Management Accounting

Overall requirement * Explain how management accounting can supply information to assist the management of the organisation. * You are not required to investigate and report on the organisation’s actual management accounting system (even if you can find out). * You are to write a 1500 word report as though you were a management consultant writing to the board of directors. * WE DO NOT WANT ANY NUMBERS UNLESS YOU CREATE THEM TO DEMONSTRATE AN IDEA * This is like assessment 1a – you are to imagine and create! This is a report * It has an introduction A main body (see the next slides) * A conclusion How your marks will build up * Background to the organisation showing good reading of appropriate sources 25% * Review of the nature and role of management accounting 10% * An analysis of the organisation, showing its information needs, the management accounting techniques it might use and decisions it could then make. 50% * The strengths and weaknesses of your analysis  œ for example the additional information you would have liked in order to improve your analysis. 15% Background to the organisation The reason for this is to introduce your organisation (briefly) and to show what a manager in this organisation will do. Later you will show how m. a. helps. * A manager will make decisions about the organisation’s products, processes etc. – therefore your introduction will cover this. * This introduction will reveal the kind of problems that your organisation faces and must overcome. * We do not want the history of the organisation and any information that you will not use later. * Choose your organisation carefully – one that you can understand. You need to be able to imagine the kinds of decisions that a manager might make. Review of the nature and role of management accounting * A definition (with reference) * Some idea of what management accounting does and what it does not do. * Some examples of the techniques and methods of m. a. * You have been studying this since week 5 and so it should not be a problem * DO NOT TRY TO BE TOO CLEVER. IN PREVIOUS YEARS STUDENTS HAVE MENTIONED ABC, JUST IN TIME AND THROUGHPUT ACCOUNTING. Do not do this as you probably do not understand these techniques and will only show that this is so. Keep to what you know! An analysis of the organisation, showing its information needs, the management accounting techniques it might use and decisions it could then make. * This is the hard part that attracts the most marks * You are to link part 1 and part 2 – you organisation’s needs to the techniques and methods of management accounting * What does m. a. Do that will help this organisation? * How can it improve processes? * How can it compete better? * How can it choose between products? * How can it use m. a. for pricing? Planning, controlling, motivating, organising etc * Difficult – but you are applying what you have learned to the problems of the organisation. The strengths and weaknesses of your analysis * This was badly done in assessment 1b * WE DO NOT WANT THE S&W OF THE COMPANY * What aspects of your analysis are strong. Where do you feel that your recommendations are strong and secure? Give examples. * Where do you feel your recommendations are weak perhaps due to lack of information about the company or lack of your knowledge and experience of management accounting. Give examples. Management Accounting Use the following to answer question 1: Marger, Inc. , provided the following data for two recent months: [pic] |1. |Which of the following classifications best describes the behavior of Cost T? | |A) |Variable | |B) |Fixed | |C) |Mixed | |D) |None of the above | 2. |The following data pertains to activity and maintenance costs for two recent years: | | | | | |[pic] | | |Using the high-low method, the cost formula for maintenance would be: | |A) |$1. 50 per unit. | |B) |$1. 25 per unit. | |C) |$3,000 plus $1. 50 per unit. | |D) |$6,000 plus $0. 75 per unit. | |3. Rible Company has observed that at an activity level of 8,000 units the cost for maintenance is $15,000, and at 10,000 units the| | |cost for maintenance is $16,500. Using the high-low method, the cost formula for maintenance is: | |A) |$15,000 plus $0. 15 per unit. | |B) |$9,000 plus $0. 75 per unit. | |C) |$1. 65 per unit. | |D) |$1. 875 per unit. | |4. |Which of the following types of firms likely would have a high pr oportion of variable costs in its cost structure? | |A) |Public utility. | |B) |Airline. | |C) |Fast food outlet. |D) |Architectural firm. | |5. |Factory overhead is an example of a: | |A) |mixed cost. | |B) |fixed cost. | |C) |variable cost. | |D) |irrelevant cost. | Use the following to answer question 6: Buffo Company fabricates metal folding chairs. Data concerning the company's revenue and cost structure follow: [pic] |6. |If Buffo plans to produce and sell 3,000 units next month, the expected contribution margin would be: | |A) |$30,750. |B) |$74,250. | |C) |$26,750. | |D) |$96,500. | Use the following to answer question 7: Frank Company operates a cafeteria for its employees. The number of meals served each week over the last seven weeks, along with the total costs of operating the cafeteria are given below: [pic] Assume that the relevant range includes all of the activity levels mentioned in this problem. |7. |Using the high-low method of analysis, the variable cost per mea l served in the cafeteria would be estimated to be: | |A) |$1. 50. | |B) |$2. 0. | |C) |$2. 80. | |D) |$1. 00. | Use the following to answer question 8: Stewart Company is attempting to classify costs according to their cost behavior. Data concerning activity and costs are listed below: [pic] |8. |If Stewart Company sells 1,150 units in March and this activity is within the relevant range, the expected total cost would most| | |likely be closest to: | |A) |$2,610. 50. | |B) |$1,774. 00. |C) |$4,343. 92. | |D) |$4,384. 50. | |9. |A disadvantage of the high-low method of cost analysis is that: | |A) |it cannot be used when there are a very large number of observations. | |B) |it is too time consuming to apply. | |C) |it uses two extreme data points, which may not be representative of normal conditions. | |D) |it relies totally on the judgment of the person performing the cost analysis. | Use the following to answer question 10: Marger, Inc. provided the following data for two recent months: [pic] |10. |Which of the following classifications best describes the behavior of Cost U? | |A) |Variable | |B) |Fixed | |C) |Mixed | |D) |None of the above | |11. |Fox Company's contribution margin ratio is 20%. If the degree of operating leverage is 15 at the $225,000 sales level, net | | |operating income at the $225,000 sales level must equal: | |A) |$2,250. | |B) |$6,750. | |C) |$3,000. | |D) |$5,063. | |12. |Korn Company sells two products, as follows: | | | | | |[pic] | | |Fixed expenses total $300,000 annually. The expected sales mix in units is 60% for product Y and 40% for product Z. How much is | | |Korn's expected break-even sales in dollars? | |A) |$300,000 | |B) |$420,000 | |C) |$475,000 | |D) |$544,000 | |13. |Brown Company has sales of 2,000 units at $70 per unit. Variable expenses are 40% of the selling price. If total fixed expenses | | |are $44,000, the degree of operating leverage is: | |A) |0. 79. | |B) |1. 40. | |C) |3. 50. | |D) |2. 10. | Use the following to answer question 14: Budget data for the Bidwell Company are as follows: [pic] |14. |If fixed expenses increased $31,500, the break-even sales in units would be: | |A) |34,500 units. | |B) |80,500 units. | |C) |69,000 units. | |D) |94,500 units. Use the following to answer question 15: Evergreen Corp. has provided the following data: [pic] |15. |The number of units needed to achieve a target net operating income of $49,500 would be: | |A) |1,238 units | |B) |2,750 units. | |C) |3,200 units. | |D) |2,057 units. | Use the following to answer question 16: A manufacturer of premium wire strippers has supplied the following data: [pic] |16. The company's degree of operating leverage is closest to: | |A) |20. 09 | |B) |7. 73 | |C) |1. 86 | |D) |55. 64 | Use the following to answer question 17: Consider the following budgeted data f or Urqhart Corporation: [pic] |17. If the unit contribution margin is increased by 10%, the total fixed expense is decreased by 20%, and all other data remain as | | |in the budget, net operating income will be: | |A) |$102,500. | |B) |$105,000. | |C) |$ 90,000. | |D) |$ 93,750. | Use the following to answer question 18: The costs of publishing a grade school textbook can be assumed to be as follows: [pic] Each book sells for $10 per copy. |18. |The unit contribution margin for each copy of the book is: | |A) |$5. 5. | |B) |$4. 15. | |C) |$5. 40. | |D) |$7. 15. | |19. |If a company decreases the variable expense per unit while increasing the total fixed expenses, the total expense line relative | | |to its previous position will: | |A) |shift downward and have a steeper slope. | |B) |shift downward and have a flatter slope. | |C) |shift upward and have a flatter slope. | |D) |shift upward and have a steeper slope. | Use the following to answer question 20: A company that makes organic fertilizer has supplied the following data: [pic] |20. |The company's degree of operating leverage is closest to: | |A) |3. 50 | |B) |1. 49 | |C) |9. 54 | |D) |2. 41 | |21. Trumbull Company budgeted sales on account of $120,000 for July, $211,000 for August, and $198,000 for September. Collection | | |experience indicates that none of the budgeted sales will be collected in the month of the sale, 60% will be collected the month| | |after the sale, 36% in the second month, and 4% will be uncollectible. The cash receipts from accounts receivable that should be| | |budgeted for September would be: | |A) |$169,800. | |B) |$147,960. |C) |$197,880. | |D) |$194,760. | Use the following to answer question 22: Young Enterprises has budgeted sales in units for the next five months as follows: [pic] Past experience has shown that the ending inventory for each month should be equal to 10% of the next month's sales in units. The inventory on May 31 fell short of t his goal since it contained only 400 units. The company needs to prepare a Production Budget for the next five months. |22. |The desired ending inventory for August is: | |A) |540 units. |B) |680 units. | |C) |720 units. | |D) |380 units. | Use the following to answer question 23: Balmforth Products, Inc. makes and sells a single product called a Bik. It takes three yards of Material A to make one Bik. Budgeted production of Biks for the next five months is as follows: [pic] The company wants to maintain monthly ending inventories of Material A equal to 20% of the following month's production needs. On January 31, this target had not been attained since only 2,000 yards of Material A were on hand. The cost of Material A is $0. 80 per yard. The company wants to prepare a Direct Materials Purchases Budget. |23. |The desired ending inventory of Material A for the month of March is: | |A) |9,300 yards. | |B) |7,140 yards. | |C) |3,100 yards. | |D) |8,400 yards. | Use the following to answer question 24: The Gomez Company, a merchandising firm, has budgeted its activity for December according to the following information: * Sales at $500,000, all for cash. * Merchandise Inventory on November 30 was $250,000. * The cash balance at December 1 was $20,000. Selling and administrative expenses are budgeted at $50,000 for December and are paid for in cash. * Budgeted depreciation for December is $30,000. * The planned merchandise inventory on December 31 is $260,000. * The cost of goods sold represents 75% of the selling price. * All purchases are paid for in cash. |24. |The budgeted cash receipts for December are: | |A) |$125,000. | |B) |$375,000. | |C) |$530,000. | |D) |$500,000. | Use the following to answer question 25: Young Enterprises has budgeted sales in units for the next five months as follows: [pic] Past experience has shown that the ending inventory for each month should be equal to 10% of the next month's sales in units. The inventory on May 31 fell short of this goal since it contained only 400 units. The company needs to prepare a Production Budget for the next five months. |25. |The beginning inventory in units for September should be: | |A) |460 units. | |B) |6,800 units. | |C) |540 units. | |D) |680 units. | Use the following to answer question 26: May Company, a merchandising firm, has budgeted sales as follows for the third quarter of the year: [pic] Cost of goods sold is equal to 65% of sales. The company wants to maintain a monthly ending inventory equal to 130% of the Cost of Goods Sold for the following month. The inventory on June 30 is less than this ideal since it is only $65,000. The company is now preparing a Merchandise Purchases Budget. |26. |The desired beginning inventory for September is: | |A) |$117,000. |B) |$ 76,050. | |C) |$ 91,000. | |D) |$ 59,150. | Use the following to answer question 27: Smith Company makes and sells a single product called a Pod. Each Pod requires 1. 4 hours of labor at a labor rate of $9. 60 per hour. Smith Company needs to prepare a Direct Labor Budget for the second quarter of the year. |27. |The budgeted direct labor cost per Pod would be: | |A) |$13. 44. | |B) |$9. 60. | |C) |$7. 38. | |D) |$11. 00. | |28. Self-imposed budgets typically are: | |A) |not subject to review by higher levels of management since to do so would contradict the participative aspect of the | | |budgeting processing. | |B) |not subject to review by higher levels of management except in specific cases where the input of higher management is | | |required. | |C) |subject to review by higher levels of management in order to prevent the budgets from becoming too loose. | |D) |not critical to the success of a budgeting program. |29. |Shocker Company's sales budget shows quarterly sales for the next year as follows: | | | | | |[pic] | | |Company policy is to have a finished goods inventory at the end of each quarter equal to 20% of the next quarter's sales. | | |Budgeted production for the second quarter of the next year would be: | |A) |7,200 units. |B) |8,000 units. | |C) |8,800 units. | |D) |8,400 units. | |30. |The Carlquist Company makes and sells a product called Product K. Each unit of Product K sells for $24 dollars and has a unit | | |variable cost of $18. The company has budgete d the following data for November: | | | | | | | | |* Sales of $1,152,000, all in cash. | | | | | | | |* A cash balance on November 1 of $48,000. | | | | | | | | |* Cash disbursements (other than interest) during November of $1,160,000. | | | | | | | |* A minimum cash balance on November 30 of $60,000. | | | | | | | | |If necessary, the company will borrow cash from a bank. The borrowing will be in multiples of $1,000 and will bear interest at | | |2% per month. All borrowing will take place at the beginning of the month. The November interest will be paid in cash during | | |November. | | | | | |The amount of cash that must be borrowed on November 1 to cover all cash disbursements and to obtain the desired November 30 | | |cash balance is: | |A) |$20,000. | |B) |$21,000. | |C) |$37,000. | |D) |$38,000. | Use the following to answer question 31: The following materials standards have been established for a particular product: pic] |31. |What is the materials quantity variance for the month? | |A) |$1,740 U | |B) |$4,350 U | |C) |$4,590 U | |D) |$1,836 U | Use the following to answer question 32: The following standards for variable manufacturing overhead have been established for a company that makes only one product: pic] |32. |What is the variable overhead spending variance for the month? | |A) |$3,010 F | |B) |$3,010 U | |C) |$10,435 U | |D) |$10,435 F | Use the following to answer question 33: The following materials standards have been established for a particular product: [pic] |33. What is the materials quantity variance for the month? | |A) |$5,050 U | |B) |$5,125 U | |C) |$9,292 U | |D) |$9,430 U | Use the following to answer question 34: Arrow Industries employs a standard cost system in which direct materials inventory is carried at standard cost. Arrow has established the following standards for the prime costs of one unit of product. [pic] During May, Arrow purchased 160,000 pounds of direct material at a total cost of $304,000. The total direct labor wages for May were $37,800. Arrow manufactured 19,000 units of product during May using 142,500 pounds of direct material and 5,000 direct labor hours. |34. |The direct material price variance for May is: | |A) |$16,000 favorable. |B) |$16,000 unfavorable. | |C) |$14,250 favorable. | |D) |$14,250 unfavorable. | |35. |Perkins Company, which has a standard cost system, had 500 pounds of raw material X in its inventory at June 1, purchased in May| | |for $1. 20 per pound and carried at a standard cost of $1. 00 per pound. The following information pertains to raw material X for | | |the month of June: | | | | |[pic] | | |The unfavorable materials purchase price variance for raw material X for June was: | |A) |$ 0. | |B) |$130. | |C) |$140. | |D) |$150. | |36. |If variable manu facturing overhead is applied on the basis of direct labor-hours and the variable overhead spending variance is | | |favorable, then the: | |A) |actual variable manufacturing overhead rate exceeded the standard rate. |B) |standard variable manufacturing overhead rate exceeded the actual rate. | |C) |actual direct labor-hours exceeded the standard direct labor-hours allowed for the actual output. | |D) |standard direct labor-hours allowed for the actual output exceeded the actual hours. | Use the following to answer questions 37-38: The Odle Company makes and sells a single product called a Kitt. Odle employs a standard costing system. Each Kitt has a standard cost of 5 pounds of material at $12 per pound and 0. 9 direct labor hours at $15 per hour. There were no inventories of any kind on June 1. During June, the following events occurred: – Purchased 17,000 pounds of material at a total cost of $190,000. – Used 15,000 pounds of material to produce 2,400 Kitts. – Used 1,900 hours of direct labor time at a total cost of $38,000. |37. |To record the incurrence of direct labor cost and its use in production, the general ledger would include what kind of entry to | | |the Labor Rate Variance account? | |A) |$ 9,500 credit. | |B) |$ 9,500 debit. | |C) |$15,200 debit. | |D) |$ 2,000 debit. | |38. |Odle Company purchased material on account. The entry to record the purchase of materials will include a: | |A) |credit to Work in Process. | |B) |debit to Accounts Receivable. | |C) |credit to Accounts Payable. | |D) |credit to Raw Materials Inventory. | Use the following to answer question 39: The Geurtz Company uses standard costing. The company makes and sells a single product called a Roff. The following data are for the month of August: – Actual cost of direct material purchased and used: $65,560 – Material price variance: $5,960 unfavorable – Total materials variance: $22,360 unfavorable – Standard cost per pound of material: $4 Standard cost per direct labor hour: $5 – Actual direct labor hours: 6,500 hours – Labor efficiency variance: $3,500 favorable – Standard number of direct labor hours per unit of Roff: 2 hours – Total labor variance: $400 unfavorable |39. |The labor rate variance was: | |A) |$3,900 favorable. | |B) |$3,900 unfavorable. | |C) |$3,100 unfavor able. | |D) |$3,100 favorable. | |40. |Home Company manufactures tables with vinyl tops. The standard material cost for the vinyl used per Type-R table is $7. 80 based | | |on six square feet of vinyl at a cost of $1. 30 per square foot. A production run of 1,000 tables in January resulted in usage of| | |6,400 square feet of vinyl at a cost of $1. 20 per square foot, a total cost of $7,680. The quantity variance resulting from the | | |above production run was: | |A) |$120 favorable. | |B) |$480 unfavorable. | |C) |$520 unfavorable. | |D) |$640 favorable. | Use the following to answer question 41: The Chase Company has a standard cost system in which manufacturing overhead is applied to units of product on the basis of direct labor-hours (DLHs). The company recorded the following activity and cost data relating to manufacturing overhead for October: [pic] |41. |The fixed overhead budget variance for September was: | |A) |$2,700 favorable. | |B) |$2,700 unfavorable. | |C) |$5,400 favorable. | |D) |$5,400 unfavorable. | Use the following to answer question 42: A furniture manufacturer has a standard costing system based on machine-hours (MHs) as the measure of activity. Data from the company's flexible budget for manufacturing overhead are given below: [pic] |42. What was the fixed overhead budget variance for the period to the nearest dollar? | |A) |$2,440 F | |B) |$1,200 U | |C) |$1,999 U | |D) |$704 F | Use the following to answer question 43: A manufacturing company has a standard costing system based on direct labor-hours (DLHs) as the measure of activity. Data from the company's flexible budget for manufacturing overhead are given below: [pic] |43. |How much overhead was applied to products during the period to the nearest dollar? | |A) |$79,118 | |B) |$76,035 | |C) |$77,440 | |D) |$80,145 | Use the following to answer question 44: The Chase Company has a standard cost system in which manufacturing overhead is applied to units of product on the basis of direct labor-hours (DLHs). The company recorded the following activity and cost data relating to manufacturing overhead for October: [pic] |44. |The amount of fixed overhead cost contained in the company's overhead budget for September was: | |A) |$45,900. | |B) |$54,768. | |C) |$49,920. | |D) |$47,703. | |45. |Baxter Corporation's master budget calls for the production of 5,000 units of its product monthly. The master budget includes | | |indirect labor of $144,000 annually; Baxter considers indirect labor to be a variable cost. During the month of April, 4,500 | | |units of product were produced, and indirect labor costs of $10,100 were incurred. A performance report utilizing flexible | | |budgeting would report a spending variance for indirect labor of: | |A) |$1,900 unfavorable. | |B) |$700 favorable. | |C) |$1,900 favorable. | |D) |$700 unfavorable. | Use the following to answer question 46: Wicks Company has established a flexible budget for manufacturing overhead based on direct labor-hours. Budgeted costs at 100,000 direct labor-hours are as follows: [pic] |46. |If Wicks Company plans to operate at 90,000 direct labor-hours during the next period, the flexible budget would show indirect | | |labor costs of: | |A) |$144,000. | |B) |$63,000. | |C) |$90,000. | |D) |$81,000. | Use the following to answer questions 47-48: The Steff Company has the following flexible budget (in condensed form) for manufacturing overhead: [pic] The following data concerning production pertain to last year's operations: – The company used a denominator activity of 15,000 direct labor-hours to compute the predetermined overhead rate. – The company made 6,850 units of product and worked 14,200 actual hours during the year. – Actual variable overhead was $15,904 and actual fixed overhead was $30,850 for the year. – The standard direct labor time is two hours per unit of product. |47. The fixed overhead budget variance was: | |A) |$3,450 unfavorable. | |B) |$3,450 favorable. | |C) |$850 unfavorable. | |D) |$1,200 favorable. | |48. |The fixed element of the predetermined overhead rate was (per DLH): | |A) |$4. 15. | |B) |$3. 00. | |C) |$2. 00. | |D) |$1. 15. | Use the following to answer question 49: Barrick Company has established a flexible budget fo r manufacturing overhead based on direct labor-hours. Total budgeted costs at 200,000 direct labor-hours are as follows: [pic] |49. |At an activity level of 170,000 direct labor-hours, the flexible budget for factory overhead would show the budgeted amount for | | |utilities as: | |A) |$ 85,000. | |B) |$140,000. | |C) |$160,000. | |D) |$100,000. | Use the following to answer question 50: The Steff Company has the following flexible budget (in condensed form) for manufacturing overhead: [pic] The following data concerning production pertain to last year's operations: – The company used a denominator activity of 15,000 direct labor-hours to compute the predetermined overhead rate. – The company made 6,850 units of product and worked 14,200 actual hours during the year. – Actual variable overhead was $15,904 and actual fixed overhead was $30,850 for the year. – The standard direct labor time is two hours per unit of product. |50. |The fixed overhead cost applied to work in process was: | |A) |$27,400. | |B) |$30,000. | |C) |$30,850. | |D) |$13,700. | Management Accounting Overall requirement * Explain how management accounting can supply information to assist the management of the organisation. * You are not required to investigate and report on the organisation’s actual management accounting system (even if you can find out). * You are to write a 1500 word report as though you were a management consultant writing to the board of directors. * WE DO NOT WANT ANY NUMBERS UNLESS YOU CREATE THEM TO DEMONSTRATE AN IDEA * This is like assessment 1a – you are to imagine and create! This is a report * It has an introduction A main body (see the next slides) * A conclusion How your marks will build up * Background to the organisation showing good reading of appropriate sources 25% * Review of the nature and role of management accounting 10% * An analysis of the organisation, showing its information needs, the management accounting techniques it might use and decisions it could then make. 50% * The strengths and weaknesses of your analysis  œ for example the additional information you would have liked in order to improve your analysis. 15% Background to the organisation The reason for this is to introduce your organisation (briefly) and to show what a manager in this organisation will do. Later you will show how m. a. helps. * A manager will make decisions about the organisation’s products, processes etc. – therefore your introduction will cover this. * This introduction will reveal the kind of problems that your organisation faces and must overcome. * We do not want the history of the organisation and any information that you will not use later. * Choose your organisation carefully – one that you can understand. You need to be able to imagine the kinds of decisions that a manager might make. Review of the nature and role of management accounting * A definition (with reference) * Some idea of what management accounting does and what it does not do. * Some examples of the techniques and methods of m. a. * You have been studying this since week 5 and so it should not be a problem * DO NOT TRY TO BE TOO CLEVER. IN PREVIOUS YEARS STUDENTS HAVE MENTIONED ABC, JUST IN TIME AND THROUGHPUT ACCOUNTING. Do not do this as you probably do not understand these techniques and will only show that this is so. Keep to what you know! An analysis of the organisation, showing its information needs, the management accounting techniques it might use and decisions it could then make. * This is the hard part that attracts the most marks * You are to link part 1 and part 2 – you organisation’s needs to the techniques and methods of management accounting * What does m. a. Do that will help this organisation? * How can it improve processes? * How can it compete better? * How can it choose between products? * How can it use m. a. for pricing? Planning, controlling, motivating, organising etc * Difficult – but you are applying what you have learned to the problems of the organisation. The strengths and weaknesses of your analysis * This was badly done in assessment 1b * WE DO NOT WANT THE S&W OF THE COMPANY * What aspects of your analysis are strong. Where do you feel that your recommendations are strong and secure? Give examples. * Where do you feel your recommendations are weak perhaps due to lack of information about the company or lack of your knowledge and experience of management accounting. Give examples. Management Accounting Running Head: MANAGEMENT ACCOUNTING The Management Accountant in Business [Name of the Writer] [Name of the Institution] The Management Accountant in Business Introduction Tesco Public Limited Company is a merchandising retailer and a grocery retailer multinational chain which has it’s headquarter in Cheshunt in the United Kingdom. Tesco as compared to its counterparts, Walmart and Carrefour, is the world’s third largest retail store with regard to the revenues that it generates. Tesco stands as the second largest retail stores of the world with regard to its profits, with Walmart being the first.Tesco has its retail stores spread across almost 14 countries of the world of Asia, North America and Europe. Tesco public limited company is the market leader in its home country United Kingdom with a market share of almost 30%. Tesco was founded by Jack Cohen in 1919 which operated as a group of stalls in the market. After its inception today Tesco plc operates across diverse areas of clothing, electronics, furniture, books, financial services and internet services. Tesco is listed at the London Stock Exchange and is a part of the FTSE 100 index having a market capital of approximately ? 24. billion and a symbol of TSCO. Tesco has been operating with seven business segments, namely, Tesco Superstores, Tesco express, Tesco metro, Tesco extra, One stop, Tesco Homeplus, and Dobbies. The market share of Tesco as recorded in 2012 was 30. 2% which was the highest as compared to its European counterparts. Tesco has developed its marketing headline to be, â€Å"Every little helps†. The tag line is represented in all the print and TV advertisements of Tesco which represents the value that Tesco offers to its customers against the price that they pay, with the value being more than the price of the products.Tesco not only works for company profits but also for the community at large in which it operates. Tesco has a value of contributing 1. 8% of its profi ts to the charitable organizations. Tesco has a culture based on its values of trust and respect. Tesco employees and management believe that the customers would come back to visit the stores for their shopping if they are satisfied with the products and the service. Tesco believes that the success of the company as a whole depends on the contribution of the employees and the customer satisfaction.Management accounting is also used in making strategic management decisions (Dixon & Smith, 1993) . Tesco has seven core strategies on which it operates in the long run. The foremost strategy of Tesco is to grow the United Kingdom core business from where it started its operations and expanded globally. The United Kingdom being the largest business operating unit of Tesco generates the largest share of revenues and profits; therefore Tesco needs to develop this major segment of the business.Tesco also has a goal of being the world’s largest retailer which it has been able to achieve since 1997 and has become the leading retail store in almost eight of its international retail stores. Tesco was originally a food retailer when it started operating and from then onwards it has aimed at becoming the strongest brand in the non-food items as well. Besides the growth in the United Kingdom segment Tesco has also a strategy of growing its retail stores in the other markets in which it has presence. Tesco believes in serving the community and working for its welfare so that the corporate responsibility of Tesco is fulfilled.Tesco also aims to make high value brands at very competitive prices. Tesco aims to build brands that are highly appealing to the customers and also in providing the customers with quality products. Tesco also builds teams that are very committed to their work and has developed leaders who are dedicated and hard working. The leaders at Tesco have a major responsibility of building teams and working for the attainment of the organizational goals (Tesc o, 2013). Tesco works closely with the customers and continuously collects their feedback by engaging focus groups in the feedback collection process.The research center facilitates the identification of the research areas and the areas of concern in the profit centers. The customer feedback collected enables Tesco to make changes to the business processes so that they better meet the customer needs. Tesco also works closely with its suppliers to develop the best brands and also bring in a variety of offers for the customers. Tesco works with a number of suppliers including the FMCG companies and the local suppliers providing goods for the regional retail stores.Management Accounting Functions at Tesco Management Accounting is distinguished from Financial Accounting as being an accounting constituent that is concerned with the measurement, analysis and the reporting of information regarding the financial and non-financial operations of the business, and taking decisions which are ne cessary for the attainment of goals of the organization (Bhimani & Langfield, 2007). Management accounting is concerned with the attainment of organizational goals and for serving the strategies of the organization (Durden, n. , p. 2). Hence, management accounting is concerned with the accounting information which is intended to be used within the organization and for the achievement of the goals of the organization. Management accounting is used in organizations to make decisions regarding the competitiveness of the business by the collection, processing, and the communication of the information which will hence help the management of the business in planning, controlling and evaluating the processes of the business and the strategies of the company.The controllers in the large organizations are basically the leaders who run the management accounting function of the company and the controller then reports the accounting information to the finance heads which helps them in taking or ganizational wide decisions. At Tesco the management accountants are known for having a number of responsibilities including the collection of information from the different cost and profit centers, evaluation of the information, and the identification of the appropriate solutions to the problems faced by the cost or profit centers.The management accountants have a responsibility of identifying the appropriate and the most cost efficient distribution systems. This role of management accounting in Tesco is related to the establishment and administration of effective control mechanisms. Another management accounting function of Tesco is the sales forecasting, which is related to the identification of the needs of the customers, sales volumes and the effects of seasonal fluctuations on the sales. The management accountants have also the responsibility of ordering the right quantity of supplies at the right time.The management accountants are also responsible for developing cost, sales and profit budgets and to make capital investment plans. The management accountants also are responsible for the comparison of the plans and budgets with the benchmarks set and the identification of the discrepancies. The management accountants work towards taking the corrective measures in case of variances between the actual and the standard budgets. The task of standard costing is assigned to them which they use to take decisions which are useful for achieving the organizational goals.The group strategy section of the financial reports shows the management roles in Tesco. The customer researches are conducted to know the extent of their satisfaction and their needs. The management accountants also plan the growth rates in the different markets across the world. The management roles are also highlighted in the capital expenditures section of the annual reports of Tesco. The capital expenditure plans are made by the management accountants. Tesco has planned for major capital expend itures which will enable it to diversify and move into expansion phases worldwide throughout all its retail chains.The management accountants are also responsible for evaluating and critically analyzing the cash position of Tesco. The management accountants are charged with the responsibility of generating cash sources and reducing the capital expenditures of the retail stores. The working capital is reduced in 2012 which has enabled Tesco to have increased cash inflows (TESCO, 2012). Functions of Modern Management Accounting at Tesco The roles of management accountants in the modern era have increased and have been very diverse in the organizations.The management accountants have many responsibilities including the formulation of accounting policies, statistical reports, administration of tax policies, coordination of the reports, preparation and the interpretation of the annual reports and the financial statements of organizations, audit of the accounting transactions and the reco rds, compilation of the business costs, costing and planning of inventories, and the interpretation of the statistical reports of the organization.At Tesco the management accountants are engaged in making budgets including annual as well as monthly budgets. The budgets prepared are used for planning the resources and the supplies required for the operations of the business. The management accountants at Tesco are responsible for looking ahead and predicting the future of the business. The management accountants prepare reports which are used within Tesco and are intended for internal use by the management rather than the outside stakeholders.The reports prepared are kept confidential because they serve as the basis of the development of the strategies of Tesco. The management accountants have a dual reporting role within Tesco in that they are responsible for developing and managing the teams within Tesco and at the same time reporting to the chief financial officers and the financi al departments. The management accountants at Tesco provide information related to the forecasts and plans, they perform variance analysis and monitor the cost centers.Therefore they serve to be the controllers as well as the financial planners for Tesco. The management accountants gather financial information from all the department of Tesco, organize the data, analyze and interpret and then report their findings to the financial departments of Tesco. Therefore, the management accounting plays a very key role in Tesco. The management accounting over the years have also developed many management systems (Anthony & Govindarajan, 2007).The management accountants are reported to by all the accounting departments and they are responsible for presenting their financial suggestions to the financial executives for the implementation of the plans. The management accountants at Tesco are therefore charged with the overall responsibility of managing and interpreting very large amounts of acco unting information, and then reporting their findings to the chief financial officers. References Tesco PLC. (2013). Our Strategy. Retrieved from: http://www. tescoplc. com/index. asp? pageid=12 Tesco PLC. (2012).Annual Report and Financial Statements. Retrieved from: http://www. tescoplc. com/files/reports/ar2012/files/pdf/tesco_annual_report_2012. pdf Durden, C. (n. d). The role of management accounting in organizational Control systems: preliminary evidence of an organic Approach. pp. 1-50. Retrieved from: http://www. afaanz. org/openconf/2008/modules/request. php? module=oc_proceedings&action=view. php&a=Accept+as+Paper&id=570 Anthony, R. N. , & Govindarajan, V. (2007). Management control systems. USA: Irwin/McGraw-Hill. Bhimani, A. , & Langfield-Smith, K. (2007). Management Accounting Running Head: MANAGEMENT ACCOUNTING The Management Accountant in Business [Name of the Writer] [Name of the Institution] The Management Accountant in Business Introduction Tesco Public Limited Company is a merchandising retailer and a grocery retailer multinational chain which has it’s headquarter in Cheshunt in the United Kingdom. Tesco as compared to its counterparts, Walmart and Carrefour, is the world’s third largest retail store with regard to the revenues that it generates. Tesco stands as the second largest retail stores of the world with regard to its profits, with Walmart being the first.Tesco has its retail stores spread across almost 14 countries of the world of Asia, North America and Europe. Tesco public limited company is the market leader in its home country United Kingdom with a market share of almost 30%. Tesco was founded by Jack Cohen in 1919 which operated as a group of stalls in the market. After its inception today Tesco plc operates across diverse areas of clothing, electronics, furniture, books, financial services and internet services. Tesco is listed at the London Stock Exchange and is a part of the FTSE 100 index having a market capital of approximately ? 24. billion and a symbol of TSCO. Tesco has been operating with seven business segments, namely, Tesco Superstores, Tesco express, Tesco metro, Tesco extra, One stop, Tesco Homeplus, and Dobbies. The market share of Tesco as recorded in 2012 was 30. 2% which was the highest as compared to its European counterparts. Tesco has developed its marketing headline to be, â€Å"Every little helps†. The tag line is represented in all the print and TV advertisements of Tesco which represents the value that Tesco offers to its customers against the price that they pay, with the value being more than the price of the products.Tesco not only works for company profits but also for the community at large in which it operates. Tesco has a value of contributing 1. 8% of its profi ts to the charitable organizations. Tesco has a culture based on its values of trust and respect. Tesco employees and management believe that the customers would come back to visit the stores for their shopping if they are satisfied with the products and the service. Tesco believes that the success of the company as a whole depends on the contribution of the employees and the customer satisfaction.Management accounting is also used in making strategic management decisions (Dixon & Smith, 1993) . Tesco has seven core strategies on which it operates in the long run. The foremost strategy of Tesco is to grow the United Kingdom core business from where it started its operations and expanded globally. The United Kingdom being the largest business operating unit of Tesco generates the largest share of revenues and profits; therefore Tesco needs to develop this major segment of the business.Tesco also has a goal of being the world’s largest retailer which it has been able to achieve since 1997 and has become the leading retail store in almost eight of its international retail stores. Tesco was originally a food retailer when it started operating and from then onwards it has aimed at becoming the strongest brand in the non-food items as well. Besides the growth in the United Kingdom segment Tesco has also a strategy of growing its retail stores in the other markets in which it has presence. Tesco believes in serving the community and working for its welfare so that the corporate responsibility of Tesco is fulfilled.Tesco also aims to make high value brands at very competitive prices. Tesco aims to build brands that are highly appealing to the customers and also in providing the customers with quality products. Tesco also builds teams that are very committed to their work and has developed leaders who are dedicated and hard working. The leaders at Tesco have a major responsibility of building teams and working for the attainment of the organizational goals (Tesc o, 2013). Tesco works closely with the customers and continuously collects their feedback by engaging focus groups in the feedback collection process.The research center facilitates the identification of the research areas and the areas of concern in the profit centers. The customer feedback collected enables Tesco to make changes to the business processes so that they better meet the customer needs. Tesco also works closely with its suppliers to develop the best brands and also bring in a variety of offers for the customers. Tesco works with a number of suppliers including the FMCG companies and the local suppliers providing goods for the regional retail stores.Management Accounting Functions at Tesco Management Accounting is distinguished from Financial Accounting as being an accounting constituent that is concerned with the measurement, analysis and the reporting of information regarding the financial and non-financial operations of the business, and taking decisions which are ne cessary for the attainment of goals of the organization (Bhimani & Langfield, 2007). Management accounting is concerned with the attainment of organizational goals and for serving the strategies of the organization (Durden, n. , p. 2). Hence, management accounting is concerned with the accounting information which is intended to be used within the organization and for the achievement of the goals of the organization. Management accounting is used in organizations to make decisions regarding the competitiveness of the business by the collection, processing, and the communication of the information which will hence help the management of the business in planning, controlling and evaluating the processes of the business and the strategies of the company.The controllers in the large organizations are basically the leaders who run the management accounting function of the company and the controller then reports the accounting information to the finance heads which helps them in taking or ganizational wide decisions. At Tesco the management accountants are known for having a number of responsibilities including the collection of information from the different cost and profit centers, evaluation of the information, and the identification of the appropriate solutions to the problems faced by the cost or profit centers.The management accountants have a responsibility of identifying the appropriate and the most cost efficient distribution systems. This role of management accounting in Tesco is related to the establishment and administration of effective control mechanisms. Another management accounting function of Tesco is the sales forecasting, which is related to the identification of the needs of the customers, sales volumes and the effects of seasonal fluctuations on the sales. The management accountants have also the responsibility of ordering the right quantity of supplies at the right time.The management accountants are also responsible for developing cost, sales and profit budgets and to make capital investment plans. The management accountants also are responsible for the comparison of the plans and budgets with the benchmarks set and the identification of the discrepancies. The management accountants work towards taking the corrective measures in case of variances between the actual and the standard budgets. The task of standard costing is assigned to them which they use to take decisions which are useful for achieving the organizational goals.The group strategy section of the financial reports shows the management roles in Tesco. The customer researches are conducted to know the extent of their satisfaction and their needs. The management accountants also plan the growth rates in the different markets across the world. The management roles are also highlighted in the capital expenditures section of the annual reports of Tesco. The capital expenditure plans are made by the management accountants. Tesco has planned for major capital expend itures which will enable it to diversify and move into expansion phases worldwide throughout all its retail chains.The management accountants are also responsible for evaluating and critically analyzing the cash position of Tesco. The management accountants are charged with the responsibility of generating cash sources and reducing the capital expenditures of the retail stores. The working capital is reduced in 2012 which has enabled Tesco to have increased cash inflows (TESCO, 2012). Functions of Modern Management Accounting at Tesco The roles of management accountants in the modern era have increased and have been very diverse in the organizations.The management accountants have many responsibilities including the formulation of accounting policies, statistical reports, administration of tax policies, coordination of the reports, preparation and the interpretation of the annual reports and the financial statements of organizations, audit of the accounting transactions and the reco rds, compilation of the business costs, costing and planning of inventories, and the interpretation of the statistical reports of the organization.At Tesco the management accountants are engaged in making budgets including annual as well as monthly budgets. The budgets prepared are used for planning the resources and the supplies required for the operations of the business. The management accountants at Tesco are responsible for looking ahead and predicting the future of the business. The management accountants prepare reports which are used within Tesco and are intended for internal use by the management rather than the outside stakeholders.The reports prepared are kept confidential because they serve as the basis of the development of the strategies of Tesco. The management accountants have a dual reporting role within Tesco in that they are responsible for developing and managing the teams within Tesco and at the same time reporting to the chief financial officers and the financi al departments. The management accountants at Tesco provide information related to the forecasts and plans, they perform variance analysis and monitor the cost centers.Therefore they serve to be the controllers as well as the financial planners for Tesco. The management accountants gather financial information from all the department of Tesco, organize the data, analyze and interpret and then report their findings to the financial departments of Tesco. Therefore, the management accounting plays a very key role in Tesco. The management accounting over the years have also developed many management systems (Anthony & Govindarajan, 2007).The management accountants are reported to by all the accounting departments and they are responsible for presenting their financial suggestions to the financial executives for the implementation of the plans. The management accountants at Tesco are therefore charged with the overall responsibility of managing and interpreting very large amounts of acco unting information, and then reporting their findings to the chief financial officers. References Tesco PLC. (2013). Our Strategy. Retrieved from: http://www. tescoplc. com/index. asp? pageid=12 Tesco PLC. (2012).Annual Report and Financial Statements. Retrieved from: http://www. tescoplc. com/files/reports/ar2012/files/pdf/tesco_annual_report_2012. pdf Durden, C. (n. d). The role of management accounting in organizational Control systems: preliminary evidence of an organic Approach. pp. 1-50. Retrieved from: http://www. afaanz. org/openconf/2008/modules/request. php? module=oc_proceedings&action=view. php&a=Accept+as+Paper&id=570 Anthony, R. N. , & Govindarajan, V. (2007). Management control systems. USA: Irwin/McGraw-Hill. Bhimani, A. , & Langfield-Smith, K. (2007). Management Accounting Running Head: MANAGEMENT ACCOUNTING The Management Accountant in Business [Name of the Writer] [Name of the Institution] The Management Accountant in Business Introduction Tesco Public Limited Company is a merchandising retailer and a grocery retailer multinational chain which has it’s headquarter in Cheshunt in the United Kingdom. Tesco as compared to its counterparts, Walmart and Carrefour, is the world’s third largest retail store with regard to the revenues that it generates. Tesco stands as the second largest retail stores of the world with regard to its profits, with Walmart being the first.Tesco has its retail stores spread across almost 14 countries of the world of Asia, North America and Europe. Tesco public limited company is the market leader in its home country United Kingdom with a market share of almost 30%. Tesco was founded by Jack Cohen in 1919 which operated as a group of stalls in the market. After its inception today Tesco plc operates across diverse areas of clothing, electronics, furniture, books, financial services and internet services. Tesco is listed at the London Stock Exchange and is a part of the FTSE 100 index having a market capital of approximately ? 24. billion and a symbol of TSCO. Tesco has been operating with seven business segments, namely, Tesco Superstores, Tesco express, Tesco metro, Tesco extra, One stop, Tesco Homeplus, and Dobbies. The market share of Tesco as recorded in 2012 was 30. 2% which was the highest as compared to its European counterparts. Tesco has developed its marketing headline to be, â€Å"Every little helps†. The tag line is represented in all the print and TV advertisements of Tesco which represents the value that Tesco offers to its customers against the price that they pay, with the value being more than the price of the products.Tesco not only works for company profits but also for the community at large in which it operates. Tesco has a value of contributing 1. 8% of its profi ts to the charitable organizations. Tesco has a culture based on its values of trust and respect. Tesco employees and management believe that the customers would come back to visit the stores for their shopping if they are satisfied with the products and the service. Tesco believes that the success of the company as a whole depends on the contribution of the employees and the customer satisfaction.Management accounting is also used in making strategic management decisions (Dixon & Smith, 1993) . Tesco has seven core strategies on which it operates in the long run. The foremost strategy of Tesco is to grow the United Kingdom core business from where it started its operations and expanded globally. The United Kingdom being the largest business operating unit of Tesco generates the largest share of revenues and profits; therefore Tesco needs to develop this major segment of the business.Tesco also has a goal of being the world’s largest retailer which it has been able to achieve since 1997 and has become the leading retail store in almost eight of its international retail stores. Tesco was originally a food retailer when it started operating and from then onwards it has aimed at becoming the strongest brand in the non-food items as well. Besides the growth in the United Kingdom segment Tesco has also a strategy of growing its retail stores in the other markets in which it has presence. Tesco believes in serving the community and working for its welfare so that the corporate responsibility of Tesco is fulfilled.Tesco also aims to make high value brands at very competitive prices. Tesco aims to build brands that are highly appealing to the customers and also in providing the customers with quality products. Tesco also builds teams that are very committed to their work and has developed leaders who are dedicated and hard working. The leaders at Tesco have a major responsibility of building teams and working for the attainment of the organizational goals (Tesc o, 2013). Tesco works closely with the customers and continuously collects their feedback by engaging focus groups in the feedback collection process.The research center facilitates the identification of the research areas and the areas of concern in the profit centers. The customer feedback collected enables Tesco to make changes to the business processes so that they better meet the customer needs. Tesco also works closely with its suppliers to develop the best brands and also bring in a variety of offers for the customers. Tesco works with a number of suppliers including the FMCG companies and the local suppliers providing goods for the regional retail stores.Management Accounting Functions at Tesco Management Accounting is distinguished from Financial Accounting as being an accounting constituent that is concerned with the measurement, analysis and the reporting of information regarding the financial and non-financial operations of the business, and taking decisions which are ne cessary for the attainment of goals of the organization (Bhimani & Langfield, 2007). Management accounting is concerned with the attainment of organizational goals and for serving the strategies of the organization (Durden, n. , p. 2). Hence, management accounting is concerned with the accounting information which is intended to be used within the organization and for the achievement of the goals of the organization. Management accounting is used in organizations to make decisions regarding the competitiveness of the business by the collection, processing, and the communication of the information which will hence help the management of the business in planning, controlling and evaluating the processes of the business and the strategies of the company.The controllers in the large organizations are basically the leaders who run the management accounting function of the company and the controller then reports the accounting information to the finance heads which helps them in taking or ganizational wide decisions. At Tesco the management accountants are known for having a number of responsibilities including the collection of information from the different cost and profit centers, evaluation of the information, and the identification of the appropriate solutions to the problems faced by the cost or profit centers.The management accountants have a responsibility of identifying the appropriate and the most cost efficient distribution systems. This role of management accounting in Tesco is related to the establishment and administration of effective control mechanisms. Another management accounting function of Tesco is the sales forecasting, which is related to the identification of the needs of the customers, sales volumes and the effects of seasonal fluctuations on the sales. The management accountants have also the responsibility of ordering the right quantity of supplies at the right time.The management accountants are also responsible for developing cost, sales and profit budgets and to make capital investment plans. The management accountants also are responsible for the comparison of the plans and budgets with the benchmarks set and the identification of the discrepancies. The management accountants work towards taking the corrective measures in case of variances between the actual and the standard budgets. The task of standard costing is assigned to them which they use to take decisions which are useful for achieving the organizational goals.The group strategy section of the financial reports shows the management roles in Tesco. The customer researches are conducted to know the extent of their satisfaction and their needs. The management accountants also plan the growth rates in the different markets across the world. The management roles are also highlighted in the capital expenditures section of the annual reports of Tesco. The capital expenditure plans are made by the management accountants. Tesco has planned for major capital expend itures which will enable it to diversify and move into expansion phases worldwide throughout all its retail chains.The management accountants are also responsible for evaluating and critically analyzing the cash position of Tesco. The management accountants are charged with the responsibility of generating cash sources and reducing the capital expenditures of the retail stores. The working capital is reduced in 2012 which has enabled Tesco to have increased cash inflows (TESCO, 2012). Functions of Modern Management Accounting at Tesco The roles of management accountants in the modern era have increased and have been very diverse in the organizations.The management accountants have many responsibilities including the formulation of accounting policies, statistical reports, administration of tax policies, coordination of the reports, preparation and the interpretation of the annual reports and the financial statements of organizations, audit of the accounting transactions and the reco rds, compilation of the business costs, costing and planning of inventories, and the interpretation of the statistical reports of the organization.At Tesco the management accountants are engaged in making budgets including annual as well as monthly budgets. The budgets prepared are used for planning the resources and the supplies required for the operations of the business. The management accountants at Tesco are responsible for looking ahead and predicting the future of the business. The management accountants prepare reports which are used within Tesco and are intended for internal use by the management rather than the outside stakeholders.The reports prepared are kept confidential because they serve as the basis of the development of the strategies of Tesco. The management accountants have a dual reporting role within Tesco in that they are responsible for developing and managing the teams within Tesco and at the same time reporting to the chief financial officers and the financi al departments. The management accountants at Tesco provide information related to the forecasts and plans, they perform variance analysis and monitor the cost centers.Therefore they serve to be the controllers as well as the financial planners for Tesco. The management accountants gather financial information from all the department of Tesco, organize the data, analyze and interpret and then report their findings to the financial departments of Tesco. Therefore, the management accounting plays a very key role in Tesco. The management accounting over the years have also developed many management systems (Anthony & Govindarajan, 2007).The management accountants are reported to by all the accounting departments and they are responsible for presenting their financial suggestions to the financial executives for the implementation of the plans. The management accountants at Tesco are therefore charged with the overall responsibility of managing and interpreting very large amounts of acco unting information, and then reporting their findings to the chief financial officers. References Tesco PLC. (2013). Our Strategy. Retrieved from: http://www. tescoplc. com/index. asp? pageid=12 Tesco PLC. (2012).Annual Report and Financial Statements. Retrieved from: http://www. tescoplc. com/files/reports/ar2012/files/pdf/tesco_annual_report_2012. pdf Durden, C. (n. d). The role of management accounting in organizational Control systems: preliminary evidence of an organic Approach. pp. 1-50. Retrieved from: http://www. afaanz. org/openconf/2008/modules/request. php? module=oc_proceedings&action=view. php&a=Accept+as+Paper&id=570 Anthony, R. N. , & Govindarajan, V. (2007). Management control systems. USA: Irwin/McGraw-Hill. Bhimani, A. , & Langfield-Smith, K. (2007).

Cost of Capital for a Business Essay Example Pdf - Free Essay Example

Sample details Pages: 6 Words: 1742 Downloads: 4 Date added: 2017/06/26 Category Business Essay Type Argumentative essay Did you like this example? The cost of capital is an expected return that the provider of capital plans to earn on their investment. Capital used for funding a business should earn returns for the capital providers who risk their capital. For an investment to be worthwhile, the expected return on capital must be greater than the cost of capital. Don’t waste time! Our writers will create an original "Cost of Capital for a Business Essay Example Pdf" essay for you Create order In other words, the risk-adjusted return on capital (that is, incorporating not just the projected returns, but the probabilities of those projections) must be higher than the cost of capital. The cost of debt is relatively simple to calculate, as it is composed of the rate of interest paid. In practice, the interest-rate paid by the company will include the risk-free rate plus a risk component, which itself incorporates a probable rate of default (and amount of recovery given default). For companies with similar risk or credit ratings, the interest rate is largely exogenous. Cost of equity is more challenging to calculate as equity does not pay a set return to its investors. Similar to the cost of debt, the cost of equity is broadly defined as the risk-weighted projected return required by investors, where the return is largely unknown. The cost of equity is therefore inferred by comparing the investment to other investments with similar risk profiles to determine the market c ost of equity. The cost of capital is often used as the discount rate, the rate at which projected cash flow will be discounted to give a present value or net present value. Cost of debt The cost of debt is computed by taking the rate on a risk free bond whose duration matches the term structure of the corporate debt, then adding a default premium. This default premium will rise as the amount of debt increases (since the risk rises as the amount of debt rises). Since in most cases debt expense is a deductible expense, the cost of debt is computed as an after tax cost to make it comparable with the cost of equity (earnings are after-tax as well). Thus, for profitable firms, debt is discounted by the tax rate. Basically this is used for large corporations only. The formula can be written as (RF + credit risk rate) (1-T), where T is the corporate tax rate and Rf is the risk free rate. Cost of equity Cost of equity = Risk free rate of return + Premium expected for risk Expected return The expected return (or required rate of return for investors) can be calculated with the dividend capitalization model, which is That equation is seen as, Expected Return = dividend yield + growth rate of dividends. Industry Cost of Capital: In layman language industry cost of capital is the average cost of the industry. It includes large firms to small firms cost in the same industry. There are advantage and disadvantage of considering the industry cost of capital. Advantage: When a new company wants to start a business or enter into particular industry they do not know the cost of capital. Because there are many hidden cost is involved in it. So it is advisable to start a business taking into consideration of industry cost of capital. Disadvantage: Many a times it happens that industry cost of capital is high as many large player are into business. So the average becomes high. For taking into consideration that if small company wants to enter into business and they take a industry cost of capital as a benchmark than decision may prove wrong. So, I have taken a example of automobile ancillary business for calculation of industry cost of capital. AUTOMOBILE ANCILLARY UNITS I have studied the capital structure of the automobile ancillary smes in NCR region . Company % of % of cost of cost of WACC Remark as name equity Debt equity Debt per industry Denso auto 11.91 88.08 45.03 0.3438 5.66 Below Motherson 76.08 23.91 12.75 1.71 10.01 Below Harigh 73.21 26.89 0 17.26 4.64 Below ANG auto 36.55 64.44 72.15 6.92 30.82 Above Roto pumps 67.61 32.38 0.33 5.78 2.09 Below Subros ltd. 32.97 67.02 41.37 30.18 33.86 Above Amtek auto 36.59 63.40 0.0647 0.6011 0.394 Below Amtek India 53.10 46.89 0.4307 0.3803 40.70 Above Bharat seets 56.17 43.28 0.0143 14.08 6.1 Below Clutch auto 7.86 92.14 3.35 39.22 62.46 Above TOTAL 452.05 548.43 175.45 116.47 196.8 AVERAGE 45.2 54.8 17.5 11.6 19.6 The cost of equity is 17.5 that means industry is paying higher interest to their equity shareholders. That indicates the industry is attractive in terms of investment. The cost of debt is 11.6 which imply that industry is getting loan on a moderate rate. Private firms There are three major differences between public and private firms in terms of analyzing optimal debt ratios. One is that unlike the case for publicly traded firms, we do not have a direct estimate of the market value of a private firm. Consequently, we have to estimate firm value before we move to subsequent stages in the analysis. The second difference relates to the cost of equity and how we arrive at that cost. Although we use betas to estimate the cost of equity for a public firm, that usage might not be well diversified. Finally whereas publicly traded firms tend to think of their cost of debt in terms of bond ratings and default spreads, private firms tend to borrow from banks. Banks assess default risk and charge the appropriate interest rates. To analyze the optimal debt ratio for a private firm, we make the following adjustments. First, we estimate the value of the private firm by looking at how publicly traded firms in the same business are priced by the market. Thus, if publicly traded firms in the businesses have market values that are roughly three times revenues, we would multiply the revenues of the private firm by this number to arrive at an estimated value. Second, we continue to estimate the costs of debt for a private firm using a bond rating, but the rating is synthetic, based on interest coverage ratios. We tend to require much higher interest coverage ratio is to arrive at the same rating, to reflect the fact that banks are likely to be more conservative in assessing default risk at small, private firms. Company cost of capital: company cost of capital is the rate of return expected by the existing capital provider. It reflects the business risk of existing asset and the capital structure currently employed. If a firms wants to use its companys cost of capital, popularly called weighted average cost of capital, for evaluating a new investment. Two conditions should be satisfied. The business risk of the new investment is the same as the average business risk of existing business. In other words new investment will not change the risk complexion of the firm. The capital structure of the firm will not be affected by the new investments. Put differently, the firm will continue to follow the same financing policy. Firms specific factors Firms Tax rate The tax rate benefits from debt increase as the tax rate goes up .in relative terms, firms with higher taxes rates will have higher optimal debt ratios than will firms with lower tax rates, other things being equal. It also follows that a firms optimal debt ratio will increase as its tax rate increases. At a 0 percent tax rate, the optimal debt ratio is zero for all three firms. Without the benefits that accrue from taxes, the rationale for using debt disappears. As the tax rate increases, the optimal debt ratios increase for all three firms but significant at different rates. Pretax returns on the firm The most significant determinant of the optimal debt ratio is a firms earnings capacity. In fact, the operating income as a percentage of the market value of the firm is usually good indicator of the optimal debt ratio number is high the optimal debt ratio will also be high. A firm with higher pretax earnings can sustain much more debt as a proportion of the market value of the firm because debt payments can be met much more easily from prevailing earnings. Variance in operating income The variance in operating income analysis in two ways. First it plays a role in determining the current beta: firms with high variance in operating income tend to have high beta. Second the volatility in operating income can be one of the factors determining bond ratings at different levels of debt ratings drop off much more dramatically for higher variance firms as debt levels are increased. It follows that firms with higher variance in operating income will have lower optimal debt ratios the variance in operating income also plays a role in the constrained analysis , because higher variance firms are much more likely to register significant drops in operating income. Consequently the decision to increase debt should be made much more cautiously for these firms. Comparing to industry average Firms sometimes choose their financing mixes by looking at the average debt ratio of other firms in the industry in which they operate, the operating at a debt ratio slightly higher than those of other firms in the industry in both market and book value terms, where as a market debt ratio slightly higher than the average firm but a book debt ratio which is slightly lower. That firms is comparison are that firms within the same industry are comparable and that, on average , these firms are operating at or close to their optimal .firms within the same industry can have different product mixes , different amounts of operating risk, different tax rates and different project returns . Comparable firm A firm similar to the firm being analyzed in terms of underlying risk, growth and cash flows patterns. The conventional definition of comparable firm is one that is in the same business as the one being analyzed and of similar size. There is a data set online that summarizes market value and book value debt ratios by industry, in addition to other relevant characteristics. Conclusion: It is a advisable for the new company to calculate industry cost of capital rather than cost of capital estimated for a single firm. Industry cost of capital show true as well as overall nature of business in the industry. While firms cost of capital is the mirror of only single firm. As we have seen many variation in the every firm in the same industry. So, it is better to calculate industry cost of capital rather than firms cost of capital. Many times it happens many firms do not show their true and fair view of cost of capital. It may Access or sometimes less. We have always probability that single firm may manipulate the number. Hidden cost may not see in their calculation. So that is why the industry cost of capital is better for decision making.

Walt Disney Leadership Paper - 3548 Words

Introduction Leadership has many meanings, depending who you talk to. This paper will concentrate on leadership as the ability for one to influence others in reaching common goals (Northouse, 2013). The focus of this report is on Walt Disney, a man who demonstrated, both positive and negative leadership throughout his life. The leadership theories which will be focused on for this report include concept of power, trait approach, skills approach, style approach, and transformational leadership will be explored and applied to Disney’s experiences. Biography Walt Disney was born on December 5, 1901 in Chicago, Illinois. At the age of four, his family moved to Missouri, where his love for drawing and arts developed. When he was 18 he†¦show more content†¦Ken Annakin, one of Disney’s animation directors, said, â€Å"The key to Walt’s success was his ability to attract people to his cause, inspire them, and motivate them to work with him on his dreams. He sold people, and they bought in and become loyal followers. There still following him to this day† (Williams, Denney, 20014) Disney also had referent power, as his followers admired him and his visions. Disney’s employees worked very hard for Walt, even when he was difficult and demanding. He made them feel valued and gave them a sense of family. For example, according to Disney’s sound engineer, Gary Carlson, â€Å"Whenever anyone called him â€Å"Mr. Disney,† he got upset. It was always Walt. And he always knew your name. In the early days, we didn’t wear name tags, but Walt still called you by your first name† (Williams, Denney, 2004). When people referred to him as â€Å"Mr. Disney† he would insist they call him â€Å"Uncle Walt†. By knowing his employees by name and encouraging his employees to refer to him by his first name, he created deeper relationships with his followers, which in turn presented him more influential power. Trait Approach The trait theory focuses on innate qualities and personality characteristics. Based on this theory, â€Å"leaders are born, not made† (Northouse, 2013). Throughout the 20th century researchers, including Stogdill, Mann, Locke, and Zaccaro, were challenged to identify universal traits to distinguish leadersShow MoreRelatedOrganizational Commitment and Communications Paper1151 Words   |  5 PagesOrganizational Commitment and Communications Paper Jennifer Watson COM/530 Communications for Accountants Allen Sutton July 4, 2011 Organizational Commitment and Communications Paper The selected organization is Walt Disney Company. In this paper the subject to discuss is how different leadership styles affect group communication, analyze different sources of power and the affects on group and organizational communication, identify the motivational theories effective within the culture ofRead MoreWalt Disney : A Visionary Leader Essay1701 Words   |  7 PagesWalt Disney When people think about Walt Disney they will most likely think about Disneyland, Disneyworld, or even Mickey Mouse. What people do not realize is that he started with an advertisement company and built one of the most widely recognizable companies in the world. Walt Disney was a great in his visionary leadership, but he was not effective in his ethical leadership. Disney inspired his company to achieve his dream, but he was an egoistic leader during the process. This paperRead MoreWalt Disney s Leadership Qualities1412 Words   |  6 Pagesbusiness industry for years to come. As a man sat in front of an easel, bursting with excitement, the pencil hitting the paper began to emulate the imagination of the exquisite Walt Disney. Although, the journey to success was changing and overwhelming, at times. Walt Disney’s legacy has sustained to be held in high regard by many people today in leadership positions. Thus, Mr. Disney had animating jobs before developing his c ompany, which revolved around the infamous Mickey Mouse, he was even forcedRead MoreWalt Disney : A Visionary And Ethical Leader1685 Words   |  7 PagesWalt Disney Walt Disney once said, â€Å"It’s not the magic that makes it work, it’s the work that makes the magic.† (Capodagli Jackson, 2007). Walt Disney was truly a visionary and ethical leader that used his talents as a transformational leader and artist to dream up a world that has stood the test of time for nearly 90 years. In this paper I will explain why he was both a visionary and ethical leader. It will show that he used inspirational motivation and intellectual stimulation to furtherRead MoreAnalysis Of Walt Disney s Transformational Leadership1726 Words   |  7 PagesIntroduction The purpose of this paper is to act as a consulting analysis on how Walt Disney utilized his transformational leadership and brought to the world one of the most famous entertainment companies in the 20th century. Transformational leaders provide extraordinary motivation by appealing to people’s ideals and values and inspiring them to think about issues in new ways. It begins with a vision and the leader embeds that vision into others through encouragement, enthusiasm and motivationRead MoreDisney Strategic Initiative Paper1214 Words   |  5 PagesDisney Strategic Initiative Paper Tammy Adams, Kecia Darnell, Chelsea Hensley, Elizabeth Munns, and Zameika Williams University of Phoenix FIN 370 Professor Stephen Beadnell October 18, 2010 Strategic Initiative Paper Introduction This paper will address the strategic and financial planning associated with the operations of Disney. In addition, the paper will show the correlation between strategic and financial planning. The impact of the organization’s initiative costs, sales, and associatedRead MoreThe Most Important Characteristics Of A Leader Essay1271 Words   |  6 PagesFor the topic, I chose question #3 for my paper. Argument P1: One of the most important characteristics of a leader is their imagination. P2: Some people think the most important attribute of a leader is knowledge. ∠´ I agree with both positions since some leaders are effective based on their comprehensive knowledge of their job, whereas other leaders are extremely effective based on their extra ordinary imagination. Is it more important for a leader to have imagination or knowledge? A person thatRead MoreInnovate the Pixar Way1279 Words   |  6 PagesProducts: feature films, short-films, animations, commercials, softwares Key people: †¢ Ed Catmull, President,Walt Disney Animation Studios Pixar Animation Studios †¢ John Lasseter, Chief Creative Officer, Walt Disney Animation Studios Pixar Animation Studios †¢ Steve Jobs, former CEO of Pixar Animation Studios and member of the Board of Directors at The Walt Disney Company Owner: The Walt Disney Company (since 2006) About the book INNOVATE THE PIXAR WAY (2010) by Bill Capodagli and Lynn Jackson †¢Read MoreInnovate the Pixar Way1285 Words   |  6 PagesProducts: feature films, short-films, animations, commercials, softwares Key people: †¢ Ed Catmull, President,Walt Disney Animation Studios Pixar Animation Studios †¢ John Lasseter, Chief Creative Officer, Walt Disney Animation Studios Pixar Animation Studios †¢ Steve Jobs, former CEO of Pixar Animation Studios and member of the Board of Directors at The Walt Disney Company Owner: The Walt Disney Company (since 2006) About the book INNOVATE THE PIXAR WAY (2010) by Bill Capodagli and Lynn Jackson Read MoreStrategy Analysis : Corporate Strategy912 Words   |  4 Pagesdetermines the direction and scope of an organization over a period of time, and they that it ought to determine the way resources may be configured to meet the markets and stakeholders needs (Mindtools). There are two types of strategies presented in this paper. Strategy one is the business-level strategy involving successfully competing in individual markets and addresses how a corporation wins in a particular market. Strategy two is the corporate-level strategy referring to the overall strategy of a corporation

The Environment Of Marine Life - 833 Words

Oceans occupy 75% of earth’s surface and is a home for millions of species that live under water. There exists another world under the ocean. According to FMAP (Future of Marine Animal Populations), a project of the International census of Marine Life (2000 - 2010) aimed at describing the distribution and diversity of marine life, it is predicted that out of 8.7 million species that live on earth, 2.1 million live on Earth [1]. It is estimated that over 1 million undiscovered species are living in and around the reefs. Coral reefs hold more number of species per unit area than any other water bodies. Coral reefs hold the highest biodiversity, because the corals provide food and also protect from predators besides providing the shelter for a variety of organisms. [2, 4]. Coral reefs are built by small colonial species called coral polyps, by converting the carbon dioxide absorbed by sea from the environment into limestone. The reef building corals contain an algae called zooxanthellae in their tissues that helps the corals to synthesize calcium carbonate. The calcium carbonate is then attached to some hard surface like the edge of an island or along the sea shore. Based on how the calcium carbonate is attached to the surface, there are three types of reefs: fringing, barrier or atoll [3]. Fringing reefs are the most common type of reefs that grow seawards, forming a border along the boundary of an Island. Barrier reefs are similar to fringing, but they are formed at aShow MoreRelatedMarine Life And Their Environments1389 Words   |  6 PagesThe study of life is as interesting as life itself whether the creatures that we study walk on land, fly in the air, or swim in the ocean. Marine biology encompasses the ones that make the seven seas their home. It is the study and appreciation of marine life and their environments. From the sandy beaches to the ocean depths, from the tropical reefs to the polar ice caps, much of the life on earth thrives in the ocean, which affects us on land, too. It is understandable why we, as scientists, explorersRead MoreHealth And The Environment ( Marine Life ) Essay1953 Words   |  8 Pageseconomic and social implications in the short and long-term (Pullar, 2015). According to * Many efforts have been made to reduce the implications to wards health and the environment (marine life) issues. Since the grounding there have been many recovery plans launched in order to restore mauri, in that affected marine environment. In relation to this catastrophe a key development and environmental issue is the proposal to leave the remaining cargo and debris from the grounded Rena, submitted by theRead MoreHow Marine Life Is Affected By The Changes Of The Environment1029 Words   |  5 PagesHow Marine Life is Affected by the Changes of the Environment Introduction Marine life is affected by the changes of the environment due to both human and natural causes. Some human causes I will discuss are pollution and the destruction of land for human uses. A natural cause I will talk about is temperature change. Temperature is expected to change naturally, but not at the rapid rate it is going now. Pollution Humans are the main polluter. We have polluted both the atmosphere and the ocean. WeRead MoreWater Contaminants Are Bad For The Marine Life And The Environment876 Words   |  4 Pagesgoes into the stream and eventually into the ocean. Unfortunately, the water runoff will pick up anything that it went through such as oil, pesticides, fertilizers, and other water contaminants. These water contaminants are bad for the marine life and the environment, especially in our case the salmon in the Puget Sound area. With the increasing population in the Puget Sound area, there will be more and more land being developed to provide more space for more people. More population in the Puget SoundRead MoreA Brief Note On The Marine Environment And Its Effect On Food Security And The Quality Of Life1381 Words   |  6 Pagesas underdeveloped countries like Saharan Africa. Land degradation, declining soil fertility, unsustainable water use, overfishing and marine environment degradation are all less ening the earth’s ability to supply food (Nino Intern, 2016). Because of its adverse impact on agronomic productivity, the environment, and its effect on food security and the quality of life, land degradation will remain an important global issue for the 21st century (RecyclingWorks Massachusetts, 2016). With a growing populationRead MoreThe Issue of Marine Life Pollution1538 Words   |  6 Pagesï » ¿Essay: Marine Life Pollution Introduction: Pollution can be defined in different prospective including economics. The economics definition of pollution denotes pollutions as loss of environ quality. Furthermore it defines the cost of pollution as the cost of environmental loss (Goodstein, 2011). However the literary meanings of pollution are defined as the contamination of environment that can cause harmful effects on the inhabitants. These effects are particular with the environment and a numberRead MoreMarine Biomes1037 Words   |  5 PagesMarine Biomes Shonda Morton October 20, 2013 SCI/230 Paula Roberts A marine biome is a large aquatic zone that takes up almost 75% of Earth’s surface, has a salt concentration around 3%, and is distinguished from other biomes by its physical environment. According to Campbell Essential Biology with Physiology, (2010), the habitats of a marine biome varies depending on the level of the sea that it exists (pp.382). The layers or â€Å"zones† that make up the marine biomeRead MoreMarine Parks, By Bill Daly The Power Of Critical Thinking1544 Words   |  7 PagesIn the essay â€Å"Marine Parks†, Bill Daly The Power of Critical Thinking. 3rd Lewis Vaughn and Chris McDonald. Daly’s main claim is that marine parks, housing dolphins, whales, seals, and other marine mammals, have become a contentious issue. He explains the views of these problems set out to prevent the necessity of theses harsh institutions. Bill gathers a variety of different arguments from other people that argue on the critical issue of having marine pa rks open or closed; many arguments, for andRead MoreThe Negative Human Impacts On The Oceans1104 Words   |  5 Pagesis man†. He was definitely onto something. In fact, humans have had a major negative impact on the world’s marine environment. Throughout recent human history, it has been obvious that the wellbeing of the marine environment has been in jeopardy. Pollution of the ocean, overfishing and the greenhouse gases these are all the aspects that can cause the destroying of the precious environments, such as reefs, sea-grass and coastal habitats. According to the essay and interview â€Å"Seafarming at the EndRead MoreMarine, Marine Parks, And Zoo s Bring Joy1510 Words   |  7 PagesMarine Mammals in Captivity Close animal encounters provided by aquariums, marine parks, and zoo’s bring joy to many self-proclaimed animal lovers. However, many scientific studies have shown that animals kept in captivity experience many negative effects to their physical and mental well-being. As Mahatma Ghandi, a leader of the Indian independence movement and renowned pacifist, once said, â€Å"The greatness of a nation and its moral progress can be judged by the way its animals are treated†. It is

Infection and Control Case Study for Methicillin Staphylococcus

Question: Discuss about theInfection and Control Case Study for Methicillin Staphylococcus. Answer: Introduction This case study involves patient Jenkins aged 78 years, having readmissions on and off in the hospital, with the recent medication process being administered at the emergency department. She is having a history of wound sepsis, however, the current admission has seen the diagnosis of wound infection occasioned with Methicillin-resistant Staphylococcus aureus. She has been managed medically and she is being nursed at the medical ward. State of Methicillin staphylococcus aureus Methicillin staphylococcus aureus is a gram-positive bacterium which is linked to several infections. It is a major cause of severe infection in healthcare practice. Various studies have indicated that human health care workers dealing with the MRSA patients and veterinarians have a higher prevalence of acquiring MRSA at 40%, (Price et al, 2012) with the prevalence among veterinary officers in north amerce ranging from 9.7%-18%, (Harrison et al, 2014). Further MRSA has been further been linked to animal veterinary in the United Kingdom, (Verkade et al, 2013). In Australia, the prevalence rate of MRSA has been found too high along specialist veterinarians at 21%-45%, (AIHW, 2013a). Review studies undertaken shows that there were 4.6% nurses which got the infection through colonization of MRSA. The prevalence of MRSA strain has been shown to be dependent on the different strains. The first strains of MRSA in Australia were identified in 1976. There were observed outbreaks in hospitals. A survey undertaken has shown that there is an occurrence of 51% bacteremic episodes and onsets in hospitals. Further MRSA conditions have shown to have impacts on causing 40% of the hospital settings and 12% of community-based settings. Further research has estimated that there is an occurrence of approximately 6,900 episodes of MSRA in Australia annually, (AIHW, 2015a). In the 2015-16 report, it was shown that Methicillin staphylococcus aureus occurred among 1,440 cases patients during the surveillance period. Hospital-acquired MRSA in the year 2015-2016 report has shown that there are 51% cases in hospitals which led to 36% days duration of patient care surveillance status, (AIHW, 2015b). There has been a general decline in the number of cases of MRSA in Australia in hospitals, with observed decrease of 17% from 1732 to 1440 cases. The national data have shown that there is a decline of 0.96 cases to 0.73 cases per 100,000 of patient care in monitoring and supervision phase. Rates have shown to decline in New South Wales, Australia capital authority and Queensland. The cases number of MRSA have shown a decline from 280 cases to an estimate of 280 cases with the proportion of all MRSA showing a decline from the overall 24% to 19%, (AIHW, 2013b). It is more common in hospitals, nursing homes, prisons, invasive open wounds weakened immunity and those at the hospitals are at a greater risk of developing. Further patients using catheters, those having weakened immune systems are often at a greater risk of hospital-acquired infections. Further others have shown the risks of getting community-acquired infections. Typical cases have been observed in both community and healthcare-associated MRSA. Molecular studies have shown that community-acquired infections have found its ways in food substances especially from the animal husbandry and food processing approaches used in food preparation. Hospital-acquired MRSA has shown that they form biofilms which contribute to the spread in health care facilities, (ACSQHC, 2016). Risks factors of Methicillin staphylococcus aureus Causes of MRSA have been linked to cases detected outside hospital referred to community-acquired and hospital-acquired cases. This can lead to the previous hospital, residence in nursing homes and patients without the healthcare-associated risk factors. Various risks factors have been detected in the hospitals settings of patient community settings and health care lead factors. Factors such as previous rehospitalization, nursing care home stay and being employed in the healthcare setting have increased the associated risks of MRSA infection. Among ICU patients, MRSA infections have been shown to be more prevalent among male gender, trauma patients, ICU patients, hospital or long-term facility patients, immune suppressed and skin infections patients. In a study conducted by Catry, (2014), among 6844 patients, showed that more than 97% cases of MRSA were linked to infections. At 95% confidence level with p0.01, associated factors with MRSA infection included long-term admission of long-term care facility, pharmacy prescriptions of antibiotic drugs, age, and intake of antimicrobial agents. Other risks factors have been shown to have an impact on infection of MRSA. Among patients with community-related settings showed that those with pneumonia had an increased infection. Patients with hospital-onset disease showed to be having increased risks of acquiring MRSA pneumonia, (Wooten Winston, 2012). In a study by Inouye et al, , (2014), in a study on risk factors for Methicillin-Resistant Staphylococcus aureus, showed that patients who had been referred from other health facilities, surgical units transferred patients, history of surgical procedures within the last 3 months and immune-compromised patients had a high risk of getting MRSA. Studies done have shown that other risks factors associated with MRSA colonization are antibiotic utilization. Resistance to drugs such as vancomycin was associated with elongated duration of hospitalization. In the case study, the patient exhibits wound infection which has seen rehospitalization into the hospital. The associated risk factors of age and gender have also been exacerbated the patient status coupled with antibiotic use which is linked to methicillin-resistant Staphylococcus aureus on the wound. Further, the is observed medical rehospitalization and poor wound management which is characteristic of having hospital-acquired MRSA infection. With the current age of the patient, it is important to note that there is lowered level of immunity which makes the patient have immune suppression thus leading to risk-related factors on MRSA infection on the wound. Hand hygiene care for the patient Proper hand hygiene is effective protocol procedures for managing safety. Effective hand washing procures ensures that there is a decline in the level of skin surface microbial counts which is a key factor in the control of infections. Having greater amounts of time washing is not guaranteed to have control of infections, hand washing technique is crucial than the duration taken for hand washing, (Orellana et al, 2016 pp 185). Hand hygiene care process during the handling the patient is a critical phase in that it ensures that touching of body fluids, excretions and other contaminated items are not transferred to the patient. Performance of hand hygiene after removal of protective clothing such as gloves is crucial during patient contacts which have an influence on transferring the microorganisms to other patients environment. During hand processes, often hand is soiled with blood and other body fluids, thus effective hand washing with soap and water is needed. Further performance of hand hygiene during the dressing and wound caring of the patient between the tasks and procedures has an effect on the patient cross-contamination process of the wound sites, (Kelly et al, pp 956). Thus the performance of effective hand washing for the patient after post admission care is critical. Hospital-acquired MRSA is easily transferable when poor hand hygiene during dressing without the use of gloves is performed. Ensuring proper hand hygiene care for the patient during the recovery process is essential in ensuring that MRSA infection is managed and further spread is controlled and managed during the period. Standards precautions Gloving Key standards protocol precaution is the usage of gloves during the handling of the patient. This is in anticipation that there might be contact with the blood and offer infectious materials, skin and skin contamination. Removing the gloves after making the contact with the patient and the environment using proper techniques is essential in preventing hand contamination. A key standard way is ensuring that gloves are not torn between the patient and usage of glove per patient as this leads to transmission of pathogens, (Gidengil et al, 2015 pp. 18). Protection of mouth, nose, and eye There is need to use protective clothing in order to protect the mucous membranes f the eyes and mouth and ensuring patient care activities which involve cross-contamination of blood. Gowning While handling the patient, use of protective gear is paramount, protecting the skin and prevention of soiling or contamination is key during patient procedures when blood contact, fluid secretions, and excretion is anticipated. Proper handling of patient care equipment Proper handling of the patient in the ward using proper care equipment without soiled secretions, body fluids excretions, and even blood in order to ensure prevention of skin and mucous exposures, gross contamination, and microorganism transfer. There is need to ensure that there is no reusability of equipment allowed between different patients. Every item used should be handled appropriately for every patient. Ensuring clean and disinfected surfaces which might have contamination and other frequently touched surfaces is key in ensuring there is cleaning and removal of any germs on the surfaces, (Ranjan et al, 2017 pp 109). Transmitted based precautions Patient placement In ensuring there is effective patient placement, assigning of rooms for patients is appropriate. With the highest priority on patients who have been diagnosed with MRSA infection. Ensuring high prioritization to the patient with the condition facilitates controlled and uncontained secretions excretions. Gowning This entails gowning before entering a room. There is need for removing a gown and overseeing high standards if hygiene before leaving the ward area of the patient. After removing the gown, there is need to ensure that skin and clothing dont make contact which potentiality affects the environmental surfaces which lead to the transfer of microorganism and possible contamination on the patient and other environmental surfaces, (Peterson et al, 2016 pp 99). Patient transport In acute care settings limiting patient, transport is key, there is need to offer limited movement of the patient. However, when the transport is necessary, there is need to ensure that colonized areas of the body have been covered. Removal of contaminated patients materials and performance of hand hygiene prior to patient transportation is key in minimizing further infections. Patient care equipment In acute care setting for patients with MRSA, disposal is critical in enhancing patient care an appropriate use of special equipment for the patient. When there is an application of multiples equipment there is need to ensure that they are clearly disinfected before being used by another patient, (Kular et al, 2016). Environmental measures There is need to ensure that the patient room is cleansed on contact precautions for disinfecting and cleaning. Cleaning needs to be focused areas such as bedside commodes, patient bathrooms and other immediate equipment for the patient needs to be thoroughly cleaned. The role of community care nurse in patient care The need for patient care outside the traditional hospital care has been key in providing essential care for patients. Community nurses often work in a variety of environments where patients reside. The key role of community nurse for the patient is to ensure that basic care is provided for the patient and care practices by the patient dont cause further harm to the wound progress. Further Community nurse will be essential in administering the antibiotic with the patient. Wound dressing and cleaning forms the critical part of care process for the patient; this will be facilitated by the nurse, (Anderson et al, 2016 pp 234). Appropriate necessary skills for the patient are geared towards providing an advisory role for the patient and even the family care. They provide emergency care for the patients. Thus having effective nursing skills is essential for the patient and ensures there is continuous provincial of care for the patient. Role of the occupational therapist in nursing care Occupational therapists are essential in ensuring that the patient fulfills and gets satisfied with the state of life. This will be enhanced through a purposeful way of living which promoted and improve care process for the patient. With the view of patient age status, the occupational therapist will be fundamental in helping them to improve the ability of the patient. They are key in developing, recovering and maintaining the daily ability of the patient, (Rubin et al, 2018 pp 864). Further due to the age status and frailing nature of the patient will be to ensure daily activity of the patient is improved. Occupation therapy for the elderly is very beneficial as it helps the elderly in having more productive, independent and active life through various methods. The patient, occupational therapy care will be key to enhancing the mobility status of the patient and offering an adaptive environment for the patient. Conclusion Achieving effective assessment on the patient is key in enhancing proper care for the patient. With the age status, the patient can exhibit immunocompromised status which MRSA can devastating effects on quality of life. Ensuring proper plan of care and proper care protocols ensure that the patient is managed carefully. Thus the roles of community nurse and an occupational therapy nurse are key to ensuring proper delivering care. References ACSQHC 2016. Healthcare-associated infection. Sydney: ACSQHC. Accessed on 24 April 2018, https://www.safetyandquality.gov.au/our-work/healthcare-associated-infection/. AIHW (Australian Institute of Health and Welfare) 2011. Australian hospital statistics 201011: Staphylococcus aureus bacteremia in Australian public hospitals. Health services series no. 42. Cat. no. HSE 116. Canberra: AIHW. AIHW 2013a. Australian hospital statistics 201112: Staphylococcus aureus bacteremia in Australian public hospitals., Health services series no. 47. Cat. no. HSE 129. Canberra: AIHW. AIHW 2013b. Australian hospital statistics 201213: Staphylococcus aureus bacteremia in Australian public hospitals. Health services series no. 53. Cat. no. HSE 144. Canberra: AIHW. AIHW 2014. Staphylococcus aureus bacteremia in Australian public hospitals 201314: Australian hospital statistics. Health services series no. 59. Cat. no. HSE 155. Canberra: AIHW. AIHW 2015a. Australian hospital peer groups. Health services series no. 66. Cat. no. HSE 170. Canberra: AIHW. AIHW 2015b. Staphylococcus aureus bacteremia in Australian public hospitals 201415: Australian hospital statistics. Health services series no. 67. Cat. no. HSE 171. Canberra: AIHW. Andersson, H., Andreassen Gleissman, S., Lindholm, C. and Fossum, B., 2016. Experiences of nursing staff caring for patients with methicillin?resistant Staphylococcus aureus. International nursing review, 63(2), pp.233-241. Catry, B., Latour, K., Jans, B., Vandendriessche, S., Pearl, R., Mertens, K. and Denis, O., 2014. Risk factors for methicillin-resistant Staphylococcus aureus: a multi-laboratory study. PLoS One, 9(2), p.e89579. Gidengil, C.A., Gay, C., Huang, S.S., Platt, R., Yokoe, D. and Lee, G.M., 2015. Cost-effectiveness of strategies to prevent methicillin-resistant Staphylococcus aureus transmission and infection in an intensive care unit. infection control hospital epidemiology, 36(1), pp.17-27. Harrison EM, Weinert LA, Holden MTG, Welch JJ, Wilson K, Morgan FJE, et al. (2014) A shared population of epidemic methicillin-resistant Staphylococcus aureus 15 circulates in humans and companion animals. mBio 5. e0098513 HHA (Hand Hygiene Australia) 2016. National Data 2016. Melbourne: HHA. Accessed on 24 April 2018, https://www.hha.org.au/LatestNationalData.aspx. Inouye, M., Dashnow, H., Raven, L.A., Schultz, M.B., Pope, B.J., Tomita, T., Zobel, J. and Holt, K.E., 2014. SRST2: Rapid genomic surveillance for public health and hospital microbiology labs. Genome medicine, 6(11), p.90. Kelly, J.W., Blackhurst, D., McAtee, W. and Steed, C., 2016. Electronic hand hygiene monitoring as a tool for reducing healthcare-associated methicillin-resistant Staphylococcus aureus infection. American journal of infection control, 44(8), pp.956-957. Kullar, R., Vassallo, A., Turkel, S., Chopra, T., Kaye, K.S. and Dhar, S., 2016. Downing the controversies of contact precautions for methicillin-resistant Staphylococcus aureus: a review. American journal of infection control, 44(1), pp.97-103. Orellana, R.C., Hoet, A.E., Bell, C., Kelley, C., Lu, B., Anderson, S.E. and Stevenson, K.B., 2016. Methicillin-resistant Staphylococcus aureus in Ohio EMS Providers: A Statewide Cross-sectional Study. Prehospital Emergency Care, 20(2), pp.184-190. Peterson, L.R., Wright, M.O., Beaumont, J.L., Komutanon, V., Patel, P.A., Schora, D.M., Schmitt, B.H. and Robicsek, A., 2016. Nonimpact of decolonization as an adjunctive measure to contact precautions for the control of methicillin-resistant Staphylococcus aureus transmission in acute care. Antimicrobial agents and chemotherapy, 60(1), pp.99-104. Price, L.B., Stegger, M., Hasman, H., Aziz, M., Larsen, J., Andersen, P.S., Pearson, T., Waters, A.E., Foster, J.T., Schupp, J. and Gillece, J., 2012. Staphylococcus aureus CC398: host adaptation and emergence of methicillin resistance in livestock. MBio, 3(1), pp.e00305-11. Ranjan, K.P., Ranjan, N. and Gandhi, S., 2017. Surgical site infections with special reference to methicillin-resistant Staphylococcus aureus: experience from a tertiary care referral hospital in North India. International Journal of Research in Medical Sciences, 1(2), pp.108-111. Rubin, M.A., Samore, M.H. and Harris, A.D., 2018. The Importance of Contact Precautions for Endemic Methicillin-Resistant Staphylococcus aureus and Vancomycin-Resistant Enterococci. JAMA, 319(9), pp.863-864. Verkade, E., van Benthem, B., den Bergh, M.K.V., van Cleef, B., van Rijen, M., Bosch, T. and Kluytmans, J., 2013. Dynamics and determinants of Staphylococcus aureus carriage in livestock veterinarians: a prospective cohort study. Clinical Infectious Diseases, 57(2), pp.e11-e17. Wooten, D. and Winston, L., 2012. Risk Factors For Methicillin-Resistant Staphylococcus Aureus (MRSA) Pneumonia In Patients With Community-Onset And Hospital-Onset Infections. In C107. PROGRESS IN BIOMARKERS AND DIAGNOSTICS FOR RESPIRATORY INFECTIONS (pp. A5249-A5249). American Thoracic Society.

Reality Essays (944 words) - To Kill A Mockingbird, Atticus

Reality A Verbal Visual Essay To Kill A Mocking Bird Five Quotes: 1. I wanted you to see what real courage is, instead of getting the idea that courage is a man with a gun in his hand. It's when you know you're licked before you begin but you begin anyway and you see it through no matter what. Pg. 112 2. If you can learn a simple trick, Scout, you'll get along a lot better with all kinds of folks. Pg. 30 3. It is not necessary to tell all you know. It's not ladylike- in the second place; folks don't like to have somebody around knowin' more than they do. It aggravates 'em. You're not gonna change any of them by talkin' right, they've got to want to learn themselves, and when they don't want to learn there's nothing you can do but keep your mouth shut or talk their language. Pg. 126 4. As you grow older, you'll see white men cheat black men every day of your life, but let me tell you something and don't you forget it-whenever a white man does that to a black man, no matter who he is, how rich he is, or how fine a family he comes from, that white man is trash. Pg. 220 5. You never really understand a person until you consider things from his point of view . . . until you climb into his skin and walk around in it. (p.33) I chose the title "Reality" for my essay because many people are faced with issues like racism and acceptance. All these quotes have to deal with subjects that everyone can relate to. Everybody has the right to be treated fairly and with respect. No one has to right to be disrespected; everyone should be treated equally. These are one of the many aspects of today's society that everyone has to deal with. Many of the characters in the novel are not what they truly seem to be. Most would think of Boo Radley as an isolated madman, Miss Dubose as a mean spirited old woman, and Dolphous Raymond as a social abnormal. These people are hated by most, but these are not fair judgments. Once we get beyond the gossip surrounding these people, we get a clear view of some very strong human beings. "It is not necessary to tell all you know..." some things people just don't want to know about. The picture of the couple sharing information about each other is an example. Unwanted ideas aren't needed. Despite how easy it is to judge others, once you look closer, you see something more in everyone. The Finches do this and they gain new friends and invaluable insight into others because of this. No one is what he or she truly seems, and everyone has something inside him or her that motivates him or her to be who he or she is. One must look closely to see this, and the Finches do just that. The picture of the girl with a mask proves this. On the outside she appears to be a cheerful person meanwhile she is a "green eyed monster" on the inside. You should never judge someone by the way they look, get to know them first before you make any decisions. Nothing more pervades the novel than the ideas of racism and acceptance. Atticus has built a whole value system around the idea that a person must look at and respect who people are and where they come from. This includes even the nastiest characters like Bob Ewell and Mrs. Dubose. When others would rather forget about these people, Attic us takes the time to understand them. This is a value Atticus passes onto his children as well. Towards the end of the novel Scout says, I think there's just one kind of folks. Folks. She understands Atticus' belief that all human beings must be accepted and treated equally. The five comments refer to the theme of this verbal visual essay, which is reality. All these quotes are very similar in the sense that they all deal with life. Everyone will go through life experiencing them. They are words that individuals should think about wisely and take into consideration.