...Recommendation 1. First, building strong relationships with government officials during peacetime will help establish a shared understanding of the need to work together effectively in a crisis. Second, crisis exercises can be used to practise a multi-actor response, agree the structures and processes required to coordinate activity, and develop stakeholder engagement skills. Whilst not necessarily overriding the political imperatives that can make a crisis response dysfunctional, these actions can help mitigate their impact. These events, however, were criticised – for their content rather than their form – by a number of stakeholders. Some critiqued the performance of the spokespeople. Others found fault in the absence of ‘new news’ being offered. These criticisms do not undermine the argument in favour of communicating early, quickly and regularly with stakeholders. But they do pose questions about precisely how an organisation should engage with them when the operational reality is unchanging or when the information available is limited. The use of third parties to manage expectations about the operational challenges being faced is one option. Another is to paint a picture of what is happening and what your organisation is doing so that key stakeholders can fully grasp the scale of the crisis and understand the endeavours of those on the frontline. This will not compensate for the lack of new information but can demonstrate that the organisation is trying to resolve the...
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...One of foundation of financial planning analysis and decision making is the financial information. It’s needed to forecast the financial statements to relate and also assessitsbusiness’sgrossingcapability. Financial decision making investment and financing decision making is also required. The financial information of an enterprise is contained in the financial statements. Its usage of financial statement analysis in investment decision has been addressed by a series of authors. According to Gautam, U. S. (2005) The Financial Statement commonlydescribedby means of financial information which is related to the information to financial position of severalfirm in a case form. According to J.AOhison (1999) was defined as a written report that...
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... MANAGING FINANCIAL RESOURSES AND DECISIONS MAKING UNIT NUMBER: UNIT 2 QFC LEVEL: LEVEL 5 ASSESSMENT TASK 1 Eight (8) sources of finance available to a business and for each source; assess its implications (financial, legal, dilution of control and bankruptcy). Sources of finances can be divided into two namely, internal and external finance. Internal finance refers to the funds or financial resources that are within easy reach of business owner i.e. owner has control over resources. BBC (2013) Examples of Internal finance include personal finance and retained earnings/profit. Personal/Owner’s Finance comprises of financial resources such as personal savings, current or fixed assets used by the owner to raise funds for a business project. Most of the resources are either in cash or inconvertible to cash, with the exception of fixed assets such as equipment that can be difficult to convert for usage immediately. Houston Chronicle (2013) The advantage of using personal finance is that the business owner does not need to worry about paying interest rates or meeting deadlines for repayment. Also, as stated above the owner benefits from having autonomy to make decisions on how to run the business i.e. having full control of the business and its resources with no interest rate needed. Using personal finance can jeopardise the financial standing of...
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...Report To - Michel Chang From - Consultant of the Michel Chang Date - 15th May, 2013 Subject -Financial analysis of the investment proposals by investment appraisal tools and giving suggestions and recommendations. I am going report the suggestion of acceptable investment with NPV method to you as a consultant of Michel Chang. For Beer Chang, 0 (15000) × 1 = (15000) PVIFA (r=10%) n 1-10 3000 × 6.145 = 18435 10 1500 × 0.386 = 579 NPV = 4014 For EduCare, 0 (10,000) × 1 = (10000) 1 (500) × 0.909 = (454.5) 2 1500 ×0.826 = 1239 3 2500 × 0.751 = 1877.5 4 3500 × 0.683 = 2390.5 5 4500 × 0.621 = 2794.5 6 5500 × 0.564 = 3102 7 6000 × 0.513 = 3078 8 5400 × 0.467 = 2521.8 9 4400 × 0.424 = 1865.6 10 2000 × 0.386 = 772 9186.4 Due to NPV method, the final results show that both investments show positive answer and are possible. Comment and Suggestion I can tell Both Beer Chang Project and EduCare are acceptable based on these calculations with NPV method. But we cannot do both of them at the same time. We have to choose the most possible project. According to this calculation, EduCare can make more profit more than Beer Chang can get. This is the fact, why we have to choose EduCare Service. 1. Investment Appraisal Methods There are four types of Investment Appraisal methods. They are- 1. NPV (Net Present...
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...Arguelles, Amanda Marie Co, Darlene Angelini R. Assignment 2 I. Given: U W e W Where α is a parameter (1a) To prove that more is preferred than less, we need to show that this individual’s preferences are nonsatiated. This can be shown by satisfying the condition, would show that for every one unit increase in wealth, satisfaction will increase as well. For this utility function, we will get: U (W ) 0 . This W U (e W ) 0 (e W )( ) 0 e W 0 W Because W > 0, we can then conclude that more is preferred to less consumption given the utility function. (1b) To prove that the consumer is risk averse we must show that this utility function has diminishing marginal utility wherein the condition that the marginal utility from an extra increase of utility decreases as your payoff increases. Hence, this would represent risk-aversion since the bigger the amount of money that is at stake, the higher satisfaction from winning is offset by an even higher dissatisfaction from losing. For this utility function we get: U 2 (e W ) 0 must be satisfied. This means 2W U 2 (e W ) U 2 (e W ) ( e W )( ) 2e W 0 0 2 2 W W Since the second order derivative of the function gives a negative value, we could say that the consumer is risk averse. (2a) There are two measures of risk aversion that was developed by Pratt and Arrow. The first measurement would be the absolute risk aversion coefficient/index. This measurement...
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...1 McKinsey Global Survey Results McKinsey Global Survey Results: How companies make good decisions How companies make good decisions Companies get a lot of advice about how to make good decisions. Which decision-making disciplines really make a difference? Do strong decision-making processes lead to good decisions? This McKinsey survey highlights several process steps that are strongly associated with good financial and operational outcomes. In the survey, we asked executives from around the world about a specific capital or human-resources decision their companies made in the course of normal business. We learned who was involved, what drove the decisions, how deep the analysis was, how unfettered the discussions, and how and where politics were involved. Respondents also described the financial and operational outcomes of the decisions.1 The results highlight the hard business benefits—such as increased profits and rapid implementation—of several decision-making disciplines. These disciplines include ensuring that people with the right skills and experience are included in decision making, making decisions based on transparent criteria and a robust fact base, and ensuring that the person who will be responsible for implementing a decision is involved in making that decision. Finally, although corporate politics sometimes seems to undermine strong decision making, some types of consensus-building and alliances apparently can help create good outcomes. 1 The survey...
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...THE USE OF ACCOUNTING INFORMATION AND DECISION-MAKING IN ORGANISATION (A CASE STUDY OF MUXOL PAINT DEPORT, BENIN CITY) BY DAVID UYIGUE UNAD/ACC5/2007/371 A PROJECT SUBMITTED TO THE DEPARTMENT OF ACCOUNTING, FACULTY OF MANAGEMENT SCIENCE, UNIVERSITY OF ADO-EKITI, NIGERIA. IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF BACHELOR OF SCIENCE (B.sc) DEGREE (HONS.) IN ACCOUNTING FEBRUARY, 2014 CERTIFICATION This is to certify that this project work was written by DAVID UYIGUE of Department of Accounting, Faculty of Management Sciences, University of Ado – Ekiti State, under my supervision. ------------------------------ ------------------------------ DR KEMI OGUNDANA DATE (Project Supervisor) ----------------------------- ------------------------------ DR. OGUNDELE J.F. DATE (Degree Coordinator) DEDICATION This project work is dedicated to God Almighty, through His only begotten son, Jesus Christ for His Faithfulness and mercy. This project is also dedicated to the family of Mrs. Veronica Uyigue for their financial support. ACKNOWLEDGEMENTS First and foremost, I will like to acknowledge and appreciate Almighty God who saw me through my course of study and granted me the grace to complete this project work. through His only begotten son, Jesus Christ and His Faithfulness and mercy. My profound gratitude goes to my able project supervisor Dr...
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...Rational decision making is tied with a structured or sensible thought process. The theory of rational choice starts with having a set of alternatives by the decision maker in his mind. Most analysts only study a limited set of alternatives that contain the important difference among the alternatives. Such behavior of analysts need attention. Sanglier, M. et al (1994) showed that when different investors received the same information they had their own interpretation of this information. These various interpretations lead to different perception of the signals and therefore created differentiated behaviors. Different behaviors affect decision making of investors and financial markets as every investor would make decision in the way as he received...
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...includes the importance of accounting for an effective managerial decision making. It is true that accounting information provides important financial data of company’s costs and revenues; additionally, it also defines options for managers to take decisions on the best option for their companies to minimize cost while increasing profits. The decision making may involve whether to accept special order, make or buy, sell or process further, retain or replace equipment to name a few (Kimmel, Weygandt & Kieso, 2011). This paper discusses the option of incremental and comprehensive analysis and how it can be beneficial to decision making for managers. Furthermore, it elaborates on whether “Incremental analysis is considered to be more economical than a comprehensive analysis, while being just as effective or not” (Learning Assignment, week 6). Incremental Analysis The management usually faces two different types of decisions: a short-term, regarding the normal operation of the company, and long-term capital investments. The short-term decisions can be carried out and then make them retroactive actions to carry out the strategic company goals. In the long-term decision-making, many resources are involved and may include rigid and difficult processes. The short-term decisions may affect different areas that make up an organization, such as sales, finance, production, human resources, etc. There is a wide range of decisions which can be compromised the company's short term and that...
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...MANAGEMENT’S DECISION MAKING – VINAMILK CASE STUDY TRUONG THUY CHUNG BACHELOR OF BUSINESS (ACCOUNTING) HONS HELP UNIVERSITY COLLEGE October 2011 i THE IMPACT OF ACCOUNTING INFORMATION ON MANAGEMENT’S DECISION MAKING – VINAMILK CASE STUDY By TRUONG THUY CHUNG Graduation Project Submitted to the Department of Business Studies, HELP University College, in Partial Fulfilment of the Requirements for the Degree of Bachelor of Business (accounting) Hons OCTOBER 2011 ii DECLARATION I hereby declare that the graduation project is based on my original work except for quotations and citations which have been duly acknowledged. I also declare that it has not been previously or concurrently submitted for any other course/degree at HELP University College or other institutions. The word count is 10,036 words. _____________________ TRUONG THUY CHUNG Date: 17 October 2011 iii ACKNOWLEDGEMENT First and foremost, my sincere gratitude is dedicated to my supervisor – Ms Nguyen Van Anh. Thanks for your strong support, guidance, intuitive comments and also motivation through the process of completing this thesis. In addition, I would like to send my gratitude to the International School and HELP for giving me an opportunity to conduct my study in my favorite area. Thanks to all my family and friends for your supports, helps and motivation and made it possible for me to complete this study iv THE IMPACT OF ACCOUNTING INFORMATION ON MANAGEMENT’S DECISION MAKING...
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...Accounting Information for Managers To Make Better Decisions 1 Abstract This paper analysis how the accounting information would support the decision making process. The main goal of an accounting system is to provide financial information about the organization including financial situation and the performance of the organization. The decision makers should know the situation of the organization either by comparing competitors or previous periods’ performance in order to achieve the objectives of the company and this being possible by using accounting information. In addition, this thesis studies the importance of having effective and efficient accounting system to make better decision as it relates to increase the profitability target of an organization. Organizations should replace their weak accounting system in order to ensure that each team member in the Accounts Department is conscious of their role to produce good accounting information (1, Okoli Margaret). The result of this paper describes that providing right information to the right people in time via management reporting to maximize the use of reports in decision-making. 2 Introduction Any organization should survive and excel in the fast paced and ever changing market. We are living in the digital era so information can be found everywhere via websites, databases documents, reports, and emails. However, it’s important to read the historical data-set during decision making process but providing report in quick & timely...
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...are financial instruments with values that change relative to underlying variables, such as assets, events, or even prices. The ethical risk that derivatives pose is that they can be very risky for inexperienced investors. The basic of derivatives is that they offer a large reward but this can be a major risk if they are unaware of the investment that they are making at the time. Another ethical risk is that of the mangers and traders not taking into consideration the risk of their stakeholders and investors who has entrusted their investments. The last ethical risk I see is that they are being deceptive and not letting the investors know by not communicating with them and this is very unethical and a big risk because the investor is unaware. 2. Explain the difference between making a bad business decision associated with derivatives and engaging in unethical conduct using derivatives. When you make a bad business decision associated with derivatives you are basically not thinking logically and doing good business. You have the mindset but are not thinking and you are making a bad decision by engaging in derivatives in which you know that it will be bad for the company. Then in contrast when you engage in unethical conduct using derivatives you are aware of what you are doing and you engage in these acts because you are being unethical and trying to find the best way out by using derivatives. The main difference is that you when you make a bad business decision it is...
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...field of accounting that provides economic and financial information for managers and other internal users (Weygandt, Kimmel & Kieso, 2012). Managerial accounting is an important internal business function. Many companies use managerial accounting to record and report their internal financial information. There are differences between financial accounting and managerial accounting. Financial accounting focuses on preparing financial reports and releasing information to the public while managerial accounting focuses on preparing financial information for internal review and decision making. Managerial accounting offers several important tools for measuring the company operational performance. Common types of managerial accounting include job costing, process costing, activity-based costing and also budgeting. 2.0 Benefits of Managerial Accounting Practices Towards Business Organization Create Competitive Advantage Management accounting can help businesses create a competitive advantage. Many business owners focus on creating consumer goods with lowest-priced and highest-quality product in the market. The ability to review financial information through managerial accounting is important in creating a financial competitive advantage. In 2010, Maxis Berhad wins excellence award in management accounting from the national award for management accounting (NAfMA). One of the winning criteria is the company ability to create the financial competitive advantage over the competitor...
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...Decisions in Paradise, Part II Veronica Evaristo MGT/350 December 5, 2011 Ken Rath Decisions in Paradise, Part II The community of Kava is presented with various environmental challenges that affect the progress of the economy. As an organization in this location, running a business also poses a complex trial to be profitable and successful. ANZ Guam, Inc. (ANZ), a new banking institution in Kava, realizes these challenges to be grow its business and simultaneously provide to the community. Considering most people from Kava would not appeal to the products of a bank, ANZ hopes to provide adequate financial education to the community. With a general banking knowledge in the people’s hands, they will understand how banking products can benefit their financial needs. Collaborative Decision-Making In Kava, there are many natural disasters that occur compromising the country’s key elements that help stimulate the economy. Disaster threats like tsunamis, typhoons, floods, and earthquakes destroy the processing and plantations of coffee, cocoa, spices, banana, and sugar. How do the people and business owners recover from these catastrophes? The community can receive financial gain by learning the bank’s benefits of saving money and borrowing money to assist through these hard times. The plan for this organization is to market deposit accounts for the people and businesses in Kava and provide the education of saving and managing money. In addition, the bank hopes...
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...AND ACCOUNTING DECISION MAKING AND THE ROLE OF MANAGEMENT ACCOUNTING FUNCTION – A REVIEW OF EMPIRICAL LITERATURE Fitsum Kidane (Phd. Research scholar), Lecturer in Accounting and Finance College of Business and Economics Mekelle University Mekelle, Ethiopia Abstract This study examines decision making and the role of management accounting function in a business organization. Using the review of literature, I identify management accountants perform a wide variety of tasks. Only a part of management accounting activity is directed at performance improvement. Some of the activities they perform are related to the statutory reporting requirements of the organization. Some of these are related to the operational requirements of the finance function itself such as processing transactions receiving money and paying bills. Literature foresees new management accounting techniques and changes in organizational and business environments having a huge impact on management accountants’ roles, yet empirical evidence on fundamental shifts in these roles remains relatively scarce. Journal of Radix International Educational and Research Consortium www.rierc.org RIJBFA KEYWORDS Volume 1, Issue 4(April 2012) ISSN: 2277 – 100X Decision making, management accountant, management accounting INTRODUCTION Accounting can be defined as "the process of identifying, measuring and communicating economic information to permit informed judgments and decisions by users of the information"...
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