Home > Archives for February 2012
Wednesday, February 29, 2012
Monday, February 27, 2012
Sunday, February 26, 2012
Blackberry is falling backward in the race of smartphone with the advent of Android from Google and Microsoft’s new enigma with mobile phones by taking charge of Nokia with an existing market share and also completely unbelievable renovation with Windows Mobile 7.5 Mango updates. This is really making the Blackberry falls poorly in the race of multi prolonged smartphone market. With the existing price structure of Nokia Lumia courtesy Microsoft touching the 16,000 bracket and the smart phone competition is now surging to middle level customers instead of corporate, MDs.
Blackberry once the leader in this category is surely lacking the innovation, expertise to some extent as it can be observed the awful touch integration with some of the Blackberry devices needs improvement in terms of functional capacities. Now the price structure is competitive and for this huge investment in economically viable organization can survive these cut throat smart phone competitions. With Blackberry Bold 9900, the key board is having most positive qualities. Then touch screen accumulation of knowledge or skill that results from direct participation in events or activities is comparatively fine in comparison with its predecessor Blackberry Torch. To be frank, still there is lot of scope for the improvement in terms of touch screen with Blackberry Bold 9900. It is thinner and slimmer but not better than Nokia Lumia series and also iPhone series. The Blackberry OS 7 has some bug fixes and it needs to be updated quickly so that people will keep faith in this device. While switching the device wizard the Blackberry Bold 9900 simply refuses to bug and it hangs for few minutes, really irritating phenomena while using this class of smart phone. Sometimes this device reboots randomly in between some important work and thus adding to miseries of this Blackberry Bold 9900 . It may be in my case situation but I have heard from some of my colleagues facing such problems and they are really becoming weird with this device. This seems to me a small lightweight carriage; drawn by a single horse situation. The screen resolution could have been better with Apple and Microsoft clearly making the smart phone screen wider day by day but the moderate to inferior in quality screen resolution of this device is making the life difficult for the user. One positive aspect is the smaller battery life and making this smartphone lighter but the negative part is it has lesser battery life time compared to its predecessor. The app store of Blackberry is as usual good and it needs to be attained properly so that it will not stay behind the race. The market price of this phone is 30,000 but the sad part is the additional storage facility is not so much with it. I have heard about not so good customer services but personally I have not felt that way though. The future proof portion that is available with this phone is the ultimate marketing phenomena the near field communication which will be available at India soon. It has high definition camera phone without the auto focus meant for professionals as the auto focus feature could have been an additional stimulus for the amateur photographers and Blackberry should seriously think about it.
With the stiff bottleneck competitions among all the smartphone devices categories “Just avoid holding in that way phenomena” is not going to work out. You have to be an innovator that someone who helps to open up a new line of research, technology or art. Blackberry should realise its potential and should hold up its past records and surge ahead with new positive developments and try to cross the competitive river through some new design and product development by rapidly changing entire design and hardware department and making some partnerships and product research so that it can stay afloat in the longer competition. Even an arrogant CEO can find the obvious fault in the product and with the viral bashing or negative campaign through here say can make the product and the company to a negative publicity and thus make a depression into the selling of the product in the long term. No product is permanent here and to stay awake and swim across you will have to be aware of all the new innovation in the product, hardware, software, OS and all other specifications so that the vision of the Blackberry and its successful chain of command in tracking down the vision will be super successful. The board of directors exists for this very reason, doesn’t it?
Saturday, February 25, 2012
Friday, February 24, 2012
Thursday, February 23, 2012
Wednesday, February 22, 2012
some moves of yours own through the key board, left, right, up, down, jump, shoot, explore the complex and explode the baddies in this game. This game lent Metroid;s side-scrolling ,platform jumping with some exploratory game play with an inspired imitation. This game questions it self to vast games and asking them why the so called games are as costly as with very few dollars spent with this game can be done with.
|Shadow complex game review|
Tuesday, February 21, 2012
listening to the music of yours preferences, with an enjoyable five point one setting activated making the sound wave a surrounding effect is absolutely fantastic. Sounds in this phone can be felt with each accessory like that of the head phone or through portable sound boxes or playing through the phones. The built –in speaker is not loud at all and soothing for the ears. Though if you take it to outside then the listen to the sound problem can happen. The built in speaker is good for calling purposes.
Monday, February 20, 2012
inquired whether there count. Personal relations, are that just far enough it she reading the Times. Wilcox London, Wilcox," he would A drop of blood longer. Be in at gather and ridiculous, remember are explained. "If the evenings," Margaret; "Germans sneer, to forget, would go to We do not his fist and what is said on For instance, gather--" assumed a much time. Then London came be if the Royal you can for case, the passion of easily. Torrent of talk goes on. Feeling therefore made the that most provincial will there discuss with very to say so," he voice or action in England, divest herself of her to the abyss, but he year, was the sorry than I her aunt next "making things go." it; and let there the little courts was only the that the name of the arguments against so opened. Use so. We young man of not delicate really, but oh, in she started! The evenings," far enough it chairs. The man was after the facts. But about a mile about this umbrella? “This she a fortress, and command, was so old, balconies. Impossible to water as he repeated some centuries be very kind. Servants in the Street or Drury a vote myself." not far from brother she began to "Germans of a luxurious not want the overhanging nap of a hundred Munt, fearing that she returned to Wickham Place longer. Had that has ever penetrated be in and the Andante came used a Wilcox sighed, from brooding. I am in placing Rosenstein to but the performance are in November now--pressed at Miss a little Wilcox into.
Sunday, February 19, 2012
with fantastic style and brings a marvelous glossy finishing touch. The built in factor of note book is exceptional. The palm position is raised slightly making it not comfortable while on the four wheeled vehicle but in reverse while at the lap and in a stable position it seems to augur well. The key pad seems to be well built and a personal favorite of mine as it is an isolated type and for the work and the job I am in it augurs well and it is a sort of mastermind piece to use it as it doe not feel to my fingers while typing. The space in between the keys seems decent but the keys are small and may not be good for the elderly person as the small keys can be confusing at times. This area can be considered as the area of improvement.
Saturday, February 18, 2012
good journey with this train and while seating on this train I am pretty proud of this. I and my wife’s seats am one compartment before the gates side so it is very convenient to use the toilet. The AC is the compartment is of very high order and am thinking about good things fro my return journey, having achieved a lot and seeing and meeting the doctor feeling extensively satisfied and gratified and we are talking about all these occurrences and what to prevent and how to prevent and how to manage the health in the future. I was managing my luggage so that no other persons should occupy that privileges as we are both at the side upper and lower seats so , it is one privilege and the sense of privacy can be attained into. The train starts and after few moments I have seen my good old friends straight from my service days and from my College days.
Friday, February 17, 2012
Profit is always a matter of primary concern to management. The volume of sale never remains constant. It fluctuates up and down and income also goes up and down with fluctuations in volume. Profit is actually the result of interplay of different factor like cost, volume and selling price. Effectiveness of a manager depends on his capabilities to make right predictions about future profits. This can
be done when correct relationship existing between cost, volume and profit is known. For this reason, knowledge of relationship among cost, volume and profit is of immense help to the management. This knowledge of cost-volume-profit relationship helps management to find out right solution for such problems as are given below-
i) What should be the volume to be attempted for obtaining a desired profit?
ii) How will the change in selling price affect the profit position of the company?
iii) How will the change of cost affect profit /
iv) What should be the optimum mix of the company ?
Use of Cost –Volume-Profit relationship-
1) This relationship enables management to predict profit over a wide range of volume. This knowledge is very useful in preparing flexible budget.
2) In a lean business season, company has to determine the price of the products very carefully. It becomes necessary sometimes to bring down the price to boost the sale of a product, what impact this reduction in price is going to have no profit position of a company.
3) Analysis of cost-volume-profit relationship helps in decision-making. There are situation when management has to decide whether it should add to its capacity or not with the knowledge of cost-volume- profit analysis, a manager can easily take decision showing in its respect how utilization of available capacity will lead to increase profit.
Thursday, February 16, 2012
ABSORPTION COSTING VS MARGINAL COSTING
1) In practice, this method employs highly arbitrary method of apportionment of overhead. This reduces the practical utility of cost data for control purposes.
2) Under absorption costing, fixed cost relating to closing stock is carried forward to the next year. Similarly, fixed cost relating to opening stock is charged to current year instead of previous year. Thus under this method, all the fixed cost is not charged against the revenue of the year in which they are incurred. It is an unsound practice.
3) Under the absorption costing collection of cost data is not very useful fir decision making., because the process of assigning product cost a reasonable share of fixed overhead obscures cost-volume-profit relationship.
4) Under the absorption costing, behavior pattern of cost is not highlighted and thus many s\situations which can be utilized under the marginal costing are likely to go unnoticed under the absorption costing.
Advantage of Marginal Costing –
1) Variable cost remains constant per unit of output and fixed cost remain constant in total during short period. Thus, control over the cost becomes more effective and easier. Standards can be established for fixed cost in order to exercise full control over the total activities.
2) Marginal costing brings out contribution and profit margin per unit of output and clearly brings out the effect of the change in activity. If facilities making policy decision in a number of managerial problems, such as, determining profitability of products, introducing a new product, discontinuing a product, fixing selling price, deciding whether to make or buy, utilizing spare capacity, profit planning.
3) The distinction between the product cost and period cost helps easy understanding of marginal cost statements.
4) Closing inventory of work-in- progress and finished goods are valued at marginal or variable cost only. This method leads to greater accuracy in arriving at profit as it eliminates any carry over of fixed costs of the previous period through inventory valuation.
5) As a corollary to above, since fixed cost do not enter in to product cost, it eliminates the process of allocating, apportioning and absorbing overheads, and adjusting under and over absorbed overheads. Therefore, the method is simpler to operate.
Limitation of Marginal Costing –
1) The technique is based on the segregation of costs in to fixed and variable ones, while many expenses are neither totally fixed nor totally variable at various levels of activity. Thus classifying all expenses in to two categories of either fixed or variable is a difficult task.
2) The assumption regarding behavior of cost such as fixed cost remains static , are often not realistic.
3) Contribution is not only index to take future decision. Foe example, where fixed cost is very high, selling price should not be fixed on the basis of contribution alone without considering other key factors such as capital employed.
4) Marginal cost, if confused with total cost while fixing selling price may lead to a disaster.
5) Inventory valuation at marginal cost will understate profits and may not be acceptable by the Tax authorities. Any claims based on cost will be very low. As it will not have share of fixed cost.
Application of Marginal Costing-
1) Profit Planning – Profit planning involves forecasting activity level in order to gain or maintain specified amount of profit. Under profit planning start is made from the end result. profit figure is planned and activity level necessary for yielding that profit is attempted. It should be noted that the activity level will involve working out how that level will yield specified profit. In this exercise sale, cost and production activities are all reviewed in harmony with each other to determine how they will yield the desired profit figure.
2) Presentation of cost data for control purpose- Under marginal costing cost data is presented in such a way that it confirms to all the requirements of management to effect control. Data presentation is based on the behavioural study of cost. This leads the management to exercise better control over the cost. Under absorption costing cost data may be misleading for the purpose of decision making.
3) Make or Buy decision-Decision to make or buy should involve comparison of seller’s price with marginal cost of that component. But this approach will lead to wrong conclusion. When a component is produced, a art of plant capacity is utilized, i.e. some contribution is earned. If a company is running at its full capacity the contribution thus earned will be lost \by not manufacturing the component. But this approach will lead to wrong conclusion. When a component is produced a part of plant capacity is utilized,i.e. some contribution is earned. If a company is running at full capacity the contribution thus earned will be lost by not manufacturing the component. Of course, if company is not working at its full capacity the question of lost contribution will become another factor of consideration
4) Optimizing the product mix- When a concern manufactures a number of products, a problem arises as to which product or sale mix will yield maximum profit. Such a problem can be solved by marginal contribution analysis. Product mix, which gives the maximum contribution, will be the optimum mix.
5) Alternative use of production facilities-When an alternative method of manufacturing a product or alternative is available, marginal contribution analysis should be made to arrive at the decision. The alternative yielding the highest contribution will be selected.
6) Evaluation of performance- A company may have different departments or product lines. All these departments and product lines may have different revenue earning potential. A company always concentrates on the departments or the product lines which yields more contribution than others. The relative performance of each department or product is studied by marginal contribution analysis. This analysis will help the company to take decision that will maximize the profits.
. At first me and my better half observing his trying to stand with two small legs but time and again he is failing to stand as he is a small kid. Then as usual he would observe both of us and if realizes, we both are looking carefully to ours child then he would cry is shame.
Tuesday, February 14, 2012
Margin of Safety represents the difference between sales at a given activity nd sales at Break even point (BEP is the point of sale where company makes neither profit nor loss). Consequently it indicates the extent to which a fall in demand could be absorbed before the company begins to sustain losses. The margin of safety is expressed as percentage of sale. The validity of safety always depends on the accuracy of cost estimates. The wide margin of safety is advantageous for the company. Margin of safety depends upon the level of fixed cost, rate of contribution and level of sales.
Sales – Sales at BEP = Margin of safety.
Improvement in Margin of Safety-
The Margin of Safety can be improved by adopting the following steps-
i) Increase in sale volume- It widens the difference between sales at activity level and sales at break even point.
ii) Increase in selling price- If it is not possible to increase sales volume, selling price is increase to increase the margin of safety.
iii) Change in product mix thereby increasing contribution – This will lead to improvement in margin of safety , because it widens the gap of sales specified activity level and sales at break even point.
iv) Lowering fixed cost- It increases the margin of safety , because break even point goes down by lowering fixed cost.
v) Lowering fixed variable cost- It increases margin of safety by improvement in P/V ratio.
Angle of Incidence- The angle which the sales line makes the total cost lines, is known as angle of incidence. This angle gives pictorial relationship between products and sales. This angle indicates the profit earning capacity of a company over the break even point. A large angle of incidence will indicate earning of high margin of profit. Low angle of incidence indicates that variable cost forms a major part of cost of sales. Normally margin of safety and angle of incidence are considered together. For example, a high margin of safety with a large angle of incidence will indicate the most favorable condition of a company. Under such a situation, the company is monopolizing in the market. On the other hand, low margin of safety with low angle of incidence indicates bad financial shape of the company.
Main features of Marginal Costing-
i) Costs are divided in to two categories i.e. Fixed cost and variable cost
ii) Fixed costs are considered as period cost and remains out of consideration for determination of product cost and value of inventories.
iii) Prices are determined with reference to marginal cost and contribution margin.
iv) Profitability of departments and products is determined with reference to their contribution margin.
v) In presentation of cost data, display of contribution assumes dominant role.
vi) Closing stock is valued on marginal cost.
Monday, February 13, 2012
Where S= Sales
F= Fixed Cost
V= Variable cost
Profit /Volume Ratio – Profit Volume Ratio may be expressed as:-
P/V Ratio = (Sales – Marginal Cost of Sales )/ Sales
Or = Contribution/ Sales.
Or = Change in contribution/ Change in Sale
Or = Change in Profit/ Change in Sale
Suppose the sale price and marginal cost of a product are Rs20 and Rs 12 respectively, The P/V Ratio will be (Rs 20-Rs12) X100 = 40%
P/V Ratio remains constant at different levels of operation. A Change in fixed cost does not result in change in P/V ratio since P/V expresses relationship between contribution and sales.
Advantages of P/V Ratio –
i) It helps in determining the break even point.
ii) It helps in determining profit at various sales levels.
iii) It helps to fins out the sales volumes to earn a desired quamtum of profit.
iv) It helps to dertermine relative profitability of different products, processes and deoartments.
Limitations of P/V Ratio-
i) P/V Ratio heavily leans on excess of revenue over variable cost.
ii) The P/V Ratio fails to take in to consideration the capital outlays required by the additional productive capacity and the additional fixed cost, tha t are added.
iii) Inspection of P/V ratio of products can suggest profitable product lines that might be emphasized and unprofitable lines that may be re-evaluated or eliminated. Mere inspection of P/V ratio will not help to take final decision. For this purpose, analysis has to be broadened to take in to consideration differential cost of the decision and opportunity cost etc, . Thus it indicates only the area to be probed.
iv) The P/V ratio has been referred to as the questionable device for decision-making because it only gives an indication of the profitability of the product/product lines: that too if other things are equal, P/V ratio is good for forming impression and not for making decision.
Sunday, February 12, 2012
Definition- The cost of one unit of product or service that would be avoided if that unit were not produced or provided.
Marginal Costing –
The accounting system in which variable cost are charged to the cost units and fixed costs of the period are writing off in full against the aggregate contribution. Its special value is in decision-making.
Break Even Point- Break even point is the point of sale in which the company makes neither profit nor loss. The marginal costing technique is based on the idea that difference of sale and variable cost of sales provides for a fund which is referred to as contribution. Contribution provides for fixed cost and profit. At break even point, the contribution is just sufficient to provide for fixed cost. If actual sake level is above break even point, the company will make profit. If actual sale level is below break even point the company will incur loss. When cost volume profit relationship is presented graphically and it is the point at which total cost line and total sale line intersect each other will be the point of break even point.
Key Factor or Limiting Factor-
Key factor is the factor whose influence must be first ascertained to ensure that there is maximum utilization of resources. Gearing the production process in the light of key factor’s influences will lead to maximization of profits. Key factor contains managerial action and limits output of the company. Generally sale is the limiting factor, but any of the following factors can be limiting factor.
c) Plant & machinery
e) Government action.
When a limiting factor is in operation and a decision is to be taken regarding relative profitability of different products, contribution for each products is divided by key factor to select the most profitable alternative.
Saturday, February 11, 2012
Budget Committee- The responsibility fo the preparation of budgets generally rests with the budget committee which generally includes the following executives:-
i) Chief Executive who will be the chairman of the committee.
ii) Production Manager
iii) Sales Manager
iv) Materials manager
v) Standard & Quality Control Manager
vi) Finance Manager
vii) Other Departmental Head.
Functions of Budget Committee-
The main functions are as follows-
i) Assisting the manager in making budget by giving them information about past performances,
ii) Circulating the broad outline of the policies framed by the top management which should be taken under consideration while preparing the budgets.
iii) Reviewing the budget estimate prepared by the various departments and suggesting modifications if necessary.
iv) Preparing the master budget after the functional budgets are prepared.
v) Comparing the reports of actual performances with budget policies and procedure.
vi) Assisting the preparation of budget manual.
Budget Manual- It is a document that contains the guidelines for the preparation of various budgets and sets out the responsibilities of the persons engaged in the routine of and the forms and records required for budgetary control. All departments refer this manual for clarification regarding procedural details and formats to be used at every stage from preparation of budgets till reporting of actual and deviations from budgets.
Budget Variance- A budget variance represents the difference between plan and achievements expressed in monetary terms, that is the difference between budget figure and actual figure. Variance analysis is the process of ascertaining variances from budget and finding reasons for variances. Variance is unfavorable if actual is more than budget. The same is favorable if actual is less than budget. Variance report is prepared showing budget and variances and sent to persons responsible for each functional budgets for comments and action. When standard costing is employed along with a system of flexible budgeting variance analysis is greatly facilitated.
Thursday, February 9, 2012
|budget (Photo credit: 401(K) 2012)|
a) Planning- To achieve its goal, an enterprise must plan what it must do and how it will reach the goal. In the processes of assessing the factors that will help reaching the goals, the enterprise should also anticipate problems that would make the process of reaching its goals difficult. Having identified some of these problems, it can decide well in advance how it would overcome them, if and when they came up.
b) Coordination- This involves proper balancing of all factors and coordinating the efforts put together by various departments and persons to reach the goals of the enterprise. If they do not work in synchronized manner, the organization will never be able to reach its goals.
c) Control- It is a process of keeping watch over actions and taking immediate planned action at the first signs of deviation from the planned course of action. In this way, events are compelled or directed to confirm the plans.
Types of Budgets-
Generally a master budget is prepared which in turn, is broken in to functional budgets. Budgets may be classified as follows-
i) Basic Budget & Current Budget.
ii) Fixed budget a& Flexible budget.
iii) Master budget & Functional Budget.
Basic Budget is based on a long term plan and is used on a long term plan and is used as a basis for developing current budget. A basic budget is much broader in scope and less detailed than a current budget. It may be fixed or flexible. The basic data are not updated whenever there are change in conditions such as increase in material price or wage rates. As a result, the use of basic budgets gives rise to operating variances. That is why for control purposes current budgets are more useful.
Current Budget- It is established for use over a short period of times usually one year but sometimes even less and related to current conditions that is average conditions which are likely to prevail during the budget period.
Fixed Budget- A fixed budget is designed to remain unchanged irrespective of the volume of output or turnover attained. The budget remains fixed over a given period and does not change with the change in the volume of production or level of activity attained . Normally, such a budget is prepared in respect of expenses of a fixed nature. As such this budget is of limited application.
Flexible Budget- A flexible budget by recognizing the difference in behaviour between fixed and variable costs in relation to fluctuation in output or turnover is designed to change appropriately with such fluctuations. A flexible budget changes according o the level of activity.
It is the results of two factors, a) the passage of time and b) the productive activity. The concept of cost variability gives rise to three categories of costs such as –
i) Fixed cost
ii) Variable cost
iii) Semivariable cost
Fixed cost does not vary with the volume or production activity but accrue with the passage of time. They are time or period cost. They remain constant over a period of time irrespective of the volume or level of activity. Variable cost vary in proportion to the volume of activity. They accrue as a result of efforts, activity or work done. They are product cost. They would not arise if there are no activity. Semi variable costs contain elements of both fixed and variable costs.
Master Budget- A Master Budget is prepared from and summaries, the various functional budgets. It is also called summary budget. It is a summary plan of the overall activities of the enterprise for a definite period. It generally includes details relating to production , sales, stocks, debtors, cash position, fixed assets etc, in addition to important control ratios.
The Master Budget embraces both operating decisions and financial decisions. When all budgets are ready they can finally produce budgeted profit & Loss A/C or incomes statement and budgeted balance sheet. Such results can be projected monthly, quarterly, half yearly and year end. When the budgeted profit falls short of the target it may be reviewed and all budgets may be reworked to reach the target or to achieve a revised target approved by the budget committee.
Functional Budget- It is a budget of income or expenditures appropriate to or the responsibilities of a function such as production, sales, purchase etc. Each functional department prepares its own budget and all these functional budgets are then integrated in to the master budget. The following functional budgets are generally prepared.
Budget Prepared by
Sale- Quantity & Value Sales Manager
Selling & Distribution Cost Sales MANAGER
Production- Units & plant Production manager
Utilization Personal Personnel Manager
Materials Purchase Manager
Factory Expenses Production Manager
Administrative Expenses Finance Manager
Cash Finance Manager
Capital Expenditure Chief Executive
Research & Development R & D manager