How Management Teams can have a good fight Essay

How Management Teams can have a good fight - Essay Example The authors clearly explain their view on the impact of conflicts in the organization. This paper criticizes the authors’ idea on the conflict resolution among the management and the eventual impact on the firm. According to the authors, conflicts may have both negative and positive ending. Considering that most managers regard themselves as rational decision makers, they may not effortlessly accept an opinion from any other person and they may, perhaps, deem as a personal attack from their fellows when the colleagues make some remarks. It is difficult for most managers to make a distinction between personal differences and opinion peculiarity and maintaining the spirit of working as a team. The need to work as a team is sometimes assumed by managers as personal hostility and discord takes over the teamwork spirit. Fun, openness and productivity with no or less politicking and posturing represent the only way managers can come up with a healthy decision (Eisenhardt, Kahwajy & Bourgeois 78). Managers are required to manage their conflicts democratically with a clear distinction between substantive and personal issues. In managing interpersonal conflicts, executive were prepared with information that is more detailed and multiple alternatives to enhance the quality of their debate. Availability of more data, which are objective-based, compels managers to focus on issues rather than personal matters or useless arguments rooted in ignorance. Inadequate information makes management rely mostly in guesses and baseless assumptions, which does not help the firm. Reliance on facts reduces involvement on personal issues, thus, reducing interpersonal conflicts. In addition, administrators used humor and shared a common goal in debates while maintaining a balanced power structure. Furthermore, managers should be deeply involved in creating different options thus plummeting disagreement amongst decision-making participants which, in turn, promotes teamwork. Individua l commitment in decision-making is achieved when joint effort is put in creating a number of alternatives. The authors further assert that the more the number of choices made by management, the greater the chances of coming up with more appropriate options. By creating common goals in the teamwork, managers should outline their strategic options as collaborative rather than competitive while every individual must endeavor to achieve best possible solution for the group. Common goal does not imply uniform thinking but, rather, require everyone to have a clear vision towards a particular goal. Lack of common goal makes some members of the team think that they are in competition, thus, framing decisions as reactions to threat (Eisenhardt, Kahwajy & Bourgeois 80). Using humor in decision making by the team releases tension among the management team and upholds collaborative spirit by making the business fun. The excitement while in decision making process reduces stress and brutal compe tition. Interpersonal conflicts are greatly reduced by using humor as a tool to avoid hostile and stressful environment. Humor acts as a defensive mechanism by decreasing the team temperatures and blunting the threatening edge of negative information. Humor that has very positive effect on mood may allow communication of difficult information in a more tactful manner and less threatening way. Furthermore, humor may make people more

Getting caught by your child Essay Example | Topics and Well Written Essays - 500 words

Getting caught by your child - Essay Example The poem does not begin with the speaker describing his love making but starts with what the speaker can do when he is not making love to his spouse, the speak could "play music" or "sit up talking with any reasonably sober Irishmen". Apart from describing the physical characteristics of the individual, the simile "snores like a bullhorn" serves a dual function and describes that the speaker will sleep sounding like a bullhorn after making love to his spouse. In the lines 3 and 4, the author describes his son Fergus by stating "and Fergus will only sink deeper into his dreamless sleep". The author cunningly uses the name Fergus for his son, who is a great warrior king of Ulster in a famous Irish legend. The author in â€Å"goes by all in one flash" describes his sons peaceful sleep. The author describes that the child himself never feels that he slept because he wakes up so fresh. In line six, the speaker describes the heavy breathing of his son as he drifts into a deeper sleep. The writer drastically changes the scenario in the next line by stating that the child wakes up in his safe bed with a stifled cry i.e. a forceful and suffocating cry. In line 8, the speaker describes how frightened his child is from being wrenched out of his dreamless sleep by stating, "And he will wrench himself awake" and â€Å"make for it on the run-ad now we lie together". The author uses alliterations by stating "come cry" and "wrench" in an effort to resonate the intensity of the childs pain and fear. The speaker describes that his son running away from his to the bedroom, where they lay peacefully touching the length of their bodies after making quiet and tender love. The writer takes the opportunity to describe the title of the poem "after making love we hear footsteps" in the lines from 11 to 15. The speaker concomitantly describes the fear of the child and the familiar feel of making love to his spouse in the lines, "make for it on the run" and

Cost Control Techniques in the Construction Industry

Cost Control Techniques in the Construction Industry 1.1 Objectives Project cost control weaken the common problem. Strengthen cost control, change the efficiency of enterprises is fundamental the survival and development projects in a market economy. Many companies have recognize the importance cost control, some companies development of relevant cost control system, some enterprises in implementing cost control responsibility, and made valuable experience of cost control. However, from the overall perspective, Project cost control related to the success or failure of business cost control. From the perspective of cost control mode, the majority of companies still use traditional cost control methods, develop construction budget, cost control based on this budget, as long as it does not exceed the cost of the budget is the effective control of costs, rough, simple control costs, no so that the project cost to achieve optimum control. Therefore, the need to further improve the method of cost control, improve the economic efficiency companies. Definition of the project cost: Project costs are occurring the project of resources around the money reflects the cost, including the resource-consuming stage of the project life cycle. Project costs are usually measured in monetary units. Project costs are divided into direct costs, indirect costs in two ways. Direct costs from labor costs, materials, mechanical royalties and other direct costs component 1.2 Different types of project in Hong Kong The project type was deemed appropriate for categorizing .The categories consisting of bridge, road construction, resurfacing, maintenance, traffic and traffic maintenance are characterized by notable differences in management practices due to the nature of the categories. Managing costs on a wide variety of new building projects and structures, such as residential developments, sports stadiums, roads and bridges, schools, hospitals, offices and factories. To quote â€Å"For the Major Infrastructure Projects the progress in the past year. In time, many of these have entered the construction phase they including: Hong Kong-Zhuhai-Macao Bridge Hong Kong section of the Guangzhou-Shenzhen-Hong Kong Express Rail Link, South Island Line (East) Sha Tin to Central Linkadvance works of the Tuen Mun-Chek Lap Kok Link Xiqu Centre of the West Kowloon Cultural District, etc. Apart from the major infrastructure projects, the DEVB will continue planning other public works to improve peoples quality of life. The projects including slope safety, fresh water supply, prevention flood, green and heritage conservation work.† Development Bureau, Press Releases/Wednesday, April 2, 2014 http://www.devb.gov.hk/en/sdev/press/index_id_8215.html Chapter 2 – Common Project Sources of Founds 2.1 Government, Developer, Contractor To quote †Sources and forms of finance a business plan is fundamental to satisfactory financial planning and ultimately the plan will need to be formulated in financial terms. When approved and adopted, the business plan forms a basis for control and comparison. When it is set up, after approval and adoption, consideration of its financing must take place. This may be short term, such as a bank overdraft or long term as debt finance. A business plan must be designed so that it provides the answers to all the question likely to be raised by prospective lenders. The main sources of finance for a business are the following: a) Banks b) Share issues c) Internal company finance d) Hire purchase and leasing e) Factoring The most common forms of organization The role trader: from of business which one person owns and operates for his /she sole benefit The partnership: must consist of at least two and not more than twenty partners Limited liability companies: can be either private or public Public sector ownership organization: by the government and accountable Unincorporated association: usually social organization who may or may not have objective of making a profit.† 1Roy Plicher (1985, 1994) Project Cost control in Construction P.15, 17, 18, Blackwell scientific Publication The Hong Kong Government basic on the construction self-financing sources, including the financial and extra budgetary places mobility special fund such as fiscal taxes the Fund. To quote †(Baumal 3), for example ,argues that managers of firms operating in markets with very few rivals will seek to maximize revenue rather than profit. Nevertheless they are constrained by the need to maintain a minimum level of profit as demanded by shareholders. Other writers such as (Marris 4) and (Williamson 5) take different approach to growth. Nevertheless, what they have in common is that mangers are seen to pursue their own self-interest at the expense of the shareholder. This is in complete contrast with the neoclassical theory†. 3. BAUMAL W.J (1967) BUSINESS BEHAVIOUR, VALUE AND GROWTH. Harcourt Brace Jovanovich. 4. MARRIS R.L.(1964) The economic theory of managerial capitalism. Macmillan. 5. WILLLIAMSON J .(1996) Profit, growth anf sales maximisation. Econcmica, Februart To quote †Harris and McCaffer 12, Fine and other agree with this view by placing accuracy in estimating as the key variable in determining the successful outcome of bids â€Å" Construction ecomomics: is there such a thinf? by D.K Rutter MBA MSc MCIOB MBIM CDipAF†;  HARRIS F and McCAFFER( R.1997) Modern construction management. Granada Publishing To quote †A project cannot proceed without adequate financing, and the cost of providing adequate financing can be quite large.â€Å" by Chris Hendrickson, Department of Civil and Environmental Engineering, Carnegie Mellon University, Pittsburgh, PA l52l3 Copyright C. Hendrickson 1998 First Edition originally printed by Prentice Hall, ISBN 0-13-731266-0, 1989 with co-author Tung Au. Second Edition prepared for world wide web publication in 2000. http://pmbook.ce.cmu.edu/07_Financing_of_Constructed_Facilities.html Chapter 3 – Construction Cost Control Principles The cost control is include the Time-Cost Relationship To quote†Chitkara (2005) said the relationship between time and cost is a very important aspect in the control of costs on site as any variation in time has automatic implication on cost. It is important to report and record all the works involving materials, plant and labour on sites. This enables the  contractor be able to know the costs and expenses of the resources used on site and compare with the initial cost budget. Various report techniques used include; daily or weekly and monthly recording, schedule control, site daily diary report and the project budget.† Chitkara, K, K., 2005. Construction Project Management: Planning, Scheduling, and Controlling. Tata McGraw Hill Publishing Company Ltd. Poor Project Management According to User’s Guide, (2005), a poor project management structure will have an impact at all stages of the construction process leading to: Lack of planning and coordination; Poor communication between members of the project team and the project sponsor; Failure to identify problems and institute necessary and timely design and programming changes; Lack of control over time and cost inputs; Lack of end user involvement A good project management manages costs by estimating, scheduling, accumulating and analyzing cost data, and finally implementing measures to correct problems related to cost. BY FETENE NEGA (2008)CAUSES AND EFFECTS OF COST OVERRUN ON PUBLIC BUILDING CONSTRUCTION PROJECTS ,IN ETHIOPIA A â€Å"S† line curve Figure .1 To quote in :http://www.cpmtutor.com/c02/earnedvalue.html Construction Poject Cost Control Method Construction cost control method of many, this highlights deviation analysis. Deviation  refers to the actual value of the construction costs with the planned value of the  difference. Deviation analysis may be used to a bar chart method, form method, curve method Curve is a total construction cost curve (S line curve) for the partial construction costs differential analysis methods. A figure which indicates the actual value of the construction cost curve, p. construction cost of the scheme said the value curve, the curve between two vertical distances between construction cost deviations. The method used is the same image analysis, and visual characteristics, but this is very difficult to direct for quantitative analysis of quantitative analysis can play a role. During the execution phase of your project, you will need to monitor the status of the activities. Any deviation to schedule, quality, or scope for an activity will most likely have a cost impact. For this reason, project cost control requires you to check the overall status of each activity 3.1 Budget estimating based on a client’s, contractors To quote †The Government cost estimates should be prepared like the Government more cautious and full-equipped contractor estimating the project. Therefore, all costs, which a prudent, experienced contractor would expect to bear, should be included in the cost estimate. This philosophy widespread throughout the entire project cycle – from programming through completion of construction. Each estimate should be developed as accurately as possible, as detail as possible be assumed, and be based upon the best information available. This objective is to be maintained so that, at all stages of the project programming, design, and during construction, the cost estimate in each aspects representation the fair and reasonable cost to the Government.† UNIFIED FACILITIES CRITERIA (UFC) HANDBOOK: CONSTRUCTION COST ESTIMATING; http://www.wbdg.org/ccb/DOD/UFC/ufc_3_740_05.pdf To quote â€Å"Clients will usually identify their needs in terms of commercial or social pressure Space requirements: the need to improve production levels, add to production capacity, accommodate new processes or provide domestic or social accommodation; Investment: to exploit opportunities to invest in buildings; Identity: to enhance the individual ’ s or organization ’ s standing in its market or society; Location: could lead to a better use of resources, capture a new market or improve amenity; Politics: mainly in the public sector.† Fourth edition (2008)  Martin Brook BEng (Tech) FCIOB,  ESTIMATING AND TENDERING FOR CONSTRUCTION WORK 3.2 Analysis Special construct method Construction Enterprise Project Cost Control Analysis Labour Workers can be to the production and operation, but the monthly wages, allowances, and bonuses can spend less. Artificially expand the expenditure of funds. Material management Some kind of engineering materials and book a difference to thousands of dollars, tens of thousands or even hundreds Construction machinery -efficiency is not high for example, Monthly leasing machinery and equipment. To quote †The aim of such a control system for use by contractor or subcontractor on site are to: Provide a clear definition of the products to be produced Determine the method and activity to product; Work package activities; Assign responsibilities for work ; Plan and schedule the work; Prepare resource budgets to agree with the programme; Measure the work completed; Collect cost and resource expenditure date ; Analyses data and take remedial action if necessary; Provide an historical input to a date base† By A T Baxendale (1992), Integrations of time and cost control,BSc (Hons), MPhil, MCIOB Judge the economic worth of independent projects If a budget holder has proposals for several independent projects, then  whole-life costing analysis can help decide the order in which projects  should be given the go-ahead to guarantee the maximum level of savings  in operation, maintenance and repair costs. 3.3 A life cycle costing To quote â€Å"A life cycle costing approach ,that is an approach that takes explicit account of the life cycle cost of assets, is essential to effective decision making in the following ways a whole or total .(Flanagan et al.,1983) Life cycle costing is a whole or total cost approach undertaken in the acquisition of any capital -cost project or asset, rather than merely concentrating on the initial capital costs alone. Life cycle costing allows for an effective choice to be made between competing proposals of a stated objective the method will take into account the capital, repair running and replacement cost and express these in consistent and comparable terms. It can allow for different solutions of the different variables involved and setup hypotheses to test the confidence of the results achieved. Life cycle costing is an asset management tool that will allow the operating cost of premises to evaluated at frequent intervals. Life cycle costing will enable those areas of building to be identified as a result of changes in working practices, such as hours of operation, introduction of new plant or machinery ,use of maintenance analysis etc.† John W.Bull (1993) Life cycle costing for construction, BLACKIE ACADEMIC PROFESSIONAL Chapter 4 – Relationship of Building Contract and Costing Contract and information management The contract are clear rights the agreement of both parties obligations, the two sides is liquidation the fundamental basis on the project personnel cost control baseline. After the signing of the contract should be organized project management staff contract analysis, contract report, contract implementation. Especially clear claims and counter-claims conditions in a timely manner to change the file. The contract information management into cost control. The Construction projects Lump Sum Contract has become widely used in the world of the pricing method, the Construction project are recommended or required in the form of Bill of quantities Characteristics of Lump Sum Contract with quantity : Lump Sum Contract with quantity list valuation to truly realize the quantity, price principle of separation. For bidders to bid Bill of quantities provided as a platform, based on their technical, financial and management capability to carry out the tender offer so that bidders can fully take into account many other factors, such as: bidding construction scheme for its own schedule, risks, resource scheduling, and so on. So the bidder can be flexible adjustments for these quotes, so quotes can accurately coincide with the project. This valuation method of engineering construction risk and reasonable distribution of tendering party quantity risk bidders bear the price of risk. While traditional fixed pricing method, which no bidders technical advantage and price advantage. Engineering change management is the key of construction contract management of engineering changes in process engineering is inevitable, but construction should try to reduce engineering change, because change is o ften in addition to   the costs of the project itself, but also will bring a lot of machines or the duration of a claim. Cost in real settlement contract (Cost Reimbursement Contract) Cost plus honoraria contract (Prime Cost and Fee) cost plus honoraria contract is bid people by tender file provides early estimated project of artificial, and material, and mechanical of cost price, and by requirements (consultations) take early estimated cost of percentage value or fixed costs as bid people of honoraria (contains costs and profit), constitute tentative contract price, stay engineering completed shà ­, by actual occurred of cost settlement, but honoraria proportions or total not variable.Such contracts apply to tight deadlines, emergency rescue and disaster relief work. No such contract in Hong   Kong standard contract forms. Reasons of Projects over Budget: Inexperience of Project Leader Poor Communication/Management of Personnel Loss Through Damage or Malfunction Human Error Employee Absenteeism Vendor Relationship Issues Environmental Factors Poor Workmanship Lack of Foresight Conclusion Construction project cost control is complicate system engineering. Actual operation an application and flexibility of needed to adapt applications under the local conditions, various sizes, different construction company and different administrative systems are different, However in under any circumstances the construction of production and operations of amount of human resources and materials resources and costs, guidance, supervision, monitoring and restrictions. Therefore, the to increase production and conservation, increase revenue and reduce expenditures, is a common building construction enterprise, which requires constant practice in reviewing and improving cost control, methods and means to ensure that the project costs. As a business that only deepen the financial management system, advanced cost management center, to further strengthen cost management and stringent cost negative, complete implementation of, the whole process of cost control and constantly adapt to the ove rall market competition, to overcome of adversity to achieve target of cost control

Tetanus Essays -- Health, Diseases

Introduction Clostridium tetani more commonly known as Tetanus is an acute infectious disease. Tetanus is not contagious and is a neurotoxin produced by Clostridium tetani. It is characterized by muscular spasms that mainly involve the voluntary muscle groups. Tetanus can affect horses, goat, swine, cat, dog, sheep, cattle and many other domestic animals. In cattle the disease is relatively rare, but in some cases can spread through a herd causing substantial economic loss. Clostridium tetani is a gram-positive anaerobic bacteria that can be found in the soil, intestines of many animals and therefore it is also naturally found in the feces of most animals. Tetanus is more common during warmer months and less common during the colder months when the ground is frozen. Tetanus enters the body through a wound, most commonly in cattle via a castration site or umbilical location of a newborn calf. History Tetanus is one of the earliest recognized diseases and was known and described by Hippocrates in the 6th century B.C. (Gibbons et. al, 1970) In 1844 scientist were able to produce tetanus in a rabbit. They had taken material from a human that died from the disease and injected into the rabbit. (Jensen et. al, 1973) Soon after the disease was produced in guinea pigs, mice and rats, this was accomplished by inoculating them with garden soil. (Gibbons et. al, 1970) It was not until 1889 that Clostridium tetani was cultured. Etiology Clostridium tetani is gram-positive, anaerobic bacteria that have poor motility and the ability to bear spores. The spores are strongly resistant to heat, light and drying and may survive in soil and feces for months to years. When the spores are allowed to be in contact with direc... ...g the skin. Vaccinations that protect against Clostridium tetani are also available. Treatment Without treatment the affected cattle may die in three to ten days and even so the mortality rate it sixty percent. In order to treat these animals they must be tranquilized. Penicillin or another antibiotic must be administered to halt bacterial multiplication and production on toxins. (Thomas et. al, 2009) Since the animals muscles will be in spasm and very rigid they will be unable to eat or drink, treatment must also include means of supportive care. This may be accomplished by giving intravenous fluids or force feeding via stomach tube. The supportive treatment must be maintained until the signs of muscle spasms have diminished and the animal regains control over its body. This may take as long as one to four weeks. (Thomas et. al, 2009)

Participants in the study Essay

Of the 40 participants in the study, 26 delivered the maximum shocks while 14 stopped before reaching the highest levels. It is important to note that many of the subjects became extremely agitated, distraught and angry at the experimenter. Yet they continued to follow orders all the way to the end. So 65% of the participants in Milgram’s study delivered the maximum shocks. There were also questions asked regarding the ethics of the study, if we compare it to the British Psychology Society’s summary of ethics guidelines (1990) for the conduct of psychological experiments. General Distress – Distress to participants must be avoided but does not seem to be the case in this research with participants concerned they are harming the learner. Informed Consent – this must be gained with an explanation of the research where ever possible. In this study to the give the participant a full explanation would not have had the results that they got in the first place. They would have caused questions regarding the validity of the research. This then leads us to:- Deception – They were not fully aware of what was going on or the aims and objectives of the research so therefore they were deceived. Debriefing – Milgram fully debriefed the participants and did this extensively and out of all of the participants that 84% were glad to have participated, while only 1% regretted their involvement. The right to withdraw – the participant does have this right but this was not really the case here as here when a participant wanted to stop the experiment, the experimenter probed the subject to continue, pressure was added to continue the study so as not to affect the data. Protection of Participants – now this is from both physical and psychological harm which was not the case in either component. This study would not be able to be completed today due to the ethical issues affecting this but as you saw in the results that it did prove that people would obey even after they believe it’s wrong. Now if we look at Zimbardo’s (1971) in his study â€Å"The Stanford Prison Experiment† he was looking to see people conforming to social roles according to what people believe about a given situation. So for example this was how the ‘prisoners’ would obey the ‘guards’ orders if they believed that they were in jail. The reason that this appealed to Zimbardo was he was a former class mate of Milgram and was interested in expanding on his research. Zimbardo set the experiment by first placing an advert in the paper asking for male students to participant in a prison life experiment. The students who applied there were 24 in total they were selected from larger group that had applied for the study because they had no psychological issues, medical condition and no criminal backgrounds. They were all agreed to be in for one to two weeks for the experiment. The experiment was due to last two weeks but this had to be stopped early due to what was happening to the participants. The guards became abusive and prisoners began to show signs of extreme anxiety and stress. Neither the prisoners nor the guards were advised on how to interact with the each other. The guards began to behave like real life guards but they were also aggressive towards the prisoners, and the prisoners became passive and depressed. Five of the prisoners began to experience such severe negative emotions, that they had to be released from the study early. According to Zimbardo and his colleagues, experiment shows the powerful role that a situation can play in human behaviour. Because the guards were placed in a position of power, they began to behave in ways they would not normally in their everyday lives or in other situations. The prisoners, placed in a situation where they had no real control, became passive and depressed. The experiment could like Milgram’s could not be repeated by researchers today because it fails to meet the standards established by numerous ethical codes which I am going to look at now, by comparing the experiment to the British Psychology Society’s summary of ethics guidelines (1990) for the conduct of psychological experiments. General Distress – this was caused to both the prisoners and the guards, as the prisoners were humiliated and the guards became more and more aggressive which was caused by them wanting to do what they were supposed to do. Informed Consent – This was again something that they were unable to do as this may have had an effect on the results of the experiment, the participants were aware of certain things like that they were part of a prison experiment but not the aims and objectives of the experiment. Deception – due to the fact they the participants were not fully aware of what was going on and what was expected or wanted means there is a certain level of deception in the experiment. Debriefing – Zimbardo did debrief all of the participants but there has been suggestions that this was not enough or a through as Milgram’s debriefing process. Right To Withdraw – Like during the Milgram experiment the participants did have the right to withdraw but when they asked or showed that they wanted to leave they were persuaded to stay. Eventually a few of the participants had to be allowed to leave early as they were beginning to show extreme stress. Protection of Participants – this was the biggest area that was had ethics question raised, the participants were under a lot of stress, they began to believe the things that were being said to them and how they were being spoken to, they began to lose their identity which again caused stress, many of the participants became emotional under this pressure and some even became aggressive. The guards were inflicting this on them but this was situational. The experiment came to an end early when another psychologist realised on how far this had gone. Even Zimbardo himself said that he began to believe that he was the prison warden not the lead psychologist. Despite the criticism that this study received it is still important in psychology and how a situation can influence behaviour. The study more recently was brought to light when there were questions being asked of soldier’s treatment of prisoners in Abu Ghraib, and many people and even Zimbardo himself suggested that this may have been the real world example of what he was trying to achieve through research. To conclude there are many things that influence behaviour in people, wither that be their own beliefs and opinions or other people being around them at the time, they way in which people work is very complex and the study although brilliant at the times with the break through that they made into the social side of psychology have raised questions over the ethical issues that are also something to be looked at. Today the studies would not have been able to take place and in some ways this is a shame as we would not may be have had the knowledge that we have now because of them. Yet if they had thought of other ways around to come up with the same type of results then this would have been better for all of the subjects concerned. I think the research that was done was invaluable and that psychologists will always believe this just the questions over the methods leave a small black cloud over something rather brilliant. References Books Cardwell, Clark, Meldrum, Wadeley. – Psychology A2 for AQA (Fourth Edition) – HarperColins. Gross, Richard – Psychology, the Science of Mind and Behaviour -Hodder and Stoughton Gross, Richard. , McIlveen, Rob. , Coolican, Hugh. , Clamp, Alan & Russell, Julia. – Psychology – a new introduction for A2 – Hodder and Stoughton. Websites  http://wilderdom.com

Inventory and Nestle

About Nestle Nestle is a multinational packaged foods company founded and headquartered in Vevey Switzerland. it is the world`s foremost Nutrition. Health & Wellness Company committed serving consumers all over the world. Their focus on responsible nutrition and promoting heaLth and wellness is a core value, emphasizing responsibility and sustainability. Nestle products are sold in almost every country in the world. MISSION STATEMENT Nestle is dedicated to providing the best foods to people throughout their day. Throughout their lives, throughout the world.With our unique experience of anticipating consumers’ needs and creating solutions. Nestle contributes to your well-being and enhances your quality of life. † COST ACCOUBTING INFORMATION SYSTEM OF NESTLE INPUT MEASUREMENT BASIS STANDARD COSTING Nestle is using STANDARD COSTING as a base for input measurement Standard costs are usually associated with a company’s costs of direct material, direct labor, and manufa cturing overhead. Rather than assigning the actual costs of direct material, direct labor, and manufacturing overhead to a product, nestle’ like many manufacturers assigns the expected or standard cost.This means that its inventories and cost of goods sold will began with amounts reflecting the standard costs, nor the actual costs, of a product Nestle’, of course still has to pay the actual costs. As a result there almost always differences between the actual costs and the standard costs, and those differences are known as variances, REASON FOR USING STANDARD COSTING Nestle is currently using Standard costing method because the related variances are valuable management tool. If a variance arises, management becomes aware that manufacturing costs have differed from the standard (planned. xpected) costs. †¢ If actual costs are greater than standard costs the variance is unfavorable. An unfavorable variance tells nestle’ management that if everything else stay s constant the company`s actual profit will be less than planned. †¢ If actual costs are less than standard costs the variance is favorable. A favorable variance tells management that if everything else stays constant the actual profit will likely exceed the planned profit. The sooner that the accounting system reports a variance, the sooner that Nestle management can direct its attention to the difference from the planned accounts.DIRECT MATERIALS USAGE VARIANCE Under a standard costing system. Production and inventories are reported at the standard cost—including the standard quantity of direct materials that should have been used to make the products. If the manufacturer actually uses more direct materials than the standard quantity of materials for the products actually manufactured, the company will have an unfavorable direct materials usage variance, If the quantity of direct materials actually used is less than the standard quantity for the products produced, the company will have a favorable usage variance.The amount of a favorable and unfavorable variance is recorded in a General ledger account Direct Materials Usage Variance. (Alternative account titles include Direct Materials Quantity Variance or Direct Materials Efficiency Variance. ) Lets demonstrate this variance with the following information. Direct Labor: Standard Cost. Rate Variance, Efficiency Variance Direct labor refers to the work done by those employees who aciually make the product on the production line. (â€Å"Indirect labor† is work done by employees who work in the production area. but do not work on the production line.Examples include employees who set up & maintain the equipment. ) Unlike direct materials (which are obtained prior o being used) direct Labor is obtained and used at the same time, This means that for any given good output, we can compute the direct labor rate variance. The direct labor efficiency variance, and the standard direct labor cost at t he same time. Variable Mfg Overhead: Standard Cost, Spending Variance, Efficiency Variance Manufacturing overhead costs† refer to any costs within a manufacturing facility other than direct material and direct labor.Manufacturing overhead includes such things as indirect labor, indirect materials (such as manufacturing supplies), utilities, quality control, material handling, and depreciation on the manufacturing equipment and facilities. â€Å"Variable† manufacturing overhead costs will increase in total as output increases. Fixed Mfg Overhead: Standard Cost, Budget Variance, Volume Variance â€Å"Fixed† manufacturing overhead costs remain the same in total even though the volume of production may increase by a modest amount. RELATIONSHIP BETWEEN VARIANCESIf the direct labor is not efficient at producing the good output, there will be an unfavorable labor efficiency variance. That inefficiency will likely cause additional variable manufacturing overhead—r esulting in an unfavorable variable manufacturing overhead efficiency variance. If these inefficiencies are significant, it is possible that the company may not be able to produce enough good output to absorb the planned fixed manufacturing overhead—resulting in an unfavorable fixed manufacturing overhead volume variance. TREATMENT OF VARIANCESThe treatment of variances follows these guidelines: If the variance amount is very small (insignificant relative to the company’s net Income), simply put the entire amount on the income statement. If the variance amount is unfavorable, increase the cost of goods sold—thereby reducing net income. If the variance amount is favorable, decrease the cost of goods sold—thereby increasing net income. If the variance is unfavorable, significant in amount, and results from mistakes or inefficiencies, the variance amount can never be added to any inventory or asset account.These unfavorable variance amounts go directly to th e income statement and reduce the company`s net income. If the variance is unfavorable significant in amount and results from standard costs not being realistic, allocate the variance to the company’s inventory accounts and cost of goods sold. The allocation should follow the standard costs of the inputs from which the variances arose. If the variance amount is favorable and significant in amount, allocate the variance to the company`s inventories and its cost of goods sold. INVENTORY VALUATION METHOD ACTIVITY BASED COSTINGActivity based costing (ABC) assigns manufacturing overhead costs to products in a more logical manner than the traditional approach of simply allocating costs on the basis of machine hours. Activity based costing first assigns costs to the activities that are the real cause of the overhead. It then assigns the cost of those activities only to the products that are actually demanding the activities. IMPLEMENTATION OF ABC IN NESTLE Nestle company is using ac tivity based costing method for inventory valuation. Firstly they identify all activities that use resources.Cost pools are set up for each of the activities identified. They assign overhead costs to the cost pools based on a cost driver. Cost pools are used to assign costs. Costs are assigned to its, batches, or products. REASON FOR USING ACTIVITY BASED COSTING Nestle is currently using ABC techniques because it helps it in determining accurate product cost. Complex companies Like Nestle may see the most benefit from this type of costing because it is most helpful when the costing information is difficult to understand or evaluate.ABC provides information to Nestle regarding processes that should be improved and the products or services that are contributing the most to company’s profitability, ABC system also helps Nestle in knowing what are the factors that contribute most to cost, which in turn assists management in choosing best alternative in reducing overall costs incu rred by the Nestle Company. ABC system can be the best tool to be utilized in implementing environmental accounting at the firm level. COST ACCUMULATION METHODNestle is using process costing method. It is a costing system in which the cost of a product or service is obtained by assigning costs to masses of lake or similar units and then computing unit costs on an average basis. Process costing averages the costs over all units to come to the per unit cost. In Nestle. Direct material and direct labor costs are tracked by department, and are assigned evenly to the products that pass through each department. Overhead costs are applied to each department and are assigned evenly to each product.Multiple WIP accounts are used one for every process. As products are moved from one process to another, the costs of the previous process are transferred to the next process. Five steps are involved in Nestles process costing method firstly it summarizes the flow of physical units of output. Seco ndly, computes output in terms of equivalent units, Thirdly, computes equivalent unit costs. Fourthly, summarizes total costs to account for. And at the end, they assign total costs to units completed and to units in ending work in process inventory.REASON FOR USING PROCESS COSTING Process-costing used in Nestle because it broadens the economics of quality by classifying cost of non-conformance and cost of conformance i. e. â€Å"costs incurred when a process is running without failure. It also allows Nestle tracking and reduction of costs normally associated with efficiency in addition to effectiveness (quality)†. COST FLOW ASSUMPTION FIFO In Cost flows assumption. Nestle is using FIFO method. FWO is an acronym for First In, First Out.A method of valuating the cost of goods sold that uses the cost of the oldest items in inventory first What comes in first is handled first what comes in next waits until the first is finished. Etc. REASON FOR USING FIFO Nestle is using FIFO as cost flow assumption for its products. Because most of its products are perishable and they have short expiry date. Nestle also believe in tax minimization. For taxation purposes, FIFO assumes that the assets that ate renaming in inventory are matched to the assets that are most recently purchased or produced.Because of this assumption, there are number of tax minimization strategies associated with using the FIfo asset-management and valuation method. Due to this reason, Nestle is using FIFO method as a cost flow. FWO gives Nestle a better indication of the value of ending the inventory on the balance sheet. One of the reasons for using FIFO method by Nestle is the increasing rate of inflation. Because of this, Nestle uses FIFO inventory accounting in order to make their balance sheet look better. RECORDING INTERVAL CAPABILITYInventory records can be maintained on a perpetual or a periodic basis In the past manufacturers tended to keep perpetual inventories, while retailers used t he periodic method. However, today a variety of point of sale devices and dedicated microcomputer software are readily available to provide any company with perpetual inventory capability. NESTLE’S METHOD Nestle is Currently using perpetual method for maintaining the inventory records because this method provides the company with real time and true inventory information.To record purchases, the periodic system debits the Purchases account while the perpetual system debits the Merchandise Inventory account. To record sales, the perpetual system requires an extra entry to debit the Cost of goods sold and credit Merchandise Inventory. By recording the cost of goods sold (or each sale, the perpetual inventory system lessens the need for adjusting entries and calculation of the goods sold at the end of a financial period, both of which the periodic inventory system requires.The reasons for which Nestle is using perpetual method rather than periodic inventory method is that †¢ By using perpetual method Nestle can determine their COGS and profit or loss after every sale unlike periodic, in which you get profit or loss at the end of the period. †¢ Nestle has preferred perpetual system because it is a realistic double entry system while periodic is arbitrary. †¢ The company can watch the inventory more closely using this method because whenever there is an increment and decrement inventory, some other account like profit loss must be debited or credited. And in the perpetual system stock loss gain is immediately noticed and not at the end of year when the physical count of the inventory is taken The advantages that Nestle has got due to the use of the perpetual inventory system, is a high degree of control, it aids in the management of proper inventory levels, and physical inventories can be easily compared. Whenever a shortage (Le. a missing or stolen good) is discovered, the Inventory Shortages account should be debited.