic †¢Demographic †¢Psychographic †¢Behavioral Geographic segmentation It is based on regional variables such as region, climate, population density, and population growth rate. Geographic segmentation divides markets into different geographical areas. Marketers use geographic segmentation because consumers in different parts of world vary in characteristics and behaviors. An area can be divided by the town, the region or the country. If you are an organization working on a global scale you may divide by global regions such as Europe, North America, South America, Asia and Africa. Example: McDonalds globally, sell burgers aimed at local markets, for example, They also offer vegetable burgers in India due to lots of vegetarians and burgers are made from lamb in India rather than beef because of religious issues also. In Mexico more chili sauce is added and so on. In Muslim countries halal food is offered. In Arabic countries Arabic food is offered like Mc Arabia. Demographic Segmentation It is based on variables such as age, gender, ethnicity, education, occupation, income, and family status. Demographics originate from the word ‘demography’ which means a ‘study of population’. The population can be divided into age, gender, income, and family lifecycle amongst other variables. As people age their needs and wants change, some organizations develop specific products aimed at particular age groups. Gender segmentation is commonly used within the cosmetics, clothing and magazine industry. Income segmentation is another strategy used by many organizations Products and services are also aimed at different lifecycle segments. Examples: ïÆ'ËœFor different age groups: Nappies for babies, toys for children, clothes for teenagers and so on. Introduction of Maxim, (www.maxim-magazine.co.uk)A male lifestyle magazine covering male fashion, films, cars, sports and technology. Psychographic Segmentation: oIt is based on variables such as values, attitudes, opinions, interests, personality and lifestyle. oIt is used highly in the hospitality industry oVALS (Values And Lifestyles) Principle Oriented- principles or beliefs rather than feelings, events, or desire for approval. Status Oriented- status or other people’s actions, approval, or opinions. ï‚ §Action Oriented- action prompted by a desire for social or physical activity, variety, and risk taking. Behavioral Segmentation: It is based on variables such as usage rate and patterns, price sensitivity, brand loyalty, and benefits sought. It refers to why people purchase a product or service. How will the product enhance their overall lifestyle? Occasion is another variable. When should a product be purchased? Occasion segmentation aims to increase the ‘reason to buy factor’ and thus increase sales. Usage rate divides customers into light, medium and heavy users. Heavy users obviously contribute more to turnover then light or medium users, the objective of an organization should be to attract heavy users who will make a greater contribution to company sales. It is based on benefits people seek when buying a product. It is based on Total satisfaction from a service rather than individual benefits. Examples: When someone is going out to dinner McDonalds and local restaurant will not come in the same breathe for choices of where to go. When purchasing a computer the benefit sought will be of ‘ease of use’. ïÆ'ËœThe demand for turkeys increases during Christmas, flowers and chocolates on mother’s day and so on.

Issues of Adverse and Moral Selection

Issues of Adverse and Moral Selection MUKHTAR MUHAMMAD AHMAD DISTINGUISH BETWEEN ADVERSE AND MORAL SELECTION, AND HOW A FIRM MIGHT OVERCOME EACH PROBLEM Adverse selection can be said as the process that occurs when seller valued goods more highly than the buyer does, because the seller has the full information and understanding about the good. Due to this information known by the seller, the seller is unwilling to part with the goods for any price lower than the value the seller knowns it has. On the other hand, the buyer who has no any information about how good the product is, is unwilling to pay more than expected of the good, which take into account the possibility of getting a bad piece. It is the Asymmetry information prior to the transaction that prevent the transaction from happening. If both the seller and the buyer were not sure of the quality, they would be willing to trade based on its actual value. Moral hazard, is usually seen as services such as insurance and warranties. In this case, when the deal is done, one of the party involved in the deal (in this case, the person purchasing the insurance) may be less careful because he/she has the insurance, thus is not expected to the full cost the losses insured. Example, a person with an insurance against theft may not border about closing all what is necessary when leaving the house, here, it is not the prior information that either party has ,but due to lack of information that the insurance company has in providing and controlling the risk taking behavior that can leads to the market failure. Lets look into adverse selection in details especially in the case of insurance. Adverse selection; can also be said as the selection originally used in insurance. Its describe a situation where in an individuals demand for insurance (The propensity to insurance and quantity purchased) is possibly the individuals risk of loss (higher risk buy more insurance), and the insurer is unable to allow for this correlation in the price of insurance. This may be because of an information known only to the individuals. (Information Asymmetry), or because of regulation or social Norms which prevent the insurer from using certain categories of known information to set price (For example, gender, genetic, test or pre existing medical conditions. The last of which amount to a 100% risk of losses associated with the treatment of the condition).The letter scenario is sometimes referred to as regulatory adverse selection. The potential adverse nature of the phenomenon can be described as the link between the smoking status and mortality of those not smoking, on the average, are more likely to live longer, while smokers on average are more likely to die younger. If the insurer did not distinguish the prices for life insurance according to the smoking status, life insurance would be better buy for smokers than does not smoking. In this case, the smokers may be more willingly to buy insurance or may tent to buy larger amount of the insurance than the does not smoking, there by raising the average mortality of the combined policy holder group above that of the general population. From the insurers view point, the higher mortality of the group which select to buy insurance is adverse. The insurer raises the prices the insurance accordingly and as a consequences, does not smoking may be less likely to buy insurance (Or may buy smaller amounts) than they would buy at a lower prices reflectively to their lowe r risk. The reduction in the insurance purchases by does not smoking is also adverse from the insurers view point, and may be also from public policy view points. Furthermore, if there is a range of increasing risk categories in the population, the raise in the insurance prices because of adverse selection may leads to the lowest remaining risk to cancel or not renew their insurance. This promote a further raise in price, and so on. Eventually this adverse selection death spiral might in theory leads to the collapse of the insurance market. SOLUTION TO ADVERSE SELECTION PROBLEM Alternative solution to the effects of adverse selection to the insurers (to the extent that law permit) ask a randomely question requesting medical or other reports on individual who apply to buy insurance so that the price quoted can be varied accordingly, and any unreasonable highly or unpredictable risk rejected. This risk selection method is known underwriting in many nations, insurance law incorperate as utmost good faith doctorine. Which requires potential customers to answer any underwriting question asked by the insurer fully and honesty; if they fail to do so, the insurance may refused to pay the claim. While adverse selection in theory seems a clear and inevitable consequences of economic incentives, empirical is mixed. Several studies investigating correlations between risk and insurance purchased has fail to show the predicted possible correlation of life insurance. On the other hand, positive test result in adverse selection have been reported in health, long term care and annuity market. These possible result tent to be based on demonstrating more subtle relationship between risk and purchasing behavior (such as between mortality and whether the customer chooses a life annuity which is fixed or inflation linked), rather than simple correlations of risk and quantity purchased. MORAL HAZARD Moral Hazard is a situation in which a party is more likely risk because the cost that could be result which not be borne by the party taking the risk. In other words, it is a tendency to be more willing to take the risk, knowing that the potential borden of taking such risk will be born in whole or in potentially by others, A moral Hazard may occur where the actions of one party may changes to Sthe detriment of another after the financial transaction has taken place. Moral Hazard arises because an individual or institution does not take the full consequences and responsibility of its actions, and therefore, has a tendency to act less careful than its otherwise would leaving another party to hold some responsibility for the consequences of those action. Economists explain Moral hazard as a special case of information asymmetry, a situation in which one party has a wider information than the other in particular moral hazard may occur if the one that is been cheated from the risk has more information about the action and intention than the one paying for the negative consequences of the risk, more broadly, moral hazard occurs when the one with more knowledge about its action or intention has a tendency or incentive to behave inappropriately from the perspective of the one with less information. Moral Hazard is also arises in a principal Agents problem, where one party, called an agent acts on behave of another individual called principal. Usually have the knowledge about his action than the principal agents does due to the principal. Usually can not completely monitor the agents. The agents may have incentive to act inappropriate way. (From the view point of the principal) if the interest of the agents are the principal are not alligned. SOLUTION TO MORAL HAZARD Alternative way a firm can solve a problem of Moral hazard is the major aspect of the insurance deals with the effect of the availability of insurance on the level of care exercised by the insured to reduced the probability of loss. When an insured policy is not available like in the case of theft, an economic agent could devoted time to watch his property. At the extreemed, he could insure that the probability of losses was zero, but the cost of such strategy would likely be prohibitive. For example, the optimal action is to be expand on effect less than that require to reduce. The probability of theft to zero and hence, to bear the some risk. If we assumed the economic agents are risk averse, they would be willing to pay for transferred of risk to another Agents thereby enhancing their welfare. This transferred of risk is obtained through the purchase of an insurance policy. In conclusion, Adverse selection is the selection before the deal or transaction is done in which the person with the product or selling, valued and worth the good than the buyer in the sense, the seller has the better understanding and knowledge about the good and buyer who with less information about the good, would just purchase it based on his own assumption of the quality of the goods. and here, to counter such problem, the seller would have to emphasize more of his products and try to study the consumer behavior before getting into any transaction. while Moral hazard on the other hand, is the situation that occurs when the transaction is done that is, when the deal is done. One of the party in the transaction. here, the person taking the risk is more likely to be the one with the full information in the transaction and acted less carefully knowing that he would not bear the full losses alone thereby, affecting the one with less information about the transaction without his cons ents. To solve such problem, the insurer has to have an agreement on the facts that, the one that acted carelessly would likely be the one to bear more losses. That would make the one with more information to be more serious in the deal and avoiding any lapses that would occur after the deal is done.

The Use of Creatine in Sports Essay -- Athletics Steroids Drugs Sports

The Use of Creatine in Sports The first weeks of my senior season of football were the toughest times I had ever had in my life. We had two practices a day. We had one practice early in the morning, and one late in the afternoon. Physically, I wasn't at a level like most of my teammates. I felt like I couldn't do anything on the high school level; plus I was being thrown around like a rag doll. I needed something that would help me reach my potential. That's when I tried creatine. I started out taking small doses of creatine as an energy booster before practice, noticing that I wasn't getting tired and out of breath like I once was. I continued to use the supplement before I did any type of exercising activity, although I never exceeded the daily amount. I used the supplement for about three weeks, noticing muscle development and body fat loss all over my body. Gradually, I started reducing my dose each day until my supply was gone. In my short three weeks of taking creatine, I gained about 4-5 pounds of lean muscle. I was being noticed in practice and was getting more playing time in games. I was still unsure about what consequences I would have to face if I continued to use the substance. I needed to know more. Everything has a price; l wanted to figure out what mine could be.   Ã‚  Ã‚  Ã‚  Ã‚  It's been called the drug that separates the great from the greatest. It has helped athletes all over the world reach their potential. Creatine is an all natural food and supplement drug that works like anabolic steroids without the side effects. It has the capability to help produce muscle mass, energy, and speed all in one pill. Over the past few years, creatine has become a controversial issue in the athletic world. A lot of research has been put into creatine although long-term effects are left unknown, leaving the controversial question of whether creatine should be legal or illegal. Being a former user of creatine showed me how I could maximize my potential athletic ability, although leaving me cynical about harm to my body. I wanted to know more specifically how it works on the chemical level and major side effects and precautions I should take if I were going to continue using the supplement. The only way for my to find the answers to my questions was with research. I began interviewing people who knew more about creatine while at the same time I began my own rese... ...arch 12, 1999 Bernards, Neal. War on Drugs. San Diego: Greenhaven Books, 1990. Creatine and Muscle Building. [Online] Available   Ã‚  Ã‚  Ã‚  Ã‚  http://www.mayohealth.org/mayo/askdiet/na/get960901.htm, April 14, 1999. Creatine FAQ’s. [Online] Available   Ã‚  Ã‚  Ã‚  Ã‚  http://www.nutrasense.com/nutrasense/creatine.html, March 13, 1999. Dreyfuss, Ira. [Online] Available   Ã‚  Ã‚  Ã‚  Ã‚  http://www.nando.net/newsroom/aploth/1996/mor/feat/archive/091596/mar/75430.html, March 15, 1999. High Power Creatine. [Online] Available   Ã‚  Ã‚  Ã‚  Ã‚  http://www.whole-salecreatine.com/1013/faq.htm Jalloh, Ali. Telephone interview. 27 April. 2000. Klein, Scott. Creatine. [Online] Available   Ã‚  Ã‚  Ã‚  Ã‚  http://nimbus.ocis.temple.edu/~sklein/#ABOUT, May 6, 1998 London, David. Creatine Concerns in England. [Online] Available   Ã‚  Ã‚  Ã‚  Ã‚  http://www.usatoday.com/sports/soccer/wc98/full/wc98.htm, April 5, 1999. Marks, Alexandra. â€Å"Schools Wrestle with ‘Bulk in a Bottle’†. The Christian Science Monitor. September 30, 1998. Mumby, Chris. Personal interview. 2 Mar. 1999. Potratz, Adam. Personal interview. 3 Mar. 1999. Sahelian, Ray. Creatine Nature’s Muscle Builder. [Online] Available   Ã‚  Ã‚  Ã‚  Ã‚  http://www.raysahelian.com/creatine.html, March 12, 1999.