Absorption Costing Vs Marginal Costing | Case Study

Absorption Costing Vs Marginal Costing | Case Study As Marabs Manufacturing Limited deals in different products, some standard while others customised, it should accordingly adopt different but suitable techniques for costing these products. Absorption costing and marginal costing are two different techniques of cost accounting which can be used by Marabs Manufacturing. These techniques may be suited under different circumstances. How is Absorption Costing Different from Marginal Costing? Absorption costing is a traditional method of inventory costing that traces all manufacturing costs (the variable and the fixed costs of production) to the product. These costs do not become expenses until the inventory is sold. Absorption costing considers normal manufacturing costs as product costs and includes them for inventory valuation. As sales occur, the cost of inventory is transferred to cost of goods sold. Absorption costing emphasises the functional characteristics of cost. Using this system, the profit reported for a manufacturing business for a period is influenced by the level of production as well as by the level of sales. The rationale for absorption costing is that it causes a product to be measured and reported at its complete cost. Absorption costing is based on the premise that even though it is difficult to trace costs like fixed manufacturing overhead to a particular unit of output it does not mean that they are not a cost of that output. As a result, such cost s are allocated to products. In contrast, marginal costing is a costing technique of presenting cost data wherein variable costs and fixed costs are shown separately for managerial decision-making. Marginal costing system emphasises the behavioural characteristics of cost. The focus of this system of costing is on separating costs into variable elements and fixed elements. Under marginal costing, variable costs are charged to cost units and the fixed costs are treated as period costs and, as such, are simply deducted from contribution in the period incurred to arrive at net profit. Inventory/stock for profit measurement under marginal costing is valued at marginal cost. It is in sharp contrast to the total unit cost under absorption costing method. There are various other points of difference. The key differences between marginal and absorption costing are: Accounting for Fixed Manufacturing Costs Marginal and absorption costing differ in terms of treatment of fixed manufacturing costs. Under marginal costing, fixed manufacturing costs are excluded from inventory costs and are a cost of the period in which they are incurred. On the other hand, under absorption costing, these costs are included in the cost of inventory and become a part of cost of goods sold in the period when sales occur. Presentation of Sales and Cost Data Facilitating Decision-Making Absorption costing does not differentiate between variable and fixed cost in the calculation of profits. But marginal cost statement very clearly indicates this difference in arriving at the net operational results of a firm. The differences in presentation are clearly shown in the costing pro-forma below. ABSORPTION COSTING PRO-FORMA Â £ Â £ Â £ Sales xxx Production cost of Sales Opening Stock xxx Production Costs: Direct Materials Direct Labour Production Cost absorbed xxx xxx xxx xxx xxx Less: Closing stock (xxx) (xxx) Production Overhead absorbed xxx Production Overhead incurred xxx Over absorbed / Under absorbed xxx or (xxx) xxx Administration overheads incurred xxx Selling and distribution costs xxx (xxx) Profit xxx MARGINAL COSTING PRO-FORMA Â £ Â £ Â £ Sales xxx Variable cost of Sales Opening Stock xxx Variable Production Costs: Direct Materials Direct Labour Variable Production Cost xxx xxx xxx xxx xxx Less: Closing stock (xxx) Variable Production Cost of Sales xxx Variable Selling and Distribution xxx Total Variable Cost of Sales (xxx) Contribution xxx Fixed Costs: Fixed Production Cost Fixed administration cost Fixed selling and distribution xxx xxx xxx Total Fixed Costs (xxx) Profit xxx Absorption of Fixed Overheads In absorption costing, fixed overheads can never be completely absorbed. However, this is not so under marginal costing. Under marginal costing, the actual fixed overhead incurred is wholly charged against contribution. Stock Valuation In marginal costing, work in progress and finished stocks are valued at marginal or variable cost, but in absorption costing, they are valued at total production cost. Difference in Profits The net profits under absorption costing method and marginal costing methods differ if there is a difference between opening and closing stock values. When closing stock is more than opening stock, the profit under absorption costing will be higher as comparatively a greater portion of fixed cost is included in closing stock and carried over to next period. When opening and closing stocks are same, there will be no difference in profit, provided the fixed cost element in opening and closing stocks are of the same amount. Thus, absorption costing and marginal costing differ in their approach and treatment of costs. However, each method has its own advantages and disadvantages. Arguments in Favour of Using Absorption Costing Absorption costing is simple to administer and easy to understand, and may be appropriate when direct costs are of significance. Besides, absorption costing is required for outside reporting where other methods of costing such as marginal costing are not accepted. It is also widely used for cost control purpose. Thus, there are various arguments in favour of absorption costing are: Absorption costing does not need to separate costs into fixed and variable costs. This is especially useful in situations where separation of costs into fixed and variable is difficult and gives misleading results. Under marginal costing, stocks and work in progress are understated. The exclusion of fixed costs from inventories affect profit and true and fair view of financial affairs of an organisation may not be clearly transparent. Absorption cost data is more realistic than marginal cost data in case of highly fluctuating levels of production, e.g., in case of seasonal factories. Besides, volume variance in standard costing also discloses the effect of fluctuating output on fixed overhead. Application of fixed overhead depends on estimates and not on the actuals and as such there may be under or over absorption of the same. Absorption costing takes care of this while marginal costing may not be able to do so. Absorption costing controls cost by means of budgetary control. This is an acceptable process to many. In order to know the net profit, one needs to take into account fixed overheads also. A system like marginal costing which ignores fixed costs is less effective since a major portion of fixed cost is not taken into account. Thus, absorption costing proves to be better. Arguments in Favour of Using Marginal Costing Despite its various advantages, absorption costing may not always prove to be the best approach to costing or pricing a product. It may not help management take important decisions about a product. Marginal costing may prove to be a better system of costing. For the decision-making purpose of management, better information about expected profit is obtained from the use of variable costs and contribution approach in the accounting system. The arguments that favour marginal costing are: It is simple to understand and avoids having varying charges per unit as it does not charge fixed overhead to cost of production. It prevents the illogical carry forward in stock valuation of some proportion of current year’s fixed overhead. It facilitates cost control as it avoids arbitrary allocation of fixed overhead. Marginal costing uses cost control methods such as flexible budgets. It facilitates cost-volume-profit (CVP) or breakeven analysis and profitability analysis and thus helps in short-term profit planning. It also helps an organization compare profitability and performance between two or more products and divisions and help the management in decision making. Under marginal costing system, large balances are not carried under overhead control accounts and thus there is no difficulty of ascertaining an accurate overhead recovery rate. As marginal costing is much closer to cash flow managers usually find it easier to understand marginal costing reports. Using Both Absorption Costing and Marginal Costing Like any other organization, a manager at Marabs Manufacturing Limited will need to take decisions when he encounters problems and alternative courses of action are available. In deciding which option to choose he will need all the relevant information. In most cases cost information proves to be relevant to any decision making. However, no single costing approach can provide appropriate information for taking decisions in all circumstances. In certain cases absorption costing will provide more complete information while in other cases marginal costing information will be more relevant. The theoretical basis for absorption costing is that decisions should be based on the matching principle for all manufacturing costs. Marabs Manufacturing incurs fixed manufacturing cost with the expectation that the resources represented by these costs will be used in the production of inventory. Hence, these costs should be matched against the revenue generated from the sale of that inventory. In contrast, the theoretical reasoning for marginal costing is that fixed manufacturing overhead will be incurred in the short-run irrespective of the volume of production or level of inventory. A significant portion of the fixed manufacturing overhead costs is unavoidable in the short run even when the facilities are idle. Marabs Manufacturing Limited is in a multi-product business. Some products are standard products while others are based on specific orders or are customized according to specifications provided by customers. Wherever the company is costing for standard products it may use absorption costing. It is also given in the scenario that the standard products tend to be seasonal and highly fluctuating. Absorption cost data is more realistic than marginal cost data in case of highly fluctuating levels of production. Absorption costing will also be useful while making certain decisions, for example the price to be charged for external services. However, all decisions related to specific orders and or products adapted to meet the requirements of individual customers should be based on marginal costs. Thus, Marabs Manufacturing Limited should not restrict itself to just absorption costing or just marginal costing and use cost data based on both approaches. The chosen approach should depend on the nature of decision required. As a guideline, if the required decision relates to cost control, cost data based on absorption costing will be more appropriate. However, cost data based on marginal costing will be more appropriate for short-term managerial decision-making and control. Decision analysis should ideally include costs that vary with a decision. Though marginal costing identifies both fixed and variable costs its decisions are based on only the variable component of costs of an activity. Fixed costs are not relevant in case of many decisions that involve relatively small variations from existing practice and/or are for relatively limited periods of time. This is because fixed costs are difficult to alter in the short term. Variable cost corresponds closely with the expenditure n ecessary to produce and sell products and services and can therefore be used more readily in incremental analysis than absorption costing data. Marginal costing is also appropriate for decision making when an activity centre has short-term spare capacity. Marginal costing will also help the company in taking a decision on the minimum price that could be charged for a product. This can be particularly useful for pricing additional sales at special reduced rates when sales have already been made at the normal selling price. As fixed costs have already been paid of all that is required to cover the variable costs of any additional sales Finally, marginal costing can help Marabs Manufacturing take decisions related to: Budget planning and determining the volume of sales required to make a profit Pricing and sales volume decisions. Sales mix decisions, to determine in what proportions each product should be sold. Decisions that will affect the cost structure and production capacity of the company. Whether or not to close down a factory, department, product line or other activity, either because it is making losses or because it is too expensive to run. To sum it up, both absorption as well as marginal costing techniques are appropriate for the company and one cannot be treated as better than the other. The choice of a technique should be dependent on the costing objective. References: Charles T. Horngren, George Foster, Srikant M. Datar, Cost Accounting: A Managerial Emphasis, Prentice Hall John K. Harris, Cost Accounting Student Guide, 12th Edition, Prentice Hall Michael W. Maher, William N. Lanen, Madhav V. Rajan, Fundamentals of Cost Accounting, McGraw-Hill/Irwin Ronald W. Hilton, Frank H. Selto, Michael W. Maher, Frank Selto, Cost Management: Strategies for Business Decisions, McGraw-Hill College Absorption Costing / Full Costing accessed from: http://www.valuebasedmanagement.net/methods_absorption_costing.html

Studying The Database Management System

Studying The Database Management System A Database Management System is a commercial software program used to control, manipulate and maintain the Database by enabling users to access, store, organize, modify, retrieve, secure and provide integrity of data in a database. A DBMS accepts request from users or applications and instructs the operating system to transfer the appropriate data as shown in the diagram below. Wikipedia (2011) defines Database Management System as a set of computer programs that controls the creation, maintenance, and the use of a database. It allows organizations to place control of database development in the hands of database administrators (DBAs) and other specialists. A DBMS is a system software package that helps the use of integrated collection of data records and files known as databases. It allows different user application programs to easily access the same database. DBMSs may use any of a variety of database models, such as the network model or relational model. In large systems, a DBMS allows users and other software to store and retrieve data in a structured way. Instead of having to write computer programs to extract information, user can ask simple questions in a query language. Thus, many DBMS packages provide Fourth-generation programming language (4GLs) and other application development features. It helps to specify the logical organization for a database and access and use the information within a database. It provides facilities for controlling data access, enforcing data integrity, managing concurrency, and restoring the database from backups. A DBMS also provides the ability to logically present database information to users. Examples: Microsoft Access, My SQL, Microsoft SQL Server, Oracle and FileMaker Pro are all examples of database management systems. (Wikipedia, 2011). Microsoft Access: Microsoft Office Access, previously known as Microsoft Access, is a relational database management system from Microsoft that combines the relational Microsoft jet database Engine with a graphical user interface and software-development tools. It is a member of the Microsoft Office suite of applications, included in the Professional and higher editions or sold separately. In mid-May 2010, the current version Microsoft Access 2010 was released by Microsoft in Office 2010; Microsoft Office Access 2007 was the prior version. My SQL: MySQL is a relational database management system that runs as a server providing multi-user access to a number of databases. It is named after developer Michael Widenius daughter, my. The SQL phrase stands for Structured Query Language. Microsoft SQL Server: Microsoft SQL Server is a relational model database server produced by Microsoft. Its primary query languages are T-SQL and ANSI S SQL. Oracle: The Oracle Database (commonly referred to as Oracle RDBMS or simply as Oracle) is an object-relational database management system (ORDBMS), produced and marketed by Oracle Corporation. FileMaker Pro: FileMaker Pro is a cross-platform relational database application from FileMaker Inc., formerly Claris, a subsidiary of Apple Inc. It integrates a database engine with a GUI-based interface, allowing users to modify the database by dragging new elements into layouts, screens, or forms. Advantages Singh (2009) illustrates advantages and disadvantages of DBMS. A true DBMS offers several advantages over file processing. The principal advantages of a DBMS are the followings: à ¢Ã¢â€š ¬Ã‚ ¢ Flexibility: Because programs and data are independent, programs do not have to be modified when types of unrelated data are added to or deleted from the database, or when physical storage changes. à ¢Ã¢â€š ¬Ã‚ ¢ Fast response to information requests: Because data are integrated into a single database, complex requests can be handled much more rapidly then if the data were located in separate, non-integrated files. In many businesses, faster response means better customer service. à ¢Ã¢â€š ¬Ã‚ ¢ Multiple access: Database software allows data to be accessed in a variety of ways (such as through various key fields) and often, by using several programming languages (both 3GL and nonprocedural 4GL programs). à ¢Ã¢â€š ¬Ã‚ ¢ Lower user training costs: Users often find it easier to learn such systems and training costs may be reduced. Also, the total time taken to process requests may be shorter, which would increase user productivity. à ¢Ã¢â€š ¬Ã‚ ¢ Less storage: Theoretically, all occurrences of data items need be stored only once, thereby eliminating the storage of redundant data. System developers and database designers often use data normalization to minimize data redundancy. Warehouse of information, where large data can be stored. Systematic storage meaning data can be stored in the form of tables. Change of schema meaning it is not platform dependent tables can be edited to add new ones without hampering the applications. No language dependence meaning use of various languages on various platforms. Table joins meaning data can be in two or more tables and can be put into one table this enables easy retrieval of data. Data security meaning DBMS secures all your data. The data independence and efficient access of data Easy in data administration or data management. Provides concurrent access, recovers the data from the crashes. Disadvantages A database system generally provides on-line access to the database for many users. In contrast, a conventional system is often designed to meet a specific need and therefore generally provides access to only a small number of users. Because of the larger number of users accessing the data when a database is used, the enterprise may involve additional risks as compared to a conventional data processing system in the following areas. Confidentiality, privacy and security. Data quality. Data integrity. Enterprise vulnerability may be higher. The cost of using DBMS. Confidentiality, Privacy and Security When information is centralised and is made available to users from remote locations, the possibilities of abuse are often more than in a conventional data processing system. To reduce the chances of unauthorised users accessing sensitive information, it is necessary to take technical, administrative and, possibly, legal measures. Most databases store valuable information that must be protected against deliberate trespass and destruction. Data Quality Since the database is accessible to users remotely, adequate controls are needed to control users updating data and to control data quality. With increased number of users accessing data directly, there are enormous opportunities for users to damage the data. Unless there are suitable controls, the data quality may be compromised. Data Integrity Since a large number of users could be using a database concurrently, technical safeguards are necessary to ensure that the data remain correct during operation. The main threat to data integrity comes from several different users attempting to update the same data at the same time. The database therefore needs to be protected against inadvertent changes by the users. Enterprise Vulnerability Centralising all data of an enterprise in one database may mean that the database becomes an indispensible resource. The survival of the enterprise may depend on reliable information being available from its database. The enterprise therefore becomes vulnerable to the destruction of the database or to unauthorised modification of the database. The Cost of using a DBMS Conventional data processing systems are typically designed to run a number of well-defined, pre-planned processes. Such systems are often tuned to run efficiently for the processes that they were designed for. Although the conventional systems are usually fairly inflexible in that new applications may be difficult to implement and/or expensive to run, they are usually very efficient for the applications they are designed for. The database approach on the other hand provides a flexible alternative where new applications can be developed relatively inexpensively. The flexible approach is not without its costs and one of these costs is the additional cost of running applications that the conventional system was designed for. Using standardised software is almost always less machine efficient than specialised software. Cost of hardware and software meaning having to upgrade the hardware used for file based system it is very costly. Cost of data conversion meaning its costly to convert data of data files into database and have to hire database and system designers. Cost of staff training meaning organization has to be aid a lot of amount for the training of staff to run dms. Database damage meaning all data stored into a single file if database is damaged due to electric failure or database is corrupted on a storage media meaning all valuable data may be lost forever. It also takes a lot of time and effort to get DBMS started. Benefits of a Database Management System in an organization As discuss by the Ezinearticles (2011), organizations often times find themselves in a dilemma on how they can effectively serve the needs of their members. At the same time, they also enter a situation wherein there is difficulty in handling data, given the sheer volume of information. More often than not, the results of these instances are not anything but desirable; confusion, chaos, mismanagement, lost confidence by members, etc. To solve these problems, organizations turn to information technology (IT) experts for answers. With many years of experience in coming up with solutions for businesses and other entities, IT professionals have what it takes to come up with an effective data management and accreditation system that will be used by organizations. There must also be enhanced accessibility to the said system, which means that members from other locations can still gain entry into the system, regardless of elements such as time and geography. Investing on the services of IT consultants is, however, not like buying something from a store. It entails huge sums of money to come up with a good data management and accreditation system for an organization, aside from engaging the professional services of IT experts. Fortunately, IT experts can help minimize the cost through the creation of a database system based on existing resources being held by the organization. Investing on the services of IT experts and having a good data and accreditation management system may seem to be too costly, but the long-term benefits are worthy to be seen. By having a good database system, it will be much easier for organizations to deal with their members because of enhanced access to information. The placement of additional pieces of information can be done better if there is a good data management system. Having a good data and accreditation management system empowers members of an organization. This is possible because they have the ability to gain the necessary information about things that matter to them as members. They conduction of business with the organizations intervention is made faster and more efficient if a good data management system is in place. There is no reason for organizations to hesitate when it comes to investing on a good data and accreditation management system. The long-term benefits of having one are far greater than the costs, and will be very helpful to the organization and their members in the long run. Improved strategic use of corporate data. Reduced complexity of the organizations information systems environment. Reduced data redundancy and inconsistency. Enhanced data integrity. Application-data independence. Improved security. Reduced application development and maintenance costs. Improved flexibility of information systems. Increased access and availability of data and information. (Blurtit, 2011). Prospects in DBMS and Career Opportunities The work of a database administrator (DBA) varies according to the nature of the employing organisation and the level of responsibility associated with the post. The work may be pure maintenance or it may also involve specialising in database development. Prospects, the UKs official career website (2011) states that jobs available in this field are: Senior Database Architect Database Architect design and builds database structure and objects that best support operational and analytics application. Tests and debug physical database objects for performance and troubleshooting. * Design and implement optimal star and snowflake schema in the database * Communicate and collaborate with team members and management on the designed database structures and schemas * Write and present eloquently with the appropriate audience perspective in mind * Support troubleshooting of production issues of existing application as warranted * Participate in collaborative discussions with team members to monitor progress against enhancement queue and bug resolution. * Stay proactive in identifying potential risks/issues due to the overall application design and make recommendations. Database Administrator This position requires a Top Secret Security Clearance. This position will support a US Air Force Contract. The successful candidate will be responsible for planning, coordinating and administering computerized databases, including base definition, structure, documentation, long and short range requirements, operational guidelines, protection and logical-physical database design. Formulates and monitors policies, procedures and standards relating to database management. Identifies, evaluates and recommends relevant COTS software tools. Collaborate with software engineers, security administration, computer operations, network management and system administration to ensure quality and integrity of databases, application software and data. Responsible for performance monitoring, database. Database Architect Specialist Database Architect design and builds database structure and objects that best support operational and analytics application. Tests and debug physical database objects for performance and troubleshooting. * Design and implement optimal star and snowflake schema in the database * Communicate and collaborate with team members and management on the designed database structures and schemas * Write and present eloquently with the appropriate audience perspective in mind * Support troubleshooting of production issues of existing application as warranted * Participate in collaborative discussions with team members to monitor progress against enhancement queue and bug resolution. * Stay proactive in identifying potential risks/issues due to the overall application design and make recommendations. Database Administration Consultant Evaluates new database technologies and tools, sets database system and programming standards, applies database technology to business problems and manages the development and production database environments with emphasis on security, availability and performance. Provides database services in compliance with all audit and regulatory requirements. The ideal candidate must be experienced in the management of Oracle E-Business 11.5.10.2 including installation, upgrade, patching, cloning, backup and recovery, monitoring, tuning, security, and definition of procedures for custom development. The ideal candidate must be experienced in the implementation and management of Oracle E-Business 11.5.10.2 as configured for the Oracle Massive Availability Architecture. Senior Database Engineer Responsible for requirements analysis, software development and installation, integration, evaluation, enhancement, maintenance, testing, and problem diagnosis and resolution. Qualifications: Bachelors degree with ten (10) years experience as a Database Engineer in developing relational database software and experience with one or more relational database products. Preferred Additional Skills: Possess organizational and management skills, along with the ability to respond to crises objectively. Understanding of the current database management system releases. Conclusion The document that we have put together is a group assignment that was done by four individuals. Some of the problems that we faced as a group are that, we couldnt meet due to our clashing schedules; others are busy with other obligations. We would like to say that we tried to produce the best group work that we could, hopefully learnt from this experience to better ourselves for our future endeavors.

The Debate Over Abortion Essay example -- Informative Essay

With the ongoing debate and the advancement of technology in determining the viability of a fetus, abortion, the ending of a pregnancy by removing a fertilized egg, has become increasingly controversial. The morality of abortion has caused many to separate into opposite sides of the spectrum, pro-life and pro-choice. The arguments over abortion has stirred a continuous debate between a pro-choice stance such as that presented by the analogical reasoning of Thomson or Glover’s examination of social context and a pro-life position argued by a moral view of personhood by Noonan. The ethical arguments presented by the conflicting views in the abortion debate has caused others to taken into consideration a sociological account visible in Luker’s examinations of world views in order to discover underlying motivations. The debate has caused many to argue either in support of or against abortion. In the article â€Å"A Defense of Abortion,† Judith Jarvis Thomson uses analogical reasoning (such as the case of the sick violinist) to support and convince a right to abortion. Thomson presents the argument that all people are entitled a right to life and that a person’s right to life outweighs any person’s right to decide what happens to their body (1, Thomson, CC p.188).Thomson proposes a hypothetical situation in which the reader is kidnapped and their circulatory system is linked with that of a sick violinist in order to prevent his kidneys from failing. If the person agrees to offer his or her kidneys, they would have to remain plugged for nine months or even more. However if the person refuses, the violinist would die. By using the sick violinist example, Thomson seeks to undermine the argument that an abortion cannot be performed because ... ... pro-choice activists leads to a re-evaluation of the moral arguments such as those given by Thomson, Noonan, and Glover. Luker’s explanations enlarge our capacity of reasoning by appealing to social beliefs and values that help us to understand the social behavior and the motivations behind pro-choice and pro-life activists. Luker’s account ultimately expands the level of ethical reasoning to generate moral insights concerning the ethics of abortion because it helps us to look beyond the surface of the arguments about abortion and search into the roots and causes of the debate. Once these motivations are exposed, one can assess the complex relationship between differing social values and the arguments of conflicting views on abortion. Works Cited â€Å"A Defense of Abortion,† Judith Jarvis Thomson â€Å"Abortion & the Politics of Motherhood,† Kristen Luker

Portrayal of Women in James Joyces Ulysses Essay -- Joyce Ulysses Ess

Portrayal of Women in James Joyce's Ulysses The novel, "Ulysses", by James Joyce shows the reader hour by hour a single day in the life of one man.   But this epic which specifically deals with Leopold Bloom and has reference to Stephen Dedalus, holds so much more appendage to other areas of life.   One, is the portrayal of women in Ulysses. A common speculation is that men seem to have a more dominating status over women.   However, in Ulysses  that theory dwindles due to the women who   play significant roles in the story.   Although the women in the novel all use various tactics to entice the men to succumb and cower to them, it all ends up that the men do heed to the qualifying factors.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The first woman of purpose that we become aware of is Stephen Dedalus's mother.   Even though she is dead, her presence is accounted for in Stephen's night and day dreams.   His refusal to pray at her bedside while she was dying triggered an immense amount of guilt that he cannot shake.   His undeniable brooding over her was shown when he remembered the song by W.B. Yeats, " and no more†¦the brazen cars."   In the annotated text it claims that, "The song, accompanied by a harp, is sung to comfort the countess, who has sold her soul to the powers of the darkness that her people might have food."   That song is important because he is trying to lift the blame from his heart by reaching out for forgiveness.  Ã‚   The book then tells of a "bowl with bitter waters."   That bowl implies what is told in "Portrait of a Young Man", which is that his mother was an adulteress, and that recollection was bothering him. He even goes a s far to say aloud, "No mother, let me be and let me live."   It seems that he wants to escape her clutches, yet is clinging... ... get away with acting disdainful and speaking to Bloom with a harsh tongue, but he does not leave her.  Ã‚   In fact, he does cower, and takes her, illicit affairs and all.     Ã‚  Ã‚   The men in "Ulysses" are viewed as the warriors, or bread-winners, yet they are only characterized as that due to the women in the novel.   Many of the women are able to be looked upon as the "hierarchy" in a sense because of the way the people around them reacted.   It is said that whenever there is an action, there is a reaction.   As clichà © as that may be, the women were the ones that created the "action" and the men rebutted with the "reaction".   Despite the social conventions that most of us are familiar with pertaining to men and women, "Ulysses", can surely counteract with notable arguments. Works Cited Joyce, James. Ulysses. Ed. Hans Walter Gabler. New York: Random House, 1986.

Plutarchs Aims and Achievements as a Biographer Essay -- English Lite

A critical study of a significant aspect or aspects of Plutarch's aims and achievements as a biographer -To what extent does Plutarch achieve his aims for the lives of Marius and Caesar? We are able to establish Plutarch's aims in creating his biographies by looking at his background and influences. Plutarch was born in Greece to a wealthy established family. He was well educated, studying rhetoric in Athens, and then travelled to Rome where he established connections with some important political figures. Despite being an outsider (a Greek), Plutarch accepted Roman aristocratic tradition as well as the moralising of some key Roman figures. This is reflected in the 'Lives' which in effect provide moral guidelines, prescribing how one should live a virtuous life. He viewed himself as an artist or moraliser rather than a historian, believing, "It is not so much history that we are writing but lives."[1] Plutarch was deeply into the platonic approach to ethics, and therefore was also influenced by Socrates. Plato was a pupil of Socrates who claimed that the most important thing in life was to know how one should live; an emphasis on moral conduct was therefore passed down to Plutarch. He is fascinated not only by great deeds and battles but, "often a little matter, like a saying or a joke,"[2] which can be more revealing in terms of character and virtue. Plato's philosophy was about the search for absolute standards of truth and moral certainty and almost all of his works are about ethics, or moral philosophy. His aim was therefore to create a, "revelation of virtue or vice,"[3] intending to "shape the life of each man"[4] in terms of moral not financial or political stature, and hopes the reader gains... ...against him but achieved less (although still a few) of his aims in the 'Life of Caesar'. --------------------------------------------------------------------- [1] Plutarch, Fall of the Roman Republic, Alexander, 1.1-3, Penguin [2] Plutarch, Alexander, 1.1-3, [3] Plutarch, Alexander, 1.1-3, [4] Plutarch, Alexander, 1.1-3, [5] Russell, p105 [6] Russell, Plutarch quote, p80 [7] Plutarch, Alexander, 1.1-3 [8] Plutarch, Marius [3] [9] Plutarch, Marius [7] [10] Plutarch, Marius [9] [11] Plutarch, Marius [2,5] [12] Plutarch, Marius [10] [13] Plutarch, Marius [45] [14] Plutarch, Marius [46] [15] Plutarch, Marius [7] [16] Plutarch, Marius notes by Robin Seager [17] Plutarch, Alexander, 1.1-3 [18] Plutarch, Marius [6] [19] Plutarch, Marius [46] [20] Plutarch, Caesar [1] [21] Cicero [22] Plutarch, Caesar [69]

Beta Case Study

25721 Investment Management BMC Case Study Student Name: Junwei Wang Student ID: 11516655 Class Time: 6 p. m. – 9 p. m. Tuesday Lecturer: Wing Bui Table of content Q 1. 1 Q 2. 1 Q 3. 2 Q 4. 2 Q 5. 3 Beta Management Company I. Case Background Beta Management Company was founded in 1988 by Ms. Wolfe. Beta Management Company is a small investment management company based in a Boston suburb. Beta Management Company was successful in 1989 and 1990. This success had brought in enough new money to double the size of the company. However, Ms.Wolfe had lost some potential new clients who had thought it unusual that Beta Management used only an index mutual fund and picked none of its own stocks. Sarah Wolfe was considering Beta’s new goal and directions for coming year. II. A. Ms. Wolfe decided to follow â€Å" index† to adjust equity market exposure. This is a good strategy due to that at the beginning of the foundation of the company, the size of her account was small a nd there were no much money for her to take a risk. The strategy she followed was the lowest risky way. Ms.Wolfe kept a majority of Beta’s funds in no-load, low-expense index funds, adjusting the level of market exposure between 50% and 99% of Beta’s funds in an attempt to â€Å"time the market†. B. Ms. Wolfe now has decided to increase her equity exposure to 80% with the purchase of one of the California R. E. I. T. and Brown Group, Inc. While Ms. Wolfe wanted to extend her business, she found that some potential clients thought it unusual that Beta Management used only an index mutual fund and picked none of its own stocks, Ms. Wolfe was engaging her new strategy. Unlike before, Beta increase the equity exposure from 50% to 80%.Beta used to have 1% to 50% debt and 50% to 99% equity. Now, the portfolio will become as 20% debt and 80% equity. And also based on the performance of the two stocks, they are both unsteady stocks which mean that the risk of the Betaâ €™s portfolio will be increased. However, we can also found that the return will be much higher. C. Ms. Wolfe is a contrarian investor. Base on the performance of the two stocks, these two stocks were unsteady and the losses rate is much higher than the return rate. III. a. California R. E. I. T. was a real estate investment trust.Their stock had been badly damaged by the â€Å"World series† earthquake of 1989. Base on the Figure 1, it is easily found that the performance of the stock is volatile. Although the trend is similar with the index trend, California R. E. I. T. was still in a bad position. b. Brown Group Inc. was one of the largest manufacturers and retailers of branded footwear, and had been undergoing a major restructuring program since 1989. The stock performed steady and positive. However, there was a significant drop in late 1989 and late 1990. IV. a. The average return of California R. E. I. T. is -2. 7% and the average return of Brown Group Inc. is -0. 67 %. The standard deviation of California R. E. I. T. is 0. 092307 and the standard deviation of Brown Group Inc. is 0. 081668. The standard deviation of S&P index is 0. 46036. Compare with SP500, California R. E. I. T. is more risker. b. In portfolio SPC, the standard deviation is0. 046526 and in SPB the standard deviation is 0. 046419. And the incremental risk of SPC and SPB over a portfolio with 99% in the SP500 and 1% in a risk-free asset are 0. 409504 and 0. 409611. From the data we can see that the California R. E. I. T. affect the portfolio more.The SP500 index is the safest stock and the California R. E. I. T. is still the risker stock. c. The regression of California R. E. I. T. ’s monthly return on index return was attached as Appendix 1. The coefficient is 0. 011856. The regression of Brown Group Inc. ’s monthly return on index return was attached as Appendix 2. The coefficient is 0. 013509. We can still find that the California R. E. I. T. is risker stock tha t affect the portfolio more. d. The return of SPC equals to 99%*E(Rindex)+1%*E(Rc) and the return of SPB equals to 99%*E(Rindex) + 1%*E(Rb) and the return of risk-free portfolio is 99%* E(Rindex) + 1%*E(Rf).The excess return for SPC is 1%*E(Rf) -1%*E(Rc) and the excess return for SPB is 1%*E(Rf) -1%*E(Rb). From the expression, we can find that the excess return for each unit is the difference between the expected return of risk-free asset and the expected return of the stock. V. Summary * If the size of account is small, the safer way to maintain and adjust equity market exposure is â€Å"index†. * Create portfolio smarter; do not invest all money in single area. * The excess return of the stock is difference between the return rates. * When investing, index will be a good indication to predict the stock’s future trend.

Transaction Costs Economics

Introduction The conditions of doing businesses change dramatically for the past century and especially for the past 30 years. With the continuous improvement of the infrastructure marked by transportation, communications and technologies, as well as changing role played by the government and the financial markets, firms found new ways and equipped with new abilities to control their operations and interact with suppliers, customers, competitors and other stakeholders. Given the above infrastructure changes, vertical integration became a logical option for firms as the demand of product and market size increased tremendously which allowed the high-volume production since the early 90s. With the continuous advancement of the production and telecommunications technologies, it comes to a stage whereby market became a viable substitution of organisation as the exchange coordinator. Hence, one of the most important strategic decisions of firms is to define their boundaries and under what circumstances should they consider using market instead of internal organisation to coordinate exchange. This essay is to try to describe the key characteristics of Transactions Costs Economics (hereafter TEC) and with real life examples given as how it affects the decision of using market vs. organisation. Also, by quoting the example of Sony (battery), Apple (iPod) and firm that I am working with, we can see how firms define their vertical boundaries and what is the role played by coordination in a vertical chain. TEC One of the principle contributors to the study of TEC is Oliver E. Williamson. While Williamson drew on the earlier work done by Ronald Coase regarding the concept of transactions costs, he further advanced it and had developed the Transaction Costs Analysis (TCA) theory in the 1970s and the 1980s. In the neo-classical approach of economics study, firm is treated as a â€Å"black box†, and internal workings of which were not considered to be important. TEC, however, argued differently. It tried to explain why firms exist and why they existed in a particular form of structure and the extent to which it will integrate vertically, given the existence of transaction costs. Transaction costs can be aroused from: ? researching potential suppliers ?collecting information on prices ?negotiating contracts ?monitoring the supplier’s input ?legal costs incurred should the supplier breach contractual negotiations Another key characteristic of TEC is its underlying assumptions, namely bounded rationality and opportunism. Bounded rationality refers to the fact that people are bounded by the limits of their own knowledge and memories. People may also be bounded in their rationality when they are overloaded with information which is beyond their processing abilities. Opportunism refers to the possibilities that people might try to maximize their own benefit by lying about their true intentions or chances that people might exploit another party by taking advantage of unforeseen situations. It is worthwhile to mention that while TEC had tried to modify the assumptions under neo-classical decision theory by adding the deceitful human behaviour element in TCA, the core assumption of profit maximisation is still maintained. One of the key methods to maximize profit is to minimize costs. By assuming that management and the owners of the firms are rational, they must compare the cost of internal co-ordination, which includes the cost of internal production and the cost of governance, to the cost of using the markets, which includes external production cost and transactions costs. In essence, management is considering the â€Å"Make or Buy† decision when they do the cost comparison exercise. With the assumptions highlighted above, TEC then attempts to explain why a firm will integrate vertically by specifying three attributes that are used to characterize any transactions s, i. e. Frequency, Uncertainty and Asset Specificity. TEC argues that these attributes will determine whether transaction costs will be lowest in an organization or in a market. For frequency, it refers to the situation whereby firm will seldom integrate vertically if the services rendered or goods produced are rarely used. For uncertainty, it may be rooted from bounded rationality described above and from a situation whereby different parties involved had asymmetric information of the exchange. High uncertainty would generally lead to vertical integration, given the savings in transaction costs outweigh the costs incurred for vertical integration. For asset specificity, arguably it could be the most distinctive element in the TEC theory. As investment in relationship-specific asset that cannot be redeployed to another transaction without incurring extra cost or sacrifice in the productivity of the asset, it would lock the parties into the relationship to some degree. The level of specificity will increase if an asset has little value in alternative use. With the existence of this attribute, transaction costs may increase so much that it may push potential firm away from using market. In turn, firm will internalize the exchange by vertically integrating the firm that provided/offered the specific assets. With the notion of the investment in relationship-specific asset, it transforms the relationship between trading partners whereby parties which made investment in relationship-specific assets, the relationship changes from a â€Å"large numbers† bargaining situation to a â€Å"small numbers† bargaining situation. This situation is described by Oliver Williamson as the fundamental transformation. It gives raise to two important theoretical concepts, i. e. Quasi-Rents and the problem of Holdup. Both of these concepts affect the costs of arm’s-length market exchange and in turn affect the â€Å"Make or Buy† decision. Once a firm invests in a relationship-specific asset, it generates positive quasi-rent. The other party in the exchange may know this extra profit and will push for getting a share of it by holding up its trading partner. It can be done by renegotiating the terms of the exchange, or event breaching the contracts when they are incomplete. In view of the possible Holdup issue, the incentive for firms to invest in relationship-specific assets in the first place might be greatly reduced. Without the adequate supply of these assets, it might force the firm to make them by itself. Make Vs. Buy Cases Having the theoretical basis of the TEC theory described above, we can now see how the theory can be applied to the real life examples. The first example that I quote is the defect notebook batteries produced by Sony which resulted in recall in year 2006 and in 2008. In the personal computer (PC) manufacturing industry, most of the players, such as Lenovo, Hewlett-Packard, Toshiba and Dell, have been using the market and they buy most of the component parts required to make their desktops and notebooks instead of making them by themselves. One of the standard components of notebook is its battery. All of these PC firms buy their batteries from the market and one of the major battery suppliers is Sony. These PC firms made this â€Å"Buy† decision as they found Sony has attached economics of scale in producing notebook batteries which their in-house unit could not attain. Also notebook batteries are not relationship-specific assets and are not too difficult to coordinate in the production flows as it is a stand alone add-on that only required when the assembly of the notebook components is completed. So Timing and Sequence Fit are not a major coordination issue. In addition, leakage of private information is a non-issue as the raw materials of making battery cells are almost homogenous and relatively â€Å"low-tech† in the manufacturing process. Hence, these giant PC firms entered into contracts with Sony for the supply of their notebooks batteries. In year 2006, dozen of consumers worldwide reported Sony batteries were overheating and a few minor burns. The overheating batteries were shipped with Lenovo, HP, Toshiba and Dell notebooks. It resulted in a 9. 6 million notebook recall in year 2006. In this case, all PC firms were following the standard make vs. buy decision process and tried to reduce their production costs by using the market. However, all of them had underestimated the transaction costs related to the use of the market mechanism. With asymmetric information where Sony has more information that HP, Dell and other PC firms, it may subsequently use it opportunistically. The PC firms can reduce the problem by improving the quality control and contract terms of buying these batteries. However, it comes at a cost, transaction costs. While the compensations claims from these PC firms to Sony were not publicly disclosed, it certainly damaged the reputation of these PC firms and Sony. It also increased the costs of the contracts between them. While public expected this recall would not happen again, in year 2008, about 35,000 Sony notebook batteries were recalled in US after several reports of fire. Apparently, all parties involved had not taken into the transaction costs factor seriously enough given the 2006 recall. Vertical Integration I would like to illustrate the vertical integration strategy by referring to production of iPod by Apple Inc. While Apple Inc. claimed itself as a firm that designs and manufactures consumer electronics and computer software products, essentially it uses the market specialists as the coordination. It contracted out of all of its manufacturing functions and only kept the core design of its products in-house. Even its software was not entirely developed in-house. Steve Jobs, CEO of Apple Inc. , ordered a team of hardware designers within the firm to design the hardware of iPod in year 2000. When Apple first launched iPod in the market on October, 2001, it used the software developed by a company called PortalPlayer. Apple also contracted another company, Pixo, to help on the user interface design and implementation. It is Apple Inc. hich continuously refined the look and feel of the software as the development progress. Regarding manufacturing, it was out-sourced to Taiwan companies with factories located in Mainland China. Component parts that made up of iPod are supplied by different suppliers, such as Samsung for microcontroller and storage medium and Cirrus Logic for audio chip. Interestingly, while Apple Inc. decided not to have forward integration for the manufacturing of iPod, it actively pursed the downstream integration by establishing its own distribution and retailing channel. It set up an online media store of iTunes Music Store on April 2003 and operates more than 250 retail stores in more than 9 countries. With the PC iTunes software that can access the iTunes Store and the special property right protection technology (Data Retention Management) that only allows iPod to play the contents (which include music, videos and games) purchased from the Store, the iPod, iTunes and on-line iTunes Store are well-coordinated in the downstream of the vertical chain. It also increased greatly the sales and profitability of Apple Inc.. Another case that I can refer to is my firm that I am currently working with. It is big law firm. When we decide whether we would outsource our supporting functions, such as data management and IT support, we always consider the chance of leakage of our private (client’s) information, which is critical to our profession. It will have negative legal and reputational consequence if our clients’ information is leaked to outsiders. As complete contracting is either infeasible or too costly, most of data management applications are developed in-house instead of buying from the market. Conclusion TEC is important as it represents one of the first and most influential attempts to develop an economic theory that look into the firm structure in a more serious manner. It is most often used to analyze vertical integration of firms. With the development of technologies and communications, transaction costs to use Market are reduced. However, the example of Sony batteries recall case shows that firms might underestimate these costs. While more firms are downsizing their structure and contracted out their functions, they strategically integrate to the functions which can enhance their overall profitability. The setting up of iTunes Stores and selling of proprietary contents by Apple Inc. for iPod is a good example. With possible leakage of private information and the failure to have complete contract, professional services firm is more likely to use the internal resources for its data and IT management.