Deontological Vs Utilitarian Ethics Essay

Kant believed that morality is dependent upon reason, that to act rationally was the same as acting morally. He placed a high value upon duty in determining the moral worth of an action. Kant’s deontological ethics is essentially an ethics of duty or obligation. As such, he claims that the moral worth of an action depends solely on whether or not it was done exclusively from a sense of duty. If an act is done simply because one is so inclined, the act has no moral value. This principle holds true even if inclination happens to be in agreement with duty. To illustrate this point, he uses the example of a truly beneficent person. He says that while kindness to all man is a duty, there are some who are naturally inclined to be kind. He asserts â€Å"But I maintain that in such a case an action of this kind, however proper, however amiable it may be, has nevertheless no true moral worth, but is on a level with other inclinations†¦Ã¢â‚¬  (Gregory and Giancola, 82). When these spread kindness while motivated by their own inclination to be kind, their kind acts have no moral value, because in his view in order for an act to be moral, it must be done for the sake of duty alone. Essentially, deontological ethics says the less inclined one is to perform an act that duty calls one to, the more moral worth the act has. While deontological ethics is completely independent of inclination, utilitarian ethics is in many was based upon it. Utilitarianism is built on hedonism, which is the claim that pleasure is the supreme good for man. The main idea of utilitarianism is that man is naturally inclined to seek pleasure and avoid pain and this natural inclination is to be embraced as it will lead man to the supreme end, which is happiness. Utilitarian ethics says that moral acts are those that promote pleasure and avoid pain while immoral acts do the opposite. In is definition of utilitarianism, John Mills says that as far as possible, pleasure in its highest quantity and quality should be promoted and this for the greatest number of people possible. He says, â€Å"†¦that standard is not the agent’s own greatest happiness, but the greatest amount of happiness altogether†¦Ã¢â‚¬  (Gregory and Giancola, 92). In my view this means that according to utilitarian ethics, the moral act is the o ne that brings pleasure to the greatest amount of people.

Epidemiology: Psychiatry and Mental Health Professionals Essay

According to â€Å"World Health Organization† (2012), † Epidemiology is the study of the distribution and determinants of health-related states or events (including disease), and the application of this study to the control of diseases and other health problems.† (para.1). There are many approaches for collecting this beneficial data, and there are three basic standard methods. These three methods include routinely collected data, data collected for other purposes, and epidemiologic data (Stanhope & Lancaster, 2012). Routinely collected data is secondary data that is collected routinely from the general population, which may include births, deaths, fertility or infectious disease notifications (Stanhope & Lancaster, 2012). The quality of this data may vary depending on time and region (Stanhope & Lancaster, 2012). Data collected for other purposes are also secondary data, collected within a region or area of interest, and may be used for research and investigative purposes (Stanhope & Lancaster, 2012). Epidemiologic data is primary data that uses sample populations to answer specific questions of interest or concern, surveys and new cutting edge GIS technology are often used (Stanhope & Lancaster, 2012). Epidemiology uses these methods of data to study health related states and events. There are three factors that must be present in order to create or maintain these health related events. These three factors include an agent to carry and disperse the disease, a host to carry and maintain the disease, and the environment that facilitates the interactions between the host and the agent (Stanhope & Lancaster, 2012). Together these three factors are called the epidemiological triangle, and without these three factors there is no health related state or event to study. When all three of these factors are present, data can then be collected, and an investigation of this data may take place. The two basic types of methods for these investigations are descriptive epidemiology and analytica l epidemiology. These two methods rely on each other. As descriptive epidemiology focuses on the concrete, such as who is affected, where they are affected, and when they are affected; analytical epidemiology focuses on how and why the population is affected. The purpose of this paper is to provide both analytical and descriptive views on the prevalence of obesity in people who suffer from mental health disabilities. Obesity is widely referred to as an epidemic not only in the United States but in other countries as well. As the study of mental health disabilities and its treatments continues to evolve and progress, research shows a significant link between mental health and obesity. According to Gasper and Tsai (2006) â€Å"Weight gain is a prominent side effect of atypical antipsychotics† (p. 9). When medications used to treat mental illness are combined with lifestyle factors and a low-income, it can be very difficult for people with mental illnesses to overcome the battle to maintain optimal physical health, as well as mental health. Although this link has surfaced and brought light to an important issue, there is still very much progress needed to attack this problem and provide a better quality of life for people with mental health disabilities around the world. In 2012 a research article published by The Canadian Journal of Psychiatry, pointed out that in 2007 funding for a mental health commission was launched in Canada, while an epidemic of obesity, affecting one in four adult Canadians failed to receive similar consideration (Sharma, 2012). This statistic was used in this article to illustrate how the two disorders are actually co-epidemics. A worldwide study published by the International Journal of Obesity further illustrates this correlation by clearly finding a stronger relationship between people with severe obesity and mental disorder (Scott, Bruffaerts, Simon, Alonso, Angermeyer, Girolamo, Demyttenaere, Gasquet, Haro, Karam, Kessler, Levinson, Medina, Oakley, Browne, Ormel, Villa, Uda, and Von Korff, 2008). The actual cause of this link in the general population is not yet fully understood (Scott, 2008). However there are a few factors that shed light upon this correlation. The relationship between atypical antipsychotics and weight gain, contributing to hyperlipidemia, and type-two diabetes is common knowledge amongst most mental health professionals. According to an article published by the Australian Journal of Primary Health, a well-known three year clinical antipsychotic trial from 2004 also illustrates a 27-36% increase in hypertension, and a 1% increase in cardiac disease in patients that were on atypical antipsychotics for fourteen years prior to the study (Stanley, Laugharne, Jonathan, 2012). The article also sheds light on how people that are taking anti-depressants and mood stabilizers are also experiencing there a higher rate of chronic physical health problems (Stanley, Laugharne, Jonathan, 2012). In addition this article touches on a study using 160,000 patients with a diagnosis of depressive disorder using antidepressants for at least two years that exhibited an 84% increased risk for diabetes. This article not only exemplifies the obvious association between psychiatric medications and weight gain, it also demonstrates how lifestyle further amplifies the risk of obesity, and chronic disease in these patients. A survey of 200,000 people in the United States was used to support this association; the population reported that the higher their depression, the higher their likelihood of physical inactivity, obesity, and cigarette smoking (Stanley, Laugharne, Jonathan, 2012). All of these factors in combination with a poor diet suggest the need for lifestyle interventions for these patients. The implementation of these interventions may be tricky as the symptom profile of mental health patients comes in to play. In addition to unhealthy lifestyles, mental illness is also known to impact ones motivation, energy, and appetite (Taylor, Stonehocker, & Steele, 2012). The Canadian Journal of psychiatry emphasizes three basic methods, psychological counseling for weight management, psychotherapies for managing obesity, and pharmacology for obesity management (Taylor, Stonehocker, & Steele, 2012). Psychological counseling consists of cognitive-behavioral therapy, which is a widely supported therapy that focuses on guiding the individual towards self-help (Taylor, Stonehocker, & Steele, 2012). Psychological counseling includes mindfulness therapy, interpersonal therapy, and motivational interviewing; these are all client centered approaches that use a combination of patient awareness, recognition, education, mindfulness, and motivation to assist the patient in overcoming an unhealthy lifestyle (Taylor, Stonehocker, & Steele, 2012). Pharmacological treatment is used with caution due an associated risk with cardiovascular complications, potential for interaction with psychiatric medications, and addiction. Bariatric surgery is known to be an effective treatment for obese patients (Taylor, Stonehocker, & Steele, 2012). Taylor, Stonehocker, and Steele (2012) use a study from 2009 to reveal that people seeking this procedure are often overrepresented by patients with mental illness, and most morbidly obese patients who have a controlled diagnosis are candidates for this surgery. It appears that these significant interventions should be available to all mental health patients. In combinations with the tools needed to actually make these changes, mentally ill patients may increase their chance to lead a healthy lifestyle both mentally and physically. It was with this thought that a nurse-led intervention to meet this need was put into place. An overview of this method was published in the International Journal of Mental Health Nursing; its efficacy is still being studied, but the work appears to be promising. Passport 4 Life incorporates the six stages of change into a twelve week program, to develop the skills and knowledge needed for a healthy lifestyle (Park, Usher, & Foster, 2011). The weekly sessions led by a nurse include thirty minutes of discussion and thirty minutes of activity (Park, Usher, & Foster, 2011). Patients are provided with diet and exercise booklets, pedometers, and participate in easy, low-cost exercise activity such as walking in the park, or sports (Park, Usher, & Foster, 2011). The sessions use menu planning, goal setting, and motivational interviewing as tools to teach clients how to track progress and maintain a healthy lifestyle (Park, Usher, & Foster, 2011). Good health, long life, and longevity, are important aspects desired by cultures and sub-cultures all over the world. People afflicted with mental illness are not exempt from possessing this human desire. Unfortunately for them regardless of this desire they may not be equipped with the knowledge base, motivation, or resources needed to maintain the lifestyle associated with these worldwide aspirations. Mental health providers possess the ability to make significant changes in quality of life for people that cannot make these changes on their own. Utilizing significant research information, survey results, randomized studies, and interventions allows mental health professionals to implement changes in a person’s life with the confidence that the potential impact is based on scientific evidence. In addition, building off of previous work of self or others allows a chance to progress in the advancement in the knowledge of diseases that affect the human body, pinpoint the exact cause of the disease or combination of causes, and treatments that can eradicate or hinder diseases and their progression. A famous quote by Mahatma Gandhi encourages people to â€Å"Be the change you wish to see in the world.† With the proper resources and accurate information that change can be greater, and its impact more valuable. References Gasper, J., & Tsai, C. (2006, October). Guidelines for Atypical Antipsychotic Use in Adults in Adults. City and County of San Francisco, Department of Public Health, 1-18. Park, T., Usher, K., & Foster, K. (2011, December). Description of a healthy lifestyle intervention for people with serious mental illness taking second-generation antipsychotics. International Journal of Mental Health Nursing , 20(6), 428-437. Scott, K., Bruffaerts, R., Simon, GE., Alonso, J., Angermeyer, M., Girolamo, G., Demyttenaere, K., Gasquet, I., Haro, JM., Karam, E., Kessler., RC, Levinson, D., Medina ME., Oakley, MA., Browne, Ormel, J., Villa, JP, Uda, HP., and Von Korff, M., (2008, January). Obesity and mental disorders in the general population: results from the world mental health surveys. International Journal Of Obesity , 32(1), 192-200. Sharma, A. (2012, January). Obesity and mental health–a complicated and complex relation. Canadian Journal Of Psychiatry, 57(1), 3-4. Stanhope, M., & Lancaster, J. (2012). Public Health Nursing (8th ed.). Maryland Heights, Missouri: Mosby. Stanley, S, Laugharne, H., Jonathan D. E., (2012, September). Obesity, cardiovascular disease and type 2 diabetes in people with a mental illness: a need for primary health care. Australian Journal of Primary Health, 18(3), 258-264. Taylor, V. H., Stonehocker, B., & Steele, M. (2012, January). An Overview of Treatments for Obesity in a Population With Mental Illness. Canadian Journal of Psychiatry, 57(1), 13-20. World Health Organization. (2012). Retrieved from http://www.who.int/topics/epidemiology/en/

DID THE US OR SOVIET UNION CAUSE THE 1962 CUBAN MISSILE CRISIS Essay

DID THE US OR SOVIET UNION CAUSE THE 1962 CUBAN MISSILE CRISIS - Essay Example Germination of political conflict between these two nations commenced since very aftermath the World War II. During the Second World War, United States and Soviet Union, mutually, played leading role in putting an end to the terror and devastation of the Third Reich. However, end of the War helped them to evolve as two superpowers, capable of dominating the entire global politics. While the United States emerged as a titan among Western nations, the Soviet Union became its Eastern answer1. The conflict of power became inevitable as both nations were trying to prove their respective supremacy and rather than providing priority to the development of international political situation, they took further interest in opposing each other’s policies.2 The conflict between United States and Soviet Union also commenced on a different ground that is their respective ideology towards socio-cultural and socio-economic aspects. While capitalism dominated the ways of American approach towards determining the nature of socio-political factors, socialist approach was adopted by the Soviet Union to earn support of nations in their favor. During the post World War II period, United States not only made aggressive attempts to receive control over political and economic affairs in the international context, consequently, with an intention to reduce power and support of the Soviet Union, it tried to point out the flaws in the socialism that Soviet Union was trying to assert. Soviet Union, on the other hand, also vehemently criticized American tendency of economic imperialism and attempted to assert that socialism is the only way to survive the grasp of American capitalist aggression.3 Result of such attacking and counter attacking became more evident as the entire domain of international politics was divided into two specific groups: â€Å"On one side were the

Monotype printmaking Essay Example | Topics and Well Written Essays - 500 words

Monotype printmaking - Essay Example However, the blankets required in the etching press are different from those used on the lithography press. In line with this, the etching press requires the use of three blankets with each blanket varying in thickness, type, and their functionality being different (Banister, 1969) Monoprints and monotypes are similar in many aspects. However, there are underlying differences between these two that result to variations that set them aside from each other. In this case, a monoprint has a reusable matrix, which is used to produce a different result from the first one obtained. Conversely, monotypes involve permanent marks on the matrix with the possibility of obtaining at most two impressions (Monoprints.com, 2012). In effect, the fundamental difference between these two prints regards the plates used by the artist since an artist working on a monotype uses a clean plate that is unetched while an artist working on a monoprint uses etched plates such as fabric or lace. Consequently, the plates used determine the number of patterns an artist produce with a monotype producing one pattern while there is a repetition of patterns for a monoprint. Scale and proportion, in visual arts, are used to show the relative size of one figure in relationship to another figure. According to Lauer and Pentak (2007), scale is another word for the size of a figure and it is in reference to the size of an object when compared to other objects. In line with this, it is important to point out that scale is crucial in providing the focal point of the object. On the other hand, proportion is the relative size of an image. In this case, proportion is the size measured against another image or against an image that exists in mental form or standard (Lauer & Pentak, 2007). In art, artistic objects are representations, abstracts, or non-objective form of objects. In this case, objects in art are in representational form in instances whereby an artist produces a piece of work that

Effective Communication in Cooperates Information Source Essay

Effective Communication in Cooperates Information Source - Essay Example Feedback during a presentation is a crucial indication of the level with which the information has been effectively conveyed. Thus, when preparing to make a presentation, a presenter must practice on the visual, verbal and vocal components of the communication. Practicing should be done aloud and should form a habit thus enabling changes on aspects that are not effective. Presentation equally comes with fear, anxiety and jitters; nevertheless, these could be overcome through a persistent practice. PowerPoint should be used in a presentation as a support tool and not as a principal component of the presentation. Additionally, breathing time for the audience should be provided in the presentation to enhance the audience attentiveness (Pagana, 2010). Nursing is one of the careers that highly uphold the significance of communication. During report giving and ward rounds, effective communication is vital for the incoming nurse to understand the interventions performed on the patient, and this would be greatly related to the patient’s care outcome. Having worked in several nursing stations, I have witnessed situations when ineffectiveness in communication among nurses compromise care given to the patient. When a nurse does not report that a particular patient is to be kept nil per oral (NPO) due to an impending CT scan, the incoming nurse would feed the patient thus making the performance of the test impossible. This is thus an indication of how effective and detailed communication is significant in nursing practice. Effective communication is crucial in nursing practice as it has a direct influence on the outcome of the patient. The nurses must thus developed a well-practiced systematic way of communicating, handing over reports.

Economics for Business and Management Essay Example | Topics and Well Written Essays - 3000 words - 2

Economics for Business and Management - Essay Example A situation in which marginal cost is higher than marginal costs implies that further improvements can be for society and, thus, it is inefficient for society to prolong its situation at that level. On the other hand, when marginal costs are higher than marginal revenue, it means that there are wastages and society would do better if lowers output such that marginal costs are reduced to be just equal to marginal revenues. This is the market equilibrium and market equilibrium is interpreted as â€Å"efficient† because marginal costs are just equal to marginal returns. Usually, the people who hold on to the view are economists, businesspersons, and pragmatic policy makers. However, economists who take this position qualify that for market to fulfil its role as efficient allocator of resources, certain conditions apply. For example, some of the conditions necessary conditions are believed to be as follow: 1. The good or service which the market will allocate are private goods or service. Private goods are goods in which consumption is rival and excludable in consumption. Rival means consuming the good or service will deprive others of the same good. Excludable means it will not be feasible, costly, nor impractical from depriving others of the good. 2. There are no externalities involved in consuming or using the good or service. Externalities are third party effects on the good. For example, goods that pollute are assumed to have negative externalities. In contrast, health services are believe to have positive externalities because improvements in health benefits not only those who have purchased the good that enhances health but also third parties. In a typical demand-supply curve, the demand curve represents society’s valuation for the good in terms of marginal utilities while the supply curve represents that part of the marginal cost-curve above the

Macro 3.4 Essay Example | Topics and Well Written Essays - 1250 words

Macro 3.4 - Essay Example The horizontal movement represents all the resources that were used to come up with automobile while vertical movement represent all resources that were used to come with the forklifts. Additionally, the graph represents a trade off that may exist when resources are shifted to either automobile or fork lifts. This is usually done when resources are fully employed given the fact that technology and institutions remain constant (Tucker, 2011). Given all the above conditions, out potential for the two products may be able to be achieved at any point on the curve (Tucker, 2011). The law of increasing opportunity coast states that, when technology and resources are held constant, opportunity cost increases as the production of one out increases (Tucker, 2011). In this case, the production possibility curve above exhibit the law of increasing opportunity cost because production possibility curve above displays a convex shape (Tucker, 2011). ... Therefore, based on the above assessment it can be scrutinized that the production possibility curve above exhibit the law of increasing opportunity cost (Tucker, 2011). b) If the economy is at point C, what is the opportunity cost of 10 more automobiles? (5 points) If the hypothetical economy is at point C, the economy must sacrifice 20 units of automobile in order to produce 45 additional units of forklifts this is because movement along the vertical axis led to an increase in number of automobile units being sacrificed in order to produce additional units of fork lifts. On the other hand, a downward movement below point C along the vertical axis leads to an increase in number of additional units of automobile being produced as more and more units of forklifts are being sacrificed(Tucker, 2011). C) If the economy is characterized by this production possibilities curve and is producing 10 automobiles and 40 forklifts, what can you conclude about its use of its available resources? ( 5 points) When this economy produces 10 automobiles and 40 forklifts, it is an indication that, the hypothetical economy must sacrifice 10 units of automobile in order to produce 10 units of folk lifts. On the other hand, the economy must sacrifice 40 units of forklifts to produce 10 units of automobile. At this point of production we can say that economy is it’s attainable and efficient because the resources are fully employed while technology is held constant (Tucker, 2011). d) Is production at a point outside of the production possibilities curve currently possible? Could a future advance in technology allow production beyond the current production possibilities curve? Could international trade allow a country to consume beyond its current production possibilities

This papers topic is on Sight and Blindness in the play Oedipus Rex Essay

This papers topic is on Sight and Blindness in the play Oedipus Rex - Essay Example In light of this, it can be said that being sighted or blind does not necessarily correspond with the ability to control ones fate. It may be assumed that having the ability to see makes it easier to control fate, however, in Oedipus Rex, it is clearly evident that between physical and intellectual blindness, it is the latter which seems to allow for a more truthful vision of one’s destiny. Oedipus, the protagonist, is arrogant and intellectually blind. It is this arrogance and blindness which actually cause him to eventually fulfill the fate he so desperately tries to escape from. He begins his life with a prophecy from the gods; that one day he will kill his father and marry his mother. In a desperate attempt to avoid this terrible fate, his parents send him into the mountains to die. However, a shepherd saves Oedipus and the child is adopted by Polybus and Merope, the King and Queen of Corinth. While Oedipus was completely unaware of the prophecy during this time, he was safe from fulfilling his terrible destiny. Ironically, it is only when he begins to see the truth that he begins to approach his fate. As he becomes aware of the prophecy, he flees from home for safety in the hopes of avoiding his destiny. However, in doing so, he achieves the opposite; while fleeing Corinth, he meets his real father, King Laius, and kills him. He then makes his way to Thebes where he marries his real mother, Jocasta, and also brings a plague into the city. These events are hugely ironic, because if Oedipus had never become aware of the truth, he could have stayed blissfully ignorant, and safe from fulfilling his destiny. Alternatively, if Oedipus had been aware of the full truth from the beginning he could have potentially avoided his fate. His arrogance is further displayed when he declares that he will find the Kings killer so he can save the town from the plague, unaware that he himself is the killer. We can see that throughout the

Female Genital Mutilation among the Somali Community in London, And Literature review

Female Genital Mutilation among the Somali Community in London, And Its Effects on Girls (11-15) In Education - Literature review Example Mostly carried out minus anesthesia, statistics form WHO indicates that FGM is so common in Africa, and developed countries where FGM is common, the immigrants are the ones who practice it. Over 150 million young girls and women have undergone Female Genital Mutilation across the globe, at least according to World Health Organization. There are various reasons of carrying out FGM, at least according to some communities who cite the reduction of libido in women in order to control their sexual life. In United Kingdom, the Somalis have been the largest immigrant group according to the statistics released by the Refugee Council in 2005. However, these statistics do not have further information on the health needs of the Somali people living across UK. As Hammersley (1998) notes, over 34,000 Somalis living in London City alone, the women are the majority as compared to men by 56 percent to men’s 44 percent. Nonetheless, these figures do not include those of asylum seekers, just as it has always been hard to get the exact number of minority groups across UK. It is paramount to note that although not all health information of immigrants is available, specific health needs among of some immigrant communities are available. For example, some researchers have studies language and communication needs of the Somali people including their mental and physical conditions. Undoubtedly, these needs are vital when it comes to pregnancy and childbirth issues. Matters of maternal familiarities also need understanding of both social and cultural backgrounds. Therefore, this paper will mainly review Female Genital Mutilation among Somali girls aged 11 and 15 and will examine the consequences of FGM when it comes to education. The paper will also examine the... This essay tresses that it is important to discuss the dangers associated with FGM. According to the World Health Organization, female genital mutilation leaves mental and physical damages to women and girls. In fact, in some instances, some girls have bled to death due to wrong cutting. There is no doubt that the victims experience mammoth pain during cutting, a pain that they will always remember in their entire lives should they happen to survive. Various researchers have associated some psychometric stresses with FGM. There are also other effects of female genital mutilation for example, pain during sexual intercourse, severe pain during delivery, bladder complications, and hemorrhage especially if the victim undergoes caesarean sections in delivering a baby. This paper makes a conclusion that the physical and psychological challenges experienced have serious negative impacts when it comes to education. The social consequences such as stigma and low self-esteem are also injurious to these girls who are trying to shape their careers. There is no doubt that FGM cases serious physical, social, educational, sexual and psychological challenges to girls aged 11-15. Societies and governments should do more to stop the vice and instead focus on ways that improve and empower the girl child. Criminalization of the practice has proved successful and religious sects should stop misleading the public on issues of FGM.

Informative summary Essay Example | Topics and Well Written Essays - 500 words

Informative summary - Essay Example â€Å"I got off the plane around midnight and no one spoke as I crossed the dark runway to the terminal.† this quotation shows how the author applies the first person narrative in the literary work. The literary work also greatly illustrates substance abuse, especially alcohol and drugs. The influence of the substances enables the characters to illustrate an altered perspective or viewpoint. Jimbo discourages the author from taking non-alcoholic products in the lounge. He illustrates that the derby is an enjoyable which requires high levels of fun; hence, alcohol is desirable. The author applies the quote, "Goddam, we gotta educate this boy. Get him some good whiskey..." to explain the preference of alcoholic drinks during sports events. The author illustrates a cultural and sporting event in the story. The derby is a cultural event which occurs on an annual basis. Very many people participate in the event as supporters. The author went to the event to report of the occurrences. Kentucky is a region with a huge population of Native Americans, and sporting and recreational events form a great part of their culture. The author also illustrates racial discrimination instances within the Kentucky society. â€Å"The FBI says busloads of white crazies are coming in from all over the country...† is a quote that negatively describes the Americans who are white. This derogatively illustrates the white social group in the American society. A lot of slang language is applied in the literary work. The quote â€Å"Money is a good thing to have in these twisted times† illustrates a slang phrase used to describe a national economy which is poorly performing. The story also uses the irony literary style. "If I had any money Id invest it in the stock market." And the market, meanwhile, continued its grim slide.† the quote illustrates an individual investing in poorly performing sector of the economy. The likely scenario is that the investor in a

Project on Budgetary Control Essay Example for Free

Project on Budgetary Control Essay 1. A budget is concerned for a definite future period. 2. A budget is a written document. 3. A budget is a detailed plan of all the economic activities of a business. 4. All the departments of a business unit co-operate for the preparation of a business budget. 5. Budget is a mean to achieve business and it is not an end in itself. 6. Budget needs to be updated, corrected and controlled every time when circumstances changes. Therefore it is a continuous process. 7. Budget helps in planning, coordination and control. 8. Different types of budgets are prepared by industries according to business requirements. 9. A budget acts a business barometer. 10. Budget is usually prepared in the light of Past Experience. 11. Budget is a constant endeavor of the Management. 2 PREPARATION OF BUDGETS 1. Definition of objectives: A budget being a plan for the achievement of certain operational objectives, it is desirable that the same are defined precisely. The objectives should be written out; the areas of control demarcated; and items of revenue and expenditure to be covered by the budget stated. This will give a clear understanding of the plan and its scope to all those who must cooperate to make it a success. 2. Location of the key (or budget) factor: There is usually one factor (sometimes there may be more than one) which sets a limit to the total activity. For instance, in India today sometimes non-availability of power does not allow production to increase inspite of heavy demand. Similarly, lack of demand may limit production. Such a factor is known as key factor. For proper budgeting, it must be located and estimated properly. 3. Appointment of controller: Formulation of a budget usually requires whole time services of a senior executive; he must be assisted in this work by a Budget Committee, consisting of all the heads of department along with the Managing Director as the Chairman. The Controller is responsible for co-ordinating and development of budget programmes and preparing the manual of instruction, known as Budget manual. The Budget manual is a schedule, document or booklet which shows, in written forms the budgeting organisation and procedures. The manual should be well written and indexed so that a copy thereof may be given to each departmental head for guidance. 3 4. Budget period: The period covered by a budget is known as budget period. There is no general rule governing the selection of the budget period. In practice the Budget Committee determines the length of the budget period suitable for the business. Normally, a calendar year or a period coterminous with the financial year is adopted. The budget period is then sub-divided into shorter periods—it may be months or quarters or such periods as coincide with period of trading activity. 5. Standard of activity or output: For preparing budgets for the future, past statistics cannot be completely relied upon, for the past usually represents a combination of good and bad factors. Therefore, though results of the past should be studied but these should only be applied when there is a likelihood of similar conditions repeating in the future. Also, while setting the targets for the future, it must be remembered that in a progressive business, the achievement of a year must exceed those of earlier years. Therefore what was good in the past is only fair for the current year. In budgeting, fixing the budget of sales and of capital expenditure are most important since these budgets determine the extent of development activity. For budgeting sales, one must consider the trend of economic activity of the country, reactions of salesmen, customers and employees, effect of price changes on sales, the provision for advertisement campaign plan capacity etc. 4 Meaning of Budgetary Control: The Chartered Institute of Management Accountants of England and Wales has defined the terms ‘budgetary control’ as â€Å"Budgetary control is the establishment of budgets relating to the responsibilities of executives of a policy and the continuous comparison of the actual with the budgeted results, either to secure by individual action the objective of the policy or to provide a basis for its revision.† It is the system of management control and accounting in which all the operations are forecasted and planned in advance to the extent possible and the actual results compared with the forecasted and planned ones. Budgetary Control Involves: 1. Establishment of budgets 2. Continuous comparison of actuals with budgets for achievement of targets 3. Revision of budgets after considering changed circumstances 4. Placing the responsibility for failure to achieve the budget targets. The salient features of Budgetary Control System are as follows: 1. Determining the objectives to be achieved, over the budget period, and the policy or policies that might be adopted for the achievement of these ends. 2. Determining the variety of activities that should be undertaken for the achievement of the objectives. 3. Drawing up a plan or a scheme of operation in respect of each class of activity, in physical as well as monetary terms for the full budget period and its parts. 5 4. Laying out a system of comparison of actual performance by each person, section or department with the relevant budget and determination of causes for the discrepancies, if any. 5. Ensuring that corrective action will be taken where the plan is not being achieved and, if that be not possible, for the revision of the plan. In brief, it is a system to assist management in the allocation of responsibility and authority, to provide it with aid for making, estimating and planning for the future and to facilitate the analysis of the variation between estimated and actual performance. In order that budgetary control may function effectively, it is necessary that the concern should develop proper basis of measurement or standards with which to evaluate the efficiency of operations, i.e., it should have in operation a system of standard costing. Besides this, the organization of the concern should be so integrated that all lines of authority and responsibility are laid, allocated and defin ed. This is essential since the system of budgetary control postulates separation of functions and division of responsibilities and thus requires that the organization shall be planned in such a manner that everyone, from the Managing Director down to the Shop Foreman, will have his duties properly defined. Objectives of Budgetary Control System: 1. Portraying with precision the overall aims of the business and determining targets of performance for each section or department of the business. 2. Laying down the responsibilities of each of the executives and other personnel so that everyone knows what is expected of him and how he will be judged. Budgetary control is 6 one of the few ways in which an objective assessment of executives or department is possible. 3. Providing a basis for the comparison of actual performance with the predetermined targets and investigation of deviation, if any, of actual performance and expenses from the budgeted figures. This naturally helps in adopting corrective measures. 4. Ensuring the best use of all available resources to maximize profit or production, subject to the limiting factors. Since budgets cannot be properly drawn up without considering all aspects usually there is good co-ordination when a system of budgetary control operates. 5. Co-coordinating the various activities of the business, and centralizing control and yet enabling management to decentralize responsibility and delegate authority in the overall interest of the business. 6. Engendering a spirit of careful forethought, assessment of what is possible and an attempt at it. It leads to dynamism without recklessness. Of course, much depends on the objectives of the firm and the vigour of its management. 7. Providing a basis for revision of current and future policies. 8. Drawing up long range plans with a fair measure of accuracy. 9. Providing a yardstick against which actual results can be compared. Working of a budgetary control system: The responsibility for successfully introducing and implementing a Budgetary Control System rests with the Budget Committee acting through the Budget Officer. The Budget Committee would be composed of all functional heads and a member from the Board to 7 preside over and guide the deliberations. The main responsibilities of the Budget Officer are: 1. To assist in the preparation of the various budgets by coordinating the work of the accounts department which is normally responsible to compile the budgets—with the relevant functional departments like Sales, Production, Plant maintenance etc.; 2. To forward the budget to the individuals who are responsible to adhere to them, and to guide them in overcoming any practical difficulties in its working; 3. To prepare the periodical budget reports for circulation to the individuals concerned; 4. To follow-up action to be taken on the budget reports; 5. To prepare an overall budget working report for discussion at the Budget Committee meetings and to ensure follow-up on the lines of action suggested by the Committee; 6. To prepare periodical reports for the Board meeting. Comparing the budgeted Profit and Loss Account and the Balance Sheet with the actual results attained. It is necessary that every budget should be thoroughly discussed with the functional head before it is finalized. It is the duty of the Budget Officer to see that the periodical budget reports are supplied to the recipients at frequent intervals as far as possible. The efficiency of the Budget Officer, and through him of the Budget Committee, will be judged more by the smooth working of the system and the agreement between the actual figures and the budgeted figures. Budgets are primarily an incentive and a challenge for better performance; it is up to the 8 Budget Officer to see that attention of the different functional heads is drawn to it to face the challenge in a successful manner. Advantages of Budgetary Control System: 1. The use of budgetary control system enables the management of a business concern to conduct its business activities in the efficient manner. 2. It is a powerful instrument used by business houses for the control of their expenditure. It in fact provides a yardstick for measuring and evaluating the performance of individuals and their departments. 3. It reveals the deviations to management, from the budgeted figures after making a comparison with actual figures. 4. Effective utilization of various resources like—men, material, machinery and money is made possible, as the production is planned after taking them into account. 5. It helps in the review of current trends and framing of future policies. 6. It creates suitable conditions for the implementation of standard costing system in a business organization. 7. It inculcates the feeling of cost consciousness among workers. 8. It helps the principal of management by exception to apply. 9. Management which has developed a well ordered budget plans and which operate accordingly, receive greater favour from credit agencies. 9 Limitations of Budgetary Control System: 1. Based on Estimates: Budgets may or may not be true, as they are based on estimates. 2. Time factor: Budgets cannot be executed automatically. Accuracy in budgeting comes through experience. Management must not expect too much during the development period. 3. Cooperation Required: Staff co-operation is usually not available during budgetary control exercise. The success of the budgetary control depends upon willing co-operation and teamwork, 4. Expensive: Its implementation is quite expensive. No budgetary programme can be successful unless adequate arrangements are made for supervision and administration. 5. Not a substitute for management: Budget is only a managerial tool. It cannot substitute management. 6. Rigid document: Budgets are considered as rigid document. But in reality, firm’s affairs continuously change under inflationary pressure and changing government policies. 10 ZERO BASE BUDGETS The technique of zero base budgeting suggests that an organisation should not only make decisions about the proposed new programmes, but should also review the appropriateness of the existing programmes from time to time. Such a review should particularly be done of such responsibility centres where there is relatively high proportion of discretionary costs. Costs of this type depend on the discretion or policies of the responsibility centre or top managers. These costs have no direct relation to volume of activity. Hence, management discretion typically determines the amount budgeted. Some examples are: expenditure on research and development, personnel administration, legal advisory services. Zero base budgeting, as the term suggests, examines or reviews a programme or function or responsibility from ‘scratch’. The reviewer proceeds on the assumption that nothing is to be allowed. The manager proposing the activity has, therefore, to justify that the activity is essential and the various amounts asked for are reasonable taking into account the outputs or results or volume of activity envisaged. No activity or expense is allowed simply because it was being allowed or done in the past. Thus according to this technique each programme, whether new or existing, must be justified in its entirety each time a new budget is formulated. It involves: 1. Dealing with particularly all elements of mangers budget requests 2. Critical examination of ongoing activities along with the newly proposed activities 3. Providing each manger a range of choice in setting priorities in respect of different activities and in allocating resources. 11 Process of Zero Base Budgeting: The following steps are involved in Zero base budgeting: Determining the objectives of budgeting: The objective may be to effect cost reduction in staff overheads or it may be to drop, after careful analysis, projects which do not fit into achievement of the organizations objectives etc. Deciding on scope of application: The extent to which zero base budgeting is to be introduced has to be decided, i.e. whether it will be introduced in all areas of the organisations activities or only in a few selected areas on trial basis. Developing decision units Decision units for which cost-benefit analysis is proposed have to be developed so as to arrive at decisions whether they should be allowed to continue or to be dropped. Each decision unit, as far as possible should be independent of other units so that it can be dropped if the cost analysis proves to be unfavourable for it. Developing decision packages : A decision package for each unit should be developed . While developing a decision package, answers to the following questions would be desirable: †¢ Is it necessary to perform a particular activity at all? If the answer is in the negative, there is no need to proceed further. †¢ How much has been the actual cost of the activity and what has been the actual benefit both in tangible as well as intangible forms? †¢ What should be the estimated cost of the level of activity and the estimated benefit from 12 such activity? †¢ Should the activity be performed in the way in which it is being performed, and what should be the cost? †¢ If the project or activity is dropped, can the unit be replaced by an outside agency? After completing decision packages for each unit, the units are ranked according to the findings of cost benefit analysis. Essential projects are identified and given the highest ranks. The last stage is that of implementing the decision taken in the light of the study made. It involves the selection and acceptance of those projects which have a positive cost-benefit analysis or which are capable of meeting the objectives of the organization. The above analysis shows that zero base budgeting is in a way an extension of the method of cost benefit analysis to the area of the corporate budgeting. Advantages of Zero Base Budgeting: †¢ It provides the organization with systematic way to evaluate different operations and programmes undertaken. It enables management t o allocate resources according to priority of the programmes. †¢ It ensures that each and every programme undertaken by managers is really essential for the organization, and is being performed in the best possible way. †¢ It enables the management to approve departmental budgets on the basis of cost-benefit analysis. No arbitrary cuts or increase in budget estimates are made. †¢ It links budgets with the corporate objectives. Nothing will be allowed simply because it was being done in the past. An activity may be shelved if it does not help in achieving the goals of the enterprises. 13 †¢ It helps in identifying areas of wasteful expenditure and, if desired, it can also be used for suggesting alternative courses of action. †¢ It facilitates the introduction and implementation of the system of `management by objectives. Thus it can be used not only for fulfillment of the objectives of traditional budgeting, but also for a variety of other purposes. It is contended that zero base budgeting is time consuming. Of course, it is true, but it happens only in the initial stages when decision units have to be identified and decision packages have to be developed or completed. Once this is done, and the methodology is clear, zero base budgeting is likely to take less time than the traditional budgeting. In any case, till such time the organization is properly acclimatized to the technique of zero base budgeting, it may be done in a way that all responsibility centre’s are covered at least once in three or four years. Zero base budgeting as a concept has become quite popular these days. The technique was first used by the U.S. Department of Agriculture in 1962. Texas Instruments, a multinational company, pioneered its use in the private sector. Today, a number of major companies such as Zerox, BASF, International Harvester and Easter Airlines in the United State are using the system. Some departments of the Government of India have recently introduced zero base budgeting with a view to making the system of budgetary control more effective. 14 PERFORMANCE BUDGETS Performance budgeting (or programme budgeting) has been designed to correct the shortcomings of traditional budgeting by emphasizing managements considerations/ approaches. Both the financial and physical aspects are incorporated into the budget. A performance budget presents the operations of an organisation in terms of functions, programmes, activities, and projects. In performance budgeting, precise detainment of job to be performed or services to be rendered is done. Secondly, the budget is prepared in terms of functional categories and their sub-division into programmes, activities, and projects. Thirdly, the budget becomes a comprehensive document. Since the financial and physical results are interwoven, it facilitates management control. The Main objectives of Performance Budgeting are: (i) to coordinate the physical and financial aspects; (ii) to improve the budget formulation, review and decision-making at all levels of management (iii) to facilitate bett er appreciation and review by controlling authorities (legislature, Board of Trustees or Governors, etc) as the presentation is more purposeful and intelligible; (iv) to make more effective performance audit possible; and (v) to measure progress towards long-term objectives which are envisaged in a development plan. Performance budgeting involves evaluation of the performance of the organisation in the context of both specific, as well as, overall objectives of the organisation. It presupposes a crystal clear perception of organisational objectives in general, and short-term business objectives as stipulated in the budget, in particular by each employee of the organisation, irrespective of his level. It thus, provides a definite direction to each employee and also a control mechanism to higher management. 15 Performance budgeting requires preparation of periodic performance reports. Such reports compare budget and actual data, and show variances. Their preparation is greatly facilitated if the authority and responsibility for the incurrence of each cost element is clearly defined within the firms organisational structure. In addition, the accounting system should be sufficiently detailed and coordinated to provide necessary data for reports designed for the particular use of the individuals or cost centres having primary responsibility for specific cost. The responsibility for preparing the performance budget of each department lies on the respective Department Head. Each Department Head will be supplied with a copy of the section of the master budget appropriate to his sphere. For example, the chief buyer will be supplied with the copy of the materials purchase budget so that he may arrange for purchase of necessary materials. Periodic reports from various sections of a department will be received by the departmental head that will submit a summary report about his department to the budget committee. The report may be daily, weekly or monthly, depending upon the size of business and the budget period. These reports will be in the form of comparison of budgeted and actual figures, both periodic and cumulative. The purpose of preparing these reports is to promptly inform about the deviations in actual and budgeted activity to the person who has the necessary authority and responsibility to take necessary action to correct the deviations from the budget. 16 FUNCTIONAL BUDGET A functional budget is one which is related to function of the business as for example, production budget relating to the manufacturing function. Functional budgets are prepared for each function and they are subsidiary to the master budget of the business. The various types of functional budgets to be prepared will vary according to the size and nature of the business. The various commonly used functional budgets are: †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ Sales budget Production budget Plant utilisation budget Direct-material usage budget Direct-material purchase budget Direct-labour (personnel) budget Factory overhead budget Production cost budget Ending-inventory budget Cost-of-goods-sold budget Selling and distribution cost budget Administration expenses budget Research and development cost budget (xiv) Capital expenditure budget Cash budget 17 Illustration: Sales Budget: Sales forecast is the commencement of budgeting and hence sales budget assumes primary importance. The quantity which can be sold may be the principal budget factor in many business undertakings. In any case in order to chalk out a realistic budget programme, there must be an accurate sales forecast. The sales budget indicates for each product: 1. The quantity of estimated sales and 2. The expected unit selling price. These data are often reported by regions or by sales representatives. In estimating the quantity of sales for each product, past sales volumes are often used as a starting point. These amounts are revised for factors that are expected to affect future sales, such as the factors listed below. 1. Backlog of unfilled sales orders 2. Planned advertising and promotion 3. Expected industry and general economic conditions 4. Productive capacity 5. Projected pricing 6. Findings of market research studies 7. Relative product profitability. 8. Competition. 18 Once an estimate of the sales volume is obtained, the expected sales revenue can be determined by multiplying the volume by the expected unit sales price, the sales budget represents the total sales in physical quantities and values for a future budget period. Sales managers are constantly faced with problem like anticipation of customer requirements, new product needs, competitor strategies and various changes in distribution methods or promotional techniques. The purposes of sales budget is not to attempt to estimate or guess what the actual sales will be, but rather to develop a plan with clearly defined objectives towards which the operational effort is directed in order to attain or exceed the objective. Hence, sales budget is not merely a sales forecast. A budget is a planning and control document which shows what the management intends to accomplish. Thus, the sales budget is active rather than passive. A sales forecast, however, is a projection or estimate of the available customer demand. A forecast reflects the environmental or competitive situation facing the company whereas the sales budget shows how the management intends to react to this environmental and competitive situation. A good budget hinges on aggressive management control rather than on passive acceptance of what the market appears to offer. If the company fails to make this distinction, the budget will remain more a figure-work exercise than a working tool of dynamic management cont rol. 19 The sales budget may be prepared under the following classification or combination of classifications: 1. Products or groups of products. 2. Areas, towns, salesmen and agents. 3. Types of customers as for example: (i) Government, (ii) Export, (iii) Home sales, (iv) Retail depots. 4. Period—months, weeks, etc Example of Sales Budget: XYZ Ltd. Sales Budget for the Year Ended 31 March XXXX Particulars Units Selling Price (P.U) Total Sales Value (Rs.) Product A Product B Total 5000 10000 75 80 375000 800000 1175000 20 LEADING TO THE PREPARATION OF THE MASTER BUDGET When all the necessary functional budgets have been prepared, the budget officer will prepare the master budget which may consist of budgeted profit and loss account and budgeted balance sheet. These are in fact the budget summaries. When the master budget is approved by the board of directors, it represents a standard for the achievement of which all the departments will work. On the basis of the various budgets (schedules) prepared earlier in this study, we prepare below budgeted income statement and budgeted balance sheet. Illustration: Floatglass Manufacturing Company requires you to present the Master budget for the 31 March 2012 from the following information: Sales: Toughened Glass Bent Glass Direct Material Cost Direct Wages Factory Overheads: Indirect Labour Works Manager Foreman Rs. 500 per month Rs. 400 per month 2.5% on Sales Rs. 600000 Rs. 200000 60% of Sales 20 workers @ Rs. 150 per month 21 Stores and Spares Depreciation on Machinery Repairs and Maintenance Other Sundries Administration, selling and Distribution Expenses Rs. 12600 Rs. 3000 Rs. 8000 10% on Direct Wages Rs. 36000 per year Solution: Master Budget for the Year Ending 31 March 2012 Particulars Amount (Rs.) Sales: Toughened Glass Bent Glass Total Sales Less: Cost of Production: Direct Material Direct Wages Prime Cost (A) Fixed Factory Overhead: 480000 36000 516000 600000 200000 800000 Amount (Rs.) 22 Works Manager’s Salary Foreman’s Salary Depreciation Light and Power Total Fixed Factory Overhead (B) Variable Factory Overhead: Stores and Spares Repairs and Maintenance Sundry Expenses Total Variable Factory Overhead (C) Works Cost (A+B+C) Gross Profit (Sales- Works Cost) Less: Administration, Selling and Distribution Expenses Net Profit 6000 4800 12600 3000 26400 20000 8000 3600 31600 574000 226000 36000 190000 23 CAPITAL EXPENDITURE BUDGET: The capital expenditure budget represents the planned outlay on fixed assets like land, building, plant and machinery, etc. during the budget period. This budget is subject to strict management control because it entails large amount of expenditure. The budget is prepared to cover a long period of years and it projects the capital costs over the period in which the expenditure is to be incurred and the expected earnings. The preparation of this budget is based on the following considerations: 1. Overhead on production facilities of certain departments as indicated by the plant utilization budget. 2. Future development plans to increase output by expansion of plant facilities. 3. Replacement requests from the concerned departments 4. Factors like sales potential to absorb the increased output, possibility of price reductions, increased costs of advertising and sales promotion to absorb increased output, etc. Merits/Advantages: 1. It outlines the capital development programme and estimated capital expenditure during the budget per iod. 2. It enables the company to establish a system of priorities. When there is a shortage of funds, capital rationing becomes necessary. 3. It serves as a tool for controlling expenditure. 4. It provides the amount of expenditure to be incorporated in the future budget 24 summaries for calculation of estimated return on capital employed. 5. This enables the cash budget to be completed. With other cash commitments capital expenditure commitment should also be considered for the completion of the budget. 6. It facilitates cost reduction programme, particularly when modernization and renovation is covered by this budget. 25 FIXED AND FLEXIBLE BUDGETS Fixed Budget: According to Chartered Institute of Management Accountants of England, â€Å"a fixed budget is a budget designed to remain unchanged irrespective of the level of activity actually attained†. A fixed budget shows the expected results of a responsibility center for only one activity level. Once the budget has been determined, it is not changed, even if the activity changes. Fixed budgeting is used by many service companies and for some administrative functions of manufacturing companies, such as purchasing, engineering, and accounting. Fixed Budget is used as an effective tool of cost control. In case, the level of activity attained is different from the level of activity for budgeting purposes, the fixed budget becomes ineffective. Such a budget is quite suitable for fixed expenses. It is also known as a static budget. Essential conditions: 1. When the nature of business is not seasonal. 2. There is no impact of external factors on the business activities 3. The demand of the product is certain and stable. 4. Supply orders are issued regularly. 5. The market of the product should be domestic rather than foreign. 6. There is no need of special labour or material in the production of the products. 7. Supply of production inputs is regular. 8. There is a trend of price stability. Generally, all above conditions are not found in practice. Hence fixed budget is not important 26 in business concerns. Merits/advantages: 1. Very simple to understand 2. Less time consuming Demerits/Disadvantages: 1. It is misleading. A poor performance may remain undetected and a good performance may go unrealized. 2. It is not suitable for long period. 3. It is also found unsuitable particularly when the business conditions are changing constantly. 4. Accurate estimates are not possible. Flexible Budget According to Chartered Institute of Management Accountants of England,†a flexible budget is defined as a budget which, by recognizing the difference between fixed, semi-variable and variable costs is designed to change in relation to the level of activity attained.† Unlike static (fixed) budgets, flexible budgets show the expected results of a responsibility center for several activity levels. You can think of a flexible budget as a series of static budgets for different levels of activity. Such budgets are especially useful in estimating and controlling factory cos ts and operating expenses. It is more realistic and practicable because it gives due consideration 27 to cost behaviour at different levels of activity. While preparing a flexible budget the expenses are classified into three categories viz. 1. Fixed, 2. Variable, and 3. Semi-variable. Semi-variable expenses are further segregated into fixed and variable expenses. Flexible budgeting may be resorted to under following situations: 1. In the case of new business venture due to its typical nature it may be difficult to forecast the demand of a product accurately. 2. Where the business is dependent upon the mercy of nature e.g., a person dealing in wool trade may have enough market if temperature goes below the freezing point. 3. In the case of labour intensive industry where the production of the concern is dependent upon the availability of labour. Merits/ Advantages: 1. With the help of flexible budget, the sales, costs and profit may be calculated easily by the business at various levels of production capacity. 2. In flexible budget, adjustment is very simple according to change in business conditions. 3. It also helps in determination of production level as it shows budgeted costs with classification at various levels of activity along with sales. Hence the management can easily select the level of production which shows the profit predetermined by the owners of the bu siness. 4. It also shows the quantity of product to be produced to earn determined profit. 28 Demerits/Disadvantages: 1. The formulation of flexible budget is possible only when there is proper accounting system maintained, perfect knowledge about the factors of production and various business circumstances is available. 2. Flexible Budget also requires the system of standard costing in business. 3. It is very expensive and labour oriented. Need for flexible budget: 1. Seasonal fluctuations in sales and/or production, for example in soft drinks industry; 2. A company which keeps on introducing new products or makes changes in the design of its products frequently; 3. Industries engaged in make-to-order business like ship building; 4. An industry which is influenced by changes in fashion; and 5. General changes in sales. 29 Illustration: A factory which expects to operate 7,000 hours, i.e., at 70% level of activity, furnishes details of expenses as under: Particulars Variable Expenses Amount (Rs.) 1260 Semi- Variable Expenses 1200 Fixed Expenses 1800 The semi-variable expenses go up by 10% between 85% and 95% activity and by 20% above 95% activity. Construct a flexible budget for 80, 90 and 100 per cent activities. Solution: Particulars Budgeted Hours Variable Expenses Semi-Variable Expenses Fixed Expenses Total Expenses Recovery Rate Per Hour 70% 7000 1260 1200 1800 4260 0.61 80% 8000 1440 1200 1800 4440 0.55 90% 9000 1620 1320 1800 4740 0.53 100% 10000 1800 1440 1800 5040 0.50 30 Difference between Fixed and Flexible Budget: Fixed Budget Flexible Budget It does not change with actual volume of It can be recasted on the basis of activity activity achieved. Thus it is known as rigid level to be achieved. Thus it is not rigid. or inflexible budget. It operates on one level of activity and under It consists of various budgets for one set of conditions. It assumes that there different levels of activity. will be no change in the prevailing conditions, which is unrealistic. Here as all costs like fixed, variable and Here analysis of variance provides useful semi-variable are related to only one level information as each cost is analyzed of activity so variance analysis does give useful information. If the budgeted and actual activity levels differ Flexible budgeting at different levels of significantly, then the aspects like cost activity facilitates the ascertainment of ascertainment and price fixation do not give a cost, fixation of selling price and tendering correct picture. of quotations. a meaningful basis of not according to its b ehaviour. Comparison of actual performance with It provides budgeted targets will be meaningless comparison of the actual performance with specially when there is a difference the budgeted targets. between the two activity levels. 31 BIBLIOGRAPHY 1 ICAI Module on Cost Accounting 2 Newsletters and opinions published by ICAI 3 http://en.wikipedia.org/wiki/Budget 4 www.icai.org

Impact of Product Price and Brand Name on Quality Perception Essay Example for Free

Impact of Product Price and Brand Name on Quality Perception Essay In ordinary usage, price is the quantity of payment or compensation given by one party to another in return for goods or services. In modern economies, prices are generally expressed in units of some form of currency (For commodities, they are expressed as currency per unit weight of the commodity, e.g. Tshs per kilogram.) Although prices could be quoted as quantities of other goods or services this sort of barter exchange is rarely seen. Prices are sometimes quoted in terms of vouchers such as trading stamps and air miles. Brand is the name, term, design, symbol, or any other feature that identifies one sellers good or service as distinct from those of other sellers.Initially, Branding was adopted to differentiate one persons cattle from anothers by means of a distinctive symbol burned into the animals skin with a hot iron stamp, and was subsequently used in business, marketing and advertising. A modern example of a brand is Coca Cola which belongs to the Coca-Cola Company. A brand is the most valuable fixed asset of a Corporation. In general, the product is defined as a thing produced by labor or effort In marketing, a product is anything that can be offered to a market that might satisfy a want or need. 2.0 PROBLEM ANALYSIS 3.0 OBJECTIVES 3.1 general objectives name on customer’s quality perception of product To assess the effect of price and brand 3.2 specific objectives * To assess the effect of price on quality perception * To assess the effect of brand name on quality perception HYPOTHESES Null hypotheses * There is negative relationship between price and quality perception * There is negative relationship between brand name and quality perception Alternative hypotheses * There is positive relationship between price and quality perception * There is positive relationship between brand name and quality perception LITERATURE REVIEW The consumer quality perception has been a debatable topic for the past so many years around the world; previously many researchers have studied this topic and found exploratory findings in different contexts. The central purpose of the study is to investigate the impact of product price and brand name on consumer’s quality perception of the product. The marketer must inspect the consumer buying behavior by consumer psychological behavior and social concerns (Shabbir et.al 2012). According to Kurtulus et al. (2005) the influence of consumer psychographics on their tendency to purchase retailer brands, that must be valid and reliable so the consumers are more price conscious and prefer and purchase retailer brands. Most of the consumers need convenience and quality products that strongly motivate them to buy the same product more frequently in the future (Ahuja, Gupta, Raman, 2003). Ahmad, Vays, (2011) found that the pre-decision time of consumer purchasing behavior recognized solid link with the desire purchasing Behavior of the consumers. Product price The product price factor is always been an important factor in customer/consumer buying process in every context. They always examine price and brand name information differently when they are making judgments on the dimensions of quality: ease of use, usefulness, performance, durability, and status (Brucks, Zeithaml Naylor, 2000). The marketing managers have to think broader to have a common on two factors such as capability control and strategic dynamic pricing policies (Moe Fader, 2009). The customer must be facilitated with some packages in products. Bie Chiao (2001) found that the marketing managers should highlight the service quality as well as but also price fairness in total consumer satisfaction program. According to Chang Wildt (1998) the price has its significant influence on perceived quality when it is the only information indicated available. According the study of consumer prefers to have a price and quality rather than technical aspects in durable goods (Chui et al. 2006). Brand name Another benefit of branding , from the customer view point,is its ability to increase purchase confidence and enhance customer loyality (Aaker,1991 ; chaudhuri amp; holbrook ,2001).Brands work by facilitating the the customers buying decesions process.(Doyle,1990).In a competitive market customer face hundred of products and messages competing for attention.the buying decisions are reliant on their past experience and perception about a product and his habitual buying process is associated with brand loyalty

Influence of sales promotion on impulse purchase buying behaviour

Influence of sales promotion on impulse purchase buying behaviour Purpose The purpose of this dissertation is to find out the influence of sales promotion on impulse purchase buying behaviour. This research is focused on the grocery retailer Tesco. Design/Methodology/Approach The subject areas covered in this dissertation are consumer buying behaviour, sales promotions and impulse buying behaviour. Two hypotheses are developed for this research and they are interrelated. Three objectives are developed and they are used to prove these hypotheses. The secondary data is collected first to know what is said about this phenomenon. Primary data is collected in the form of qualitative and quantitative data. Two mini focus group interviews are conducted for qualitative data. Surveys are used to collect the quantitative data. The population of the survey consisted of 78 samples from the consumers of Tesco, Parnell Street. Information like demographics and shopping frequency are collected to know about the details of the consumers. The data collection also verifies sales promotional activities, impulse buying behaviour and the relation between them. Data is analysed using an online survey tool called Surveymonkey Findings- From this study, it has been understood that sales promotions have a major influence on the impulse purchasing behaviour of consumers. It has also been verified that price promotion is the most influencing factor of sales promotion, which drives consumers towards impulse purchase. Conclusions and recommendations at the end of this research will be useful for students who study consumer buying behaviour and for retailers to implement a strategy for sales promotion. Originality/Value: Previous researches that has been carried out about impulse purchase has been influence of culture, mood etc. The function of this research is to find the influence of sales promotion on impulse purchase, which is important especially during the current economic recession. Introduction: This section of the dissertation outlines the research topic the researcher chose to study as part of his Masters in Business Administration (International) in Dublin Business School. This section is divided into the following parts. Background of the research Suitability of the researcher and interest in subject Research Objectives and Hypotheses Approach to the dissertation Recipients of the research Organisation of the research Scope and limitations of the study Background of the research: Ones own personal shopping experiences verify that occasionally we go into a store with no planned purchases in mind. Usually, however we go into a store planning to buy one or more specific items. Sometimes we know that those planned items are offered at a sale price, sometimes they are at regular price, and sometimes a mixture of both. We usually have an idea how much it will cost and how many of them we plan to buy. However, once we are in the store, we sometimes buy all we planned to buy; sometimes we buy more than we planned to buy. This would have happened because of something that stimulated us inside the store. It could be because of various reasons like sales promotions or store atmospherics or uniqueness of the product. This study is based on the influence of sales promotions on unplanned purchases like this called impulse purchase. Consumers buying behaviour is based on the needs of the consumer. This goes down to the basic level of consumer needs developed by Maslow(1971). He suggested a hierarchy of needs from the most basic to the most civilised one. Physiological needs, safety needs, belongingness needs, esteem needs and self-actualisation needs. To satisfy the needs, consumer buys things and this study is on the consumer buying behaviour. The consumer buying behaviour goes through a five sequential steps that is explained in the literature review of this article. Practically, when a consumer feels the need for buying things, he/she goes for shopping. There are many types of shops available, but the retail shop is where consumers can buy the things that they need for daily life. The concept of retail shops are now changing with the evolution of large supermarkets. Retail shops are now becoming one-stop-shops called super markets, offering vast number of product categories and services ranging from fruits and vegetables, off-licence, bakery, butcher facilities and even pharmaceuticals. It is a common fact that the large grocery stores and super markets have an unfair advantage over small players, by using a low cost selling, which the small convenience stores struggle to match. The Irish grocery retail market has evolved with many changes over the last few years. Tesco is one of the main players that exist in Irish grocery retail market. Organisations have started changing the methods of their grocery business over the last decade. There are innovations coming in the market everyday to attract new consumers and to retain them for a long period. Sales promotion is a quick way to strengthen the sales of an organisation. According to Kotler(2003), sales promotion is a key ingredient in marketing campaign which consists of diverse collection of incentive tools, mostly short term, designed to stimulate quicker or greater purchase of a particular products or services by consumers or trade. It is one of the effective methods in creating savings to the regular grocery shoppers. For retailers, the sales promotion is an excellent opportunity to promote their products in bulk thereby increase profit margins and consumer loyalty. There are various sales promotion tools used by the retailers, price promotion being one of them. Price promotions help the consumers to buy their goods for a reduced price. There are various types of p romotions which are described in the literature. A phenomenon called impulse purchase is considered as different form of consumer buying action. Impulse purchasing is a phenomenon by which a consumer experiences a sudden and often persistent urge to buy something immediately (Rook, 1987). It is an enigma in the marketing world, which accounts for substantial volume of goods sold every year. It is said that 80 percent of all purchases in some particular goods categories is made through impulse purchase. Virvialite(2009) based on Kacen and Lee(2002).This is a widely used by the retailers as they attract the consumers to buy things impulsively. At the present market conditions, when market competition is high and all types of companies apply promotion in their activities, stimulation of impulse purchasing in the market of consumer goods may become a strong competitive advantage. We go through this phenomenon in our daily life, knowingly or unknowingly. It is the feeling that one cannot resist at that moment, which are affected many fa ctors. An example of this would be when we see an advertisement in the store where it says Half Price sale, Was à ¢Ã¢â‚¬Å¡Ã‚ ¬3.99, Now à ¢Ã¢â‚¬Å¡Ã‚ ¬1.99. The aim of this study is to study the influence of sales promotion on impulse purchase. This research determines if the consumers go for an impulse purchase, if there are sales promotions. There is also a second part to this research which determines if the price promotion is the most important factor in sales promotion that leads the consumer to impulse purchase. This study is an important one considering the current economic climate. In this recessionary period, consumers who are doing grocery shopping actually care for the price factor and look for goods that are value for money. This study establishes the relation between sales promotion and impulse purchase. 2. Suitability of the researcher and the interest in the subject: The researcher is an engineering graduate in Information Technology. The researcher has four years of work experience in I.T and business fields. Researcher has a family business back India, which deals with retail and wholesale trading of steel products. The researcher was taking care of business for one year before coming to Ireland and has an idea of what is happening in the real business world. The ultimate career goal is to take over the family business and expand it with more concentration on retail sector. This study on consumer buying behaviour will certainly help the researcher in achieving this goal. The researcher is currently working in the retail sector and has observed many consumers going for impulse purchase because of the sales promotions. The researcher himself has fallen into the trap of impulse purchase when doing the grocery shopping on many occasions. This has specifically happened after the researcher came to Ireland where there are more sales promotions than seen elsewhere. This curiosity of the researcher encouraged to do a research on the influence of sales promotion on impulse purchase. Organisation chosen for the research: This research is conducted in Tesco, one of the biggest grocery retailers in Ireland. Tesco was founded by Jack Cohenand in 1919 and developed its first super market in 1956. They have come a long way through and now is the fourth largest retailer in the world, measured by revenues and second largest measured by profits. Tesco has its base at The United Kingdom and is spread across 14 countries all over the world. The company started its operations in Ireland as Tesco Ireland in 1997. The theme Every Little Helps is very popular in Ireland. Tesco has almost all the services that is needed in our daily life, including groceries, bakery, clothing, and mobile network. The researcher chose Tesco for the research because of he considers it as the best place where the study of sales promotion and impulse purchasing can be done in the context of a grocery-shopping environment. The research takes place in Tesco, Parnell Street in Dublin, Ireland. 3. Research Topic: Influence of sales promotion on impulse purchasing behaviour in the context of a grocery store. The aim of this research is to find out the influence of sales promotional activities on impulse buying behaviour in the context of a grocery retail store. With this purpose, the research will be conducted in Tesco, Parnell Street, Dublin, Ireland. This research focuses on answering the following questions: 1. Do sales promotional activities in store have a major influence on consumers impulse buying behaviour? 2. Is price promotion the major factor in sales promotion, which drives the consumers towards impulse purchase? Objectives: In order to answer each of these questions, the researcher came out with the following objectives. To identify the sales promotional activities in the store To find out if consumers actually go for an impulse purchase and the most influencing factor that affects it To determine if price promotion is the most influencing factor of sales promotion and if consumer purchase low priced items during impulse buying To justify this research, and to obtain the answer for the research questions, certain assumptions were made initially. Two hypotheses were developed which needs to be proved or disapproved. Hypothesis: H1: Sales promotional activities in the store have a major influence on customers impulse buying behaviour H2: Price promotion is the most influencing factor of sales promotion, which drives consumers towards impulse purchase. Approach to the Dissertation: The objectives derived will be obtained systematically in the research. Firstly, the secondary research is conducted using relevant sources to understand the research problem area in depth. Various sources like journals, textbooks, magazines and websites will be used in accordance with academic regulations. Primary research is carried out next with the help of self-administered questionnaires and focus group interviews. The quantitative data obtained through questionnaires are then analysed with the help of appropriate statistical tool and the result will be drawn. The hypotheses will then be tested with the results obtained and will proved or disapproved. Conclusions will be made and recommendations will be proposed based on the results. Recipients of the research: There are five recipients of the research that is conducted as part of Masters in Business Administration (International) in Dublin Business School. They are as follows: Dublin Business School where this researcher is a full time student studying for his qualification Liverpool John Moores university, who provides the qualification which the student is studying for Mrs. Linda Moran, who is dissertation supervisor, who guided the author through research process to date Staff and management of Tesco Ireland Ltd, who gave the permission for the research to be conducted on them Anybody who has interest in marketing specifically consumer buying behaviour, sales promotion and impulse purchase Organisation of the Research: Chapter 1: Introduction This section of the dissertation introduces the background of the research, the suitability of the researcher and the interest in the topic.   This section also states the research objectives and hypotheses. Further, it gives a brief description about how the research is carried out. This section also mentions the recipients of the research and also about the scope and limitations of the research.   Chapter 2: Literature Review This section the researcher critically reviews the literature which provides the theoretical background to the study. In the first section, the consumer buying behaviour is described in general. Further, the researcher introduces the concept of impulse purchase. The next section explains the sales promotions and its different types. The final section describes the relation between sales promotion and impulse purchase. Chapter 3: Research Methodology This section describes the research methodology adopted for undertaking the research. This chapter begins with the research onion proposed by Saunders et al.(2007) and proceeds layer by layer beginning from research philosophy towards data analysis. The justification of population and sampling method used are also discussed later. Chapter 4: Data analysis and Findings. This section describes the findings from the data analysis with the help of focus groups and questionnaire. Chapter 5: Conclusion and Recommendations. The section integrates the concepts of theories discussed in the literature review earlier and incorporates them with the data analysis and findings. The section concludes the research by providing justifications for proving or disapproving hypotheses. Recommendations are made and can be utilised by retailers and consumers for further studies. Chapter 6: Self Reflection on Own Learning and Performance. The section describes the researchers learning process and performance over the course of the International MBA programme. This section also describes the researchers development of various skills during the course. Chapter 7: Bibliography The section provides the list of various books, academic journals and websites that have been used in the dissertation. Harvard referencing system is used to reference the sources used. Chapter 8: Appendices Appendix includes the final questionnaire and project management Gantt chart. Major contributions of the study: Scope and Limitations of the research: The main limitation of this study is faced during the primary research. The sample size taken for this study is a small population and of consumers of Tesco, Parnell Street. The results and conclusions are based on a single store and cannot be used for generalisation. Another issue that the researcher faced while conducting the primary research is the biasing problem. The researcher has remained neutral to his best of the ability while conducting the focus group interviews and questionnaires. The study being cross sectional is only relevant for a particular period of the present research. Any future changes in consumers attitudes can alter the results of present research.

Ancient Native American Traditions Essay -- History culture Indians Es

Ancient Native American Traditions The novel "Reservation Blues" does not describe or deal with real Indians. The real Native Americans were forever destroyed by the government the second that they set foot upon the makeshift reservation. That very second saw the perish of all the age-long values and traditions that, before that moment, defined, raised, and watched over every Indian boy and girl, every Indian husband and wife, and every Indian father and mother. The U.S. government easily and nonviolently accomplished what the army has been struggling to do for many years, it wiped out a whole race of people, turning them into a mindless horde that was of concern to no one. The result were people who were hardly more Indian than you or me, people without culture, morals, or traditions; these people were lost. The only thing they had in common was the color of their skin and nothing else. This paper takes a look at ancient Native American traditions such as: unity, storytelling, communication with nature, and pride in their culture and shows how they were all but absent from this particular reservation and the mindsets of its inhabitants.   Ã‚  Ã‚  Ã‚  Ã‚  The greatest thing that Indians shared is unity. Their culture viewed the tribe as a living and breathing thing, needing every member's cooperation and participation in order to survive. Throughout the years, Indians have always relied on each other for help and support, whether hunting, raising children, or defending their territory. In addition, possessions were shared equally between the members, and everything was done for the benefit of the tribe. On the Spokane reservation there is no such concept as unity. People live for their own good, barely tolerating their own kind. Defying their ancestor's traditions, characters such as Victor and Joseph bully others into submission in order to get what they want or just for fun. Michael White Hawk attacks the band members out of jealousy. After the band starts their public performances, the whole town splits into two groups, one supporting the musicians, the other detesting them. There is no unity to be found anywher e. Same thing goes for support. Not many souls believed in them. "Tribal Chairman David WalksAlong was even more pessimistic about the future of Coyote Springs. "Listen, those Skins ain't got a chance in New York City...Coyote Springs is done for. I'm... ... and courageous animal, looked up to by the children, but in the real world it was simply a mean of amusement. The Spokane tribe had hastily forgot one of the most important concepts of Indian heritage, the concept that should have defined them.   Ã‚  Ã‚  Ã‚  Ã‚  The only thing on the Spokane reservation that still contained Indian culture and heritage was Big Mom, or the nature. However, no Indian ever remembered, or wished to remember his or her own roots. They knew about Big Mom’s existence, yet they refused to believe in her. It was simpler to live life as they did, without any real purpose or direction. â€Å"There were a million stories about Big Mom. But no matter how many stories were told, Indians still refused to believe in her. Even though she lived on the reservation, some Spokanes still doubted her.†(199) She watched the Indians deny and defy everything that was in their culture, all the traditions and all of the morals, powerless to stop it. The-man-who-was-probably-Lakota saw and understood what was happening, and repeated the same line over and over again, â€Å"The end of the world is near, the end of the world is near.† However, for these Indians the end had already came and gone.

Life Means Life - Original Writing :: Papers

Life Means Life - Original Writing The sly shoves and kicks from policemen didn't bother me. It was the look on their faces. They turned up their noses as if the smell of me was too foul to endure. Their eyes seemed to darken at the sight of me. The first time it really hit me that I was going to spend the rest of my life in prison was only when they took away my personal belongings. Everything that gave me a sense of identity, of individuality was carefully listed and placed into that blue plastic box - a Mars bar which I have loved since I was a little lad; my keys that never worked first time you twisted them in the lock; my worn and familiar clothes that I refused to throw out just because they were old, and my wallet with the picture of - my girlfriend who says she no longer loves me. These small insignificant things that made me an individual were stripped away literally and all that was left was me. Me. It made me break down right there in the room while they were removing the laces from my shoes. "We don't want any hangings tonight do we?" said the surly officer. A humiliating, brutal and invasive search of my naked body followed amid sniggers and crude comments from the men in blue before being marched to my cell. By this point I was beyond caring. A switch in my mind was flicked and I stared straight ahead, silently following the instructions of the uniformed guards neither flinching nor responding to anything anyone said or did. The door slammed shut and I surveyed my new home with its hard bed and a bucket in a corner. I was placed in solitary confinement `for my own security' which meant I didn't have to face the other inmates immediately although I realised at some point that I would have to. Solitary confinement - time to give me think about the weeks and months leading up to this point and the crime they say I committed.

Columbus?s Arrival :: Christopher Columbus Essays

Columbus’s Arrival A lot of people would agree that Christopher Columbus was the founder of and first to discover America. On the other hand, people have come to the conclusion that Christopher Columbus was the worst thing that could have ever happened to America. This is the question were trying to find, would it have been better if he never even discovered this unexplored continent? Through all of my research and interviews I’ve come to this conclusion. There are to many good and bad arguments dealing with Columbus, too many to even make my own decision but here are a few things that other people in my generation have to say. Before Christopher Columbus came, life in this unexplored territory was vast and extremely empty except for the native Americans that inhabited a few separated acres of this continent. They were here before anybody they had discovered Cuba, the west coast and even the Pacific Coast of California. Life was plain and simple for the Natives, they had adequate amounts of food and water they had treatments for almost all diseases they were just fine and dandy except for the occasional tribal war over land. Soon that life was about to change and all credit is given by most to Christopher Columbus.   Ã‚  Ã‚  Ã‚  Ã‚  Ã¢â‚¬Å"First of all he never even reached America, he landed in Cuba. Second he, not personally, was the reason for thousands of Native Americans deaths†. Indigo Rodriguez. â€Å"He brought over so many diseases that there really was no chance for the natives to survive.† Cort Zimmerman. His arrival brought so many horrific things but the one that really caught my attention from what people said was that of the forcing of the Christian religion on the natives. The Spanish (Columbus), came over with a mentality of, our religion is the only one that will lead you to heaven so either you convert or we’ll kill you.   Ã‚  Ã‚  Ã‚  Ã‚  Ã¢â‚¬Å"I’m sorry to say this but if things didn’t happen the way they did, society and religion wouldn’t be as prosperous as it is today. We could still be learning how electricity works if it weren’t for him†¦ This county might not even of turned out Democratic, the Russians could of got here first and actually of prospered with a communist society.† Dimitri Boyd. I asked people of what they thought of science and evolution and the response from a majority was that of â€Å"I’m all for it, I wouldn’t have such a cool car if it wasn’t for science. Columbus?s Arrival :: Christopher Columbus Essays Columbus’s Arrival A lot of people would agree that Christopher Columbus was the founder of and first to discover America. On the other hand, people have come to the conclusion that Christopher Columbus was the worst thing that could have ever happened to America. This is the question were trying to find, would it have been better if he never even discovered this unexplored continent? Through all of my research and interviews I’ve come to this conclusion. There are to many good and bad arguments dealing with Columbus, too many to even make my own decision but here are a few things that other people in my generation have to say. Before Christopher Columbus came, life in this unexplored territory was vast and extremely empty except for the native Americans that inhabited a few separated acres of this continent. They were here before anybody they had discovered Cuba, the west coast and even the Pacific Coast of California. Life was plain and simple for the Natives, they had adequate amounts of food and water they had treatments for almost all diseases they were just fine and dandy except for the occasional tribal war over land. Soon that life was about to change and all credit is given by most to Christopher Columbus.   Ã‚  Ã‚  Ã‚  Ã‚  Ã¢â‚¬Å"First of all he never even reached America, he landed in Cuba. Second he, not personally, was the reason for thousands of Native Americans deaths†. Indigo Rodriguez. â€Å"He brought over so many diseases that there really was no chance for the natives to survive.† Cort Zimmerman. His arrival brought so many horrific things but the one that really caught my attention from what people said was that of the forcing of the Christian religion on the natives. The Spanish (Columbus), came over with a mentality of, our religion is the only one that will lead you to heaven so either you convert or we’ll kill you.   Ã‚  Ã‚  Ã‚  Ã‚  Ã¢â‚¬Å"I’m sorry to say this but if things didn’t happen the way they did, society and religion wouldn’t be as prosperous as it is today. We could still be learning how electricity works if it weren’t for him†¦ This county might not even of turned out Democratic, the Russians could of got here first and actually of prospered with a communist society.† Dimitri Boyd. I asked people of what they thought of science and evolution and the response from a majority was that of â€Å"I’m all for it, I wouldn’t have such a cool car if it wasn’t for science.