...certificates, vendor credits, and outstanding checks, such as payroll and dividend checks. Since unclaimed property claims do not constitute a tax, Statement of Financial Accounting Standards No. 5, "Accounting for Contingencies" (FAS 5)5 may affect an enterprise's financial reporting obligations. In FAS 5, the term "contingency" is defined as "an existing condition, situation, or set of circumstances involving uncertainty as to possible gain (hereinafter a 'gain contingency') or loss (hereinafter a 'loss contingency') to an enterprise that will ultimately be resolved when one or more future events occur or fail to occur. According to FAS 5, a contingent loss should be charged to income if information is available before issuance of the financial statements indicating by fiscal year-end that a loss probably has been incurred and that the amount of such loss can be reasonably estimated. If there is a reasonable possibility that the loss will be incurred, FAS 5 generally requires the disclosure in the footnotes of the financial statements to include a discussion of the nature of the loss and either the possible range of the loss (if it can be estimated) or a statement that such loss cannot be estimated. FAS 5 provides: "Disclosure is not required of a loss contingency involving an un-asserted claim or assessment when there has been no manifestation by a potential claimant of an awareness of a possible claim or assessment unless it is...
Words: 372 - Pages: 2
...Havard model HRM is generally considered to be either Hard or Soft where hard HRM is quantitative, calculative and treats people as a factor of production (an object). Soft HRM on the other hand draws from the Human Resource school of thought which treats people as strategic resources who can provide an organisation with strategic flexibility through being committed, innovative and working in a team so as to achieve a competitive advantage. The Harvard Model is considered to be more soft in nature because it views individuals as potential assets or human assets rather than variable costs. [pic] The Harvard map of HRM A large part of this section in Human Resource Management, 4th edition is devoted to the Harvard 'map' of HRM. This is probably the most seminal model of HRM and has had a major influence on academic debate on the subject. 'We noted that the Harvard Business School generated one of the most influential models of HRM. The Harvard interpretation sees employees as resources. However, they are viewed as being fundamentally different from other resources - they cannot be managed in the same way. The stress is on people as human resources. The Harvard approach recognizes an element of mutuality in all businesses, a concept with parallels in Japanese people management, as we observed earlier. Employees are significant stakeholders in an organization. They have their own needs and concerns along with other groups such as shareholders and customers.' The Harvard...
Words: 2900 - Pages: 12
...What is the core argument of contingency theories of organizations? Discuss giving examples from at least one such theory. Evaluate the claims of this theory and assess its relevance for organizations today. Organizations operate in many different environments and it is vital to assess how they influence their structures. Effective and efficient organizing has become increasingly important in the modern world characterized by rapid changes. Contingency approaches emphasize that in order for organizations to succeed they must adopt a structure suitable for the environment in which they operate. There are many forms of contingency theory. In general, contingency theories are a class of behavioral theory that claim that there is no best way to organize a corporation and the organizational structure of the company. An organizational or leadership style that is effective in some situations may not be successful in others. Therefore, the best way of organizing the company, is contingent upon the internal and external situation of the company. External environments influence organizations in a varied number of ways. Critical external factors include, but are not limited to, the size of the organization, labor markets, availability and cost of capital, competitors, governmental laws and policies, managerial assumptions about employees, strategies, technologies used, etc. The main ideas of contingency theory are: * There is no universal or one best way to manage * The design of organizations...
Words: 1853 - Pages: 8
...Assignment 2.1 Profitel Inc. Which perspective of leadership best explains the problems experienced in this case? Chapter 12, Leadership In Organizational Settings, discussed five perspectives of leadership – (1) competency, (2) behavioral, (3) contingency, (4) transformation, and (5) implicit. The competency perspective of leadership best explains the problems experienced by Profitel. Profitel had many years of extreme profitability and minimal competition. As competitors entered into the telephone market, Profitel’s board of directors recognized that the competition in the cellular and voice over IP business posed a threat. The board responded by hiring an outsider to become the new CEO. The board decided to hire Lars Peeters, an executive who served as the CEO for a publically traded European and CEO for a cellular telephone company in the United States. Lars appeared to be a perfect fit; he had extensive industry knowledge and global experience, a high-octane energy level, self-confidence, decisiveness and a persuasive style. Of the various leadership competencies listed in the text (personality, self-confidence, drive, integrity, leadership motivation, knowledge of the business, cognitive and practical intelligence and emotional intelligence), Lars appeared to have most of them. However, McShane1 (pg. 352-355)points out that competency perspective have limitations and practical implication. The competency perspective assumes that all effective leaders have the same...
Words: 638 - Pages: 3
...Management released a study in 2007 which stated that women are under-represented in executive positions and board seats. This study looked at 400 of the largest publicly-held corporations in the state of California which resulted in a 10:1 ratio between men and women in these positions and seats. That means that for every woman represented there are nine men in leadership roles. Half of these companies have no female executive officers, more than 30% of the companies have no women in a top executive position, and 47% have no women in the boardroom. Only 13 of the 400 companies have a CEO that is female (Gunelius, 2007). A program introduced into the healthcare field address the cultural and linguistic barriers by understanding the potential costs and benefits. Their strategy to leverage leadership diversity has three steps. Step one is to respond to the shift in the consumers demographic by providing empirical evidence of the linkage between diversity and performance. The second step is diversity ensures competitiveness which links investments in diversity to financial outcomes and organizational metrics of success. The third step is to provide imperative to the business case by making organization leadership responsible for cultural competence as a performance measure (Dotson & Nuru-Jeter, 2012). In 2006, Rush University Medical Center formed a committee to review the work within the institution. Rush benefitted from the senior leaders establishing clear goals, organizing its research...
Words: 1614 - Pages: 7
...skills such as CPR and first aid, collects, and distributes half the nation's blood supply, and helps victims of more than 67,000 disasters. The skills the Red Cross uses helps to make learning about the community's needs, which make them more productive. - A general sense of goodwill, friendliness, and positivity is fostered within the community. Red Cross is careful not to anything that will cost the community money or burden it in any other way. They really get to more about the community with the help they provide, which makes working with the community's more understanding. Red Cross bases their community values on their Influencing behavior in the community through these: “The values that the Movement has formally stated to be of importance for promotion are : the protection of life, health and human dignity • respect for the human being • non-discrimination on the basis of nationality, race, gender, religious beliefs, disability, class or political opinions • mutual understanding, friendship, cooperation and lasting peace among people • service by volunteers” Fiedler contingency model proposes more that the group cannot perform with the match between a leader style and the situation. Situational Leadership, is a style where you chose based upon the readiness of the group or individuals with whom you are trying to influence. The Red Cross is more of a group effort than a single person, or persons.”Blake and MC Canse Leadership Grid, is based upon guidance and direction...
Words: 540 - Pages: 3
...Table of Contents A. Organization Description. ……………………………………………….. A.1. Description of the Organization and its objectives. ……………….3 A.2. Three leadership practices of the primary leader ……..6 A.3. Effect of the current leadership on the organizational culture. ……..8 B. SWOT Analysis. ………………………………………………………………10 B.1. Strengths of the Organization. …………………………………………10 B.2. Weaknesses of the Organization. ………………………………………11 B.3. Opportunities of the Organization. …………………………………….12 B.4. Threats of the Organization …………………………………………….12 C. Leadership Evaluation. ……………………………………………………….12 C.1. Evaluate three strengths of the chosen leader. …………………………12 C.2. Evaluate three weaknesses of the chosen leader. ………………………17 C.3. Recommend three theory-based practices to maximize the success of the chosen leader. …………………………………………………………………………18 References.…………………………………………………………………………. A.1. DESCRIPTION OF THE ORGANIZATION AND ITS OBJECTIVES Postal, Tax and Travel Services, (henceforth addressed as TPS) is a one-man owned small business organization with two employees and located in Town A in State B. TPS was established in 1995 but incorporated in 2001. According to the owner/manager, Owner/ Manager/Chief Executive/Financial Officer, Chief Victor, TPS’s annual revenue is estimated at $140,000. TPS is a sales and services provider in the following categories providing Postal, Tax, Travel, and Money Transfer services. The main objective of TPS is to provide the best services...
Words: 4673 - Pages: 19
...CHAPTER 9 PROJECT FINANCE AND CONTRACT PRICING In the previous chapters, techniques for project planning, scheduling, resources management, and time-cost trade off have been introduced. This chapter will deal with project cash flow to predict the actual flow of money during the contract duration. Also, this chapter will introduce the means for finalizing a contract price. A project's cash flow is basically the difference between the project's income and its expense. The difference between a company's total income and its total expense over a period of time is the company cash flow. 9.1 Contract Cash Flow At the project level, a project’s cash flow is the difference between the project’s expense and income. At the construction company level, the difference between company’s total expense and its total income over a period of time is the company’s cash flow. Cash flow = Cash in – Cash out = Income - Expense Forecasting cash flow is necessary for a construction company for the following reasons: To ensure that sufficient cash is available to meet the demands. It shows the contractor the maximum amount of cash required and when it will be required. Thus, the contractor can made arrangements to secure the required cash. It provides a reliable indicator to lending institutions that loans made can be repaid according to an agreed program. It ensures that cash resources are fully utilized to the benefit of the owner and investors in the company. Construction Management 182 ...
Words: 10775 - Pages: 44
...day = $560 $560 * 2 Days = $1120 $1120 + Contract Labor $7,500 = $8620 Overhead $71,190 * 15% = $10,678.50 $8,620 * 3% = $258.60 $71,190 * 5% = 3,559.50 +8.620 * 5% = 3,990.50 Total Overhead = 14,927.60 2-2 (a) Expected price .24 + 4(.30) + .62 /6 = 0.34 (b) Expected Usage 37 + 4(40) + 49/6 = 41 tons (c) Expected total cost (simple method) = 41 tons @ .34 per pound and 1 ton is equal to 2000 lbs 41 tons * 2000 = 82,000 82,000 * .34 = $27,880 (d) Expected cost: $0.34/lb * 82,000 lbs = $27,880 Most optimistic cost: $0.24/lb * 74,000 lbs = $17,760 Most pessimistic cost: $0.62/lb * 98,000 lbs = $60,760 The final estimated cost for the material is: (($17,760 + (4 * $27,880) + $60,760))/6 = $31,673.33 2-3 (a) 1.50 ($80 + $3 + $6) + 1.20($7 + $5.5 + $6.5)+ 1.05($15 + $12 +$3.70+$1.50+$18) =$209.01 209 / 1000 = $0.21 (b) $0.21 @ 150% markup (2.5 * $0.21) = $0.525 (2 * $0.525) = $1.05 (c. ) I feel to believe that the project can be approved if an attempt to minimize risk was applied to the situation. (d) My recommendation to reduce or eliminate any contingency from a budget would start with identifying the risk. Then formulate a plan that tackles the risk. Insure all terms as it relates to financial matters and the possibly of the unforeseen surfacing is...
Words: 295 - Pages: 2
...percentage amount by which estimates exceed actual costs. 2. The primary output of the planning cost management process is a change request. 3. IT project managers must be able to present and discuss project information both in financial and technical terms. 4. Project managers must conduct cash flow analysis to determine net present value. 5. Intangible costs can be easily measured in monetary terms. 6. When deciding what projects to invest in or continue, one should include sunk costs. 7. It is important for project managers to focus on indirect costs because they can be easily controlled. 8. If an important supplier goes out of business, management reserves can be set aside to cover the resulting costs. 9. Contingency reserves are also known as unknown unknowns. 10. A cost management plan can include organizational procedures links, control thresholds, and process descriptions. 11. A budgetary estimate is the most accurate of the three types of estimates. 12. Budgetary estimates are made even before a project is officially started. 13. Definitive estimates are made one year or less prior to project completion. 14. Estimates should become more accurate as time progresses. 15. Supporting details for an estimate include the ground rules and assumptions used in creating the estimate. 16. Analogous estimates are called activity-based costing. 17. Analogous estimates are the most accurate technique to estimate costs. 18. In a bottom-up estimate, the size of the individual...
Words: 879 - Pages: 4
...Palliser Furniture Contents Executive Summary 3 Problem Statement 4 Situation Analysis 4 Alternatives 5 Recommendation 9 Action Plan 9 Contingency Plan 10 References 11 Appendix A-B 12 Executive Summary Palliser Furniture (Palliser) is a key player in the highly competitive North American residential furniture market. They are under constant pressure to stay competitive and profitable in an ever changing market place. The volume of furniture solid is highly correlated to new homes sales and the industry has been slow to bounce back from the recession of 2008. Import penetration from countries with emerging economies is putting pricing pressures on domestic furniture manufacturers. To leverage its key success factor of low shipping costs and short delivery times Palliser has focused on strategic locations for their factories by identifying the different target markets for its comprehensive product lines and have made expansion decisions appropriately. Our recommendation is that they continue with their current location strategy as it meets their operation goals and allows them to access the highest number of market segments and is the best strategy to grow the business. In assessing new locations for strategies we recommend the company determine which of their product lines or revenue streams have the highest consumer demand and...
Words: 3393 - Pages: 14
...analysis answers in business terms—business costs, business benefits, and business risks. The word case in the term signals that BCA results are often used with proposals, or arguments, to “make the case” for taking action or for choosing one decision option over another. The shorter term, business case, can be defined as a recommendation for action based on BCA results. Some business people use the terms cost benefit analyis, financial justification, total cost of ownership, or return on investment analysis to emphasize the special purpose of the study, though what is usually meant by these terms fits the business case analysis (BCA) definition above. While all are essentially "business cases," decision makers and analysts should remember that none of these terms is supported by universally agreed standards. Individual organizations and companies sometimes establish their own standards for content, structure, and the case building process, but cases built elsewhere, under other local standards, can be quite different. Business case results support decision making and planning, but they also provide valuable guidance for managing and controlling projects, programs, or the life cycle of assets. Good case analysis, for instance, shows which critical success factors and contingencies are most important in controlling business results, measures risks and uncertainties, and provides early warning indicators when the risks of schedule slip, cost overruns, or delayed benefits threaten...
Words: 410 - Pages: 2
...values? Explain by performing suitable calculations. The variables that are vulnerable to economic and market factors such as competition, inflation, and recession are selling price per unit and variable cost per unit. To some extent fixed costs can be sensitive as well. Price per unit has been adjusted over the years to allow for downward trends due to competitive pressure. However, cost sensitivity needs to be analyzed. Variable cost per unit can be increased by 10% up to 30% and the impact on cash flows and Net Present Value and IRR can be analyzed. 4. How should the interest expenses be treated? Explain. The interest expense should not be deducted when calculating the annual cash flows. Interest is a financing expense and is included in the discount rate (cost of capital) used to calculate the NPV. If we deduct interest expenses we will be double counting. 5. Using the base case estimates calculate the cash, accounting, and financial breakeven of the Lazy Mower project. Interpret each one. Price per unit = $1000 (upto 102,000 units) Variable cost per unit = $400 Annual Fixed Operating Cost = $1,620,000 (includes opportunity cost of rent) Depreciation = 2,000,000 (assuming straight line depreciation over 10 years) Accounting Break-Even = (Fixed Cost +...
Words: 1041 - Pages: 5
...Arthur H00112430 Construction Project Management 2011 to2012 D39CC Andrew Jackson Coursework title Design Cost Planning and Control Coursework hand-in deadline (date specified for hand- in) June 22 2012 All students are advised to keep a duplicate copy of all work submitted for reference. DECLARATION I certify that this assignment is my original work expressed in my own words. Any reference made to the work of other authors in any form (eg ideas, figures, text, tables) are acknowledged at their point of use. Signature/s of student ……………………………… Date of submission: ……………………… Below this line for office use only ………………………………………………………………………………………………………………………………………… School of the Built Environment Heriot-Watt University Edinburgh EH14 4AS Scotland UK Tel: 0131 449 5111 Fax: 0131 451 3161 Date Stamp Assignment: A high –level report, advising the client on the viability of the proposed project, a three storey Health Center, 4500 m2 Gross Floor Area (GFA). 1 Table of Contents Introduction………………………………………………………………………………………………………………3 BCIS Analysis Data………………………………………………………………………………………………………4 Sustainability………………………………………………………………………………………………………………..6 Building Research Establishment Assessment Method………………………………………………8 Appendices…………………………………………………………………………………………………………………9 References……………………………………………………………………………………………………………………15 Introduction Construction Cost Estimating is considered one of the most essential tasks in the budget development of any project. In most...
Words: 3580 - Pages: 15
...Budgeting OVERVIEW Brief description This toolkit provides guidelines on how to go about developing and monitoring a budget. It will help you with an overall organisational budget as well as with a budget for a specific project. It includes tools for estimating costs as well as tips for ensuring that your budgets meet the needs of your project or organisation. In the examples section we give actual examples of budgets and how they can be monitored. Why have a toolkit on budgeting? Budgeting is the key to financial management. The toolkit will help you plan, develop and use budgets effectively in your organisation. If you have a sound understanding of the principles of budgeting, you will be well on the way to sound financial management. If you use this toolkit in conjunction with other toolkits, as indicated, you will increase the capacity of your organisation to manage its finances effectively. You will also increase its ability to survive through foresight and planning. Who should use this toolkit? This toolkit is aimed specifically at people who have had little or no experience with budgeting. Perhaps you have not been involved in running an organisation, project or department before. Or perhaps you have not been involved in the financial management side of the work before. Now you are faced with the task of developing a budget, or budgets, and you are not quite sure where to start. If you are in a situation like this, then this toolkit will be useful for you. When will...
Words: 7666 - Pages: 31
