Cost Accounting Answers

CHAPTER 4 JOB COSTING 4-1Cost pool––a grouping of individual indirect cost items. Cost tracing––the assigning of direct costs to the chosen cost object. Cost allocation––the assigning of indirect costs to the chosen cost object. Cost-allocation base––a factor that links in a systematic way an indirect cost or group of indirect costs to cost objects. 4-2In a job-costing system, costs are assigned to a distinct unit, batch, or lot of a product or service.In a process-costing system, the cost of a product or service is obtained by using broad averages to assign costs to masses of identical or similar units. 4-3An advertising campaign for Pepsi is likely to be very specific to that individual client. Job costing enables all the specific aspects of each job to be identified. In contrast, the processing of checking account withdrawals is similar for many customers. Here, process costing can be used to compute the cost of each checking account withdrawal. -4The seven steps in job costing are: (1) identify the job that is the chosen cost object, (2) identify the direct costs of the job, (3) select the cost-allocation bases to use for allocating indirect costs to the job, (4) identify the indirect costs associated with each cost-allocation base, (5) compute the rate per unit of each cost-allocation base used to allocate indirect costs to the job, (6) compute the indirect costs allocated to the job, and (7) compute the total cost of the job by adding all direct and indirect costs assigned to the job. -5Major cost objects that managers focus on in companies using job costing are a product such as a specialized machine, a service such as a repair job, a project such as running the Expo, or a task such as an advertising campaign. 4-6Three major source documents used in job-costing systems are (1) job cost ecord or job cost sheet, a document that records and accumulates all costs assigned to a specific job, starting whe n work begins (2) materials requisition record, a document that contains information about the cost of direct materials used on a specific job and in a specific department; and (3) labor-time sheet, a document that contains information about the amount of labor time used for a specific job in a specific department. -7The main advantages of using computerized source documents for job cost records are the accuracy of the records and the ability to provide managers with instantaneous feedback to help control job costs. 4-8Two reasons for using an annual budget period are a. The numerator reason––the longer the time period, the less the influence of seasonal patterns in overhead costs, and b. The denominator reason––the longer the time period, the less the effect of variations in output levels or quantities of the cost-allocation bases on the allocation of fixed costs. -9Actual costing and normal costing differ in their use of actual or budgeted indirect cost rates: | |Actual |Normal | | |Costing |Costing | |Direct-cost rates |Actual rates |Actual rates | |Indirect-cost rates |Actual rates |Budgeted rates |Each costing method uses the actual quantity of the direct-cost input and the actual quantity of the cost-allocation base. 4-10A house construction firm can use job cost information (a) to determine the profitability of individual jobs, (b) to assist in bidding on future jobs, and (c) to evaluate professionals who are in charge of managing individual jobs. 4-11The statement is false. In a normal costing system, the Manufacturing Overhead Control account will not, in general, equal the amounts in the Manufacturing Overhead Allocated account.The Manufacturing Overhead Control account aggregates the actual overhead costs incurred while Manufacturing Overhead Allocated allocates overhead costs to jobs on the basis of a budgeted rate times the actual quantity of the cost-allocation base. Underallocation or overallocation of indirect (overh ead) costs can arise because of (a) the Numerator reason––the actual overhead costs differ from the budgeted overhead costs, and (b) the Denominator reason––the actual quantity used of the allocation base differs from the budgeted quantity. 4-12Debit entries to Work-in-Process Control represent increases in work in process.Examples of debit entries under normal costing are (a) direct materials used (credit to Materials Control), (b) direct manufacturing labor billed to job (credit to Wages Payable Control), and (c) manufacturing overhead allocated to job (credit to Manufacturing Overhead Allocated). 4-13Alternative ways to make end-of-period adjustments to dispose of underallocated or overallocated overhead are as follows: (i)Proration based on the total amount of indirect costs allocated (before proration) in the ending balances of work in process, finished goods, and cost of goods sold. ii)Proration based on total ending balances (before proration) in w ork in process, finished goods, and cost of goods sold. iii) Year-end write-off to Cost of Goods Sold. iv) The adjusted allocation rate approach that restates all overhead entries using actual indirect cost rates rather than budgeted indirect cost rates. 4-14A company might use budgeted costs rather than actual costs to compute direct labor rates because it may be difficult to trace direct labor costs to jobs as they are completed (for example, because bonuses are only known at the end of the year). -15Modern technology of electronic data interchange (EDI) is helpful to managers because it ensures that a purchase order is transmitted quickly and accurately to suppliers with minimum paperwork and costs. 16. (10 min) Job order costing, process costing. a. Job costingl. Job costing b. Process costingm. Process costing c. Job costingn. Job costing d. Process costingo. Job costing e. Job costingp. Job costing f. Process costingq. Job costing g. Job costingr. Process costing h. Job costin g (but some process costing)s. Job costing i.Process costingt. Process costing j. Process costingu. Job costing k. Job costing 4-17(20 min. )Actual costing, normal costing, accounting for manufacturing overhead. 1. [pic]=[pic] =[pic]= 1. 80 or 180% [pic]=[pic] =[pic]= 1. 9 or 190% 2. Costs of Job 626 under actual and normal costing follow: ActualNormal CostingCosting Direct materials$ 40,000$ 40,000 Direct manufacturing labor costs30,00030,000 Manufacturing overhead costs $30,000 ( 1. 90; $30,000 ( 1. 80 57,000 54,000 Total manufacturing costs of Job 626$127,000$124,000 3. pic]=[pic] ( [pic] =$1,450,000 ( 1. 80 =$2,610,000 [pic]=[pic] – [pic] =$2,755,000 ( $2,610,000 = $145,000 There is no under- or overallocated overhead under actual costing because overhead is allocated under actual costing by multiplying actual manufacturing labor costs and the actual manufacturing overhead rate. This, of course equals the actual manufacturing overhead costs. All actual overhead costs are allocated to products. Hence, there is no under- or overallocated overhead. 4-18(20 -30 min. ) Job costing, normal and actual costing. 1. pic]=[pic] = [pic] =$50 per direct labor-hour [pic]=[pic] = [pic] =$40 per direct labor-hour These rates differ because both the numerator and the denominator in the two calculations are different—one based on budgeted numbers and the other based on actual numbers. |2a. |Laguna |Mission | | |Model |Model | | Normal costing | | | |Direct costs | | |Direct materials |$106,760 |$127,550 | |Direct labor |36,950 |41,320 | | |143,710 |168,870 | |Indirect costs | | | |Assembly support ($50 ( 960; $50 ( 1,050) |48,000 |52,500 | |Total costs |$191,710 |$221,370 | |2b.Actual costing | | | |Direct costs | | | |Direct materials |$106,760 |$127,550 | |Direct labor |36,950 |41,320 | | |143,710 |168,870 | |Indirect costs | | | |Assembly support ($40 ( 960; $40 ( 1,050) |38,400 |42,000 | |Total costs |$182,110 |$210,870 | 3. Normal costing enables Am esbury to report a job cost as soon as the job is completed, assuming that both the direct materials and direct labor costs are known at the time of use. Once the 960 direct labor-hours are known for the Laguna Model (June 2011), Amesbury can compute the $191,710 cost figure using normal costing. Amesbury can use this information to manage the costs of the Laguna Model job as well as to bid on similar jobs later in the year. In contrast, Amesbury has to wait until the December 2011 year-end to compute the $182,110 cost of the Laguna Model using actual costing.Although not required, the following overview diagram summarizes Amesbury Construction’s job-costing system. [pic] 4-19(10 min. )Budgeted manufacturing overhead rate, allocated manufacturing overhead. 1. Budgeted manufacturing overhead rate = [pic] = [pic] = $24 per machine-hour |2. |Manufacturing |= |Actual |( |Budgeted manufacturing | | |overhead | |machine-hours | |overhead rate | | |allocated | | | | | = 170,000 ? $2 4 = $4,080,000 3.Since manufacturing overhead allocated is greater than the actual manufacturing overhead costs, Gammaro overallocated manufacturing overhead: Manufacturing overhead allocated$4,080,000 Actual manufacturing overhead costs 4,050,000 Overallocated manufacturing overhead$ 30,000 4-20(20-30 min. )Job costing, accounting for manufacturing overhead, budgeted rates. 1. An overview of the product costing system is [pic] Budgeted manufacturing overhead divided by allocation base: Machining overhead:[pic] = $36 per machine-hour Assembly overhead:[pic] = 180% of direct manuf. labor costs 2. Machining department, 2,000 hours ( $36$72,000 Assembly department, 180% ( $15,000 27,000 Total manufacturing overhead allocated to Job 494$99,000 3.MachiningAssembly Actual manufacturing overhead$2,100,000$ 3,700,000 Manufacturing overhead allocated, $36 ( 55,000 machine-hours1,980,000— 180% ( $2,200,000 — 3,960,000 Underallocated (Overallocated)$ 120,000$ (260,000) 4-21 (20(2 5 min. ) Job costing, consulting firm. 1. Budgeted indirect-cost rate for client support can be calculated as follows: Budgeted indirect-cost rate = $13,600,000 ? $5,312,500 = 256% of professional labor costs 2. At the budgeted revenues of $21,250,000 Taylor’s operating income of $2,337,500 equals 11% of revenues. Markup rate = $21,250,000 ? $5,312,500 = 400% of direct professional labor costs 3. Budgeted costsDirect costs: Director, $198 ( 4$ 792 Partner, $101 ( 171,717 Associate, $49 ( 422,058 Assistant, $36 ( 153 5,508$10,075 Indirect costs: Consulting support, 256% ( $10,075 25,792 Total costs$35,867 As calculated in requirement 2, the bid price to earn an 11% income-to-revenue margin is 400% of direct professional costs. Therefore, Taylor should bid 4 ( $10,075 = $40,300 for the Red Rooster job. Bid price to earn target operating income-to-revenue margin of 11% can also be calculated as follows: Let R = revenue to earn target income R – 0. 11R = $35,867 0. 89R = $ 35,867 R = $35,867 ? 0. 89 = $40,300 Or Direct costs $10,075 Indirect costs 25,792Operating income (0. 11 ( $40,300) 4,433 Bid price$40,300 4-22(15–20 min. )Time period used to compute indirect cost rates. 1. | |Quarter | | |1 |2 |3 |4 |Annual | |(1) Pools sold |700 |500 |150 |150 |1,500 | |(2) Direct manufacturing labor hours (0. 5 ( |350 |250 |75 |75 |750 | Row 1) | | | | | | |(3) Fixed manufacturing overhead costs |$10,500 |$10,500 |$10,500 |$10,500 |$42,000 | |(4) Budgeted fixed manufacturing overhead |$30 |$42 |$140 |$140 |$56 | |rate per direct manufacturing labor hour | | | | | | |($10,500 ( Row 2) | | | | | | | |Budgeted Costs Based on Quarterly | | |Manufacturing Overhead Rate | | |2nd Quarter |3rd Quarter | |Direct material costs ($7. 0 ( 500 pools; 150 pools) |$ 3,750 |$ 1,125 | |Direct manufacturing labor costs |4,000 |1,200 | |($16 ( 250 hours; 75 hours) | | | |Variable manufacturing overhead costs |3,000 |900 | |($12 ( 250 hours; 75 hours) | | | |Fixed manufac turing overhead costs | 10,500 | 10,500 | |($42 ( 250 hours; $140 ? 5 hours) | | | |Total manufacturing costs |$21,250 |$13,725 | |Divided by pools manufactured each quarter | ? 500 | ? 150 | |Manufacturing cost per pool |$ 42. 50 |$ 91. 50 | 2. | |Budgeted Costs Based on Annual Manufacturing | | |Overhead Rate | | |2nd Quarter |3rd Quarter | |Direct material costs ($7. 0 ( 500 pools; 150 pools) |$ 3,750 |$1,125 | |Direct manufacturing labor costs |4,000 |1,200 | |($16 ( 250 hours; 75 hours) | | | |Variable manufacturing overhead costs |3,000 |900 | |($12 ( 250 hours; 75 hours) | | | |Fixed manufacturing overhead costs | 14,000 | 4,200 | |($56 ( 250 hours; 75 hours) | | | |Total manufacturing costs |$24,750 |$7,425 | |Divided by pools manufactured each quarter | ( 500 | ( 150 | |Manufacturing cost per pool |$ 49. 50 |$49. 50 | 3. | |2nd Quarter |3rd Quarter | |Prices based on quarterly budgeted manufacturing overhead rates calculated in |$55. 25 |$118. 5 | |requirement 1 | | | |($42. 50 ( 130%; $91. 50 ( 130%) | | | |Price based on annual budgeted manufacturing overhead rates calculated in |$64. 35 |$64. 35 | |requirement 2 | | | |($49. 50 ( 130%; $49. 50 ( 130%) | | |Splash should use the budgeted annual manufacturing overhead rate because capacity decisions are based on longer annual periods rather than quarterly periods. Prices should not vary based on quarterly fluctuations in production. Splash could vary prices based on market conditions and demand for its pools. In this case, Splash would charge higher prices in quarter 2 when demand for its pools is high. Pricing based on quarterly budgets would cause Splash to do the opposite—to decrease rather than increase prices! 4-23(10–15 min. ) Accounting for manufacturing overhead. 1. Budgeted manufacturing overhead rate= [pic] = $30 per machine-hour 2. Work-in-Process Control7,350,000 Manufacturing Overhead Allocated7,350,000 (245,000 machine-hours ( $30 per machine-hour = $7,350,000) 3. 7,350,000– $7,300,000 = $50,000 overallocated, an insignificant amount of actual manufacturing overhead costs $50,000 ? $7,300,000 = 0. 68%. Manufacturing Overhead Allocated7,350,000 Manufacturing Department Overhead Control7,300,000 Cost of Goods Sold50,000 4-24(35(45 min. ) Job costing, journal entries. Some instructors may also want to assign Exercise 4-25. It demonstrates the relationships of the general ledger to the underlying subsidiary ledgers and source documents. 1. An overview of the product costing system is: 2. & 3. This answer assumes COGS given of $4,020 does not include the writeoff of overallocated manufacturing overhead. |2. (1) Materials Control |800 | | | |Accounts Payable Control | |800 | | |(2) Work-in-Process Control |710 | | | |Materials Control | |710 | | |(3) Manufacturing Overhead Control |100 | | | |Materials Control | |100 | | |(4) Work-in-Process Control |1,300 | | | |Manufacturing Overhead Control |900 | | | |Wages Payable Control | |2,200 | | |(5) Manufacturing Overhead Control | 400 | | | |Accumulated Depreciation––buildings and | | | | |manufacturing equipment | |400 | | |(6) Manufacturing Overhead Control | 550 | | | |Miscellaneous accounts | |550 | | |(7) Work-in-Process Control |2,080 | | | |Manufacturing Overhead Allocated | |2,080 | | |(1. 60 ( $1,300 = $2,080) | | | | |(8) Finished Goods Control |4,120 | | | |Work-in-Process Control |4,120 | | |(9) Accounts Receivable Control (or Cash) |8,000 | | | |Revenues | |8,000 | | |(10) Cost of Goods Sold |4,020 | | | |Finished Goods Control | |4,020 | | |(11) Manufacturing Overhead Allocated |2,080 | | | |Manufacturing Overhead Control | |1,950 | | |Cost of Goods Sold | |130 | 3. |Materials Control | |Bal. /1/2011 |100 |(2) Work-in-Process Control (Materials used) | | |(1) Accounts Payable Control | |(3) Manufacturing Overhead Control (Materials |710 | |(Purchases) |800 |used) | | | | | |100 | |Bal. 12/31/2011 |90 | | | |Work-in-Process Control | |B al. /1/2011 |60 |(8) Finished Goods Control (Goods completed) | | |(2) Materials Control (Direct | | |4,120 | |materials) |710 | | | |(4) Wages Payable Control (Direct | | | | |manuf. labor) | | | | |(7) Manuf. Overhead Allocated |1,300 | | | | | | | | | |2,080 | | | |Bal. 2/31/2011 |30 | | | |Finished Goods Control | |Bal. 1/1/2011 |500 |(10) Cost of Goods Sold |4,020 | |(8) WIP Control | | | | |(Goods completed) |4,120 | | | |Bal. 12/31/2011 |600 | | | Cost of Goods Sold | |(10) Finished Goods Control (Goods | |(11) Manufacturing Overhead Allocated (Adjust | | |sold) |4,020 |for overallocation) | | | | | |130 | |Bal. 12/31/2011 |3,890 | | | |Manufacturing Overhead Control | | (3) Materials Control (Indirect materials)| |(11) To close |1,950 | |(4) Wages Payable Control (Indirect manuf. |100 | | | |labor) | | | | |(5) Accum. Deprn.Control (Depreciation) |900 | | | |(6) Accounts Payable Control | | | | |(Miscellaneous) |400 | | | | | | | | | |550 | | | |Bal. |0 | | | Manufacturing Overhead Allocated | |(11) To close |2,080 |(7) Work-in-Process Control (Manuf. overhead | | | | |allocated) |2,080 | | | |Bal. | 0 | 4-25(35 minutes) Journal entries, T-accounts, and source documents. 1. i. Direct Materials Control 124,000 Accounts Payable Control124,000 Source Document: Purchase Invoice, Receiving Report Subsidiary Ledger: Direct Materials Record, Accounts Payable ii. Work in Process Control a 122,000 Direct Materials Control122,000Source Document: Material Requisition Records, Job Cost Record Subsidiary Ledger: Direct Materials Record, Work-in-Process Inventory Records by Jobs iii. Work in Process Control80,000 Manufacturing Overhead Control54,500 Wages Payable Control134,500 Source Document: Labor Time Sheets, Job Cost Records Subsidiary Ledger:, Manufacturing Overhead Records, Employee Labor Records, Work-in-Process Inventory Records by Jobs iv. Manufacturing Overhead Control129,500 Salaries Payable Control 20,000 Accounts Payable Control 9,500 Accumulated Depreciation Control 30,000 Rent Payable Control 70,000 Source Document: Depreciation Schedule, Rent Schedule, Maintenance wages due, Invoices for miscellaneous factory overhead items Subsidiary Ledger: Manufacturing Overhead Records v.Work in Process Control200,000 Manufacturing Overhead Allocated200,000 ($80,000 [pic] $2. 50) Source Document: Labor Time Sheets, Job Cost Record Subsidiary Ledger: Work-in-Process Inventory Records by Jobs vi. Finished Goods Control b387,000 Work in Process Control387,000 Source Document: Job Cost Record, Completed Job Cost Record Subsidiary Ledger: Work-in-Process Inventory Records by Jobs, Finished Goods Inventory Records by Jobs vii. Cost of Goods Sold c432,000 Finished Goods Control432,000 Source Document: Sales Invoice, Completed Job Cost Record Subsidiary Ledger: Finished Goods Inventory Records by Jobs viii. Manufacturing Overhead Allocated200,000Manufacturing Overhead Control ($129,500 + $54,500)184,000 Cost of Goods Sold 16,000 Source Document: Prior Journal Entries ix. Administrative Expenses 7,000 Marketing Expenses120,000 Salaries Payable Control30,000 Accounts Payable Control90,000 Accumulated Depreciation, Office Equipment 7,000 Source Document: Depreciation Schedule, Marketing Payroll Request, Invoice for Advertising, Sales Commission Schedule. Subsidiary Ledger: Employee Salary Records, Administration Cost Records, Marketing Cost Records. aMaterials used = [pic] + Purchases – [pic] [pic] b[pic] = [pic] + [pic] – [pic] [pic] cCost of goods sold = [pic] + [pic] – [pic] [pic] 2. T-accounts Direct Materials Control | |Bal. 1/1/2011 |9,000 |(2) Work-in-Process Control (Materials used) | | |(1) Accounts Payable Control (Purchases) | | |122,000 | | |124,000 | | | |Bal. 12/31/2011 |11,000 | | | Work-in-Process Control | |Bal. 1/1/2011 |6,000 |(6) Finished Goods Control (Cost of goods | | |(2) Materials Control | |manufactured) | | |(Direct materials used) |122,000 | |387,000 | |(3) Wages Payable Control (Direct manuf. labor)| | | | |(5) Manuf.Overhead Allocated |80,000 | | | | | | | | | |200,000 | | | |Bal. 12/31/2011 |21,000 | | | |Finished Goods Control | |Bal. 1/1/2011 |69,000 |(7) Cost of Goods Sold |432,000 | |(6) WIP Control | | | | |(Cost of goods manuf. ) |387,000 | | | |Bal. 2/31/2011 |24,000 | | | |Cost of Goods Sold | |(7) Finished Goods Control (Goods sold) | |(8) Manufacturing Overhead Allocated (Adjust | | | |432,000 |for overallocation) | | | | | |16,000 | | | | | | Manufacturing Overhead Control | |(3) Wages Payable Control | |(8) To close |184,000 | |(Indirect manuf. labor) |54,500 | | | |(4) Salaries Payable Control (Maintenance) | | | | |(4) Accounts Payable Control (Miscellaneous) |20,000 | | | |(4) Accum. Deprn.Control (Depreciation) | | | | |(4) Rent Payable Control (Rent) |9,500 | | | | | | | | | |30,000 | | | | | | | | | |70,000 | | | |Bal. |0 | | | |Manufacturing Overhead Allocated | |(8) To close |200,000 |(5) Work-in-Process Contr ol (Manuf. verhead | | | | |allocated) | | | | | |200,000 | | | |Bal. | 0 | 4-26(45 min. )Job costing, journal entries. Some instructors may wish to assign Problem 4-24. It demonstrates the relationships of journal entries, general ledger, subsidiary ledgers, and source documents. 1. An overview of the product-costing system is 2. Amounts in millions. (1) Materials Control |150 | | |Accounts Payable Control | |150 | |(2) Work-in-Process Control |145 | | |Materials Control | |145 | |(3) Manufacturing Department Overhead Control | 10 | | |Materials Control | |10 | |(4) Work-in-Process Control | 90 | | |Wages Payable Control | |90 | |(5) Manufacturing Department Overhead Control | 30 | | |Wages Payable Control | |30 | |(6) Manufacturing Department Overhead Control | 19 | | |Accumulated Depreciation | |19 | |(7) Manufacturing Department Overhead Control | 9 | | |Various liabilities | |9 | |(8) Work-in-Process Control | 63 | | |Manufacturing Overhead Allocated | |63 | |(9) Finished Goods Control |294 | | |Work-in-Process Control | |294 | |(10a)Cost of Goods Sold |292 | | |Finished Goods Control | |292 | |(10b) Accounts Receivable Control (or Cash ) |400 | | |Revenues | |400 | The posting of entries to T-accounts is as follows: |Materials Control | |Work-in-Process Control | |Bal 12 |(2) 145 | |Bal. |(9) 294 | | | | |(2) 145 | | | | | |(4) 90 | | | | | |(8) 63 | | |(1) 150 |(3) 10 | | | | |Bal. 7 | | | | | | | | | | | | | | |Bal. | | |Finished Goods Control | |Cost of Goods Sold | |Bal. 6 |(10a) 292 | |(10a) 292 | | |(9) 294 | | |(11) 5 | | |Bal. 8 | | | | | |Manufacturing Department | | |Overhead Control | |Manufacturing Overhead Allocated | |(3) 10 |(11) 68 | |(11) 63 |(8) 63 | |(5) 30 | | | | | |(6) 19 | | | | | |(7) 9 | | | | | Accounts Payable Control | |Wages Payable Control | | |(1) 150 | | |(4) 90 | | | | | |(5) 30 | |Accumulated Depreciation | |Various Liabilities | | |(6) 19 | | |(7) 9 | Accounts Receivable Control | |Revenues | |(10b) 400 | | | | (10b) 400 | | | | | | | The ending balance of Work-in-Process Control is $6. 3. (11) Manufacturing Overhead Allocated63 Cost of Goods Sold5 Manufacturing Department Overhead Control68 Entry posted to T-accounts in Requirement 2. 4-27(15 min. )Job costing, unit cost, ending work in progress. 1. Direct manufacturing labor rate per hour |$26 |   | |Manufacturing overhead cost allocated |$20 |   | |per manufacturing labor-hour | | | |   |Job M1 |Job M2 | |Direct manufacturing labor costs |$273,000 |$208,000 | |Direct manufacturing labor hours ($273,000[pic]$26; | 10,500 | 8,000 | |$208,000[pic]$26) | | | |Manufacturing overhead cost allocated (10,500 [pic] $20; |$210,000 |$160,000 | |8,000 [pic] $20) | | | | | | | |Job Costs May 2011 |Job M1 |Job M2 | |Direct materials |$ 78,000 |$ 51,000 | |Direct manufacturing labor | 273,000 | 208,000 | |Manufacturing overhead allocated | 210,000 | 160,000 | |Total costs |$561,000 |$419,000 | 2. |Number of pipes produced for Job M1 |1,100 |   | |Cost per pipe ($561,000 [pic]1,100) |$510 |   | 3. Finished Goods Control561,000 Work-in-Process Control 561,000 4.Rafael Company began May 2011 with no work-in-process inventory. During May, it started and finished M1. It also started M2, which is still in work-in-process inventory at the end of May. M2’s manufacturing costs up to this point, $419,000, remain as a debit balance in the Work-in-Process Inventory account at the end of May 2011. 4-28(20(30 min. ) Job costing; actual, normal, and variation from normal costing. 1. Actual direct cost rate for professional labor=$59 per professional labor-hour Actual indirect cost rate = [pic]=$42 per professional labor-hour [pic] = [pic]=$55 per professional labor-hour Budgeted indirect cost rate = [pic]=$43 per professional labor-hour |(a) |(b) |(c) | | |Actual |Normal |Variation of | | |Costing |Costing |Normal Costing | |Direct-Cost Rate |$59 |$59 |$55 | | |(Actual rate) |(Actual rate) |(Budgeted rate) | |Indirect-Cost Ra te |$42 |$43 |$43 | | |(Actual rate) |(Budgeted rate) |(Budgeted rate) | |2. |(a) |(b) |(c) | | Actual |Normal |Variation of | | |Costing |Costing |Normal Costing | |Direct Costs |$59 ( 160 = $ 9,440 |$59 ( 160 = $ 9,440 |$55 ( 160 = $ 8,800 | |Indirect Costs |$42 ( 160 = 6,720 |$43 ( 160 = 6,880 |$43 ( 160 = 6,880 | |Total Job Costs |$16,160 |$16,320 |$15,680 | All three costing systems use the actual professional labor time of 160 hours. The budgeted 150 hours for the Pierre Enterprises audit job is not used in job costing. However, Chico may have used the 150 hour number in bidding for the audit. The actual costing figure of $16,160 is less than the normal costing figure of $16,320 because the actual indirect-cost rate ($42) is less than the budgeted indirect-cost rate ($43).The normal costing figure of $16,320 is more than the variation of normal costing (based on budgeted rates for direct costs) figure of $15,680, because the actual direct-cost rate ($59) is more than the budge ted direct-cost rate ($55). Although not required, the following overview diagram summarizes Chico’s job-costing system. [pic] 4-29(20(30 min. ) Job costing; actual, normal, and variation from normal costing. 1. Actual direct cost rate for architectural labor=$92 per architectural labor-hour Actual indirect cost rate = [pic]=$50 per architectural labor-hour [pic] = [pic]=$90 per architectural labor-hour Budgeted indirect cost rate = [pic]=$54 per architectural labor-hour |(a) |(b) |(c) | | |Actual |Normal |Variation of | | |Costing |Costing |Normal Costing | |Direct-Cost Rate |$92 |$92 |$90 | | |(Actual rate) |(Actual rate) |(Budgeted rate) | |Indirect-Cost Rate |$50 |$54 |$54 | | |(Actual rate) |(Budgeted rate) |(Budgeted rate) | |2. (a) |(b) |(c) | | |Actual |Normal |Variation of | | |Costing |Costing |Normal Costing | |Direct Costs |$92 ( 250 = $23,000 |$92 ( 250 = $23,000 |$90 ( 250 = $22,500 | |Indirect Costs |$50 ( 250 = 12,500 |$54 ( 250 = 13,500 |$54 ( 250 = 13,500 | |Total Job Costs |$35,500 |$36,500 |$36,000 | All three costing systems use the actual architectural labor time of 250 hours. The budgeted 275 hours for the Champ Tower job is not used in job costing. However, Braden Brothers may have used the budgeted number of hours in bidding for the job. 30. (30 min. ) Proration of overhead. [pic] = [pic] [pic] 2. Overhead allocated = 50% [pic] Actual direct manufacturing labor cost = 50% [pic] $228,000 = $114,000 |Underallocated |= |Actual |– |Allocated plant | | | |manufacturing | |manufacturing | |overhead costs | | | |overhead | |overhead costs | | | | = $117,000 – $114,000 = $3,000 Underallocated manufacturing overhead = $3,000 3a. All underallocated manufacturing overhead is written off to cost of goods sold. Both work in process (WIP) and finished goods inventory remain unchanged. |Account |Dec. 31, 2011 |Proration of $3,000 |Dec. 31, 2011 | | |Balance |Underallocated |Balance | | |(Before Proration) |Manuf.Overhead |(After Proration) | | |(1) |(2) |(3) = (1) + (2) | |WIP |$ 50,700 |$ 0 |$ 50,700 | |Finished Goods |245,050 |0 |245,050 | |Cost of Goods Sold | 549,250 | 3,000 | 552,250 | |Total |$845,000 |$3,000 |$848,000 | 3b. Underallocated manufacturing overhead prorated based on ending balances: |Account |Dec. 31, 2011 Account |Account |Proration of $3,000 |Dec. 1, 2011 Account | | |Balance |Balance as a |Underallocated |Balance | | |(Before Proration) |Percent of Total |Manuf. Overhead |(After Proration) | | |(1) |(2) = (1) ? $845,000 |(3) = (2)[pic]$3,000 |(4) = (1) + (3) | |WIP |$ 50,700 |0. 06 |0. 06 [pic] $3,000 = $ 180 |$ 50,880 | |Finished Goods |245,050 |0. 29 |0. 29 [pic] $3,000 = 870 |245,920 | |Cost of Goods Sold | 549,250 |0. 65 |0. 5 [pic] $3,000 = 1,950 | 551,200 | |Total |$845,000 |1. 00 |$3,000 |$848,000 | 3c. Underallocated manufacturing overhead prorated based on 2011 overhead in ending balances: |Account |Dec. 31, 2011 |Allocated Manuf. |Allocated Manuf. Overhead |Proration of $3,0 00 |Dec. 31, 2011 | | |Account |Overhead in |in |Underallocated |Account | | |Balance |Dec. 31, 2011 Balance |Dec. 31, 2011 |Manuf.Overhead |Balance | | |(Before Proration) |(Before Proration) |Balance as a |(4) = (3)[pic]$3,000 |(After Proration) | | |(1) |(2) |Percent of Total | |(5) = (1) + (4) | | | | |(3) = (2) ? $114,000 | | | |WIP |$ 50,700 |$ 10,260a |0. 09 |0. 09 [pic] $3,000 = $ 270 |$ 50,970 | |Finished Goods |245,050 |29,640b |0. 26 |0. 6 [pic] $3,000 = 780 |245,830 | |Cost of Goods Sold | 549,250 | 74,100c |0. 65 |0. 65 [pic] $3,000 = 1,950 | 551,200 | |Total | $845,000 |$114,000 |1. 00 | $3,000 | $848,000 | a,b,c Overhead allocated = Direct manuf. labor cost[pic]50% = $20,520; $59,280; $148,200[pic]50% 4. Writing off all of the underallocated manufacturing overhead to Cost of Goods Sold (CGS) is usually warranted when CGS is large relative to Work-in-Process and Finished Goods Inventory and the underallocated manufacturing overhead is immaterial. Both these conditions apply in this case.ROW should write off the $3,000 underallocated manufacturing overhead to Cost of Goods Sold Account. 4-31 (20(30 min)Job costing, accounting for manufacturing overhead, budgeted rates. 1. An overview of the job-costing system is: [pic] 2. Budgeted manufacturing overhead divided by allocation base: a. Machining Department: [pic]= $52 per machine-hour b. Finishing Department: [pic]= 194% of direct manufacturing labor costs 3. Machining Department overhead, $52 ( 130 machine-hours$6,760 Finishing Department overhead, 194% of $1,100 2,134 Total manufacturing overhead allocated$8,894 4. Total costs of Job 431: Direct costs: Direct materials––Machining Department$15,500 ––Finishing Department5,000Direct manufacturing labor—Machining Department400 —Finishing Department 1,100$22,000 Indirect costs: Machining Department overhead, $52 ( 130$ 6,760 Finishing Department overhead, 194% of $1,100 2,134 8,894 Total costs$30,894 The per-u nit product cost of Job 431 is $30,894 ? 400 units = $77. 235 per unit The point of this part is (a) to get the definitions straight and (b) to underscore that overhead is allocated by multiplying the actual amount of the allocation base by the budgeted rate. 5. MachiningFinishing Manufacturing overhead incurred (actual)$11,070,000$8,236,000 Manufacturing overhead allocated 210,000 hours ( $5210,920,000 94% of $4,400,000 8,536,000 Underallocated manufacturing overhead$ 150,000 Overallocated manufacturing overhead$ 300,000 Total overallocated overhead = $300,000 – $150,000 = $150,000 6. A homogeneous cost pool is one where all costs have the same or a similar cause-and-effect or benefits-received relationship with the cost-allocation base. Fasano likely assumes that all its manufacturing overhead cost items are not homogeneous. Specifically, those in the Machining Department have a cause-and-effect relationship with machine-hours, while those in the Finishing Department have a cause-and-effect relationship with direct manufacturing labor costs.Fasano believes that the benefits of using two cost pools (more accurate product costs and better ability to manage costs) exceeds the costs of implementing a more complex system. 4-32(15(20 min. ) Service industry, job costing, law firm. 1. [pic] 2. [pic]= [pic] =[pic] =$65 per professional labor-hour Note that the budgeted professional labor-hour direct-cost rate can also be calculated by dividing total budgeted professional labor costs of $2,600,000 ($104,000 per professional ( 25 professionals) by total budgeted professional labor-hours of 40,000 (1,600 hours per professional ( 25 professionals), $2,600,000 ( 40,000 = $65 per professional labor-hour. [pic][pic]= [pic] [pic] =[pic] =$55 per professional labor-hour |4. |Richardson |Punch | |Direct costs: | | | |Professional labor, $65 ( 100; $65 ( 150 |$ 6,500 |$ 9,750 | |Indirect costs: | | | |Legal support, $55 ( 100; $55 ( 150 |5,500 |8,250 | | |$12,000 |$18, 000 | 4-33(25–30 min. Service industry, job costing, two direct- and indirect-cost categories, law firm (continuation of 4-32). Although not required, the following overview diagram is helpful to understand Keating’s job-costing system. [pic] |1. |Professional |Professional | | |Partner Labor |Associate Labor | |Budgeted compensation per professional |$ 200,000 |$80,000 | |Divided by budgeted hours of billable | | | |time per professional |? 1,600 |? ,600 | |Budgeted direct-cost rate |$125 per hour* |$50 per hour†  | *Can also be calculated as [pic]= [pic]= [pic]=$125 † Can also be calculated as [pic]= [pic]= [pic]=$ 50 |2. |General |Secretarial | | |Support |Support | |Budgeted total costs |$1,800,000 |$400,000 | |Divided by budgeted quantity of allocation base |? 40,000 hours |? ,000 hours | |Budgeted indirect cost rate |$45 per hour |$50 per hour | |3. |Richardson |Punch | |Direct costs: | | | |Professional partners, | | | |$125 ( 60 hr. ; $125 ( 30 hr. |$7,500 |$3,750 | |Professional associates, | | | |$50 ( 40 hr. ; $50 ( 120 hr. 2,000 |6,000 | |Direct costs |$ 9,500 |$ 9,750 | |Indirect costs: | | | |General support, | | | |$45 ( 100 hr. ; $45 ( 150 hr. |4,500 |6,750 | |Secretarial support, | | | |$50 ( 60 hr. ; $50 ( 30 hr. 3,000 |1,500 | |Indirect costs |7,500 |8,250 | |Total costs |$17,000 |$18,000 | |4. |Richardson |Punch | |Single direct – Single indirect | | | |(from Problem 4-32) |$12,000 |$18,000 |Multiple direct – Multiple indirect | | | |(from requirement 3 of Problem 4-33) |17,000 |18,000 | |Difference |$ 5,000 |$ 0 | | |undercosted |no change | The Richardson and Punch jobs differ in their use of resources. The Richardson job has a mix of 60% partners and 40% associates, while Punch has a mix of 20% partners and 80% associates. Thus, the Richardson job is a relatively high user of the more costly partner-related resources (both direct partner costs and indirect partner secretarial support). The Pun ch job, on the other hand, has a mix of partner and associate-related hours (1  :  4) that exactly equals the mix of partner and associate hours for the firm as a whole. The refined-costing system in Problem 4-33 increases the reported cost in Problem 4-32 for the Richardson job by 41. % (from $12,000 to $17,000) while it happens to correctly cost the Punch job. 4-34(20(25 min. ) Proration of overhead. [pic] 2. [pic]=[pic] – [pic] =$4,900,000 – $4,500,000* =$400,000 *$60 ( 75,000 actual machine-hours = $4,500,000 a. Write-off to Cost of Goods Sold | |Dec. 31, 2011 |Write-off |Dec. 31, 2011 | | |Account |of $400,000 |Account | | |Balance |Underallocated |Balance | |Account |(Before Proration) |Manufacturing (After Proration) | |(1) |(2) |Overhead |(4) = (2) + (3) | | | |(3) | | | | | | | |Work in Process |$ 750,000 |$ 0 |$ 750,000 | |Finished Goods |1,250,000 |0 |1,250,000 | |Cost of Goods Sold |8,000,000 |400,000 |8,400,000

Greece working Conditions Essay

Introduction Business ethics examine the ethical, moral and principle problems that occur in a business environment, and its application applies to all aspects of a business, which include strategy implementation, policy formulation, organizational culture and legal proceedings, just to mention a few. Business decisions are best explained by the use of ethical frameworks, which include; the utilitarian rule, social justice, deontology and ethics of virtues. The task in the presentation is to research working conditions in Greece and then figure out which ethical framework is being used by the leaders of that country in that issue. A careful analysis of the matter indicates that the leaders employ the utilitarian framework, which states that given two or more choices to choose from, a person must choose the one that yields maximum benefits to the largest number of people (Windelband et.al, 1958). In other words, if a given choice is going to benefit a small number of people, it is of great importance. John Stuart Mill modified the law of utilitarianism and came up with a new utilitarian rule which stated that, one determines what is right by contrasting the outcome of all related agents of alternative policy for a particular condition (Quinton, 1973). Issue: Greece Working Conditions To understand the working conditions, data from the Institute of Employment is used. The data was provided by the Social Insurance Foundation and Labor Inspectors in Greece. This institute carried out a research in the year 2003. The objective of the research was to investigate the health and safety legislations in Greece. Questionnaires handed out to 324 people of various specialties. 35.8 percent specified that there were no health and safety provisions in the firm and 48.7% stated that, to their knowledge, there was no physician assigned to the firm. A small percentage acknowledges the being of a health and safety committee in their firm was only 32.4%. In the construction sector, 53.5% had a health and safety provision document while 58.9% in the manufacturing sector had the same. 66.1% of the respondents in the public sector said they lacked such a document (Aizenman, 2012). According to (Bentham 1948),  Ã‚   it is right to exercise what is good for the largest population of people. The study reveals that the greatest number of people in the work environment had the health and safety document.   Companies in Greece seem to value policies that yield the greatest benefit to the greatest number of people. However, James Rachel, critic of the utilitarian rule, would have argued otherwise. In his criticisms, he points out that, everyone is equal and that everybody’s happiness is important (Rachel, 1986). The group of people who lack the document in this case can claim that businesses in Greece did violate the business ethics. This indeed violates utilitarian moral framework. ‘’One issue in particular is already in danger of being subject to all kinds of populist rhetoric rather than objective assessment: free movement of people in general and of workers in particular, in the European Union’’, says President Boroso while addressing the European crisis, which pioneered numerous reforms in Greece labor laws. The reforms led to limited protection of workers in the labor market. This aspect violated business ethics and essential social rights. Law number 3863/2010 introduced fundamental changes in the labor market. The major areas changed included: The period given as a notice to the termination of white-collar workers significantly shortened. The golden handshake for white-collar workers reduced by a half due to the reforms made. Operational costs must be kept between 5% and 10%. The minimum wage rates for workers under the age of 25 years reduced to 84% of the set minimum wage. For underage workers, the minimum wage rate set at 70% of the set minimum wage (Lynn, 2011). According to (Bentham, 1948) these changes cannot yield maximum benefits to the society because they only cater for a few individuals. In fact, are in contrast with the labor minister, Algimanta Pabedinskiene, utterances, and I quote, ‘‘Tackling NEET problems will require a variety of measures facilitating the transition of these young people into the world of employment, or their return to the education system. In applying these measures, a special focus should be placed on vulnerable groups’’. The law set by the government aimed at protecting the community from mass unemployment by making the labor laws weak, but by doing so, individual interests were not considered.   According to (Allison, 1990) a rational individual wants to make more   money from their employment, and the same   individual does not want to work in conditions, which make him/her feel underpaid. This is to say that the government is doing more harm than good by introducing weak labor laws. However, the government encourages underage working, which is a way of depriving minors their rights. This is not in line with the utilitarianism because it violates the ethics (Thilly, 1957). Apart from the labor market reforms, the government instituted in 2010, service cuts in pension and other important reforms in the social security regulations (Pryce 2012). The key points to note are as follows: Zero increase in the current pension over the next 3 years For the uninsured persons over the age of 65, their basic pension criteria underwent reforms. The amount of the pension is set at â‚ ¬360. The national budget will finance the pension from the year 2018. With respect to minimum wages, the reduction of salaries in now fully permitted for all workers who are receiving the minimum wage rate in the country. This is now possible after an agreement in the National General Collective Agreement (NGCA). Signing of the agreement on 15 July 2010 was by the social partners. This agreement validation was to be effected after three years (Feldstein, 2011). Salary cut for employees between 25 years was set between 22% and 32%. The employer can impose this cut without the consent of the employee. These reforms further show how the government violates utilitarian principle. A salary cut without the consent of employees is unethical, and violates utilitarian rule. According to (Goodin, 1995), utilitarianism as a public philosophy has been broken. Goodin explains utilitarianism as a principle which should guide political leaders while making decisions that affect the society at large. He points out that leaders must take into account the impacts of the policies they pass on the entire society, other than focusing on a small group of people. In addition, (Copleston, 1975) states that people’s decisions and rights must be respected whenever the government passes policies that has direct impacts on citizen’s welfare. He further states that failure to exercise this, the government will be infringing citizen’s rights, which is unethical. Conclusion The government and companies in Greece tend to pass laws and policies in line with the utilitarian framework, but there are many instances where the leaders go contrary to the principles of the framework. Using quotes and criticisms of the law and data collected, it is evident that there exists infringement of the utilitarian rule. The Government of Greece ought to use this analysis to rewrite its policies. It is ironical that the government wants zero unemployment while it continues to pass laws and regulations that do not yield greatest benefit to the greatest number of people. The happiness of citizens and their rights must be respected if the government aims at reducing unemployment. References Aizenman, J. (2012). Developing countries’ financial vulnerability to the euro crisis an event study of equity and bond markets. Cambridge, Mass.: National Bureau of Economic Research. Allison, L. (1990). The Utilitarian response: the contemporary viability of utilitarian political philosophy. London: Sage Publications. Copleston, F. C. (1975). A history of philosophy. Westminster, Md.: Newman Bookshop. Feldstein, M. S. (2011). The euro and European economic conditions. Cambridge, Mass.: National Bureau of Economic Research. George, S. K. (2005). The moral philosophy of John Steinbeck. Lanham, Md.: Scarecrow Press.Copy & PasteParenthetical Goodin, R. E. (1995). Utilitarianism as a public philosophy. Cambridge University Press. Havard, W. C. (1959). Henry Sidgwick & later utilitarian political philosophy. Gainesville: University of Florida Press.Copy & Paste Lynn, M. (2011). Bust: Greece, the Euro, and the sovereign debt crisis. Hoboken, N.J.: Bloomberg Press.Copy & PasteParentheticalNardo, D. (2006). Ancient Greece. Detroit: Lucent Books. Pryce, V. (2012). Greekonomics: the Euro crisis and why politicians don’t get it. London: Biteback.Copy & Pastearenthetical Quinton, A. (1973). Utilitarian ethics. New York: St. Martin’s Press. Thilly, F. (1957). A history of philosophy (3d ed.). New York: Holt. Windelband, W., & Tufts, J. H. (1958). A history of philosophy. New York: Harper & Brothers.   

Amateurism in Ncaa Football

Paranny Aril Crawford Sandin English 101 13 October 2012 Amateurism In NCAA Football The National Collegiate Athletic Association is corrupted with sneakiness, unfairness and greediness, particularly in division one colleges. In North America, sports play a huge role, especially sports like football, hockey, basketball and baseball. Sometimes this causes us to become vanished of fairness, like are the players being treated right? A great example of injustice in sports is amateurism of football players in division one colleges.Division one and division two athletes must obtain amateurism, which is playing the sport as a hobby rather than for the money, many would define amateurism as worthy but it is really tainted and monopolized! Should NCAA athletes get paid? Numerous of people would easily answer no because college athletes are on scholarships and various athletic departments loses money even with a winning record. Also college athletes have advantages with free tuition, books, li ving expenses, food, clothing and health.Although all of these features appear wonderful but there are more cons than pros of amateurism. For example the NCAA is a business that are making money out of these athletes basically for free and yes they do receive tuition but that does not compare to the large amount of money the NCAA is making out of them. According the Stanford Review, college athletic is a multimillion-dollar industry with recruiting the best of the best in the nation. So why not pay the best of the best, if they put in all this hard work, then they should be rewarded.Instead the National Colligate Athletic Association is a monopoly because of its limitation of scholarships and other payments to boost its college sports program. Also not all of the athletes receive scholarships. College football players put in more work on the field than they do in the classrooms. For example when in season they have five-hour practices and that doesn’t include lifting for an h our and this is from Tuesday to Friday with game day on Saturday. After the season is over then they begin spring all which is just only practices and plus they don’t have a summer break because they have to stay for summer ball. We consider college athletes as student athletes but that is such an oxymoron because in realty their sport does come before their schoolwork. When playing in a big division one school, most athletes believe to make it in the big leagues but sadly only about 2% makes it. Colleges should stress more on education for so call student athletes but they don’t because of the athlete’s popularity and how the NCAA is making money out of them regardless if they have a future afterward or not.It’s horrible how the NCAA contract includes that when an athlete commits and decides to transfer to play for another school then they have to sit out a year. This rule is so unfair because coaches don’t have to do that. The NCAA is the biggest monopoly in America according to Bloomberg Businessweek Magazine. When selling college souvenirs and jerseys, videogames, etc and the athlete does not make any money from that, even if they are the main reason for those sales. It is amazing that most players receive a free education but does not compare to what the NCAA is making off of them.The players should receive a cut of these profits or gain a portion of this money after graduation so it can help them financially with their futures. Sadly the NCAA is too considerate of themselves and if an athlete is injure or not performing well then they have no problem wiping their name off the record books. The National Collegiate Athletic Association is a business that makes tons of money from college athletes. Another reason why the NCAA doesn’t pay their athletes is because they will be tax and they can lose a lot of money from that.Well, professional sports obviously pay their athletes and they are tax too but the professional leagues are doing well. College basketball and college football are highly talked about and televised just like the professional sports so it shouldn’t be a problem if college athletes get paid. With amateurism in college sports, athletic programs cheat. They secretly cheat by illegally over paying top players or handing them out free stuff. For instance Cam Newton who was an All-American quarterback playing for Auburn and Mississippi before was secretly offered 120,000 to 18,000 from Mississippi State.Playing in top division one colleges, â€Å"winning isn’t everything, it’s the only thing† and if athletic programs will cheat to have the best recruits and this is no surprise. If amateurism didn’t exist, there wouldn’t be any cheating scandals and every player will treated equally from their performance. Brown, Noah. â€Å"The NCAA Monopoly – The Toonari Post – News, Powered by the People! â€Å"

Darwinism and His Theory of Evolution Coursework

Darwinism and His Theory of Evolution - Coursework Example With the appearance of the Theory of Evolution, the lacuna, which was previously filled with a belief in the Creator, could be filled with scientific explanations. The widely debatable Theory of Evolution swayed the minds of many scientists, who began to apply it to all branches of knowledge up to history (Marx) and psychology (Freud). More than one and a half century has passed after the Theory of Evolution publication date and all this time the debate over it was evolving, adapting, changing, but did not stop for a day even. As any science, Darwin’s Theory has far more questions than answers. The same situation is with the modern theories. The current Synthetic Theory of Evolution, combining achievements of genetics and classical Darwinism, was established 80 years ago. It’s now evident for all evolutionary biologists that it is outdated and many facts do not find any explanation in it. Scientists talk about the need for a new synthesis, which would unite the achievement of present-day paleontology, embryology, animal psychology and other fields of biology, which were not considered fully by the modern evolutionary theory. But even if the third synthesis occurs (Darwin’s theory is the first synthesis, as the historians of biology state), it will not, obviously, solve all the problems. But it will certainly put some new questions - such is the specificity of science. Overview of the Issue. Pros and Cons Scientists can debate certain statements and facts of the Theory of Natural Select ion, but they have to admit that it, as a whole, is logically simple, clear and is confirmed by so many facts, testable in experiments, that can not simply be erroneous.  Most biologists understand it.  Another thing is that life is a very complex phenomenon and the Theory of Evolution gives only a very simplified presentation.  This paves the way for further development of the theory in terms of constructive criticism.  The essence of the Darwinian concept of evolution is reduced to a number of statements, recognized by most scientists: Within each species of living organisms there is a huge range of individual genetic variations in morphological, physiological, behavioral and any other character.  This variability can have a continuous, quantitative or intermittent qualitative nature, but it exists always. All living organisms propagate their kind in a geometric progression. Resources for all types of living organisms are limited and, therefore, the struggle for existenc e must appear between individuals of one species or between individuals of different species or between species and natural conditions.   In the struggle for existence only the fittest individuals survive; individuals with abnormalities that happened to be adaptive to certain environmental conditions.  This is a fundamentally important point in the arguments of Darwin.  Deviations appear not as environmental variations, but happen by chance.  Few of them become useful under specific conditions.  Descendants of such survivors inherit useful deviations, which allowed their ancestors to survive, and are more adapted to the environment than the other members of population. Survival and reproduction of the fittest individuals was called â€Å"natural selection.† Natural selection of separate isolated species in different conditions of existence gradually leads to a divergence of characteristics of these species and, ultimately, to speciation. On these postulates, once ag ain, perfect in terms of logic and supported by a huge number of facts, the modern Theory of Evolution has been established. Each of these theories is an explanation that has been confirmed to such a degree, by observation and experiment, that knowledgeable experts accept it as fact (Quammen, NG).

Leadership paper 2 Essay Example | Topics and Well Written Essays - 2000 words

Leadership paper 2 - Essay Example The personal life, challenges and opportunities also affect the professional life, vision and career development. The personal challenges that I face involve lack of time for the family members and inappropriate time to socialize and active participation in physical and mental activities. These challenges that I face, due to tight schedule of my job and my undue precedence to the professional career, are disrupting my personal life. Unstable personal life affects the professional career badly and hence, before going any further in the development of my professional life I would need to resolve the personal life issues keeping the professional values and visions under consideration. My Values: Basing the discussion on the LPI feedback, the most important trait according to my leadership skills is to treat others with dignity and respect. Employees working under my control, hence, are encouraged to put forward their ideas without any fear of embarrassment or humiliating behavior from t he management side including me. My values involve firm commitment and fulfillment of my promises which act as a modeling behavior for the employees. Employees spend more time observing the leaders’ behavior on how he/she acts in certain circumstances and respond to the commitments. A responsive, more responsible and committed leader inspires the visions and actions of the taskforce. I also believe in developing a cooperative environment where workers are encouraged to ponder over different issues, share their thoughts and implement the change. The fact that their ideas and views are respected and implemented if they are appropriate, integrate them more in the organization and they feel more relaxed and satisfied with the working environment. This leadership trait also enables the workers to trust the leader, act upon his decisions and understand the underlying factors of the decision which are beneficial for the firm and/or the performance of the group. My leadership values include the communication about group aspirations often in the daily working environment. This enables the employees keep their focus on achieving the group goals rather than achieving individual targets which collides with the group targets. Hence, proper communication of the targets and motivation to achieve them as a group helps achieving those targets by inspiring the group members’ vision and point of views about the work delegated to them. The LPI also suggests that seeking challenging opportunities to test and polish skills is also one of the traits that I adopt as a leader. Challenges and adverse situations enable the person think critically, evaluate, assess and implement. The challenging tasks and situations help making the group more integrated and devoted. The whole group is equally involved in tackling the difficult situation, hence creating a more firm and goal oriented taskforce. This further helps in realizing the true potentials of the group members and their involvement and interest in achieving the group goals. In addition to this, my values involve proper assessment of the group progress and communicate the results with the group to encourage them on improvement and discourage the traits which may hinder the success of the

Motherhood and Mothering Essay Example | Topics and Well Written Essays - 500 words

Motherhood and Mothering - Essay Example A woman cannot feel herself fully realized if she is not a mother – the message is. As time passes and all your friends get married and start having children, you cannot help feeling pressure and feeling a kind of outcast. Everybody persuades you that being a mother is the greatest happiness in a woman’s life and that if you do not have children you cannot consider yourself a real woman. At that most of women give birth to their children just because it is prescribed by the society. There are certain scripts as to the number of children to be born, and to the age of becoming a mother. These scripts are transferred in families from generation to generation. Certainly, women usually do not realize that it is not quite their desire but merely the scenario imposed on them, believing that it is high time for them to have children. Many women give birth to children because they cannot find their way and mission in life. Children provide an opportunity to occupy one’s l ife-time with seemingly important things. As a result many mothers give no freedom to their children, interfering with their lives and imposing own worldviews and beliefs, not realizing that their children are quite different people, who came into this world to have their own experience and follow their own path. My interviewee is a usual representative of her time. Her understanding of motherhood reflects the common approach. She is not absorbed wholly with the idea of becoming a mother, but it is only because she is very young. It is clear from her utterances that she is simply waiting for the time when she will be ready to deny her freedom in favor of her children. My friend does realize that being a mother is a hard work, as she puts it â€Å"you have to work more than full-time employment.† Yet she starts thinking of children already dreaming of the reward in a form of children’s happy faces and mutual trust. The question is

Prcis Essay Example | Topics and Well Written Essays - 500 words

Prcis - Essay Example e in the industrialized world, people are growing more dependent on new gadgets, the notion of perpetual growth, chemically fertilized food and drugs that are synthesized chemically. The letter also warns that the present generations are wrongly informed that using fossil energy without consideration for the future is normal. It is shown that the problem with the current use of energy is that more energy is spent to put the technologies in place than is actually produced by the technologies. The realization by governments and politicians that fossil energy is exhaustible is what has led to enmity between high consumers of energy and the supplying nations, often culminating in military aggression and economic depression. Present generations are adviced that turning to solar energy is the best way to guarantee continuous, non-exhaustible energy, but also warned that solar energy cannot support the entire requirements of people that are virtually dependent on energy for livelihoods. Then, the cutting down of ancient forests must stop and the anti-biotech, anti-nuclear, conservation and organic food gardening movements stepped up. On the other hand, Bob Holmes’ Earth without Humans portrays humans as the earth’s most predominant species and imagines what the planet would be like without them. For example, the average eco-footprint, in terms of hectares, is placed at 9.7 for a single US citizen (Holmes 39). Humans have consumed over one third of the planet’s land surface for pastures, farmland and cities in slightly over a few thousand years. The results are messy and include chemical pollution, nuclear waste, mass extinctions, invasive species, drained aquifers, razed forests and, most significantly, the threatening specter of climate change. The document suggests that the earth’s outlook would start getting better once humans are removed from the picture. For instance, 18.7 percent of the earth’s surface would be rescued from the present effects of light

Getting a Degree in the Business Administration Personal Statement

Getting a Degree in the Business Administration - Personal Statement Example A person has to work hard and dedicate her/himself towards the program. When I look at my self, I see that I am a hard working person and also have an attitude towards finance. In fact, I have been towards accounting, finance, and administration since the beginning. I completed my bachelors in Accounting in 1998, and masters in Public Administration in 2002. With regard to my working capabilities and experience, currently, I am disabled and physically unable to work full time due to my illness. Before my illness, I was a mid-level governmental financial and budget senior program manager. Although I am not able to work full time at the moment, I still volunteer at Orange County Government’s Neighborhood Centers for Families. These centers provide social services to lower income areas. I work in the organization as a volunteer by helping families establish family budgets. With regard to my future plan, I would like to return back to work as a full-time regular employee within a couple of years. In the future, I would like to utilize the competencies and expertise I learned in the business classes, especially in finance and organizational behavior to make the most of the growing relationship between the government and the non-profitable private organizations. After completing my degree, I would like to work as a part-time Adjunct Professor at a local university or college. As a part-time professor, I believe that I can focus on my true desire for teaching and research in a selected area in the field of finance. Doing research in minority finance is one of my dreams. I want to do research in this as I see that there is an ongoing belief in the African-American population that funding for African-American run non-profit companies and it cannot be found especially for upstart companies.  Ã‚  

SUNRISE SENIOR LIVING (SRZ)....FIRM THAT'S NOT WORTHY INVESTMENT Research Paper

SUNRISE SENIOR LIVING (SRZ)....FIRM THAT'S NOT WORTHY INVESTMENT - Research Paper Example The company operates in a high competitive market in US where Assisted Living Concepts Inc and Brookdale Senior Living Inc are two major competitors of it. Financial ratio analysis has shown that company is not at all profitable in terms of major profitability ratios. Though it has quite good asset turnover but capital structure of the company is very much unstable. Liability holds 90% of the totals assets and 10 times more than equity capital. Therefore, it operates with a huge amount of debt which indicates high possibility of bankruptcy in near future. By projecting key financial parameters for next financial year, it is identified that net profit would remain negative in next financial year. Profitability of the company would also remain very much weak compared to its competitors. The company is also much behind in terms of market share, profitability and operating efficiency than its competitors. From, detailed analysis of the company in financial and non financial perspective, it can be recommend that currently the company is not investment worthy. Introduction This paper deal with detailed analysis of Sunrise Senior Living Corporation, a US based multinational senior care service organization. ... The company operates in healthcare industry and provides senior living services to the aged people. It operates through 300 locations in home country United States and also in Canada and United Kingdom. Sunrise offers independent living, Alzheimer’s care, assisted living and personal carte, short term stays and nursing and rehabilitative care. This healthcare organization specializes in assisted living for the old people along with Alzheimer’s care through skilled nursing. The company is listed in fortune 1000 company. Recently, Sunrise Senior Living Corporation has been acquired by the Health Care REIT. SSL was established in 1981 in Virginia by Paul and Terry at an aims of long term healthcare to look after the senior citizen of the society. This objective of the business was termed as assisted living. Within next few decades the company penetrated throughout the United States and expanded in United Kingdom as first foreign market. In 2001 the company expanded its for eign market into Canada. The company changed its name as Sunrise Senior Living from Sunrise Assisted Living in 2008. It closed down all centers in Germany in 2010. Currently, the company employees near about 31,000 employees to provide senior living services through healthcare centers in more than 300 retirement communities across the world. Industry overview and trend Sunrise Senior Living operates in healthcare sector and long term care industry. This industry has been growing in western countries like United Kingdom, United States and Canada. Increasing life expectancy among the people, falling of birth rate are the key drivers for growth of this industry. According to the

The Image Of Woman's Life In Literature Essay Example | Topics and Well Written Essays - 1250 words

The Image Of Woman's Life In Literature - Essay Example Suppression of the private ambitions of womenfolk has been unavoidable, for the so-called larger interests of the family and the society. Menfolk utilized the institution of marriage to their advantage. In the stories â€Å"The Yellow Wallpaper† by Charlotte Perkins Gilman and â€Å"Hills Like White Elephants†, by Ernest Hemingway elaborate articulation has been made by the authors as to how the women, whether traditional or modern, have always been at the receiving end and menfolk are not willing to give her space and do not realize the damage they cause to her psyche due to over-protectiveness or outright suppression of her rights and individuality. She has no life of her own and it is linked to the interests of others. â€Å"The Yellow Wallpaper† by Charlotte Perkins Gilman is concerned with the age-old traditions of unequal status of women in the society that has a direct bearing on the institution of marriage. Women are forced into solitude as per the prevai ling conventions of the society. The suffering of women is the theme of the story and as such how the institution of marriage can command respect? The traditional woman has always been at the receiving end and at every stage of her life, the domineering influence of her father first and later that of her husband impacts her life. The narrator suffers from the inferiority complex as her psyche is controlled by her overbearing husband due to which she almost loses her independent thinking power. All avenues for the growth of her personality are barred from her physician husband who firmly believes that he has the panacea for all her ills. She is diagnosed as ill, even though she is not! Illness is forced upon her to subdue her independent spirit. She lives the life of enforced solitude and that is not the fault of any individual, but the societal conventions demand the same. Husband has his own procedures to deal with his wife. The narrator articulates, â€Å"It is so hard to talk wi th John about my case, because he is so wise, and because he loves me so.† (81)After marriage, her over-protective husband is not willing to allow the sapling of her individuality to grow. She bemoans, â€Å"John is a physician, and perhaps—(I would not say it to a living soul, of course, but this is dead paper and a great relief to my mind--) perhaps that is one reason I do not get well faster.† (74) Her God-gifted creativity is not given an opportunity to grow. She laments, â€Å"It is so discouraging not to have any advice and companionship about my work.† (77) She turns cynical. The two important metaphors in the story relate to the feminist interpretation. The yellow wallpaper itself is a metaphor that articulates the subjugation of women by the male fraternity. The irregular pattern of the paper indicates the inconsistency in the life of a woman, and how she is unable to find the proper balance in her life due to circumstances forced upon her by the male-dominated society. The second important metaphor also relates to the wallpaper, but from a different angle. The women remain trapped in the wallpaper. The narrator wonders whether she alone is trapped thus, but immediately reverts to the universal generalization of women and reflects that there are others suffering like her. In â€Å"Hills Like White Elephants,† Ernest Hemingway creates character development through actions and dialogues instead of descriptions and allegories.

Impact of Government Spending on the Private Sector Essay - 86

Impact of Government Spending on the Private Sector - Essay Example According to the study the increase in in consumption expenditure by the government relatively results to an increase in investments. Notably, the optimum consumption expenditure is about 300000 unit price across the years in UK. In the same manner, the U.S. government expenditure acts the same as the one of the U.K. Evidently, the steady increase in expenditure by the government has lead increased investment by the private sector to an optimum of about 2700 unit cash. The difference arises by the fact that the U.K has consumes more in terms of cash than the U.S but the pattern is quite the same. From this discussion it is clear that   the graphs indicates that an increase in government need for more goods, leads to an increase in production of the same by the investors. Hereby, when the U.K government spends more products for its citizen, the private sector has to increase their production in an almost similar rate. Though not steady, the increased spending has in the years lead to the development of private sectors. Going by this fact, we can also note that the real U.S government expenditure acts the same way. However, the difference arises in that, the U.S government has a lesser consumption rate, the investment is relatively lesser compared to that of the U.K. In this manner we can conclude that the government spending on good positively affects the private industry. The government expenditure in terms of cash per gross domestic product in viewed in relation to the gross fixed capital per gross domestic product. By the look of the table, one can clearly notice that the re lacks a particularly distinct pattern to define the graph. Each year has a different value in relation to the two per GDP/s. the lesser the government spends per unit GDP, the lesser the physical assets produced by the investors.  

Research Paper on Plato Essay Example for Free

Research Paper on Plato Essay Abstract Many Philosophers made a difference in society but Plato is perhaps recognized as the most famous. His writings have had a profound effect on people, politics, and the philosophy throughout the centuries. He was a public figure and he made major contributions to society. Plato helped to lay the philosophical foundations of modern culture through his ideas and writings. One of the most philosophical thinkers of Western civilization, Plato is the only author from ancient Greek times whose writings survive intact. His collection consists of thirty-five dialogues and thirteen letters, though the authorship of some is contested. Plato was born in Athens, into a prosperous aristocratic family. His Father’s name was Ariston and his Mother’s name was Perictione. His relative named Glaucon was one of the best-known members of the Athenian nobility. Platos name was Aristocles, his nickname Plato originates from wrestling circles, Plato means broad, and it probably refers either to his physical appearance or his wrestling style. â€Å"Plato is, by any reckoning, one of the most dazzling writers in the Western literary tradition and one of the most penetrating, wide-ranging, and influential authors in the history of philosophy,† (Kraut, 2009). Plato was born during the Golden Age of Athens’s which saw the birth of classical architecture, drama, arts and politics. However, as he was growing up he observed the decline of Athens as a cultural center. He witnessed instances of cruelty, disloyalty, and dishonesty and it was in clear violation of his values. It was also during this time that Plato fell under the influence of Socrates, who engaged the people of Athens in philosophical discussions. â€Å"It was into this bright, sly, worldly atmosphere that Socrates appeared, moving questioningly about the streets of Athens†. (Plato 1984). In 339 Socrates was brought to trial and charged with having false Gods and corrupting the youth. Socrates was found guilty on the charge and was sentenced to death. The execution of Socrates weighed heavily on Plato and he turned away from politics, he thought the behavior of the courts was unjust. He decided not to get involved in political life, instead he decided to leave Athens with other friends of Socrates to travel and study. During his travels he met with all kinds of people and studied not only philosophy but geometry, astronomy, and religious teachings. Socrates was extremely influential to Plato and he was the main character in numerous writings, he was also influenced by Heraclitus, Parmenides, and the Pythagoreans. One of the most important goals Plato set for himself was to keep the memory of Socrates alive by recording and bringing about the kind of impact that Socrates had on people. Nearly all of Plato’s work takes the structure of dialogues in which Socrates is usually the main character. One of the goals of a Plato’s dialogue is to engross the reader in philosophical questions related to the ideas being discussed. The Socrates of the Platonic dialogues is modeled after the real Socrates but it is in part an imaginary character used to impart Platonic themes. Plato’s dialogues are divided into three groups, the early or Socratic dialogues; the dialogues of middle age; and the dialogues of old age. In the early dialogues, Socrates is the main character, but it is generally believed that Plato is expressing his own views. These are the only remaining dialogues of Socrates teachings hence; they are referred to as the Socratic dialogues. In The Apology Socrates was accused of having false gods and corrupting the youth. While on trial Socrates claimed that he was innocent and was not at all wise, â€Å"Men of Athens, I honor and love you; but I shall obey God rather than you, and while I have life and strength I shall never cease from the practice and teaching of philosophy Understand that I shall never alter my ways, not even if I have to die many times. † (Plato 1984). Middle Dialogues During Platos middle period he wrote the following, Meno, Republic, Euthydemus, Menexenus, Cratylus, Phaedrus, Symposium and Phaedo. The most important difference between these writings and his earlier works is that he is establishing his own voice in philosophy. In the Meno Plato introduces us to the Socratic idea that no one knowingly does wrong, â€Å"Virtue is the desire of things honourable and the power of attaining them. † Plato (1984). In the Phaedo we become familiar with the platonic doctrine of the Forms; this is where Plato makes a claim as to the immortality of the soul. Platos most influential work, The Republic, is part of the middle dialogues. It is a discussion of the virtues of justice, courage and wisdom. It addresses the question of how do humans approach living a good life. The dialogue finishes by looking at various forms of government and describing the ideal state. The allegory of the â€Å"Myth of the Cave† is also in The Republic it is an important writing because it contains the main points of his philosophy. It is intended to be a metaphor for education and it explains issues regarding the theory of knowledge. Plato believed one must explore the belief that a greater reality exists. It is through this belief that a person can gain greater insight into true reality and become enlightened. Without it we are like the prisoners of a cave who only see the shadows of objects and live in complete darkness. â€Å"And now, I said, let me show in a figure how far our nature is enlightened or unenlightened, behold! Human beings living in an underground den† (Plato 1927). It is only through philosophy that we can come out of the cave into the true world. â€Å"Who is best suited to rule the state – lovers of opinion or true philosophers? (Plato 1927) His final years at the Academy he wrote the later dialogues which included the Parmenides, Theatetus, Sophist, Statesmas, Timaeus, Critias, Philebus, and Laws. It should be noted that Socrates has a minor role in these writings. Plato examines his metaphysical theories through these dialogues. He discusses art, dance, music, poetry, drama, and ethics in connection to immortality and the mind. He also dedicates himself to the philosophy of mathematics, politics and religion. Plato argued that women were qualified to play a role in politics and philosophy. In The Republic, Socrates argued that women were as capable as men in pursuit of accomplishments. There is a suggestion that women should be educated for their roles in the class of guardians and possibly work next to men. A woman’s role could be significant in society, but different from a man’s role. Even though Plato believed that women were necessary in a working society, he did not mean he thought women were equals of men. Plato thought that women lacked the strength of men and that women were more suited for other responsibilities in life. â€Å"If women are expected to do the same work as men, we must teach them the same things. † (Plato 1927) The impact of Plato’s work cannot be measured or calculated. His writings had great influence on the entire intellectual development of Western civilization. Despite the fact that Plato did not leave a well-formed, rigid philosophical system he is considered the father for all forms of philosophical idealism and dualism. â€Å"The object of education is to teach us to love what is beautiful. † (Plato 1984). After he died the Academy continued until AD 529, when it was closed due to its pagan teachings. Neo-Platonism, founded by the 3rd-century philosopher Plotinus, was an important development of Platonism. It was a philosophical system which was as a combination of Platonic, Pythagorean, and Aristotelian elements. Originally it was opposed to Christianity but later on it integrated it. It dominated European thought until the 13th century and re-emerged during the Renaissance. The most important Renaissance Neo-Platonist was â€Å"Marsilio Ficino† who developed significant ideas from Plato and Neo-Platonism. Ficino founded of the Academy in Firenze and was responsible for the circulation of Neo-Platonic ideas. Ficino is credited with translating all of Platos’ dialogues into Latin and produced a great work called Platonic Theology, in which he outlines Neo-Platonism. His philosophy is based on the doctrine that the human soul is the center of the cosmos. It is the only thing that sits between the world of ideas and the world is the soul. Neo-Platonism was revived in the 17th century by the Cambridge Platonists such as Cudworth and Smith. The school stressed the importance of reason, maintaining that faith and reason are not that different. Rene Descartes an 18th century philosopher and Neo-Platonist developed a method to achieve truths. If something is not recognized by the intellect or reason can be classified as knowledge. According to Descartes. These truths are gained without any sensory experience (Descartes). He argued that as a result of his method, reason alone determined knowledge and that this could be done independently of the senses. â€Å"Cogito ergo sum, I think therefore I exist† (Descartes) Plato developed an absolutist ethical theory which is that there is a greater good toward which to aspire. He developed this theory to respond to the skepticism and the beliefs of the Sophists who Plato felt did not preach wisdom, but rather their opinions. Plato tried to protect the part of reasoning in human life though he had resistance from the ancient Greek preachers know as the Sophists. They came from different cities and proclaimed that they were able to impart knowledge to young men how to live prosperous lives. Even though the Sophists did not belong to a school and did not have a common creed, some opinions were typical of them as a group and were absolutely conflicting to the views of Plato. The Sophists were great communicators and skilled public speakers. Plato felt that the Sophists were more likely to appeal to emotions rather than to reason. According to Plato philosophers influence people’s souls not their bodies and Plato agreed with Socrates in thinking that the nurturing of the soul is more vital than the nurturing of the body. Furthermore, he also believed that true leaders need to have wisdom, and knowledge. Platos influence has been monumental as one philosopher said the history of philosophy is simply a series of footnotes to Plato. (Whitehead) Platos has been criticized down through the centuries for his philosophy of the forms. His ideas of the just life and an ideal state are complex. Plato tended to specifically ignores much of human nature. Plato did not think in the realm of the physical world, he was always looking to a different one where things exist only if he can prove there existence. References Kraut, R. (2009, Sept) Plato Stanford Encyclopedia of Philosophy. Retrieved from http://plato. stanford. edu/entries/plato; Plato. (1984) Great dialogues of Plato New York: Mentor Books trans. by Benjamin Jowett Blackburn, S. (1945) The republic of Plato. (45 ed. ). London: Oxford University Press, USA. trans. By Desmond Lee Descartes. Stanford Encyclopedia of Philosophy. Retrieved from http://plato. stanford. edu/entries/descartes-works; Alfred North Whitehead. Stanford Encyclopedia of Philosophy. Retrieved from http://plato. stanford. edu/entries/whitehead/

External factors of environment affecting organisations

External factors of environment affecting organisations The word environment means the surrounding atmosphere and conditions for existence. It is very important for organisational leaders to know and understand the environment before they start doing business. The external factors of the environment are factors that are not under the control of an organisation. These factors include social environment, political conditions, technological environment, government regulations and policies, accounting agencies like accounting standard board, resources in economy and cultural environment and demographics of people (Finance Discussion Form 2010). The external environment comprises of all the outside factors that may have an impact on the workings of an organisation. The external environment is divided into 2 parts: directly interactive and indirectly interactive. A directly interactive type of environment has an immediate and firsthand impact upon an organisation. An indirectly interactive type of environment has a secondary and more distant impact on an organisation (Global Business Environment online Journal). The category of directly interactive environmental forces includes owners, customers, suppliers, competitors, employees and employee unions (The External Environment online Article). Conversely, the category of indirectly interactive environmental forces includes social-cultural, political and legal, technological, economic and global influences. Indirectly interactive forces may impact one organisation more than another simply because of the nature of a particular business (Global Strategy online Article). External factors that can affect a business are: social factors: how consumer, households and communities behave and their beliefs e.g. changes in attitude towards health or a greater number of pensioners in a population. Legal factors: the way in which legislation in society affects the business e.g. changes in employment laws on working hours. Economic factors: how the economy affects a business in terms of taxation, government spending, general demand, interest rates, exchange rates and European and global economic factors. Political factors: how changes in government policy might affect the business e.g. a decision to subsidise building new houses could be good for local brick works. Technological factors: how the rapid pace of change in production processes and product innovation affect a business. And ethical factors: what is regarded as morally right or wrong for a business to do e.g. trading with countries which have a poor record on human rights would be seen as unethical (External factors that affect retail industry online Article). Knowledge and understanding of the environment is vital for an organisation to know in order to be successful. Outline of the company I have chosen for the purposes of my essay: PRIMARK Primark Stores Limited is an Irish clothing retailer, operating over 200 stores in Ireland, the United Kingdom, the Netherlands, Germany, Spain, Portugal and Belgium. Within this area of responsibility, Primark stores outnumbered other clothing retailer business, with 161 stores overall distributed in three major regions: 125 in the United Kingdom, 34 in Ireland and 8 in Spain. Primark is known for selling clothes at the budget end of the market. The companys success is based on sourcing supply cheaply, making clothes with simple designs and fabrics, only making them in the most popular sizes, buying stock in huge bulks and varieties and not advertising. The company positions itself as marketing fashionable at cutthroat prices. The original clothing store was established by Arthur Ryan and his collaborator Micaela Mitchell in Dublin Ireland in 1969. After various success in clothing business, great profits and gross income led them to open stores in local and regional areas. It acquired various premises in different business centres within its local and regional areas which eventually generate more profits and income. Hence, these successes brought significant changes on Primarks retail business. The relevance of global trends and consumers demands on lifestyle made Primark Store Limited reinvent its business scheme and management structure (The analysis on the external and internal environment of Primark retailing industry). In the recent years Primark has received many awards for its products including the prestigious Retailer of the Year award for 2 years in a row now (Primark website 2010). Whilst the companys main headquarters are based in Ireland, the chain is a subsidiary of Associated British Foods plc (ABF), and is ultimately controlled by the Weston family through Wittington Investments (Primark Stores Ltd 2010). The analytical framework I have selected for the company The key environmental issue I have chosen for the basis of my analysis of Primark is PESTEL. The term PESTEL stands for Political, Economic, Sociological, Technological, Environmental Legal. This term has been used regularly in the past 10 years and its true history is difficult to establish. Various other similar acronyms that have also been used include ETPS, STEP, PEST and STEEPLE (PESTLE analysis 2010). I choose the PESTEL analysis tool as it is used by companies for business and strategic planning, marketing planning, business and product development and research reports. Hence, using this tool, companies can gain an understanding of the environment they operate in and take advantage of the opportunities and minimize the possible threats (Market Orientated Strategic Planning 2010). PESTEL analysis is in effect an audit of an organisations environmental influence with the purpose of using this information to guide strategic decision-making. The assumption is that if the organisation is able to audit its current environment and asses potential changes, it will be better placed than its competitors to respond to changes. The PESTEL analysis is said to be a useful tool for understanding the big picture of the environment in which an organisation is operating and for understanding risks associated with market growth or decline, potential and directing for an individual business or organisation. A PESTEL analysis is also used as a generic orientation tool, finding out where an organisation or product is in the context of what is happening outside that will at some point affect what is happening inside an organisation. The six elements form a framework for reviewing a situation, and can also be used to review a strategy or position, direction of a company, a marketing proposition or idea (PEST Analysis is concerned With the Environmental Influences on a Business). Description discussion of PESTEL Political Factors: These refer to government policies such as degree of intervention in the economy. Political decisions can impact on many vital areas for business such as the education of the workforce, the health of the nation and the quality of the infrastructure of the economy such as the road and rail system. This category also includes areas such as tax policy, employment laws, environmental regulations, trade restrictions and reform tariffs and political stability (Oxford University Press. (2007). Economic factors: These refer to what is happening within the economy e.g. economic growth/decline, interest rates, exchange rates, inflation rate, taxation changes, wage rates, working hours, unemployment level, and recently recovered recession and credit crunch. Sociological factors: These refer to the ever changing social trends in the markets, in which the company operates, culture norms, and expectations, health consciousness, population growth rate, age distribution, career attitudes, emphasis on safety and global warming. Change in social trends can also impact on the demand for a firms products and the availability and willingness of individuals to work (The Pest or Pestle Analysis). Technological factors: These refer to the fast developing and advancing world of technology. Change in technology can impact the work and dealings of an organisation. New technologies create new processes and procedures. Things that were not possible a couple of years back are now main stream. Online shopping, bar coding and computer aided design are all improvements to the way companies do business now as a result of better technology. Technology can also reduce costs in the long run, improve quality, and lead to innovation. These developments can benefit customers as well as organisations manufacturing the products. Environmental factors: These refer to what is happening with respect to ecological and environmental issues i.e. climate and weather. Changes in the weather can impact on many industries including farming, tourism and insurance. With major climate changes occurring due to global warming and with greater environmental awareness this external factor is becoming a significant issue for firms to consider (PESTEL analysis of the macro-environment). Legal Factors: These refer to the legal environment in which an organisation operates. Changes in legislation may have an impact on employment, access to materials, quotas, resources, imports/exports and taxation. In recent years in the UK there have been many significant legal changes that have affected companies behaviour. The introduction of age discrimination and disability discrimination legislation, an increase in the minimum wage and greater requirements for firms to recycle are example of relatively recent law that affect an organisations work and actions (PESTLE analysis 2010). Applying the PESTEL framework to PRIMARK In assessing the political, social, and economic factors external to the environment of Primark, we must consider different issues. Primarks business operations are subject to government policies and regulations. The business firm should conform to the set of policies and regulations stipulated and enforced by the government and policy making body while conforming to the set of regulations and policies, the firm should assume social responsibility as demanded by the global consciousness. Nowadays, business sectors no longer busied themselves to produce bonds of profits and income but deeply involved in social programs to promote social awareness and equality. Cultural and social behaviours of different consumers are important to consider when establishing or venturing business in the global landscape (The analysis on the external and internal environment of Primark retailing industry). Furthermore, economic, environment, laws, and technology are inseparable entities in which influence the business operations. The economic stability of certain region can contribute allot to the business condition of certain firm, like Primark. Technology on the other hand, brought a tremendous effect to the status and development of business operations and marketing programs. It generates new trends in a rapid movement, which if organizations are unaware will impede growth and development (Pest Analysis 2010). Political factors: Primarks business operations are the aid of government policies and regulation for example providing proper working environment for workers. For dealing with workers and for improving their working conditions, the company is part of the Ethical trading Initiative (ETI). Primarks energy consumption in the UK is sourced against the green power generated and sold into the grid by British sugar (Article on Primark PESTEL ANALYSIS online). However, as different political parties come into power they might change existing policies, laws and regulations so Primark would regularly have to assess its strategies with consideration to the political climate to comply with them e.g. if a law is passed raising the minimum wage rate for employees. The government can also pass a restriction law on import and export trade with other countries due to political circumstances and relations with the trading country. This might also have an impact in Primark if they are getting their merchandise manufactured in that country. Economic Factors: In 2008, Primark opened over 12 stores and has now moved its business to Europe. This shows signs of expansion and success Although Primark has mostly low priced merchandise, an increase in tax and VAT in an unstable economy can have a major affect on its sales making them go down. The only Primark can prepare itself for such a situation is by having update knowledge about the current economic state using the PESTEL analysis tool. The recent global recession and credit crunch left a lot of businesses helpless leading them to bankruptcy as the publics spending power was very low due to the circumstances with also led organisations to let people go increasing unemployment. All these factors could have a great impact on Primarks business. Hence, Primark must constantly assess its strategy with consideration to its PESTEL to ensure safety and protection against such events. Sociological factors: Primark has received several awards for being retailer of the year. It has also won awards for being the best retailer of the year in the United Kingdom. However, social trends nowadays change rapidly. A product that is in demand today might not be so popular tomorrow. Primark needs to keep up to date with all these changes and trends. It must try to accommodate and deliver in respect to the change. Ageing and population level are 2 other factors that can have an impact of Primarks sale as the company mainly targets the young consumers aged between 16 to 35 years of age. Hence, Primark must constantly assess its strategy with consideration to its PESTEL to ensure its social stability and quick ability to deliver. Technological factors: Due to the rapid advancement and development in the technology world things that were not possible a few years ago are now very easy and user. Technology has made a lot of complicated tasks very user friendly. The Internet is one perfect example of this. It is now possible to shop online in the comfort of their home. Primark has a lot of online shoppers on their website and benefits from this technological development. Also in Primarks bid for world class, cutting edge management of its ethical auditing programme, it has signed a deal with BSE management systems for the provision of Entropy Software. The investment in Entropy software is a key part of Primarks ethical trade strategy, allowing all suppliers audits, non-conformances and remedial actions to be managed through the Entropy software platform, with much greater global visibility and management control. Environmental factors: As a result of global warming and the adverse weather conditions in the recent times many companies and organisations are doing their part for the environment. Primark supports this campaign by using recycled paper bags instead of plastic bags. Even consumers are very conscience about these factors in saving the environment and support this. One of Primarks fears can be delayed shipment of goods from other countries due to bad weather conditions. Legal factors: The local laws of a country can have an impact on all the organisations that operate there. If new laws are passed in relation to employment, national minimum wage or health and safety in the workplace then Primark will have to comply will all of them. In order to be up to date with all legislation and accommodate all changes Primark has to have knowledge and understanding of these laws and plan in advance. Hence, Primark must constantly assess its strategy with consideration to its PESTEL to ensure that their employment is fair and safe for its employees. Conclusion Primark can without difficulty diversify, giving its competitors a competitive environment with substantial financial power. Primarks offer to its customer is one of high quality merchandise, value for money, back by Primarks service promise. A strong consumer proposition has been developed by Primark brand and embodied in the line Look Good, Pay Less. I conclude this discussion by mentioning that the UK clothing retail industry is facing high levels of competition between various players but the end result shows that the consumers are most benefitted from it (Article on Primark PESTEL ANALYSIS online). Given this analysis we can say that each organization has its own external and internal problems to handle. The process in which we enable to identify and analyze such problems is by using proper management method of analysis PESTEL or STEEPLE. The importance of these methods is squared to the importance of the business itself. Primark must constantly assess its strategy with consideration to its PESTEL analysis tool. External factors can also to some extent affect its internal and business operation. Hence, these methods are helpful for us to understand and underline the positive and negative factors affecting the external environment of an organization like Primark. Word Count: 2605 Words