...Incremental Analysis Andria Collins, Haley Estelle, Fadeshola Odunbaku & Monica Telles ACC/561 February 15, 2016 Jason Lee Introduction Incremental analysis is a decision-making method that utilizes the concept of relevant costs. Under this method, the decision involves the following steps: (1) gather all costs associated with each alternative; (2) drop the sunk cost; (3) drop those costs that do not differ between alternatives; and (4) select the best alternative based on the remaining cost data ("All Business: Your Small Business Advantage", 2005). Incremental analysis is primarily used to decode costs associated with a particular project—buying or selling, making or buying etc., whereas comprehensive analysis is gathering information for the entire company. Comprehensive analysis refers to the complete analysis of every relevant aspect of a company's financial operations. The goal of such analysis is to provide a complete picture of the financial status of a company both in the current time and projected into the future. (“Wise Geek”, 2003). Incremental Analysis The main purpose of an incremental analysis is to properly identify the relevant costs and revenues concerning multiple options imminent to assist managers with making a decision. When a manager has identified and divided these options into variable and fixed costs, they will then be able to solve any problems that may have occurred and finally make a decision. RICHA (2014), “Incremental analysis...
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...Incremental Analysis ACC561 Incremental Analysis When a company has several business segments, one or two may be unprofitable. At this point, senior management should make a decision as to what course of action to take in order to deal with the unprofitable segment. Management must review the quantitative information in order to distinguish between those costs that will no longer exist if this particular business unit is eliminated. They also have to evaluate those costs that will continue and need to be covered by the remaining business units. Avoidable costs are the cost that will ago away when the segment no longer exists. On the other hand, Unavoidable costs are those costs that will remain even when the segment is no longer running. In order to prepare the quantitative analysis for mangers decision as to weather to close a business segment, the fixed expenses must be separated into avoidable and unavoidable costs. On the other hand, when a company or an organization sells more than one product and is limited in capacity, it should optimize its production in order to produce the maximum net income. Also, in order to maximize profit, a calculation of the contribution margin is required and the amount of the limited capacity each product uses has to be determined. The data that needs to determine production requirements are contribution margin along with machine hours required to produce the standard products (Incremental Analysis and Capital Budgeting, 2013)...
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...Incremental analysis, also known as marginal or differential analysis, is one of the methods used by managers in decision making. It involves choosing between alternatives based on revenue differences, cost differences and cost saving differences. While undertaking incremental analysis, the three different costs to be considered are sunk costs, relevant costs and opportunity costs. Sunk costs are those which are not relevant for decision making. They are incurred indifferent to the alternative course of action. Relevant costs are those which need to be considered for decision making. They vary between the alternatives. Opportunity costs is the cost of choosing one alternative over the other. There are three different types of incremental analysis – present worth analysis, cash flow analysis and rate of return analysis. Cash flow analysis: · First step is to identify the incremental after tax cash flows for all alternatives. · When determining the above, only relevant costs are to be taken · Consider the cost of opportunity of not choosing the other alternative · Overhead costs which are fixed should not be allocated · Changes in net working capital (Current Assets – Current Liabilities) should be included · Depreciation is a non cash expense. However, the tax effect of the same should be considered if tax rates are applicable · Second step is to discount the cash flows using an appropriate discounting rate...
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...likely to cause the sales volume to drop to 76,000 units. Since both units and selling price will change, you must consider both changes as part of the incremental revenue. The incremental approach determines the difference between old and new revenue: Original revenue: 80,000 x $7 $560,000 Adjusted revenue: 76,000 x $8 608,000 Incremental revenue $48,000 Assume that the variable cost per unit is $4 for AT, Inc. and fixed costs are $100,000. The relevant variable cost is the difference between the total variable costs in both alternatives. There will be a cost savings for variable costs because fewer units will be sold. Because fixed costs remain the same at all levels of activity, there is no change to fixed costs. The relevant variable cost is $4 per unit. The number of units will decrease given that 4,000 fewer units (80,000 - 76,000) will be sold. Instead of additional costs, there will be a cost savings: Variable cost savings: (80,000 - 76,000) x $4 $16,000 Therefore Original revenue: 80,000 x $7 $560,000 Adjusted revenue: 76,000 x $8 608,000 Incremental revenue +$48,000 Variable cost savings: (80,000 - 76,000) x $4 + 16,000 Incremental increase in profit +$64,000 The net effect of the changes is an increase in profit of $64,000. As we can see here, the incremental analysis did not determine the total profit under either alternative. Only the relevant amounts were...
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...Incremental Analysis 1. (Segmented Analysis) Consider the following data regarding two product lines: Clip Art Sales | 75000 | Computer Game Sales | 125000 | Variable COGS: Clip | 20000 | Variable COGS: Computer | 40000 | Other Variable: Clip | 5000 | Other Variable: Computer | 15000 | Traceable Fixed Expenses: Clip | 30000 | Traceable Fixed: Computer | 40000 | Common Fixed Expenses | 10,000 | a) Create a Segmented Income Statement by product line. b) Which product line produces the most net operating income? 2. (Residual Income, Turnover, ROI, margin) A company’s operating statistics are below: Item | Value | Sales | $1,000,000 | Net Operating Income | $220,000 | Average Operating Assets | $500,000 | Minimum Required Rate of Return | 20% | a) What is the division’s margin? Margin = Net Operating Income/Sales [note: net operating income is EBIT] b) What is the turnover? Turnover = Sales/Average Operating Assets c) What is the division’s ROI? (Net Operating Income/Sales) X (Sales/Average Operating Assets) d) What is the division’s residual income? Net Operating Income – (Average Operating Assets X Minimum required Rate of Return) 3. (Incremental Product Analysis) Tjelmeland Corporation is considering dropping product S85U. Data from the company's accounting system appear below: All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation...
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...NT1110T Wednesday May 9, 2012 Lab 7: Security Basics Task 1 Hardware and Software Firewalls Barracuda Networks has a wide variety of Software and Hardware firewalls. They produce Spam and Virus firewalls protection, Web Filtering, and Barracuda Central. Barracudas Spam and Virus protection uses different methods of keeping your network secure such as 12 Defense Layers, Barracuda Reputation and Intent Analysis ,Predictive Sender Profiling, Barracuda Real-Time Protection, Triple Layer Antivirus Protection, Image Spam Protection, PDF Spam Protection, Mail Transport and Policy, and Clustering. Barracuda’s Web filtering methods include Spyware Protection, Application Blocking, Content Filtering, and Content Categories. All of these methods are then filtered into Barracuda Central where the main hub of Barracuda’s security program works its filtering throughout the web. Barracuda Central Collects Data From All Over The World Barracuda Central collects emails, URLs and other data from all over the world. Barracuda Central has thousands of collection points located in over 100 countries. In addition, Barracuda Central collects data contributions from more than 100,000 Barracuda products in use by customers. Barracuda Central analyzes the data collected and develops defenses, rules and signatures to defend Barracuda's customers. You can purchase a Barracuda web router and use their personalized software for your computer system which is fed into the Barracuda hardware throughout...
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...can often contain links to malicious web sites or have attachments containing malicious software. Source- http://www.makeitsecure.org/en/malicious-email-attachments.html Drive-by-downloads- A drive-by download refers to the unintentional download of a virus or malicious software (malware) onto your computer or mobile device. A drive-by download will usually take advantage of (or “exploit”) a browser, app, or operating system that is out of date and has a security flaw. Source- https://blogs.mcafee.com/consumer/drive-by-download Task 3 1. In contrast, a differential backup copies those files that have changed since the full backup. However, it does not reset the archive bit, meaning it will copy them again the next day. An incremental backup copies changed files and resets the archive bit so that it does not copy the file unless it changes again. Source-...
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...Practice Activity 10 A backup plan may be built in many ways it depends on the size of the organization which determines what the organization's needs. A company needs to back up the following data: database, site-level file root, pipeline root and file content module files, server configuration and log files. Backup frequency for larger companies plan suggests performing incremental log file backups hourly. In the event of an epic failure, researchers will lose no more than 1 hour of work. For a nice size company I suggest a retention period of 7 years. The duration that you keep long-term backups may be decided by the company’s legal or accounting teams. A full backup of database should be done monthly. Differential/Incremental backup of database should be done nightly. Transaction Log backups should be backed up hourly. These backup should all occur on a weekend or during a period of low usage on the server. Test by restoring you backup to a computer that has a wiped or formatted hard drive. Do not restore the data to the original computer. Restore your data to a test computer of the type that you would actually use in the event of a disaster. Make sure all programs still work and can still update and save data. I believe the company’s best bet would be to hire a company that maintains and manages data. Data Recovery Group's Business Data Recovery Team is specialized in emergency recovery whether RAID Recovery, NAS / SAN Recovery, Encrypted Data Recovery, recovery of...
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...Lab 7: Security Basics Lab 7: Security Basics Task 1: Software: We offer solutions to fit all of your security needs. | Free Antivirus + Firewall | Internet Security Suite | Extreme Security | Antivirus/Anti-Spyware EngineDetects and blocks viruses, spyware, Trojan horses, worms, bots, and rootkits. | | | | Two-Way FirewallMakes your PC invisible to hackers and stops spyware from sending your data out to the Internet. | | | | Advanced FirewallMonitors programs for suspicious behavior spotting and stopping new attacks that bypass traditional anti-virus protection. | | | | Privacy & Security ToolbarProvides site check, do not track, Facebook privacy scan, private browsing and more. | | | | Identity ProtectionMonitors your credit and alerts you of changes in your credit files. | | | | Advanced Real-Time AntivirusChecks files against an always-up-to-date cloud database of antivirus signatures. | | | | Enhanced Browser ProtectionProtects your computer by blocking web threats before they reach your browser. | | | | SupportCustomer service and technical support available 24/7 via live chat. | | | | Parental ControlsFilters and blocks inappropriate websites and limits time spent online. | | | | Threat EmulationAnalyzes downloads and warns you if a download is malicious--stopping it from infecting your PC. | | | | Find My LaptopLocates your lost or stolen laptop on a map, locks it down and recovers important files...
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...Interoperability Paper Liz Platipodis BSHS 375 November 29, 2013 Donna Zeh Interoperability Interoperability is defined as the aptitude of one system to perform work in integration with other systems without asking for hard work and effort on the part of the user. Interoperability enhances the significance for information technology to make the networks and integrations work. The term is most widely used in product enhancement and marketing. Compatibility is a significant term when defining interoperability. In human services different providers employ interoperability to communicate with other systems and services for better results. (Margaret Rouse, 2006) ACF Interoperability Initiative The Administration for Children & Families (ACF) is acknowledged as a significant Department of Health & Human Services America. ACF supports the economic and social well-being of children, families, communities, and individuals through offering many state of the art programs. ACF’s human services provide an extensive range of groups consisting of individuals and families earning low income, Native Americans, refugees, and many others. (ACF, 2013) To fulfill its mission ACF is struggling to provide grants to non-profit groups, state and local governments, faith and community-based organizations, Native American communities, and American Indian tribes. ACF also provides technical assistance, supervision, and administration to fund beneficiaries that, in turn, are responsible...
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...ACCT 305 Accounting Information Systems Chapter 6 Review Questions 1. Several Unique problems and risks associated with computerized information networks are unauthorized access, use, disclosure, disruption, modification, or destruction 2. Elements included in an ISMS system such as hardware, databases, procedures, and reports. 3. Development of ISMS requires application of the life cycle approach for system maintenance purposes. 4. Risk Management is the identification, assessment, and prioritization of risks. 5. Quantitative Approach - each loss exposure is computed as the product of the cost of an individual loss times the likelihood of its occurrence. Qualitative Approach – lists out the system’s vulnerabilities and threats and subjectively ranks them in order of their contribution to the company’s total loss exposures. 6. Types of threats that affect information systems a) Active threats include information systems fraud and computer sabotage. b) Passive threats include system faults, as well as natural disasters (e.g., earthquakes, floods, fires, and hurricanes). 7. Characteristics of white-collar criminal 8. Types of individuals pose a threat to an information system a) Computer and information systems personnel: are often given a wide range of access privileges to sensitive data and programs. b) Users: are given narrow access, but can still find ways to commit fraud. c) Intruders and attackers: are...
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...My hypothetical company is a small online gaming company called Game Zone. Seeing as how this is an online company, backing up of data and applications is crucial. The follow is the backup plan I would suggest. * The company should back up all online users profiles and gaming applications. I would also suggest redundant servers. * The rotation should be done every day due to the constant change of user profiles and the fact that new material is always being added to keep games up to date. Full backups should be done weekly with differential backups done daily. The full backup should be done at the start of every week at the lowest peak of online use and the next 6 days done with differential. * Seeing how this data is the life blood of the company it should be taken offsite daily. * If data on the current server is lost only that day’s activities is lost. * If they have redundant servers then down time will be minimal depending on configuration, minutes. If all servers lose their data then recover time may exceed hours. There is no paper trail to recover non-backed up data as all information is online. * Since the company exists only online restore time would be long due to the need to reload all gaming apps and user profiles. Contingency plan must be drawn up for all possibilities. Compile a list of all eventualities then create procedures to recover the data. All procedures are to be tested to make sure they work. * Data should constantly...
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...Disaster Plan The purpose of this disaster plan is to provide a working procedure plan for Central Arkansas Family Doctors, PLLC in the event of a catastrophic event that disables the medical and business functions of the medical practice. Also for a network failure in the system for when the network gets corrupted by DoS or Malware acts. This plan is to provide continued operations for Central Arkansas Family Doctors, PLLC to be able to continue business with little interruptions as possible. How we would prepare for a disaster is to have a backup system for the medical information of the employees, clients, and files. We would prefer that Central Arkansas Family Doctors, PLLC perform incremental backups daily. We would have other locations or resources that would have duplicates of the system and files of the clients, employees, and physicians. The reason why we would have a separate location is for a possibility disaster happening. The resources that we would use to back up the information is CrashPlan—Data and Security and Protection software. The CrashPlan addresses regulatory data security and privacy concerns by employing a multi-layered security model that includes transmission security, access, password security, and encryption. Also the backup information is stored in one of our data centers located in Little Rock, AR at Regions Bank. The media that we are using is HIPAA Compliant Hosting—Disaster Recovery Cloud. Another way we would have risk management for the practice...
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...Directory Access Protocol (LDAP) queries respond quickly. * Domain controllers do not experience high CPU usage. * The central monitoring console collects all events that can adversely affect Active Directory. Even if you are doing full backups, Windows Server Backup provides some great space efficiencies on the target disks. For instance, you might perform multiple full backups of the same volume. Since Windows Server Backup uses Volume Shadow Copy Service snapshots on the target disks where it stores the backup images, the snapshots will only store the blocks that have changed. This substantially reduces the space used by multiple full backups. This eliminates the need to perform multiple restore operations to recover an incremental backup. Even though the snapshot only stores the deltas for each backup, Volume Shadow Copy Service makes each backup appear...
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...Processual, Rational, Fuzzy, Evolutionary 1. Processual approach: Strategy is produced in an incremental fashion, as a 'pattern in a stream of decisions'. Fuzzy approach: Companies sometimes adopt an incremental approach to change. What's different between these two approach? The Processual approach is really talking about strategy emerging from the many different day-to-day decisions taken by the staff. It’s incremental, in that it is occurring by being added to with each decision taken. Each decision taken is based on what seems like the best thing to do at the time; and really, only by looking back can you see the pattern – the strategy – being followed by the organisation. The Fuzzy approach is really when a firm has a stated strategy. It is likely to be following a rational approach to strategy, and it may be doing it very successfully. However, at the same time, it might also be doing something outside of its stated strategy too. This is the “fuzzy” aspect. The example on Page 3.28 is of Macquarie Bank, who had a stated strategy of being the leading investment bank in Australia, but was also involved in 6 different overseas countries at the same time. The idea is that there are reasons why this is a good idea – first, the business might want to change their strategy, but rather than trying to change everything at once they take an incremental approach to making the change – changing some things, and then more later etc. A second reason is that opportunities arise...
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