Management accounting Research Paper Example | Topics and Well Written Essays - 1000 words

Management accounting - Research Paper Example $120 + $6.50 = $126.50 * 500 = $63,250 (Total cost) Total sales for purchased hard drives = 500 * $154.00 = $77,000 Total profit generated from purchased hard drives = $77,000 - $63,250 = $13,750 If Malibu Systems Inc. concentrates on the ZEON hard drives market, it could make an annual profit of ($13,750 + $216,125) $229,875. By producing manufacture memory chips, Malibu Systems Inc. can sell up to 3,500 memory chips per year at a price of $65.00. Annual sales - $227,500. Production costs – $62.25 * 3,500 = $217,875 Profit generated from production and sales of memory chips – ($227,500 – $217,875) = $9,625 Production of memory chips for Malibu Systems Inc. is not a brilliant idea to invest in because it gives lower profit margins than production of Zeon hard drives. Part 2: Contribution Margin per Unit for; Purchased ZEON hard drives Contribution The formula for determining contribution is the sale price minus variable costs (Eisen 2007, 35). Selling price for e ach ZEON hard drive that has been purchased $154.00 per hard drive The variable cost incurred $0.85 per hard drive Contribution margin ($154 – $0.85) = $153.15 Manufactured ZEON hard drives Contribution Selling price for

Analytical Procedures Report Essay Example | Topics and Well Written Essays - 1500 words

Analytical Procedures Report - Essay Example While auditing a client, the analytical procedures are performed by the auditor at all stages of the audit. In planning stage, the analytical procedures are performed to gain a better understanding of the entity and identify and assess any risks that contradict the auditor’s basic understanding of the entity. At performance stage, the analytical procedures are performed as substantive procedures. The use of substantive analytical procedures during the audit increases the efficiency of the audit. The auditor shall also perform analytical procedures near the audit end. Those procedures will help the auditor to form an overall conclusion to evaluate whether the Financial Statements of the entity are consistent with the understanding of the auditor about the entity. During the audit, the analytical procedures may be applied by the auditor on the assertions of Completeness, Existence, Classification and Accuracy. Analytical procedures may be performed through various methods. These methods include simple comparisons and also complex mathematical and statistical analyses using advanced statistical formulae. The following mathematical and statistical tools are mostly used as analytical procedures: Financial ratio analysis Trend analysis Regression analysis Indicators analysis RATIO ANALYSIS: It is the most commonly used technique of financial analysis. The technique uses the study of relationships among several elements of the financial information. Various ratios may be found by using the formulae on the financial information of the company. The comparison may also be made by calculating ratios for the prior periods or the ratios for the competitor company. JD Sports Fashion PLC is a company engaged in selling and distribution sports goods and apparel. The company is the prospective audit client. Sports Direct International PLC is also engaged in the retailing and wholesale distribution of sports clothing, footwear and apparel. Thus, it stands as a strong comp etitor of JD Sports Fashion PLC. Financial Ratio Formulae JD Sports Fashion PLC Sports Direct International PLC 2008 2009 2010 2011 2011 Current Ratio Current Assets/ Current Liabilities 0.95 1.14 1.29 1.45 1.29 Acid Test Ratio Quick Assets/ Current Liabilities 0.30 0.50 0.73 0.87 0.53 Debt Ratio Total Liabilities/ Total Assets 0.57 0.53 0.54 0.50 0.64 Debt Coverage Ratio (Net Profit + Non-cash expense)/ Total debt 0.35 0.44 0.42 0.45 0.21 Return on Assets (Net Income/ Total Assets) x 100% 12.34% 11.11% 13.96% 15.19% 9.08% Return on Total Equity (Net Income/ Total Equity) x 100% 28.48% 23.62% 30.71% 30.35% 25.13% Net Profit Margin (Net Income/ Net Sales) x 100% 3.98% 3.65% 5.55% 6.32% 5.20% Cash Flow from Operations to Net Income Cash Flow from Operations/ Net Income 2.39 2.21 1.77 1.35 2.21 Cash flow Liquidity Ratio (Cash + Marketable Securities)/ Current Liabilities 0.13 0.28 0.49 0.62 0.21 The Ratio analysis, a tool of analytical procedures, may be used while making a decision ab out the financial performance of the entity. This will also assist the auditor to focus on any unusual deviations from expected amounts and thus, to evaluate whether these may cause a significant risk. The above table shows the financial ratios of JD Sports Fash

Homeland Security Essay Example | Topics and Well Written Essays - 500 words - 1

Homeland Security - Essay Example This definition of the effectiveness of the US department of Homeland security constitutes of various facts such as: the security services cannot stop all the terrorist attacks from taking place, the services have to create a strategy for both the longer run and the shorter run and the services should counter terrorist activities while balancing citizens interests, minimizing financial cost and making sure that citizens freedom is never at stake. Security services should devise plans that are fool proof and can prevent most of the attacks from taking place, this does not means that their plans can stop hundred percent of the attacks that are being planned and implemented. Even if the Homeland Security department cannot stop all the attacks, their measures are not necessarily ineffective. If at any particular point in time, no attacks are taking place, this does not represent that the strategy implemented by the department has become successful and are of utmost effectiveness. The Security services should always have a short term and long term strategy in position to counter both short term and long term plans. If they have only short term plans, then they are overlooking the longer plans that terrorist activity conductors have prepared. The services should plan its measures in accordance to the way terrorist organizations behave, they set long-term goals, all individuals are committed to a common goal and they are ready to e xperience utmost difficulty for the achievement of their cause. Terrorists are ready are actively participating in a never ending war with the security forces all around the world including Homeland Security, thus it is this the duty of the security department to continue creating a long-term strategy. While developing a strategy to counter terrorist activities, policy developers and strategy developers should ensure that their strategies and tactics do not harm the liberty and

Analyst report Uniliver PLC Essay Example | Topics and Well Written Essays - 1000 words

Analyst report Uniliver PLC - Essay Example The industry has the unique quality of having a target market of the entire global population of 7.05 billion people (Census, 2012). Unilever is a company that has achieved great success in the industry with a market penetration of 28.36% or two billion customers. The firm is positioned as one of the leading companies in the industry. This report will provide an overview of the company as well as financial analysis of Unilever for the fiscal year 2011 in order to determine whether the company is worth investing ?1 million. One of the mail analytic tools used in the paper is ratio analysis. Company Profile: Unilever Unilever was founded in the 1890s, but the actual Unilever brand was not created until 1930. The company is dedicated to the nutritional and well being industry. The firm has over 400 branded products. Some of the most popular brands of the company are Dove, Knorr, Lipton, Hellmann, and Axe. The corporate vision of the company is, â€Å"Helping people to look good, feel g ood and get more out of life† (Unilever, 2012). One of the keys to the company’s success has been its product innovation. Innovation is fostered by investing in research and development initiatives. The company has a network of scientists located across the world. The company spends over â‚ ¬1 billion a year in R&D. In 2010 the company was named advertiser of the year by Cannes Advertising Awards. The products of the company are sold across 190 countries. The firm has over two billion customers worldwide. Unilever generates 55% of its sales from emerging economies including China, Brazil, India, and Indonesia (Unilever, 2012). Dove is one of the most successful brands of the company with sales of over â‚ ¬3 billion yearly. The organization has 171,000 employees. The firm believes in the use of diversity. A lot of the firm’s products target the children population to increase their quality of life. Financial Analysis – Unilever In 2011 Unilever genera te revenues of â‚ ¬46,467 million. The revenues of the company increased by 16.68% in comparison with 2009, while it increased by 4.98% in comparison with 2010. The net income of the company was â‚ ¬4,623 million in 2011. The net income of the firm went up by 0.54% between 2010 and 2011. The cash account of the company at the end of 2011 had a balance of â‚ ¬3,484 million. Unilever’s total assets at the end of 2011 were â‚ ¬47,512 million, while its current assets were â‚ ¬14,291 million. In 2011 the total liabilities of the company were â‚ ¬32,591 million. Unilever’s total equity at the end of 2011 was â‚ ¬14,291 million. A ratio analysis of the company is illustrated below: Financial Ratios 2011 Net margin 9.95% Operating margin 13.84% Earnings per share (EPS) â‚ ¬ 1.51 Return on assets (ROA) 9.73% Return on equity (ROE) 30.98% Current ratio 0.80 Quick acid ratio 0.54 Working capital -â‚ ¬3638 million Debt to equity 218.42% Debt ratio 68.60 % The net margin of Unilever during 2011 was 9.95%, while its operating margin was 13.84%. Both financial metrics measure the profitability of the business. The net margin reflects the absolute net profitability of the business. The formula to calculate net margin is net income divided by total sales (Besley & Brigham, 2000). Unilever had earnings per share of â‚ ¬1.51. The earnings per share are the portion of a company's profit allocated to each

Below Exercises Answered Assignment Example | Topics and Well Written Essays - 1250 words

Below Exercises Answered - Assignment Example Moreover, the unfinished products in the system are considered to be halfway complete in the production process giving the wafers a higher value than its actual value. By producing a large number of wafers, the firms’ asset in the production process will be seemingly high due to the wafers. Moreover, the fixed cost will remain the same while the variable cost will only rise to a reasonable amount considering the economies of large scale production. This is not an ethical way of boosting profits. It gives shareholders a false impression of the firms’ financial position. This may also act to attract more investors to invest in the firm due to its portrayed high profits, which is not true leading to great losses for investors. The company management can be sued for going against the ethical practices in business management. The losses of Pacific Electric are big due to too much fixed asset in the firm. For example, the 2000 employees will have to be paid whether they work or not due to the employment contract. The reduction of constructions will mean that most of the employees will be idol or not using their full potential at work due to the lesser work than usual. The plant and machine owned by the firm will also be contributing to the loss due to lower productivity and same rate of depreciation. Moreover, the idle plant and machinery will have a higher rate of depreciation than usual due to wear and tear. Therefore, due to under utilization of the fixed assets, the company is having big losses. The fixed cost can be converted to variable cost to reduce the loss associated with fixed cost; for example through review of employment contracts. This will see the firm have few permanent employees and some casual employees whose services are sought only when the firm requires them. The company can also reduce the amount of fixed asset owned through disposing some of its

Mountain Dew Essay Example | Topics and Well Written Essays - 2000 words

Mountain Dew - Essay Example It has gained the position of No. 1 competitor of Coke, which stands for kinship and a brand that nation cares for. Come year 2000 and Pepsi Co, along with BBDO, its advertising agency for decades are facing a challenge to change it advertising strategy to suit the market needs. Close rivals in CSD and non CSD segment are increasing their advertising bumdgets, which Pepsi Co. is reluctant to. Extreme sports and alternative sports have been over used and left with less fizz to be continued as an advertising strategy. The decision becomes even more crucial in light of decreasing sales of Pepsi and Diet Pepsi, partly due to increase in prices of 5% across market segment and partly due to the increasing awareness of the consumer base of what marketing strategies are and why brands are popular. On the other side, functional drinks market is fast picking up with brands like Redbull creating a niche for itself. The board of senior members of Pepsi Co and BBDO are brooding over the decision of selecting and producing adverts which will convey that idea of Mountain Dew standing for an Exhilarating experience without overexposing extreme sports. SWOT Before analyzing the situation in deep it is important to keep in mind what Mountain dew as a brand and as a product stands for. Following is the SWOT for Mountain Dew which will be considered while making the final decisions Strengths ïÆ'Ëœ Mountain Dew is a product offered by Pepsi Co., a company with very strong market presence and very high brand value ïÆ'Ëœ Brand can be identified with terms like ‘advernturous’, ‘exciting’ ,‘cool’, ‘Daring’, ‘Courageous’ due to which it has a niche in the market segment of 18 – 29 year olds... s The teen KPIs are encouraging & an opportunity to create a better brand awareness exists It’s a product in flavored drink segment which is growing unlike the CSD cola market Threats Other companies have used the Extreme sports as a communication medium and increasing their budgets for advertising and communication Introduction of functional and non CSD drinks which today’s consumer is drifting to provide its health benefits and current ethos Other copy cat flavored drinks More stress on the managerial judgment for selecting the best communication strategy rather than relying on hard data. Though it has worked in part, this decision might or might not lead to desired results and is risky. Issues 1) Eight years of exploiting the theme of Extreme sports has left it with no juice. Other companies have started to exploit it, even those who are not in the beverages industry like GE, Mars and FedEX. Mountain due is also in need of broadening its consumer base from 18 - 29 ye ars olds to overlap with 20 – 39 year olds. It needs a more generic appeal and hence use of extreme sports is questionable 2) Pepsi Co. since ages have believed in keeping the content right rather than flooding the media with its ads. They believe in game of content rather than volume. This means Mountain Dew has a limited budget to spend on its media communications as compared to nearest competitors who are ramping up their spends on the same. 3) When Mountain Dew was bought in 1964 by Pepsi Co. it had its own niche of ‘flavored’ soft drink. Today not only has it lost its niche, but also is facing competition from non CSD drinks like Getorage and functional highly caffeinated and sugary drinks like Redbull. It is hence crucial to take this brand to a next level by broadening the target market

Art History Essay Example | Topics and Well Written Essays - 750 words - 11

Art History - Essay Example It reflects and promotes ideas in various ways. Due to its ways of values expression, it can influence and stimulate social life that promotes social development. Through the cultures we have studied, architecture has ideally informed us. Humans create design. The most triumphant architectural practice goes beyond only being a shed or a place for inhabitance. The most vital architectural practice as we gaze back over history mainly comprises of buildings or environments surroundings that have contributed so much more in a myriad of ways. Indeed, innovation in construction and building or buildings that have compelled the discipline to get make us think about our environment in dynamic ways, or just incredibly superb buildings that have aroused the human enthusiasm. Moreover, housing our activities and our lives. In multiple ancient civilizations like as those of Mesopotamia and Egypt, urbanism and architecture reflected engagement with the supernatural and divine ancient cultures. Consequently, this resulted to monumentality in architecture hence symbolic representation of the rulers political power. In Asian culture, Architecture of the Hindu temple is concerned with the expression of the microcosm and macrocosm, Architecture of the Buddhist, in particular, reflected several diversities in a region. In many Asian countries, forms of architecture which resulted from pantheistic religion mainly were designed for the enhancement of the landscape. In Islamic architecture, features developed to suit the societys religious and social needs. About various cultures from their architecture. Architecture and culture are in a close relationship. In a sense, architecture being the carrier of the culture. A variety of ancient Chinese architecture styles are valuable, such as temples imperial palaces, p avilions, altars and folk houses immensely reflect on the ancient thought. There is inherent unity of people with natural surroundings. Works of art