Choosing the Most Effective Learning Environment

There are several alternatives available when it comes to the type of education that a child can receive. Parents today have more choices than ever. The primary factor that parents have to weigh is the overall setting that they want their child to be educated in. It is also important for parents to examine the individual needs and make up of the child and the financial state they are in when deciding which learning environment is the right fit. There are five essential options when it comes to education a child. Those include public schools, private schools, charter schools, homeschooling, virtual/online schools. Each of these options provides a unique setting and learning environment. There are pros and cons of each these choices. However it is important that parents understand that no matter which option they provide for their child, they are the most important people when it comes to the quality of education their child receives. Success is not defined by the type of schooling you received as a young person. Each of the five options has developed a lot of people who were successful. The key factors in determining the quality of education a child receives is the value that their parents place on education and the time they spend working with them at home. You can put almost any child in any learning environment and if they have those two things, they are typically going to be successful. Likewise, children who do not have parents that value education or work with them at home have odds that are stacked against them. This is not to say that a child cannot overcome these odds. Intrinsic motivation plays a major factor too and a child that is motivated to learn will learn no matter how much their parents do or do not value education. The overall learning environment does play a role in the quality of education a child receives. It is important to note that the best learning environment for one child may not be the best learning environment for another. It is also important to remember that the importance of the learning environment decreases as parental involvement in education increases. Each potential learning environment can be effective. It is important to look at all the options and make the best decision for you and your child. Public Schools More parents choose public schools as their child’s option to education than all of the other options. There are two primary reasons for this. First public schooling is free and many people cannot afford to pay for their child’s education. The other reason is that it is convenient. Every community has a public school that is easily accessible and within reasonable driving distance. So what makes a public school effective? The truth is that it isn’t effective for everyone. More students will end up dropping out of public schools than they will any of the other options. This doesn’t mean that they don’t offer an effective learning environment. Most public schools provide students who want it with terrific learning opportunities and provide them with a quality education. The sad reality is that public schools receive more students than any other option who don’t value education and who do not want to be there. This can take away from the overall effectiveness of public education because those students typically become distractions who interfere with learning. The overall effectiveness of the learning environment in public schools is also affected by the individual state funding allotted to education. Class size is particularly affected by state funding. As class size increases, the overall effectiveness does decrease. Good teachers can overcome this challenge and there are many excellent teachers in public education. The educational standards and assessments developed by each individual state also impact a public school’s effectiveness. As it stands right now, public education amongst the states are not created equally. However the development and implementation of the Common Core State Standards will remedy this situation. Public schools provide students who want it with a quality education. The main problem with public education is that the ratio of students who want to learn and those who are only there because they are required are much closer than those in the other options. The United States is the only education system in the world that accepts every student. This will always be a limiting factor for public schools. Private Schools The biggest limiting factor concerning private schools is that they are expensive. Some provide scholarship opportunities, but the truth is that most Americans simply cannot afford to send their child to a private school. Private schools typically have a religious affiliation. This makes them ideal for parents who want their children to receive a balanced education between traditional academics and core religious values. Private schools also have the ability to control their enrollment. This not only limits class size which maximizes effectiveness, it also minimizes students who will be distractions because they don’t want to be there. Most parents who can afford to send their children to private schools value education which translates to their children valuing education. Private schools are not governed by the state laws or standards that public schools are. They can create their own standards and accountability standards which are usually tied to their overall goals and agenda. This can strengthen or weaken a school’s overall effectiveness depending on how rigorous those standards are. Charter Schools Charter schools are public schools that receive public funding, but are not governed by many of the state laws concerning education that other public schools are. Charter schools typically focus on specific subject area such as mathematics or science and provide rigorous content that exceed state expectations in those areas. Even though they are public schools they are not accessible to everyone. Most charter schools have limited enrollment which students must apply for and be accepted to attend. Many charter schools have a waiting list of students who want to attend. Charter schools are not for everyone. Students who have struggled academically in other settings will likely fall even further behind in a charter school as the content can be difficult and rigorous. Students who value education and want to earn scholarships and further their education would benefit from charter schools and the challenge that they present. Homeschooling Homeschooling is an option for those children who have a parent that does not work outside the home. This option allows a parent to be in total control of their child’s education. Parents can incorporate religious values into their child’s daily education and are usually better attuned to their child’s individual educational needs. The sad truth about homeschooling is that there are many parents who try to home school their child that are simply not qualified. In this case, it deeply impacts a child negatively and they fall behind their peers. This is not a good situation to put a child in as they will have to work extremely hard to ever catch up. While the intentions are likely good, the parent should realistically have an understanding of what their child needs to learn and how to teach them. For those parents who are qualified, homeschooling can be a positive experience. It can create an endearing bond between the child and the parent. Socialization can be a negative, but parents who want to can find plenty of opportunities through activities such as sports, church, dance, martial arts, etc. for their child to socialize with other children their age. Virtual/Online Schools The newest and hottest educational trend is virtual/online schools. This type of schooling allows students to receive public education and instruction from the comfort of home through the Internet. The availability of virtual/online schools has exploded over the past few years. This can be a terrific option for children who struggle in a traditional learning environment, need more one on one instruction, or have other issues such as pregnancy, medical issues, etc. Two major limiting factors can include the lack of socialization and then need for self motivation. Much like homeschooling, students need some socialization with peers and parents can easily provide these opportunities for children. Students also have to be motivated to stay on schedule with virtual/online schooling. This can be difficult if a parent is not there to keep you on task and to ensure that you complete your lessons on time.

The Passing of the Emancipation Proclamation as the Result...

The Passing of the Emancipation Proclamation as the Result of Lincoln’s Desire to Undermine the Southern Economy Abraham Lincoln’s Emancipation Proclamation completed the most significant u-turn in American history. Months before, in the Crittendon Resolution, Lincoln had explicitly stated that Union forces would not target Southern plantations, and that the South would be welcomed back into the Union with or without the slave system. At this point, Lincoln regarded slavery as a potentially divisive issue and, as noted by the historians Johansson and Hofstatder, aimed to avoid anything that would associate him as being either for or against its abolition. However, by 1863, Northern forces had†¦show more content†¦The highly industrialised Northern economy was perfectly adapted to the extra demand, and was able to facilitate the production of all the equipment needed. Conversely, the Southern economy was sluggish in its attempts to update its primitive economy, and because of this remained reliant on the slave trade. Thus, in depriving the South of a big proportion of its work force, Lincoln was able to significantly reduce their production capabilities. More directly, the North benefited by being able to acquire the slaves for themselves. This had the advantage of increasing the number gap twice: the Northern soldiers occupying Southern plantations would be free to fight again, and the released blacks themselves could become Northern fighters. Thus, the Emancipation Proclamation was seen not only as a way of weakening the South, but of strengthening the North. In such a way, Lincoln was able to widen the disparity between North and South. From a popular perspective, slavery was seen as a symbol of Southern independence. Being otherwise incapacitated by the ongoing Civil War, the Confederate states’ only outlet was the desire to inflict some form of victory over the domineering North. The obliteration of the slave trade would end any hope of this moral-boosting ambition. With the 1864

Management Accounting Operational Budgets

Question: 1. Discuss the importance of management accounting for your selected organisation and differentiate between management accounting and financial accounting. 2. Evaluate different classifications of costs (types, behaviour, function and relevance) with examples. 3. Explain the meaning of variance analysis and discuss the most commonly derived variances, outlining the problems and limitations. 4. Identify different operational budgets and explain the advantages of preparing different operational budgets. Answer: Introduction Management Accounting is all about giving the right information to the right person at the right time thereby helping the managers in an organisation to make informed business decisions. This better equips the decision makers in their day to day management and control of the functions. The purpose of this report is to throw light on how Management Accounting can help M/s ABC Inc., operating in the manufacturing sector, to improve its operating efficiency by controlling costs and improving profitability. Section I discusses the concept of Management Accounting, its importance and also distinguishes it with Financial Accounting. Section II evaluates the various types of costs, their behaviour, functions relevance. Section III explains the meaning of variance analysis, its relevance limitations. Section IV identifies different operational budgets and the advantages of preparing them. Section I: Management Accounting Importance Relevance Management Accounting can be described as a system of partnering in management decision making by relying on the financial accounting data and presenting it in a manner and format relevant to the requirement of the decision maker. Depending on the need, management accounting reports are generated on a periodic basis viz. weekly/ fortnightly/ monthly etc. For eg. a weekly fund status report can help the treasury function to devise the cash generation plan for the following week. A fortnightly inventory ageing report to the stores manager can help in the procurement planning for the next fortnight. Following are the advantages: Better use of financial data Data shared in a mutually acceptable format gets more acceptance within the organisation Facilitates informed decisions Improves the confidence level of the decision makers There will be more group consensus for every decision taken Management Accounting vs Financial Accounting Difference between both the methods is illustrated in a tabular form below Sl. No. Particulars Management Accounting Financial Accounting 1. User People inside the organization eg. Managers, Employees People outside the organization such as shareholders, Government etc. 2. Purpose Helps in decision making Discloses the end result of the business 3. Is it Optional? Yes No 4. Format No prescribed format There are specific formats for presenting data 5. Periodicity As per need End of every accounting period 6. Reports Detailed reports customised according to need As prescribed by standards such as GAAP or IFRS 7. Rules No legal requirement or rule As prescribed by standards such as GAAP or IFRS 8. Priority focus Current issues and future forecast Past data upto the reporting date 9. Departmental focus Focuses on each department or individual Pertains to the entire organization 10. Flexibility Reporting is flexible according to changing need Reporting requirement is rigid Section II: Costs Types of costs Costs are classified into various categories based on Behaviour Function Relevance Each of these are elaborated below Classification by Behaviour Fixed Cost - Fixed cost is that cost that does not vary with level of production output. This is independent of any business activity or volume of production. Example, Rent, Depreciation Variable Cost - Variable cost is that cost that varies with the level of production output. Example Direct Material, Direct Labor Mixed Cost - Costs which have both fixed and variable components. For example Electricity charges wherein the minimum demand remains fixed based on the connected load and any power drawn beyond a certain limit will vary in proportion to the level of output. All the three above costs can be graphically represented as follows Classification by Function Product cost Product Costs are all those costs incurred towards manufacturing a particular product. Product cost is further classified into the following: Direct Materials All the costs incurred to bring the raw materials into the manufacturing location Direct Labour The cost of labour time spent in manufacturing Manufacturing Overheads All the costs incurred for production of the final product excluding the direct material labour. Period Cost Period cost are all the costs other that the Product cost. Example marketing costs, administrative costs etc. It is the cost of running the business. As these are not necessarily part of manufacturing cost, these cannot be assigned to the products. The above costs can be diagramatically explained as follows Classification by Relevance Sunk Cost Sunk cost is also called as historic cost. This is the cost which has already been incurred and cannot be recovered. This cost is not relevant for decision making. Example fund invested on a project. In practical scenario, an organisation cannot go and restart production of a product which is not profitable only for the sake of justifying the sunk cost incurred in purchasing the equipment which has now become obsolete. Opportunity Cost Opportunity Cost is the cost of the foregone alternative. This helps in really evaluating the various investment opportunities and thereby helps in effective decision making. Though the cost is not incurred in this case, by not selecting an option, the benefit that the company has forgone becomes the opportunity cost. Example, a company has certain spare space in the factory where it can either put up a new manufacturing facility or it can rent it out to outsiders. If it decides to put up a manufacturing facility, then it has to forgo the rent that it would have earned had the space been rented. The foregone rent is the opportunity cost Differential Cost Differential cost refers to the difference between the two available alternatives courses of action. It is the total of all the incremental costs that would be incurred if one alternative is chosen against the other. Differential cost helps in choosing better alternative over the others. In the above example, if a particular fixed cost, say depreciation has to be incurred irrespective of the option selected, then it is not a differential cost. However, consequent to setting up the new manufacturing facility, if the company has to incur Selling Administrative cost or Marketing costs, then such costs are classified as Differential costs. Section III: Variance Analysis Meaning Variance Analysis is the systematic quantitative assessment of the deviations arising in actual performance from the planned performance. This is a very effective controlling tool in any business. Variance Analysis gives clear insights with respect to the deviation of actual performance from plan with specific reasons which led to the deviation. This helps in identifying the root causes, and taking corrective action thereby preventing it from repeating. Types of Variances The main types of variances are explained in the diagram below These broad variances and the further subdivisions are explained below. Sales Variance Sales variance measures change in profit due to a variance in sales. The Sales Volume can be on account of Sales Volume variance Sales Price variance. Sales Volume variance = (Actual Unit Sold Budgeted Units Sold) x Standard Profit Favourable Sales Volume indicates a higher actual profit than the budgeted profit due to more than expected demand for the product in the market Sales Price variance = (Actual price Standard price) x Actual Units sold. A favourable Sales price variance indicates the product has been able to fetch a better price in the market against competition. Material Variance This is the difference between the actual material cost versus the standard material cost. This can be a result of a Material Price variance or a Material Usage variance. Material Price Variance = (Actual Price Standard Price) x Actual Quantity A favourable material price variance indicates a better negotiation done on the material price. It may also indicate an overall fall in material prices due to the effect of market forces. Material Usage Variance = (Actual quantity Standard Quantity) x Standard price. This can be further divided into Material Mix variance Material Yield variance. Material mix variance occurs when there are different type of materials required in the entire production process. In such circumstances, if the costlier material is used less in comparison to the cheaper material due to a change in mix, then it can result in a favourable material mix variance. A positive Material yield variance can be due to lesser usage of material vis a vis the standard design. This may be due to better and efficient usage of machines or due to economies of large scale operation. Labour Variance This is the difference between the Actual Labour cost versus the Standard Labour cost. This can be a result of a Labour Rate variance or a Labour Efficiency variance. Labour Rate Variance = (Actual Rate Standard Rate) x Actual Hours A favourable Labour rate variance indicates an overall fall in the labour rates in the market Labour Efficiency Variance = (Actual hours Standard hours) x Standard Rate A favourable labour efficiency variance indicates an overall improvement in efficiency of the labour employed. This may be due to better supervision and better working environment. Overhead variance This is the measure of variance between the standard overhead expenses versus the actual overhead expense. This may be a result of a wrong estimation of standard overhead or due to real efforts put in by the management team and incurred lesser overheads through operational efficiency and cost saving initiatives. Problems Limitations Though variance analysis is a good tool to identify inefficiencies in the system, the method has certain inherent limitations which are as follows Not practical in non-standard production process/batches Not applicable in industries where there are more overheads than production expenses. Eg. Service sector Analysis can be misleading if standards are not set properly If analysis is not done on a regular basis and learning not applied immediately, the system will not serve its purpose Employees/managers will be more tempted to incorporate budget slack thereby making the whole process ineffective. Possibility of buying substandard quality material resulting in excess consumption/wastage. Section IV: Operational Budget Operational budget is projection of the financial plan of a business for a specified period of time. Operational budget requires planning of all the phases of operations. Types of Operational Budget The most common types of operational budgets are explained below Revenue (Sales) Budget This is a budget of the future sales. It identifies the revenues require by the organisation for the budget period. This involves a detailed market study and potential for penetration and expansion in order to maximise the sales for the period. Production Budget Any manufacturing organisation needs to estimate the volume and timing of production. There needs to be fine balance between excess stock and stock outs as both these extremes will adversely affect the performance. Purchase Budget There needs to be a clear plan with regard to the timing and frequency of purchase of raw materials. Here again a proper balance is required to be maintained in order to avoid extreme situations such as stock out and excessive inventory. Direct Labour Budget The strategy of employing the right quality of labour should be in line with the labour hours required to fulfil the production budget keeping in mind the labour rates and availability. Expense Budget This budget defines the operating expenses required to be incurred during the budget period. The expenses are evaluated broadly based on three criteria namely Fixed, Variable Discretionary Profit Budget Here both the revenue expense budgets are combined to arrive at gross and net profits. In this process the adequacy of revenue vis a vis the expense in evaluated. This helps in allocating managers with their share of organisations performance. Importance of Operational Budget Helps in identifying controllable and discretionary expenses by regular tracking and monitoring A regular review of the actual versus budget helps in projecting future expenses with reasonable level of accuracy. Helps organisations to face the uncertainties and also recover from the unexpected setbacks Operational budgets which get constantly monitored ensure accountability from the managers due to their ongoing involvement. Section V: Recommendation The key success factors for ABC Ltd. are Improving operating efficiency, Controlling costs and Improving Profitability. Management accounting through its process of timely reporting, periodic variance analysis and budgeting perfectly complements towards achieving all three of these factors and beyond. The data is also mostly derived and can be cross checked with the Financial Accounting data. It is hence recommended that a robust Management Accounting system be implemented in ABC Ltd. Section VI: Conclusion ABC Inc., which is in the manufacturing sector has various complexities in the process. Product Quality, On time delivery, Operational efficiency, Timely cash collection, Working capital management, adequacy of raw material, Lean inventory level and focus on Profits are of top most priority. Multiple parameters to monitor and control calls for a team to handle each of the activities which is well informed and is capable of taking objective decision on a day to day basis. A well-defined Operational budget and a regular and ongoing Management Accounting system coupled with Cost focus and regular Variance Analysis can help ABC Inc. in its constant endeavour to improve operating efficiency by controlling cost and improving profitability. References businessdictionary.com, n.d. Management Accounting, [Online], Available at: https://www.businessdictionary.com/definition/management-accounting.html, [Accessed date: March 18, 2016] debitoor.com, n.d. 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