River Valley Civilizations of the Middle East Vocab

1. Pastoralism- the practice of raising livestock 2. Bronze Metallurgy- the study of the chemicals of the metal Bronze 3. Iron Metallurgy- the study of the chemicals of the metal Iron 4. Nile- gives people fresh water and is a major source for Egypt. The yearly activity is that it floods the river valley and moist fertile land is left behind. The resource the Nile has is the floodplain full of fertile land 5. Cataract- an unnavigable stretch of rapids and waterfalls 6. Delta- at one of the ends of rivers where the river spreads into many different streams 7.Silt- fine sand or clay that is easily carried by water 8. Papyrus- another type of paper that early civilizations used to write impotant info. It is thicker than paper 9. Irrigation- a process of saturating the land to be able to grow crops on it 10. Amun-Re- god of state and to whom common people turn to for adversity 11. Osiris- god of the underworld; his brother killed him and spread his body parts everywhere. His wife recover ed them and gave him a proper burial. The gods were impressed and brought back to life Osiris, but as a spirit, or god of the underworld 12.Seth- god of chaos; brother of Osiris who killed Osiris 13. Horus- son of Osiris; associated with the pharaohs and the Sun 14. Ptah- the chief god of the ancient city of Memphis; he is a creator god and god of architecture and crafts 15. Isis- wife of Osiris; goddess that dealt with speaking to the dead, bring n]back the dead to life, curing the sick, and magic 16. Hathor- Cow- goddess of love and music 17. Ma’at- goddess of physical and moral law of Egypt, order and truth 18. Aten- god of the sun as in a solar disk that had rays coming towards earth which represented human hands reaching for ankh the pharaoh 19.Upper Egypt- up river or up the Nile river that reached the cataracts to Memphis 20. Lower Egypt- from Memphis to the delta part of the Nile River 21. Menes- king of Memphis in Lower Egypt 22. Theocracy- a type of government where the priest rules the name of God or a god 23. Pharaoh- an emperor that ruled Egypt 24. Vizier- a high official 25. Bureaucracy- a type of government where important decisions are decided by state officials rather than elected representatives 26. Hieroglyphics- Egypt’s writing that showed events that happened 27.Nubia- Country below Egypt that competed and fought with Egypt for land and who is more powerful 28. Old Kingdom- the first kingdom of Egypt were the Pharaohs forced workers to build huge pyramids 29. Middle Kingdom- Pharaohs became less powerful and they mostly were concerned about foreign affairs and they lived during a time of great prosperity or surplus 30. Intermediary Periods- the first intermediate period was between Egypt and Nubia. They both fought over land and about politics and they had five wars. The second one was the fight between Egypt and the Hyksos, or horse riding nomads.The Hyksos had bronze weapons that they obtained from Hittites and the Mesopota mians. Once again, they fought over land but in the end, Egypt obtained bronze weapons and pushed the hyksos out of Egypt. 31. New Kingdom- the Pharaohs in this era had lesser power than their ancestors, but they did build palaces, temples, and monumental statues to show off their power. They did work to extend the land occupancy of Egypt beyond the Nile delta. 32. Hyksos- horse-riding nomads who had bronze weapons obtained from the Hittites and the Mesopotamians.They dominated Egypt for a while, but Egypt finally obtained bronze weapons also and pushed the Hyksos out of Egypt. 33. Hatshepsut- First woman pharaoh who forced workers to build a statue of her 34. Fertile Crescent- the Middle East; the area where the land was very fertile to farm 35. Mesopotamia- the land between the rivers, or the land in-between the Tigris river and the Euphrates river 36. Tigris and Euphrates rivers- the significance of these rivers were that Mesopotamia had very little rainfall, but these rivers sup plied a great amount of fresh water.The resources the rivers supplied were the ability to grow wheat, barley, and peas. 37. City-State- the early people had to control internal and external problems so they created a city-state. Within the city they controlled order and authority and prevented problems with urban citizens causing civil disorder. Externally from the city, you need a government to control foreign affairs such as agriculture in surrounding regions and authority in neighboring territories 38. Ur- a Sumerian city-state that dominated (with others) public affairs 39.Ziggurat- distinctive stepped pyramids that housed temples and altars to the principal local deity 40. Cuneiform- a form of writing used in Mesopotamia, Persia and Ugarit that involved wedged shapes on clay tablets 41. Sargon of Akkad- a talented administrator and a brilliant warrior who conquered all the cities of Sumeria. His life span was from 2370-2315 b. c. e 42. Epic of Gilgamesh- the story of a hero, wh o killed an evil monster, rescued Uruk from a ravaging bull and matched his wits to the gods. Enkidu, a cherished friend of Gilgamesh, offended the gods and he was sentenced to death.He wanted to cheat death and have a eternal life so he found a magical plant that granted that, but a serpent stole it and this made Gilgamesh realized the death is the ultimate fate for all human-beings 43. Hammurabi’s Code- if a person is an offender, or someone who does something morally wrong, he/she shall face a fierce punishment such as death, or cutting your hands off. 44. Sumeria- first civilization of Mesopotamia which prospered with its many different cities 45. Babylonia- dominated Mesopotamia because of its great culture.The king was Nebuchadnezzar who built famous buildings. Babylonia was great until the Assyrian empire took over 46. Assyria- they were interested in enforcing laws and expansion. After they took Babylonia, they expanded much of southwest Asia. They conquered Syria, Pa lestine, most of Anatolia, and most of Egypt. They believed in Hammurabi’s laws. King Assurbanipal had a library that saved great literature that survived to present day. 47. Neo Babylonia/Chaldean- a Babylon soldier named Nabopolassar wanted to overthrow Assyrian rule, but Egypt supported the Assyrians.There were many battles and Babylonia was starting to win and they captured the capital of Assyria. Meanwhile, Babylonia captured Jerusalem and there were peace treaties between the Cilician and the Syennesis leaders. In the end Babylonia dominated over Assyria 48. Hittites- they migrated to Anatolia where they imposed their languages and ruled the people there. They built a power kingdom which had close relations with Mesopotamia. They traded with Babylonia and Assyria and they adopted cuneiform writing. Later the Hittites conquered eastern Anatolia, northern Mesopotamia, and Syria all the down to Phoenicia. 9. Patriarchal- a type of government in which the eldest male has al l the power and male descendants will get the power eventually. 50. Hebrew- a language and a religion that people from early times to present day practice 51. Phoenicians- an early Greek society. They did not have a monarchy, but rather different city-states with local kings. They interest in state building and their military. They deeply influenced other civilizations because of their industry and trade networks. They traded overland and they traded goods such as raw materials, or textiles, decorative items, pottery, etc.They also created their own alphabet which indicated their interest in literature, religion, and historical writings. 52. Indo-European- Common languages were Old Persian, Greek, and Latin in Europe because indo-Europeans migrated all over Eurasia. The origin of Indo-European was in present day Ukraine and southern Russia. They built their society in 4500 to 2500 b. e. c. They raised cattle, sheep, goats, and they domesticated horses. They used horses for wagons, c arts, and chariots for travel. The Indo-Europeans migrated south, east, and west distributing their language.

Applying Family Systems Theory to Early Childhood Practice Essay

In this article, Christian (2006) discusses the six characteristics of family systems relevant to early childhood practice. The author believes that teachers have a role in discovering and improving family systems to maximize children’s abilities. Therefore, early childhood teachers should consider these characteristics to help decide the best approach for students. The first characteristic is boundaries. There are two kinds of boundaries, namely disengaged and enmeshed. The first allows children to decide on their own and accept new friends, ideas, etc. but tend to be unattached while the other s from outside of the family. The second is more strict and attached; it supports and guides an individual in making decisions, but usually expects avid conformity with family rules. Considering the strengths and weaknesses of both kinds, the teacher should respect and support family boundaries in order to respond accordingly to needs. The second characteristic is roles. Family roles have a significant effect on students’ behavior. For instance, the eldest child tends to be more mature than others and play as the peacemaker, helper, etc. Teachers should recognize these roles and provide role playing situations where students can get to play other roles. Also, teachers should make families recognize their students’ strengths through writing simple notes. The third is rules. Teachers should know family rules of students in order to avoid confusing them with school rules. For instance, explain why a certain rule works in school but not at home, and vice versa. Teachers should have a positive outlook in striking a balance between both. Also, rules should be stated clearly because unspoken rules could lead to failure to obey them. The fourth characteristic is hierarchy. Families observe a certain hierarchy in the house. This points to the power to decide within a family. Teachers should be sensitive regarding this and observe the effect of family systems of each individual. For example, there are times when a child exercises power over others due to hierarchy experienced at home. Importantly, teachers should vary activities to make students experience a different hierarchy concept. Another characteristic is climate. This is the emotional and physical environment the child has. The role of the teacher is to ensure that the child has a positive climate at home. To do this, they could organize a talk with parents to find out and suggest a better climate parents can offer. Also, the climate in school should allow venue for â€Å"positive feedback and healthy sensory experiences.† The last one is equilibrium. This refers to the sense of balance within the family. Equilibrium should manifest in all aspects, such as health, emotions, activities, finance, etc. It can only be achieved by undergoing changes from time to time. For example, if a family experiences difficulty because of a daughter’s illness, parents cannot be focused only on the ill member. They should devote equal time for their other children who equally need care and attention. As professionals, teachers can guide parents to assess equilibrium in their family. The suggestions the author makes in this article are very significant. Considering the characteristics mentioned might help each family become more well-knit, thus maximizing intellectual and emotional development of the students. To effect this, teachers should have willingness, sincerity, and respect for each student and the family system where they belong. Reference Christian, Linda Garris. (2006). Applying family systems theory to early childhood practice. Retrieved 5 November 2008, from http://journal.naeyc.org/btj/200601/ChristianBTJ.asp

Primary and Secondary Sources

PRIMARY AND SECONDARY SOURCES What is Primary Sources? * Primary sources  are original  materials. Generally, primary sources are not accounts written after the fact with the benefit of hindsight. * Information for which the writer has no personal knowledge is not primary, although it may be used by historians in the absence of a primary source. * Primary sources provide first-hand testimony or direct evidence concerning a topic under investigation. They are created by witnesses or recorders who experienced the events or conditions being documented. Often these sources are created at the time when the events or conditions are occurring. Examples of Primary Sources: * archives and manuscript material * photographs, audio recordings, video recordings, films * journals, letters and diaries * speeches * scrapbooks * published books, newspapers and magazine clippings published at the time * government publications * oral histories * records of organizations * autobiographies and memoi rs * printed ephemera * artifacts, e. g. clothing, costumes, furniture * research data, e. g. public opinion polls What is Secondary Sources? * Offer an interpretation or analysis  of the primary source materials. * Second hand accounts of historical events. Secondary sources are works of synthesis and interpretation based upon primary sources and the work of other authors. They may take a variety of forms. The authors of secondary sources develop their interpretations and narratives of events based on primary sources, that is, documents and other evidence created by participants or eyewitnesses.  ¦ Examples of Secondary Sources: * articles, * biographies, * books, * textbooks, * Reports on events, etc. THINGS TO ASK WHEN EVALUATING PRIMARY AND SECONDARY SOURCES: * How does the author know these details (names, dates, and times)? Was the author present at the event or soon on the scene? * Where this information does came from? Eyewitness accounts? Reports written by the others? * Are the author’s conclusion based on a single piece of evidence, or have many sources been taken into account? SOME TECHNIQUES FOR TESTING THE AUTHENTICITY OF PRIMARY AND SECONDARY SOURCES: * Check the currency of secondary sources. * Make certain primary sources are housed in a reputable archive and/or have been indexed or catalogue by experts in the source’s discipline. * Research the authority and credentials of journal article author. Cross check to see if others researches agree with your critique. HOW CAN I TELL IF SOMETHING IS A SECONDARY SOURCE? As with any research, examine the document or article carefully for accuracy and credibility. Use the following questions to help you determine whether or not you are using a credible secondary source. AUTHORS: * How does the author know what he/she knows? * Does his/her knowledge stem from personal experience or having read about and analyzed an event? * Does the author cite several other (published) reports? CONTENT : Why is the information being provided or the article written? * Are there references to other writings on this topic? * Is the author interpreting previous events? * Does the information come from personal experience or other’s accounts? CURRENCY: * Is the date of publication evident? * Is the date of publication close to the event described or was it written much later? Sources: * http://www. yale. edu/collections_collaborative/primarysources/primarysources. html * http://www. mitchellteachers. org * http://www. slideshare. net/stellacomans/primary-and-secondary-sources-7878126

Ancient Middle East - Lesson 1 Essay Example | Topics and Well Written Essays - 3000 words

Ancient Middle East - Lesson 1 - Essay Example B. repetition of words, phrases, or sentences that have the same grammatical structure or that compare or contrast ideas C. intentional repeating of a sound, word, phrase, line, or idea in order to create a particular literary effect D. a comparison of two things to show that they are alike in certain respects E. a figure of speech in which a speaker directly addresses an absent or dead person, a deity, an abstract quality, or something nonhuman as if it were present and capable of responding Question 2 What characteristic of an epic hero does Gilgamesh display when he tells of his plans for the river plant? weakness, since he wants it only for his own use ignorance, since he does not realize it is poisonous kindness, since he intends to give it to the elderly confusion, since he knows it cannot endure Question 3 One of the themes of the Epic of Gilgamesh is the search for immortality, which involves Gilgamesh's traveling to the underworld. Which phrase best describes the Sumerian underworld that Gilgamesh enters as part of his search? a land of dust and darkness a land of hard work and pain a land of abundance and beauty a land of winged creatures and kings Question 4 Which of the following is evidence of the influence of Mesopotamian culture in the Epic of Gilgamesh? Enkidu and Gilgamesh become friends. Gilgamesh encounters many gods in his journey. Gilgamesh is sometimes boastful. Utnapishtim is immortal. ... does not trust her beloved to return. prefers to spend time away from her beloved. worries more about her beloved's happiness than her own.   Ã‚  Question 8    In Most Beautiful Youth Who Ever Happened, the words "love of you goes round and round" reveal that the speaker wishes that her love would stop. worries that her love is hopeless. feels intense, powerful love. sees love as a silly game.   Ã‚  Question 9    The epithet, "O Sole God beside whom there is none!" from The Great Hymn to the Aten, emphasizes Aten's great beauty. supreme power. intense loneliness. extreme isolation.   Ã‚  Question 10    The epithet from The Great Hymn to the Aten, "You rouse them for your son who came from your body, / The King who lives by Maat," implies that worshipers of Aten will rise from the dead. will be like a son to Maat. should fight invaders. should obey the pharaoh.   Ã‚  Question 11    The epithet from The Great Hymn to the Aten, "Lord of all who toils for them," character izes Aten as kind and loving toward his people. caring only toward people who work for him. caring only toward people who work for others. harsh and demanding of his people.   Ã‚  Question 12    Which of these would NOT be appropriate to include in an original praise poem? an epithet: "Ocean, home to sea creatures" an apostrophe: "Little bird, carry my love to my beloved" compliments to the person or object that is the subject of the poem comments on how the subject of the poem has disappointed the speaker   Ã‚  Question 13    The story, In the Beginning, uses repetition to reinforce the important idea that God ended his work and rested on the seventh day. God thought that the things he had made were good. those who sinned against God would be punished. Adam

Unit2 -- IT3318 Systems Administration Essay Example | Topics and Well Written Essays - 1500 words

Unit2 -- IT3318 Systems Administration - Essay Example Deciding which particular process must be continued and choosing to delete a particular program against the other chosen ones also makes up for the tasks completed during the process management. These include the input and output enabling commands and components. The sole purpose of the I/Os is the enabling function of converting a machine interfaced language to the user understandable language. There are other important functions that are assigned to the I/O components. These include providing the computer programmers with the relevant information about the source code only and protecting any other information that may not support the programmers purpose of tackling the operating system. Resource allocation process consists of the function of allocating the work load and the programs load according to the capacity of the operating system and the kernel. It is associated with the function of stacking up the information and ensuring that the operating system does not suffer from delay and wait. Allocating resources along the cache and preventing any deadlocks in the operating system activities make up for the allocation process. The purpose is to get a smooth flow of the operating system and overall performance altogether. RAM is used for this purpose which ensures providing the secondary data and storage for processes execution. Allocating the memory to the right kind of registers and addresses is the function fulfilled in this part of the program. Ensuring that the data so used is in use by the authentic users is also the main memory management function. Memory spaces adjustment on the hard disk and the Ram is another function performed during the main memory management process. Operating systems tools provide various functionary support and assistance in the case of patches and new versions of the operating systems introduced. The following are few of the commonly used and commonly

Writer's choice Essay Example | Topics and Well Written Essays - 750 words - 6

Writer's choice - Essay Example It has shifted from the less severe form into explicit content. The paper will analyze some of the characteristics of sex in the media. These characteristics are both beneficial and harmful at the same time. The media sexual content can affect the behavior of any age group. However, it is an accepted belief that adolescents are more vulnerable to media content than the rest. Adolescence marks the stage in which the gender roles and sexual behaviors are shaped. Adolescents easily imitate the behavior of their favorite pop idol; their dressing, and actions. The media has a lot of sexual content directed to them thus, influencing their sexual behavior. Teenagers at this stage tend to copy almost everything showed in the media as they try to develop their identity. Today’s media has been linked with several cases of early pregnancies among the teenagers. The media presents sex in a way that it appears casual. For instance, sex scenes are common in most films streamed by the mainstream media. It is made to appear as if not a big deal and that it is commonly done by everyone. However, the consequences such as an unplanned pregnancy and STDs are rarely shown. Sexual contents can remain in a teenager thought for a long time. The greater the exposure, the more they are likely to be affected by them (Brown, 2002). The media has failed to emphasize on safe sex. Studies show that the more the young people are exposed to sexual contents, the more they are likely to engage in unsafe sex. In the modern age, it is hard to reduce the exposure of the young people to sexual content. Most adolescents end up imitating the sexual behaviors and rely on the media as the sole source of sex education. These youths are most likely to have meaningless sex while disregarding the possible physical and emotional effects of such behaviors. The depiction of sex in the media provides a false expectation of satisfaction that may result in depression

Impact of Democratic Principles and Policies Application on War Essay

Impact of Democratic Principles and Policies Application on War Incidence - Essay Example This essay provides a comprehensive analysis in order to establish the specific impact of democracy, as well as economic integration and international institutions, on the prevention of wars. It also aims to establish, how the application of these democratic concepts affects the actual occurrence of war and of any other violent encounters within and among states. Human history has been riddled with various incidents of violence and wars. Wars have had causes, including poverty, social stratification, ethnic differences, as well as political differences. Wars have been seen within states, but mostly, it has involved one or more countries. Liberals argue that various instruments – democracy, economic integration, and international institutions – make wars less likely. They argue that where people have more freedom, they are less likely to take arms against the government or other countries; where they are more economically coordinated with each other, they are also less likely to declare wars against each other; and where international institutions are in place, the incidence of wars can be reduced or even eliminated. Others are however not convinced of these possible preventive measures for wars. Democratic pacifism seems to be the main basis of the contention that democracy makes wars less likely. Its ideas are based on the following premises: democracies rarely if ever go to war against each other; democracies tend to be more peaceful than dictatorships; democracies tend to have less internal violence.

Critically discuss the Strategy in Action of the organisation 'Nestle' Essay

Critically discuss the Strategy in Action of the organisation 'Nestle' - Essay Example With the power of innovation, advanced technology, and high investment in Research and Development, the company has outpaced competition thereby creating an edge of its competitors. Mission statement of Apple is â€Å"to produce high-quality, low cost, easy to use products that incorporate high technology for the individual. We are proving that high technology does not have to be intimidating for non computer experts†(Apple Annual Report 2010). The strategies and mission of Apple is largely affected by the external environment it operates in. This would better be analyzed through PESTEL analysis of Apple. PESTLE Analysis Apple being a US company faces barriers related to rules and regulations imposed by the DOJ, EPA and the SEC. The governmental agency like SEC inspects the fair practice and compliance and the governmental agencies like DOJ and EPA inspects the antitrust laws and environmental compliance. Political risks are high in Technology Company like Apple. In addition, the laws in communication industry are subject to change that affects the compliance of Apple. The required the company to invest heavily in compliance of laws and regulations and even pay fines as a result of investigations. Apple is technology company build on a global platform where factors like inflation rates, interest rate and current exchange rates in bear some impact, but such impact can’t be considered influential (US Technolgy Sector Analysis, 2010). As the interest rates are slashed as a result of recession in the economy, the company could borrow money at a cheaper interest rate. Same is the case with changes in current exchange rates. Change in economic conditions could also materially affect the performance of the company in an adverse way. The socio-cultural forces impact the company’s operations as Apple network spans across various countries and continents. Information display, privacy issues and information sharing across people in different countries depends upon the socio-cultural forces operating in that country (US Technolgy Sector Analysis, 2010). It can be argued that if Apple spans in network to the country like India (For e.g.) it has to keep in mind the culture of people there and whether the current configuration of the company is best suited for operating in that country. Global markets for different products and services of Apple are subject to technological changes in rapid advances along with high competition (US Technolgy Sector Analysis, 2010). Technological factors possess a great impact on the success of the company and a failure to cope up with these could materially affect the financial position of the company. Legality also has a role to play in operations of any company that intends to span globally. Apple has expanded its business across continents and political and legal policies of the countries can well decide on the fate on how the company can operate within a country. Issues over intellectual property rights, trademarks and patents lead to legal proceedings against the company from time to time (Apple Annual Report 2010). The environmental forces do not have a significant role to play in the operations of the company. When the company was incorporated, its primary target was young generation which wanted to connect to each other in spite of differences in physical boundaries. With the growing aging populating, the company has also shifted its focus to people of senior age groups.

Journal #3 Essay Example | Topics and Well Written Essays - 250 words - 1

Journal #3 - Essay Example The key objective of the Fraternity is Brotherhood and Sisterhood, a value that has been continually achieved all through the year, with Fraternity members living together and tackling most of their problems be it academic or even personal issues. Another value that Indiana University Fraternity has continually emphasized over the years is leadership development. This has been achieved through self-governance, where the Greek System provides a platform for students to govern themselves. These structures offer the members of the fraternities with a platform for leadership, assisting them to become better leaders in the future. In addition to this value, another key value that the IU Greek system has always emphasized is the Civic Engagement. This has been also achieved through a variety of ways ranging from the Little 500 event, IU Sing and Intramurals. The Indiana University Fraternity and Sorority values have been followed adequately within the university and the Indiana University has achieved a majority if not all its values. The platforms provided by the university improve the Greek system, from the usual setting where it is purely used to create teamwork for extra curriculum activities, to a point where it improves the academic and career lives of all its

The Status Quo Essay Example for Free

The Status Quo Essay In Howard Zinn’s book, Passionate Declarations: Essays on War and Justice, Chapter 1 entitled, â€Å"Introduction: American Ideology,† begins with a discussion of a few instances in history where groups of people believed that other races and social classes were inferior to others (Zinn 1). The end result of these instances was that many, if not all, of the inferior people were killed (Zinn 1). From these occurrences, Zinn concludes that our thinking does not merely spark debates, but ultimately is a variable of life and death (Zinn 1). He also believes that although we live in a democratic country, the ideas of ethical behavior that were formulated by our forefathers has condemned us to accept them as right, without questioning why they are right (Zinn 3). These ideas were not framed by a group of conspirators, nor were they accidental; these ideas were a result of natural selection in which ideas were encouraged, financed, and pushed forward by those who were in power or by those who had great influence on the general public (Zinn 3). Although these beliefs were written off as correct, Zinn believes that if we decide to reexamine these beliefs, and see that they are not â€Å"natural† ideas, we have come to a major turning point: we are examining and confronting American ideology (Zinn 5). These ideas that are expressed in â€Å"Introduction: American Ideology,† are very sound because they help me to see why it is important to challenge the status quo. If I sit back and just allow people to feed me information about one fact or another, and I just absorb it all in, then I may not really be formulating my own beliefs, but accepting someone else’s. There should be a deeper meaning to what I believe further than what someone has dictated to me to be correct. I should ask intuitive questions about why someone views something as correct, and by that process, I might begin to clearly see their idea as acceptable. Oftentimes, many people, including myself, suppress what they believe in because as Zinn mentioned, these dissenting ideas are most often drowned in criticism because they are outside of the â€Å"acceptable or popular choices† (Zinn 4). By doing this, those who believe that their idea is right, maintain power. In a real world example, you may be hanging out with a group of friends at a party when all of a sudden, your friends start smoking marijuana. Everyone but you is an avid believer that smoking it is cool, and is acceptable because everyone else is doing it. You have never smoked marijuana a day in your life, but under the circumstances, you fall into peer pressure when a joint is passed your way. In this instance, you know you believe that smoking marijuana is wrong, but you suppress your beliefs since every single one of your friends is doing it, and by speaking up, your belief will most definitely be covered in criticism. The end result is that your group of friends maintains power over you, and will find it that much easier to influence you to smoke marijuana again. Metaphorically speaking, a great representation of how Zinn portrays the ideas of those in command is through â€Å"weeds.† A weed is a plant that overtakes the area in which it is located. Once it begins to grow, unless someone is willing to take the time to go and remove it from the area, it remains there. Likewise, the ideas that are seen in â€Å"Introduction: American Ideology,† are like weeds because they are established and passed off as right to the general public. Once these ideas are in place, they are hard to get rid of, even if many people dissent them. It must then take a strong group of people to try to â€Å"uproot† the ideas, and replace them with what the public believes is right. Moving forward, I can use the information that I have written about and apply it to my own life. I should begin to feel comfortable in challenging what I do not believe in, rather than being neutral about the issue because as Zinn mentions, in this day and age that we live in, neutrality is seen as a sign of acceptance in the way things are now (Zinn 7). I now see that I should begin to be my own self, and not just another grain of sand on the beach, living by the status quo. Works Cited Zinn, Howard. Passionate Declarations: Essays on War and Justice. New York: HarperCollins, 2003. Print.

Video game industry

Video game industry Sony Computer Entertainment Ltd. Versus Nintendo Ltd. For many years, video game industry has played a key role in the growth of economics of some counties. Both Sony Computer Entertainment (SCE) and Nintendo are two representatives of this industry and they also are the main competitors in this fierce market. Previous research has shown that SCE had dominated the video game console market since Playstation2 launched with 138 million unit sales (Plunkett, 2009). Nintendo however occupy much marketing share after their new generation game console Wii and Nintendo Dual Screen (NDS) succeeded in this industry. This essay will compare and contrast SCE and Nintendo in several aspects and this paper which based on secondary resources without exclusive information. Therefore, it will begin via discussing the characteristics of product produced by these two companies, subsequently a discussion concerning price factors between the products of two corporations, for examples the development cost and price of software. Finally, this essay will focu s on the marketing share and sales. Nintendo is a multinational corporation founded on 23 September, 1889 by Fusajiro Yamauchi which producing handmade hanafuda cards. Then the company had tried several small businesses before they developed into a video game company, for example as a cab company and love hotel (Nintendo, 2009a). Consequently, Takenaka (2007) points out Nintendo became Japans third most valuable listed company by developing game console and software, with a market value of over 85 billion USD. Nintendo on the other hand is the majority owner of the Seattle Mariners, a Major League Baseball team. Unlike Nintendo, SCE is a wholly-owned subsidiary of Sony which was established on 16 November, 1993 for handling the Research and Development, production and sales of both hardware and software for Playstation (SCE, 2009). SCE currently has three main headquarters around the world: Japan which controls operations in Asia; USA and UK response to control operation in North America and Europe respectively. SCE and Nintendo have their own way to innovating for making their product attractive in order to surviving in the competitive market. Therefore, according to the announcements about new consoles of SCE in 2004 and 2006, Playstation Portable (PSP) and Playstation3 has launched in 12 December 2004 and 11 November 2006 respectively. People were amazed about the high technology in the hardware of the two consoles, for instance, PS3 has built-in Blu-Ray Disc (BD) player and cell processor, and PSP has UMD disc player and 3D image processor. BD is the new standard of disc which has enough space to save the high definition media files. As a result, the software launched for PS3 and PSP, particularly video games evolved by fantastic screen. Unlike SCE, Nintendo did not invest much to develop disruptive technology in order to improving the hardware but creating new game style. The product features of Wii are the motion sensitive remote and NDS with touch screen and internal microphone. There fore, most of software launched on Nintendo console has bring the features in full play. For instance, the Wii Fit is the education program about Yoga and it is suitable for people who want learn yoga at home, especially ladies. Furthermore, My Word Coach DS and SekainoGohan Shaberu DS are the software for teaching user language and cooking respectively. While, Nintendos product no matter consoles and software are considerably cheaper than SCEs. The significant brand image of SONY and the costly latest technology for consoles determine SCEs product is expensive. There were two hardware configurations announced for PS3 in E3 2006: a 20GB model and a 60GB model, initially priced at 499 USD and 599 USD respectively (IGN, 2006). Furthermore, PSP is the first venture of SCE in the pocket game console market with price skimming strategy too. The price of the base model in first announcement of it was 19800 yen about 181 USD in 2004 (IGN, 2004). Then, in accordance with appendix 1(Curmudgeon Gamer, 2007), the table reveals the comparison of the average game price between DS and PSP in Mid-Nov 2006 and Mid-Apr 2007 respectively. The trends of average game price for PSP and DS both were experienced a decreased during that period of time. Besides, the average game price of PSP is more expensive than DS by 2-3 USD per game. However the price of Nintendos consoles wii and NDS are much lower than PS3 and PSP. Compared with PS3, the Wii launched in United States in November 2006 at 249.99 USD nearly half of PS3 (Sanders and Casamassina, 2006). Moreover, according to Harris (2004) Nintendo announced the NDS would be released in North America in November, 2004 for 149.99 USD. Nintendo already had occupied much more marketing share than SCE with the successful strategy and the attractive features of consoles. Although SCE had invested significant mount of money for developing their new generation game console. Sony released its life-to-date sales for the PS3 and PSP. As of June 30, 2009, the high-powered and relatively high-priced console had sold 23.8 million units worldwide since its November 2006 launce. (Thorsen, 2009: no page) Thorsen (2009), also cited in the Game Spot, The PSP, which launched in 2004 (Japan) and 2005 (all other territories), had sold 55.9 million units as of the end of Sonys last fiscal quarter. On the contrary, Nintendo (2009b, pp9) reported NDS and Wii had sold 107.75 million units and 52.62.million units since it launched to the June, 09 respectively. Moreover, appendix 2 illustrates the sales of the four game consoles in the three main markets (Japan, United Kingdom and United States). To sum up, the purpose of this essay is to highlight some main differences and similarities between SCE and Nintendo, it has been seen that even though SCE and Nintendo produce the same types of products, they have the different way on designing their products and expanding their business. In terms of evaluating the circumstance of the two corporations it has emerged from the discussion above that Nintendo occupied much more market share and it is in a stronger financial position than SCE. Given the current economic climate, Nintendo therefore is the video game development company which would suffer the least economic loss. References Brightman.J (2008) Wii U.S. installed base now leads Xbox 360 by almost 2 million (Online) Retrieved from http://www.gamedaily.com/articles/news/wii-us-installed-base-now-leads-xbox-360-by-almost-2-million [Assessed 24 October 2009] Curmudgeon Gamer (2007) Nintendo DS vs. Sony PSP: game pricing update (Online) Retrieved from http://curmudgeongamer.com/2007/04/nintendo-ds-vs-sony-psp-game-pricing.html [Assessed 22 October 2009] Famistu (2009) Revenue of Japan video game industry was almost 582.61 billion yens (In Japanese) (Online) Retrieved from http://www.famitsu.com/game/news/1221045_1124.html [Assessed 24 October 2009] Harris.C (2004) Official Nintendo DS launch details (Online) Retrieved from http://uk.ds.ign.com/articles/549/549919p1.html [Assessed 23 October 2009] IGN (2004) Japanese price and date set (Online) Retrieved from http://uk.psp.ign.com/articles/560/560947p1.html [Assessed 22 October 2009] IGN (2006) E3 2006: The final word on playstation (Online) Retrieved from http://uk.ps3.ign.com/articles/709/709973p1.html [Assessed 22 October 2009] Kiyoshi Takenaka (2007) UPDATE 2-Nintendo sets $85 bln high score, thanks to Wii, DS (Online) Retrieved from http://www.reuters.com/article/companyNewsAndPR/idUST30751820071015 [Assessed 10 November 2009] Martin, M (2009) Console installed base reaches 22m in UK (Online) Retrieved from http://www.gamesindustry.biz/articles/console-installed-base-reaches-22m-in-uk [Assessed 24 October 2009] Nintendo (2009a) Company History (In Japanese) (Online) Retrieved from: http://www.nintendo.co.jp/corporate/outline/index.html [Assessed 21 October 2009] Nintendo (2009b) Consolidated Financial Highlights pp9 (Online) Retrieved from http://www.nintendo.co.jp/ir/pdf/2009/090730e.pdf#page=23 [Assessed 24 October 2009] Plunkett, L (2009) Sony talks Playstation lifetime sales, PSN revenue (Online) Retrieved from: http://kotaku.com/5340392/sony-talk-playstation-lifetime-sales-psn-revenue [Assessed 21 October 2009] Sanders, K and Casamassina, M (2006) US Wii price, launch date revealed (Online) Retrieved from http://uk.wii.ign.com/articles/732/732669p1.html [Assessed 23 October 2009] SCE (2009) Company Profile (Online) Retrieve from: http://www.scei.co.jp/corporate/index_e.html [Assessed 21 October 2009] SCE (2004) PSP enters the market on December 12, 2004 at 19,800 Yen in Japan (Online) Retrieved from http://www.scei.co.jp/corporate/release/pdf/041027ae.pdf [Assessed 22 October 2009] SCE (2006) Playstation3 Launches on November 11, 2006 in Japan (Online) Retrieved from http://www.scei.co.jp/corporate/release/pdf/060509ae.pdf [Assessed 22 October 2009] Thorsen.T (2009) PS3 sales almost 24 million, PSP near 56 million (Online) Retrieved from: http://uk.gamespot.com/news/6214693.html?om_act=convertom_clk=newstoptag=newstop;title;5 [Assessed 24 October 2009]

Galileo Galilei Essay -- Essays Papers

Galileo Galilei Galileo was born in Pisa along the Via del Cuore in 1564 to Vincenzo Galileo, a man known for his study of music, and Giuli Ammananti. When Galileo was ten he moved to Florance.1 At eleven young Galileo was sent to Vallombrosa for school. At fifteen Galileo decided to be a monk, but because of his father gave up his ambition. In the late summer of 1581 Galileo entered the University of Pisa and embarked on a course of study in medicine. Studying the Aristotelian system, which states larger heavier objects from high places, Galileo became increasingly skeptical. Evidence of Galileo’s brilliance was assured when in 1583, he was attending service in the cathedral and he saw that the flames of the candles osculated back and fourth. It was upon this observation that the pendulum was built. Not having enough money and not having the skills required to stay at the University, they kicked him out. To get by, Galileo began tutoring students. His continuous work with mathematics led Galileo to go to Rome and visit the famous Jesuit mathematician Christopher Calvis. From there on out, Galileo was able to hob-knob with Italy’s mathematical elite. As Galileo’s acquaintances grew, so did his reputation. He went on to make lectures and speeches about his mathematical findings. Unfortunately by 1593 Galileo was in dept. To make up for his financial problems Galileo invented what we know as the thermometer. There was no money in this so Galileo worked at a university teaching ptolemy and kept his job tutoring for a fair price. Time passed and Galileo moved from Giustina to a large three-story house behind the Basilica of San Antonio. Galileo still struggled to make ends meat, which also could be blamed on his mistress Marina... ..., Galileo was dumped with Michelangelo’s, his brother’s, wife and seven kids in May of 1627. When in 1627 Ferdinand II became lord of Tuscany, Galileo was appointed o the council of 200. A year latter in 1630, Galileo finished the controversial Dialogue. Galileo’s book drew much criticism and as a result, by January Galileo went away to be tried in court for believing in the Copernican opinion. After much deliberation on the issue, Galileo was sentenced to imprisonment. Though given many luxuries for a prisoner, Galileo was not allowed to speak or even carry out many of his creative ambitions.2 By Christmas of 1637 Galileo had gone blind and with all his illnesses was struggling just to live. Then on January 8, 1642 Galileo Galilei died.3 Sources 1 Field, Galileo Gaililei, 1 2 Reston, Galileo: A Life, 7-282 3 Unknown, Biography Galileo Galilei, 1 Galileo Galilei Essay -- Essays Papers Galileo Galilei Galileo was born in Pisa along the Via del Cuore in 1564 to Vincenzo Galileo, a man known for his study of music, and Giuli Ammananti. When Galileo was ten he moved to Florance.1 At eleven young Galileo was sent to Vallombrosa for school. At fifteen Galileo decided to be a monk, but because of his father gave up his ambition. In the late summer of 1581 Galileo entered the University of Pisa and embarked on a course of study in medicine. Studying the Aristotelian system, which states larger heavier objects from high places, Galileo became increasingly skeptical. Evidence of Galileo’s brilliance was assured when in 1583, he was attending service in the cathedral and he saw that the flames of the candles osculated back and fourth. It was upon this observation that the pendulum was built. Not having enough money and not having the skills required to stay at the University, they kicked him out. To get by, Galileo began tutoring students. His continuous work with mathematics led Galileo to go to Rome and visit the famous Jesuit mathematician Christopher Calvis. From there on out, Galileo was able to hob-knob with Italy’s mathematical elite. As Galileo’s acquaintances grew, so did his reputation. He went on to make lectures and speeches about his mathematical findings. Unfortunately by 1593 Galileo was in dept. To make up for his financial problems Galileo invented what we know as the thermometer. There was no money in this so Galileo worked at a university teaching ptolemy and kept his job tutoring for a fair price. Time passed and Galileo moved from Giustina to a large three-story house behind the Basilica of San Antonio. Galileo still struggled to make ends meat, which also could be blamed on his mistress Marina... ..., Galileo was dumped with Michelangelo’s, his brother’s, wife and seven kids in May of 1627. When in 1627 Ferdinand II became lord of Tuscany, Galileo was appointed o the council of 200. A year latter in 1630, Galileo finished the controversial Dialogue. Galileo’s book drew much criticism and as a result, by January Galileo went away to be tried in court for believing in the Copernican opinion. After much deliberation on the issue, Galileo was sentenced to imprisonment. Though given many luxuries for a prisoner, Galileo was not allowed to speak or even carry out many of his creative ambitions.2 By Christmas of 1637 Galileo had gone blind and with all his illnesses was struggling just to live. Then on January 8, 1642 Galileo Galilei died.3 Sources 1 Field, Galileo Gaililei, 1 2 Reston, Galileo: A Life, 7-282 3 Unknown, Biography Galileo Galilei, 1

The Adventures Of Tom Sawyer †Tribulations :: Adventures Tom Sawyer Essays

The Adventures Of Tom Sawyer – Tribulations Mark Twain uses "The Adventures Of Tom Sawyer" to reveal his own childhood. In the preface Mark Twain states "Most of the adventures recorded in this book really occurred; one or two were experiences of my own, the rest those of boys who were schoolmates of mine. Huck Finn is drawn from real life; Tom Sawyer also, but not from an individual - he is a combination of the characteristics of three boys whom I knew, and therefore belongs to the composite order of architecture." This is Mark Twain's "The Adventures Of Tom Sawyer". From this point we begin our tour through the Adventures Of Tom Sawyer's life, accompanied by his friends. It is the story about life in a boys' world and it discloses feelings of Mark Twain concerning his boyhood, his town and the people there. Tom Sawyer was a boy but not a genus that would describe good children as the protagonists. Tom Sawyer was a fiend yet he was never malicious, but always up to a trick or a practical joke of some kind. During the years that we view Tom Sawyer, a multitude of events had occurred. All of which are recorded in Mark Twain's style. Mark Twain composes in a picaresque style, Tom Sawyer's adventures being set out in an episodic journalistic report by Mark Twain. In "The Adventures Of Tom Sawyer," Tom Sawyer, the lead character is seen as the protagonist, the hero of the story. "The Adventures Of Tom Sawyer," also fits into the genres of satire, frontier literature, folk narrative and comedy. Every adventure is new and more stimulating than the prior episode. These adventures are from an adult who views the adult world critically and looks back on the sentiments and past times of childhood in a somewhat idealized manner, with wit and also in a nostalgic way. Critics have suggested several other sources for the novel, including South Western humorist, George W. Harris. This is an example of "escapism" from a society that Mark Twain had felt alienated from. Set in the old South West, in an almost poverty stricken shabby town, called St. Petersburg.

Shattered Dreams in Stolen Party :: stolen

Shattered Dreams in Stolen Party In the story "Stolen Party" written by Liliana Heker, a girl’s dreams are shattered by the bitter reality of her destiny. Rosaura spends most of her time trying to convince her mother, as well as everyone at the birthday party, that being an educated girl makes her an equal to everyone at the party. She feels great determination to become a part of her friend Luciana’s lifestyle even though it would be rebelling against her mother’s wishes. Rosaura almost believes she has accomplished this feat until she is harshly brought back to reality and faced with her position in life once again. It will be an impossible struggle to overcome the class status that she was born into with the many factors against her. When Rosaura’s mother can tell her starry-eyed daughter who is full of hope and innocence that, "The problem with you, young lady, is that you like to fart higher than your ass" (Heker 1133), it creates a bitterness between them and damages the idea of Rosaura improving herself. The mother does not want Rosaura to go "the rich people’s party," perhaps due to fear that her daughter might experience the cold shoulder from the upper class, or perhaps out of fear that Rosaura might truly make it and leave the mother behind. The fact that this mother could have this incredibly mature conversation with her daughter "barely even nine," and that Rosaura could say to her mother "rich people go to heaven too," indicates the maturity of the daughter as well as her intelligence level that was already higher than her mother’s. Rosaura proceeds to tell her mother what a friend is. However despite her greatest efforts to make her mother understand, her mother continues to keep throwing negative thoughts and opinions at her. The next hindrance Rosaura experiences is at the party. She is confronted by a "high class" young girl who is the cousin of her friend Luciana. After numerous questions about who Rosaura was, the young girl tells her "you are not a friend of Luciana because I’m her cousin and I know all her friends" (1135). Rosaura maintained her ground through the slew of questions thrown at to her. Not until the question of how was she Luciana’s friend came up did Rosaura start to become defeated by her social class. Rosaura recited the line "my mother’s an employee," a face-saving but still revealing statement that had been instilled in her head (1135).

Operational Performance Measurement: Sales and Direct-Cost Variances

Chapter 14 Operational Performance Measurement: Sales and Direct-Cost Variances, and the Role of Nonfinancial Performance Measures Case 14-1: Pet Groom and Clean Company Readings 14-1: â€Å"Standard Costing Is Alive and Well at Parker Brass† by D. Johnsen and P. Sopariwala, Management Accounting Quarterly (Winter 2000), pp. 12-20. The Brass Products Division of the Parker Hannifin Corporation is a world-class manufacturer of tube and brass fittings, valves, hose, and hose fittings. Despite the introduction of popular new costing systems, the Brass Product Division operates a well-functioning standard costing system.Discussion Questions: 1. What features in the firm's standard costing that make it a success? 2. In addition to variances seen in the textbook Parker Brass created several new variances. Describe these variances. Why are these variance added at Parker Brass? 14-2: â€Å"Redesigning Cost Systems: Is Standard Costing Obsolete? † by Carole B. Cheatham and Leo B . Cheatham, Accounting Horizons (December 1996), pp. 23-31. The article shows some new ways to analyze standard cost data, going beyond the traditional emphasis on production costs variances that focus on price and efficiency.Variances for product quality are developed and explained, as well as sales variances based on sales orders received and orders actually shipped. There is also a discussion of how to incorporate activity-based costing, and continuous standard improvement, including benchmarking and target costing. The main premise of the article is that standard cost systems are the most common cost systems in use, and while there are a number of limitations to these systems, a careful and creative effort can transform them into more useful cost systems. Discussion Questions: 1.What are the main criticisms of traditional standard cost systems? 2. What is meant by â€Å"push through† production? Is it preferred to â€Å"pull through† production, and why? 3. What ar e the best ways to make standard cost systems more dynamic? 4. Considering the suggestions make in this article, in contrast to the chapter presentation of standard costing, which ideas make the most sense to you and why? 14-3: Can Variance Analysis Make Media Marketing Managers More Accountable? by Ted Mitchell and Mike Thomas, Management Accounting Quarterly (Fall 2005), pp. 51-61.This article discusses, within the context of a marketing application, an alternative method for decomposing a total standard cost variance. The authors posit that in such applications the joint variance (that in conventional practice is assumed to be small) can be significant in amount and therefore invalidate conventional methods that include the joint price-cost variance as part of the price variance. However, the treatment proposed by the authors for the joint price-quantity variance differs from the â€Å"three-variance† solution found in some cost/managerial accounting texts. Discussion Ques tions: . Explain what is meant by the term â€Å"joint variance† as this term is used in standard cost systems used for control purposes. 2. Explain what the authors of this article mean when they describe their proposed approach for standard cost variance decomposition as a â€Å"geometric solution. † 3. Explain the term â€Å"Minimum Potential Performance Budget† model. How is this concept employed in the variance decomposition process recommended by the authors? 4. What are the primary advantages and primary disadvantages of the variance decomposition model recommended by the authors of this paper? 4-4: Helping Students See the ‘Big Picture of Variance Analysis by Neal VanZante, Management Accounting Quarterly, Vol. 8, No. 3 (Spring 2007), pp. 39-47. This paper presents two examples that can be used to reinforce concepts and procedures students learn in text Chapters 14 through 16. The first example, Fernandez Company, can be used as a comprehensive rev iew of all three chapters; the second example, Roger Company, can be used in conjunction with Chapter 14 if additional coverage of the joint price-quantity variance for direct materials (DM) is desired.The Fernandez Company example requires students to first calculate the total flexible budget variance (in operating income) for a period and then breakdown this variance into its constituent parts (selling price variance, various cost variances, etc. ). Discussion Questions: 1. What is meant by the total operating-income variance for a given accounting period? What alternative names are there to describe this variance. 2. What would be a first-level breakdown of the total variance described above in (1)? 3. How can the total flexible-budget variance be broken down (i. . , what are the constituent parts of this total variance)? 4. Explain the total sales volume variance for a period. How can this total variance be decomposed? 5. Explain the meaning of the joint price-quantity variance that is the basis for the discussion in the Roger Company case. 14-5: Are ABC and RCA Accounting Systems Compatible with Lean Management? by Larry Grasso, Management Accounting Quarterly, Vol. 7, No. 1 (Fall 2005), pp. 12-27. This paper provides a critical analysis of several alternative cost systems to traditional cost accounting systems.It then evaluates these alternatives in terms of how they might support, or not, companies that adopt a lean philosophy. An example of nonfinancial performance indicators that support a lean philosophy is offered in Tables 1 and 2. This discussion in the article of the historical development of management accounting systems reinforces in the minds of students the evolving nature of cost system design: as the environment changes, so should management accounting systems. (Note: this reading could also be used in conjunction with Chapter 15 of the text. ) Discussion Questions: . Describe what is meant by the term lean manufacturing. 2. According to th e author of this article, what are the primary uses (or roles) of management accounting data within organizations today? 3. According to the author of this article, what are the primary implications of adopting a lean philosophy in terms of the design of management accounting systems? 4. Explain the importance of the examples provided in Tables 1 and 2 of this article. 14-1 Pet Groom & Clean (PG) David Green is considering his operating statement for 2010, which is displayed in the table below.David is the manager of store number 88, where he began as one of the staff 6 years ago, and through hard work has risen to become manager of the store. The operating report shows his budgeted performance for the year and the actual results, showing a net improvement of 9% over budget–$405. While his results are positive, the small improvement over the budget does not qualify David for the bonus program which awards a $3,000 bonus for store managers who improve their performance over th at of the budget by 20% or more. David manages one store in a 110 store chain of pet grooming stores owned by Pet Groom & Clean Company (PG&C).As for other PG stores, his store is open Monday through Saturday each week; the only service provided at the store is a service in which a pet, dog or cat, is groomed and cleaned, typically while the customer waits. The budgeted price for the service at the beginning of 2010 was $25. Budgeted variable costs were $2 for materials and $9 labor cost per service, as well as other variable costs of $1. 50 per service. Materials are purchased by local store managers, and all staff are hired and supervised by the local store managers.Other budgeted and actual information for 2010 are shown in the table below. David is an ambitious and hard working manager, who has applied himself to the job and has looked for different ways to attract customers and to reduce costs. For example, he noticed that most of the company’s customers brought their pe ts in on Friday, Saturday, and Monday, and the number of customers was significantly lower on Tuesday through Thursday. In fact, David budgeted that 80% of total demand for 2010 would be in the Friday-Monday period, and only 20% would be in the Tuesday-Thursday period.So at the start of 2010 David began a promotion that reduced prices on Tuesday through Wednesday to $18 in an effort to draw in more business during these three days. Also, noting the strong demand in the Friday-Monday period, David decided to increase the price during those days from $25 to $30. An experienced manager, David was able to manage labor costs so that staff were not idle, even on slow days; David scheduled the number of staff to meet the expected demand on each day, and because of his experience (and because his store encouraged appointments), his forecast of demand was usually quite accurate.Thus, labor cost is fairly treated as a variable cost for David’s store. Labor costs consists of 3 staff who are budgeted to work 2,500 hours per year at a budgeted pay rate of $12 per hour, thus the total budgeted labor costs of $ 90,000 (= 3 x $12 x 2,500). Through his careful scheduling of staff, and his effective management style, Dave was able to save labor time so that each of the three employees worked only 2,250 hours in 2010.Other expenses include training expenses –each staff employee is expected to have at least 6 hours of training at the PG&C headquarters during the year; the local store is charged $250 per hour for this training. The local store manager determines the amount of training time for each staff. Other expense also includes advertising expense, which is controlled by the local managers; PG&C recommends that advertising should be about 1% of total sales. Service development is the cost of studying new products for use in he stores and for the study of potential new ways to improve the services provided at PG&C stores. Service development is charged to each st ore based on the allocation rule of 10% of store sales. Accounting, insurance costs, taxes, and management overhead (which includes store rent and manager’s pay) are paid at the home office of PG&C and are allocated based upon a formula which combines store size, store sales, and the age of the store. Employee benefits accrue to staff at the rate of 20% of total pay. These benefit payments are contributed to a 401(k)-type retirement plan for each employee.The result of David’s promotional price for the Tuesday-Thursday period was successful, as total sales increased from 10,000 to 10,500 and the Tuesday-Thursday sales increased from 20% to 30% of total sales. Required: From David Green’s perspective, develop an analysis which explains your performance for the year ended December 31, 2010. [pic] 14-1: STANDARD COSTING IS ALIVE AND WELL AT PARKER BRASS by David Johnsen and Parvez Sopariwala Many people have condemned standard costing, saying it is irrelevant to th e current just-in-time based, fast-paced business environment.Yet surveys consistently show that most industrial companies in the United States and abroad1 still use it. Apparently, these companies have successfully adapted their standard costing systems to their particular business environments. In addition, many academics have contributed ideas on how the standard costing system could be and has been made more responsive to the needs of companies operating in this new economy. 2 The Brass Products Division at Parker Hannifin Corporation (hereafter, Parker Brass), a world-class manufacturer of tube and brass fittings, valves, hose and hose fittings, is one of the tandard costing success stories. It operates a well-functioning standard costing system of which we will show you some highlights. WHAT’S SPECIAL ABOUT THE STANDARD COSTING SYSTEM AT PARKER BRASS? Parker Brass uses its standard costing system and variance analyses as important business tools to target problem areas so it can develop solutions for continuous improvement. Here are some examples of these standard costing-related tools: (Disaggregated product line information. Parker Brass has been divided into Focus Business Units (FBUs) along product lines.Earnings statements are developed for each FBU, and variances are shown as a percentage of sales. If production variances exceed 5% of sales, the FBU managers are required to provide an explanation for the variances and to put together a plan of action to correct the detected problems. To help the process, a plant accountant has been assigned to each FBU. As a result of these steps, each unit is able to take a much more proactive approach to variance analysis. ( Timely product cost information.In the past, variances were reported only at month-end, but often a particular job already would have been off the shop floor for three or more weeks. Hence, when management questioned the variances, it was too late to review the job. Now exception repor ts are generated the day after a job is closed (in other words, the day after the last part has been manufactured). Any jobs with variances greater than $1,000 are displayed on this report. These reports are distributed to the managers, planners or schedulers, and plant accountants, which permits people to ask questions while the job is still fresh in everyone’s mind. Timely corrective action. Because each job is costed (in other words, transferred out of Work-in-Process and into Finished Goods) 10 days after the job has closed, there is adequate time for necessary corrective action. For example, investigating a large material quantity variance might reveal that certain defective finished parts were not included in the final tally of finished parts. Such timely information would allow management to decide whether to rework these parts or to increase the size of the next job.This kind of corrective action was not possible when variances were provided at the end of each month. (An effective control system. Summary reports are run weekly, beginning the second week of each month, to show each variance in total dollars as well as each variance by product line and each batch within the product line. In addition, at the end of each month, the database is updated with all variance-related information. As a result, FBU managers can review variances by part number, by job, or by high dollar volume. (Employee training and empowerment.Meetings are held with the hourly employees to explain variances and earnings statements for their FBU, thereby creating a more positive atmosphere in which the FBU team can work. These meetings help employees understand that management decisions are based on the numbers discussed and that if erroneous data are put into the system, then erroneous decisions may be made. For example, a machine may not be running efficiently. An operator may clock off of the job so that his or her efficiency does not look bad. Because the machine’ s efficiency is not adversely impacted, no FIGURE 1 | |PANEL A: THE FACTS | |Standard production in 1 hour (units) |50 | |Standard batch quantity (units) |2,000 | |Standard hours needed for 2,000 units |40 | |Standard time needed for 1 setup (hours) |4 | |Standard labor rate per hour |$10 | |Actual quantity produced (units) |1,200 | |Actual setup hours for 1 setup |4 | |Actual productive labor hours to make 1,200 units |24 | |Actual labor cost for 28 hours at $10 per hour |$280 | | | |PANEL B: WORKINGS | | Setups |Production |Total | |Standard time per unit: | | | | |Standard setup time ( hours) |4 | | | |Standard production time (hours) | |40 | | |Standard batch size (units) |2,000 |2,000 | | |Hence, standard time per unit (hours) |0. 002 |0. 020 |0. 022 | | | | | | |Standard time charged for 1,200 units: | | | | |Standard time per unit (hours) |0. 002 |0. 020 |0. 22 | |# of units actually produced |1,200 |1,200 |1,200 | |Standard time charged (hours) |2. 40 |24. 00 |26. 40 | | | | PANEL C: SOLUTION | |If SRQV is determined, the journal entry would be: | | | |Work in process [(26. 40)($10)] |$264 | | |SRQV [(4. 00 – 2. 0)($10)] |$16 | | | Accrued payroll | |$280 | |If SRQV is not determined, the journal entry would be: | | | |Work in process [(26. 40)($10)] |$264 | | |LEV [{28. 00 – (1 . 200)(0. 022)}{$10}] |$16 | | | Accrued payroll | |$280 | maintenance is done to that machine, and the inefficiency continues. In addition, because the operator is not charging his/her cost to a job, the cost is being included in indirect labor, and manufacturing costs increase.If the operator had reported the hours correctly, management would have questioned the problem, and the machine would have been fixed or replaced based on how severe the problems were. WHAT NEW VARIANCES HAS PARKER BRASS DESIGNED? In addition to the aforementioned innovations that Parker Brass has made to adapt its standard costing system to its particular business environment, the company has created the following new variances: (The standard-run quantity variance to explain situations where the size of a lot is less than the optimal batch quantity. (The material substitution variance to evaluate the feasibility of alternative raw materials. ( The method variance to assess situations where different machines can be used for the same job. THE STANDARD RUN QUANTITY VARIANCEThe standard run quantity variance (SRQV) represents the amount of setup cost that was not recovered because the batch size was smaller than the earlier determined optimal batch size. Because setup costs are included in the standard labor hours for a standard batch quantity is likely to create an unfavorable labor efficiency variance (LEV). Unless, |FIGURE 2 | |PANEL A: THE FACTS | |Standard price per pound of material Ml |$10 | |Standard price per pound of material M2 |$11 | |Standard material quantity (Ml & M2) to make 100 units (lbs. |2 | |Actual quantity produced (units) |2,000 | |Actual pounds o f M2 purchased and used |43 | | | |PANEL B: WORKINGS | |Standard quantity to produce 2,000 units: | | |Standard material quantity to make 100 units (lbs. ) |2 | |Actual quantity produced (units) |2. 00 | |Hence, standard quantity to produce 2,000 units |40 | | | |PANEL C: SOLUTION | |If MSV is determined, the journal entry would be: | | | |Work in process [(40. 00)($10)] |$400 | | |MEV [(43. 00 – 40. 00)($11)] |$33 | | |MSV [(40. 00)($11 – $10)] |$40 | | | Material—M2 [(43. 0)($11)1 | |$473 | | | | | |If MSV is not determined, the journal entry might be: | | | |Work in process [(40. 00)($11)] |$440 | | |MEV [(43. 00 – 40. 00)($11)] |$33 | | | Material—M2 [(43. 00)($11)] | |$473 | owever, the impact of actual production inefficiencies is separated from setup-related inefficiencies, the LEV reflects the combined impact of these two causes of inefficiencies and is not really useful for taking the necessary corrective action. See Figure 1 for an illust ration of this issue. Panel A shows that standard batch quantity is 2,000 units, the standard production during one hour is 50 units, and, hence, 40 standard hours are needed to produce 2,000 units. In addition, it takes four standard and actual hours to set up one batch. Panel B reveals that standard hours for setup and production labor are 0. 002 and 0. 020 per unit, respectively, for a total of 0. 022 per unit.In addition, because actual quantity produced is 1,200 units, the total standard hours chargeable to these 1,200 units is 26. 40 [(0. 002 + 0. 020)(1,200)]. Finally, Panel C shows the recommended journal entry whereby an SRQV is created. This SRQV represents the unrecovered setup costs because 1,200 units were manufactured instead of the standard batch quantity of 2,000 units. Thus, because the company expected to spend $40 [(4 hours)($10 per hour)] on each setup, the setup cost relating to the 800 (2,000 – 1,200) units not produced, or $16 U, is considered an unfavo rable SRQV or the cost of producing small lots. On the other hand, using traditional standard costing, this amount of $16 U would most likely have been categorized as an LEV.Yet there really is no LEV,3 and the variance of $16 U attributed to labor efficiency is merely the unabsorbed portion of the setup cost attributable to the 800 units that were not produced. The advantages of extracting the standard run quantity variance are many. First, the SRQV ordinarily would be included in the LEV and could provide a misleading impression of labor’s efficiency. Second, because just-in-time practices recommend smaller lots and minimal finished goods inventory the SRQV is essentially the cost of adopting JIT Third, to the extent that setup cost and the cost of carrying inventory are competing undesirables, a determination of the cost of small lots could be used in the trade-off analysis against the cost of holding and carrying inventories.Finally, to the extent that this variance can b e separated for each customer, it would reveal how much of a loss was suffered by allowing that customer to purchase in small lots. Such information could be used in future bids. If a customer’s schedule required a smaller lot, then that customer’s job cost could be enhanced appropriately. THE MATERIAL SUBSTITUTION VARIANCE The material substitution variance (MSV) assumes perfect or near perfect substitutability of raw materials and measures the loss or gain in material costs when a different raw material is substituted for the material designated in the job sheet. Substitutions may be made for many reasons. For example, the designated material may not be available or may not be vailable in small-enough quantities, or the company may want to use up material it purchased for a product that it has since discontinued. The usefulness of MSV is discussed in Figure 2. Panel A shows that both materials, M1 and M2, can be used to manufacture a product, and it is assumed that t wo pounds is the standard input per unit for both materials. Material M1 is the material designated in the job sheet, but material M2 can be substituted for M1. The standard cost of M2 ($11 per lb. ) is higher than that for M1 ($10 per lb. ), and M2 is used because M1 is currently not available and a valued customer needs a rush job. 4 Panel B reveals that the standard quantity needed to manufacture 2,000 units is 40 lbs.For the purposes of this illustration, we assume that material price variance (MPV) is detected when material is purchased (in other words, the material account is maintained at standard cost). Hence, Panel C reveals the recommended journal entry whereby MSV is created. The MSV represents the benefit obtained by substituting a more expensive material (M2) for the less expensive material (M1) and hence represents the loss through substitution. The MSV is $40 U because (1) 40 lbs. is the standard quantity of M1 and M2 needed to manufacture 2,000 units, and (2) M2 cost s $1 more per lb. than M1. In addition, the material efficiency variance (MEV) is $33 U because 43 lbs. instead of the standard quantity of 40 lbs. ere used to manufacture 2,000 units. In contrast, the traditional standard costing system might ignore the substitution, and the job might be charged with the standard cost of using 40 lbs. of M2. In that scenario, the job would cost $40 more and could have an impact on customer profitability analysis even though the customer did not request the substitution. Now Parker Brass is evaluating an extension that would be to relax the simplifying assumption that both materials require the same standard input. See Figure 3. It adopts the facts from Figure 2 except that 1. 9 lbs. of material M2 are required for 100 units instead of 2 lbs. for both materials in Figure 2.In this situation, we have two MSVs, one for the price impact called â€Å"MSV-Price† and the other for the efficiency impact, called â€Å"MSV-Efficiency. † Panel C shows the recommended journal entry whereby two MSV variances are created. First, MSV-Price is unfavorable because M2, a more expensive material, is being substituted for M1. As a result, MSV-Price is $40 U as material M2 costs $1 more per lb. than material M1. On the other hand, as you might expect, the MSV-Efficiency is favorable because only 1. 9 lbs. of M2 are required to make 100 units as compared to 2 lbs. required for M1. Thus, MSV-Efficiency is $22 F because each batch of 100 units requires 38 lbs. of M2 against 40 lbs. of M1. The net result of the MSV variances is $18 U [(38 lbs. )($11) – (40 lbs. ($10)], suggesting that, barring any other complications, the substitution of M2 for M1 is not likely to be profitable under existing circumstances. Finally, the MEV using material M2 is $55 U, reflecting the fact that 43 lbs. of material M2 actually were used whereas only 38 lbs. of material M2 should have been used. This variance could have been caused by the fact that M 2 was a new material and required initial learning and other nonrecurring costs. In such a case, the standard quantity of 38 lbs. for 2,000 units may not need to be changed. On the other hand, the MEV variance may have been caused because of the inherent difficulty in working with material M2. In such a case, the standard of 38 lbs. for 2,000 units may need to be amended.In contrast, as was shown in Panel C of Figure 2, the journal entry that is likely to be made using traditional standard costing would completely ignore the impact of material substitution and would likely inflate the cost of this particular job. The advantages of extracting the MSV are as follows. First, determining MSV lets the company assign the MSV cost to a customer whose rush job may have required using a more expensive material like M2. On the other hand, the MSV could be written off if the substitution were made to benefit the company. Also, creating an MSV and breaking it up into its price and efficiency co mponents allows the company to evaluate whether the substitution of M2 for M1 is a profitable one.While all these calculations can also be performed off the accounting system, creating the MSV makes the process a part of the system so a history of such evaluations is available for future reference. METHOD VARIANCE A method variance occurs when more than one machine can be used to manufacture a product. 5 For example, a plant may have newer machines that it normally would expect to use to manufacture a product, so its standards would be based on such new machines. Yet the same plant may also keep, as backups, older and less efficient machines that also could manufacture the same product but would require more inputs in the form of machine and/or labor hours. For this example, we assume that labor hours and machine hours have a 1:1 relationship. 6 As FIGURE 3 | |PANEL A: THE FACTS | |Standard price per pound of material M1 |$10 | |Standard price per pound of material M2 |$11 | |Standa rd material quantity of M1 to make 100 units (lbs. ) |2 | |Standard material quantity of M2 to make 100 units (lbs. ) |1. | |Actual quantity produced (units) |2,000 | |Actual pounds of M2 used |43 | | | |PANEL B: WORKINGS | | |Material M1 |Material M2 | |Standard quantity to produce 2,000 units: | | | |Standard material quantity for 100 units (lbs. ) |2 |1. | |Actual quantity produced (units) |2,000 |2,000 | |Hence, standard quantity to produce 2. 000 units |40 |38 | | | |PANEL C: SOLUTION | |If MSV is determined, the journal entry would be: | | | |Work in process [(40. 00)($10)] |$400 | | |MEV [(43. 00 – 38. 00)($11)] |$ 55 | | |MSV-Price [(40. 0)($11 – $10)] |$ 40 | | |MSV-Efficiency [(40. 00 – 38. 00)($11)] | |$ 22 | |Material—M2 [(43. 00)($11) | |$473 | | | | | |If MSV is not determined, the journal entry might be: | | | |Work in process [(38. 0)($11)] |$418 | | |MEV [(43. 00 – 38. 00)($11)] |$55 | | |Material—M2 [(43. 00)($11 )] | |$473 | a result, the method variance becomes pertinent because the traditional LEV from operating the older machines could potentially include the following two impacts. First, an older machine may need additional labor hours to perform the same task, and the additional hours would be reflected in the LEV. Second, the LEV would include the workers’ efficiency or lack thereof on the older machine.We evaluate the usefulness of the method variance in Figure 4. Panel A shows that both machines, A and B, can be used to manufacture a product. Machine A is the more efficient machine and the one used for setting the standard time. Machine B is the backup. Panel B shows that the standard machine hours needed to produce 1,800 units are 30 on machine A and 36 on machine B, which can be compared to the 35 hours actually used to manufacture 1,800 units on machine B. Panel C of Figure 4 reveals the recommended journal entry whereby a method variance is created. This method variance represents the loss incurred by substituting the backup machine B for machine A.Because machine B’s standard of 36 labor hours is greater than machine A’s standard of 30 hours, there is an unfavorable method variance of $120. On the other hand, because machine B took 35 hours to manufacture 1,800 units instead of its standard of 36 machine hours, there is a favorable LEV of $20. As you can see, while there was a loss incurred by using machine B instead of machine A, the actual usage of machine B was efficient. In contrast, assuming the traditional costing system recognizes that machine B was used, it is likely to charge the job $720 [(36 hours) x ($20 per hour)] instead of the $600 [(30 hours) x ($20 per hour)] that would have been charged if machine A had been used. Here are the advantages of extracting the method variance.First, the impact of the method variance ordinarily would be included in the LEV and would provide a misleading impression of labor’s productivity. Sec ond, the method variance could be used to isolate the additional cost that was incurred during the year by operating machine M2. This could permit a trade-off between purchasing a new machine |FIGURE 4 | |PANEL A: THE FACTS | |Machine A: standard time needed for one unit (minutes) |1. 0 | |Machine B: standard time needed for one unit (minutes) |1. | |Labor rate per hour |$20 | |Actual quantity produced (units) |1,800 | |Actual labor hours used to make 1,800 units using machine B |35 | |Actual labor cost |$700 | | | |PANEL B: WORKINGS | | |Machine A |Machine B | |Standard hours needed for 1. 800 units on: | | | |Standard time needed for one unit (minutes) |1. 0 |1. | |Actual quantity produced (units) |1,800 |1,800 | |Hence, the standard hours needed |30 |36 | | | |PANEL C: SOLUTION | |If method variance is determined, the journal entry would be: | | | |Work in process [(30. 00)($20)] |$600 | | |Method variance [(36. 00 – 30. 00)($20)] |$120 | | |LEV [(36. 00 – 35. 0)($2 0)] | |$ 20 | |Accrued Payroll | |$700 | | | | | |If method variance is not determined, the journal entry might be: | |Work in process [(36. 00)($20)] |$720 | | |LEV [(36. 00 – 35. 0)($20)] | |$ 20 | |Accrued Payroll | |$700 | and continuing to maintain the older machine, especially if tight delivery schedules are not the norm. Finally, the product cost would still be based on the standards for the more efficient new machine, and the job would not be charged a higher cost merely because a less efficient machine was used. That means a job that was completed on the older machine would not be penalized. 7 RELEVANT, NOT IRRELEVANT As you can see from the Parker Brass examples, standard costing has not become irrelevant in the new rapid-paced business environment.Parker Brass not only has managed to modify its standard costing system to achieve disaggregated and timely cost information for timely corrective action, but it has also designed additional variances to determine how set up time relating to small batches should be absorbed, whether an alternative raw material is economically feasible, and how a product’s cost might reflect the use of alternate production facilities. 1Studies reporting on the widespread use of standard costing in the U. S. , the U. K. , Ireland, Japan, and Sweden are summarized by Horngren, Foster, and Datar on page 225 of the 9th edition of their cost accounting text published by Prentice-Hall in 1997. 2C. Cheatham, â€Å"Updating Standard Cost Systems,† Journal of Accountancy, December 1990, pp. 57-60; C. Cheatham, â€Å"Reporting the Effects of Excess Inventories,† Journal of Accountancy, November 1989, pp. 131-140; C. Cheatham and L. R.Cheatham, â€Å"Redesigning Cost Systems: Is Standard Costing Obsolete,† Accounting Horizons, December 1996, pp. 23-31; H. Harrell, â€Å"Materials Variance Analysis and JIT: A New Approach,† Management Accounting, May 1992, pp. 33-38. 3The standard production hou rs needed for 1,200 units were 24 [(1,200) x (0. 020)], whereas the actual labor hours used have been intentionally set at 24. In addition, the standard and actual labor hours for one setup have been intentionally set at four. 4An alternative scenario could have the cost per pound of M2 ($9 per lb. ) being lower than that for M1 ($10 per lb. ) because M2 is used to manufacture other products as well and the company obtains quantity discounts for large purchases of M2. To a limited extent, the rationale behind the method variance is similar to that for the material substitution variance (MSV) discussed earlier. 6That is, the machine does not work independent of the worker. Hence, the labor hours spent on the machine are the same as the number of hours the machine was operated. 7A similar reasoning is applied in situations wherein the routing for the manufacture of a product is amended during the year, possibly because the customer wants an additional processing step. In such a case, the resulting process variance could be charged to the customer. 14-2: Redesigning Cost Systems: Is Standard Costing Obsolete? By Carole B. Cheatham and Leo B. Cheatham, Professors at Northeast Louisana University.SYNOPSIS: Since the early 1980s standard cost systems (SCSs) have been under attack as not providing the information needed for advanced manufacturers. In spite of its critics, SCSs are still the system of choice in some 86 percent of U. S. manufacturing firms. This paper discusses the criticisms of SCSs that (1) the variances are obsolete, (2) there is not provision for continuous improvement, and (3) use of the variances for responsibility accounting result in internal conflict rather than cooperation. Updates for SCSs in the form of redesigned variances, suggestions for dynamic standards, and refocused responsibility and reporting systems are presented. The compatibility of SCSs and its main competitor as a cost system, activity-based costing (ABC), is examined.The auth ors discuss when it is appropriate to use ABC or SCS or some combination of the two. Since Eli Goldratt’s (1983) charge that cost accounting is the number one enemy of productivity in the early 1980s, traditional cost systems have been under attack. Although Goldratt subsequently softened his stand to say that cost rather than accounting was the culprit (Jayson 1987), others were quick to jump on the bandwagon to condemn the cost systems in use. New systems were proposed of which the most popular was activity-based costing (ABC). In spite of all the criticism, a 1988 survey shows 86 percent of U. S. manufacturers using standard cost systems (Cornick et al. 988). A survey by Schiff (1993) indicates that 36 percent of companies use activity-based costing, but only 25 percent of those use it to replace their traditional cost system. It would seem that only about 9 percent (25 percent of the 36 percent) of companies are using ABC as their main system while the vast majority use a standard cost system (SCS). This is not to say that traditional SCSs could not benefit from being updated. However, accountants in industry (as well as academia) seem unaware that a redesigned SCS can provide the information they need, and that updating their present system is an easier process than adopting a new system.The SCS is one vehicle of articulation among managerial, financial and operations accounting, and it is a control system while the candidates for its replacement typically are only cost accumulation systems. In this article the major criticisms of SCSs are examined along with ways that the weaknesses can be remedied or ameliorated. The criticisms relate to the use of specific variances, the lack of provision for continuous improvement, and the fact that administration of the system results in internal competition rather than cooperation. The appropriate use of ABC systems in conjunction with SCSs is also discussed. UPDATING THE VARIANCES IN AN SCSConcerning the var iables analyzed in an SCS, most criticisms center on the overemphasis on price and efficiency to the exclusion of quality. Other criticisms center on the use of the volume variance to measure utilization of capacity while ignoring overproduction and unnecessary buildups of inventory. In making such charges, critics fail to realize variance analysis is not â€Å"locked-in† to a particular set of variables. Standards are only benchmarks of what performance should be. The particular variables used can be changed as the need arises. The following discussion focuses on concerns of the new manufacturing environment—raw material ordering and inventory levels, quality, production levels, finished goods inventory levels and completion of sales orders.Variances Pertaining to Raw Materials The set of variances in Figure 1 centers on the function of raw material ordering and inventory levels (Harrell 1992). The Raw Material Ordering Variance gives information about the effectivene ss of suppliers. It contrasts the raw materials ordered with the raw materials delivered (purchased). Any variation may be considered unfavorable because the goal is to have orders delivered as placed. Too much delivered will result in unnecessary buildups of raw material stocks. Too little delivered is unfavorable because production delays may result. The Price Variance in Figure 1 is the traditional price variance computed on materials purchased.This variance has been criticized on the grounds that over-emphasis on price leads purchasing managers to ignore quality. However, price is a legitimate concern that should not be overlooked. This system also uses a Quality Variance (presented in a following section). If low quality materials are purchased in order to gain a low price, this will result in an unfavorable Quality Variance. Variances Pertaining to Material Inventories and Efficient Use The set of variances in Figure 2 focuses on raw material inventory levels and quantity or e fficiency of material use. The Raw Materials Inventory Variance (Harrell 1992) shows either more material purchased than used (an inventory buildup) or more material used than purchased (an inventory decrease).With the JIT philosophy, purchasing more than used causes an unfavorable variance, while decreasing previous buildups causes a favorable variance. The Efficiency Variance in Figure 2 is based on the difference between the actual pounds of material used and the standard amount for total production. The traditional Efficiency or Quantity Variance is the difference between the actual pounds of material used and the standard amount for good production. The traditional variance is actually as combination of quality and efficiency factors. As can be seen in the next section, quality is better treated in a separate variance. Variances Pertaining to Production Levels and QualityThe next set of variances (Figure 3) turns from input analysis to output analysis and relates to production levels and quality. All cost factors are included in the â€Å"standard cost per unit† including labor and overhead. The Quality Variance is the standard cost of units produced that did not meet specifications (the difference between total units produced and good units produced). In traditional variance analysis, this variance is buried in the efficiency variances of the various inputs. Ignoring labor and overhead, suppose a company used two pounds of material per finished unit at a standard cost of $1. 00 per pound. Further assume they used 4,900 pounds in the production of 2,500 total units, of which 100 were defective.Traditional variance analysis would show an unfavorable Efficiency Variance of $100 computed on the difference between the standard cost of the 4,800 pounds that should have been used to produce the 2,400 good units and the 4,900 pounds actually used. A better breakdown of the traditional variance shows a favorable Efficiency Variance of $100 and an unfavorab le Quality Variance of $200. The Production Department did use only 4,800 pounds to produce 2,500 units that should have taken 5,000 pounds. The fact that some of these units were defective should appear as a Quality Variance, as it does in this analysis. The Quality Variance is $200 unfavorable representing $2. 00 per unit invested in 100 defective units.This analysis also yields a Production Variance based on the difference between the standard cost of good units produced and the scheduled amount of production. The goal in advanced manufacturing environments is to produce exactly what is needed for sales orders (scheduled production). A variance from scheduled production either way is unfavorable because too much production results in unnecessary buildups of inventory while too little results in sales orders not filled. As is the case with the Raw Material Inventory variance, the critical factor is the cost of the capital invested in excess inventories. It is desirable to highligh t this cost in responsibility reports by applying a cost of capital figure. o the excess (Cheatham 1989). For simplicity’s sake, the above illustrations of input analysis pertain to materials. Labor and volume-related variable overhead can be analyzed in a similar manner. Since there is no difference between labor purchased and labor used in production, the labor input variances would include the traditional Rate Variance and the updated Efficiency Variance. Other than showing a budget variance for the various elements of fixed overhead, there is no point in further analysis in terms of a Volume Variance. The updated Production Variance serves the same purpose in a far better fashion. VARIANCES PERTAINING TO SALES ANALYSISThere are various ways to analyze sales. One method is to use price, mix and volume variances. A further analysis is to break down the volume variance into market size and market share variances. The analysis in Figure 4 is presented because it articulates w ell with the output analysis for production. The sales variances indicate customer service as well as the cost of lost sales. The variances use budgeted contribution margin as a measure of opportunity cost. The Finished Goods Variance indicates the opportunity cost associated with orders completed but not shipped. A delay in shipment causes a loss because of subsequent delay in receiving payment.The Sales Order Variance represents the opportunity cost associated with sales orders that could not be filled during the time period for whatever reason—lack of capacity, scheduling problems, etc. The above discussion presents a variety of variances that are not used in a traditional standard cost system. The variances can be used for control purposes alone or can be integrated into the financial accounting records (Cheatham and Cheatham 1993). The system is not intended to be a generic solution for any company’s needs. It is intended to demonstrate that, with a little creativ ity, it is possible to redesign SCSs to measure variables that are important to a particular company in today’s manufacturing environment. UPDATING THE SCS FOR CONTINUOUS IMPROVEMENTIn a manufacturing environment in which continuous improvement is a goal of most companies, the charge has been made that SCSs do not encourage positive change. However, static standards based on engineering studies or historical data are not an essential part of an SCS. Standards can be adjusted to be dynamic, or changing, by any of several methods. Using Prior Periods’ Results as Standards One way to have dynamic standards is to use last period’s results as standards. This idea has been advocated in the past as a way for small business to have the benefits of standards without the expense of engineering studies (Lawler and Livingstone 1986; Cheatham 1987).The objection can be made that last period’s results may not make very good standards if last period was unrepresentative for whatever reason. If this is the case, last period’s results can be modified. Another variation on using past performances as standards is the use of a base period. Comparisons can be made with the base period and all subsequent periods, if desired. Boer (1991, 40) describes a system of using a base year as a â€Å"pseudo flexible budget† from which unit costs are developed. He comments that the system â€Å"encourages continuous improvement and never implies that a level of performance is adequate. Instead, it encourages managers to improve continuously. † Still another variation on using prior periods’ results as standards is the use of best performance-to-date (BP).BP is a rigorous standard for self-improvement because it motivates workers as well as managers to exceed all past performance. Using Benchmarking Although past performance costs may be used in a variety of ways to formulate dynamic standards, any such system has an inward focus. Benchma rking looks outside the firm to the performance of industry leaders or competitors. Benchmarking typically is applied to performance measures rather than standard costs. However, using the performance of industry leaders as a standard provides motivation to become world-class in much the same fashion. The primary barrier to use of benchmarking standards is, of course, lack of information. Edward S.Finein (1990), former vice president and chief engineer of Xerox, lists the following sources of information when using benchmarking for performance measures: (1) external reports and trade publications; (2) professional associations; (3) market research and surveys; (4) industry experts; (5) consultants’ studies; (6) company visits; and (7) competitive labs. In the absence of hard information, an approach may be taken to estimate the performance of industry leaders. Trying to meet the supposed standards of industry leaders (or other competitors) can have results that are useful as long as the company is striving toward beneficial goals. Using Moving Costs Reductions Still another way to have dynamic standards is through use of predetermined cost reductions. Horngren et al. 1994) describe a system of what they call a â€Å"continuous improvement standard cost† or a â€Å"moving cost reduction standard cost. † This system reduces the standard cost by a predetermined percentage each time period, such as a one percent reduction in standard cost per month computed by setting the new standard at 99 percent of the previous month’s standard. The question that their system raises is how to determine the amount of the cost reduction. One possibility is the use of cost improvement curves. Cost improvement curves are a new variation of the old learning curve idea. Learning curves were based on reduction of direct labor costs due to learning by the workers.With a large percentage of product conversion being brought about by automated equipment rather than laborers, potential cost reductions relate to the experience factor for the organization as a whole which may be measured by cost improvement curves. Pattison and Teplitz (1989) calculate the new rate of learning for an organization that replaces labor with automated equipment as: Ratenew = Rateold + (1 – Rateold) * L * R where Rateold is the rate of learning for the old system, L is the proportion of learning attributed solely to direct labor stated as a percentage, and R is the proportion of direct labor being replaced. The formula actually reduces the learning rate applicable to labor only, the assumption being that workers can learn but not machinery.An updated version of the formula is needed which encompasses factors such as managers’, supervisors’ and engineers’ experience. The Japanese stress the formula 2V=2/3C, or if volume is doubled, the cost should be two-thirds of what it was originally. This formula equates to a 67 percent learning cur ve which represents a high degree of learning. However, their attitude is that learning does not just happen—it should be made to happen. Using Target Costs Another idea borrowed from the Japanese is the use of target costs based on the market. Target costs are used in Japan primarily for new products that are still in the design stage. The idea is to set a cost that is low enough to permit a selling price that is viable on the market.The price is the starting point for calculating costs, and the various costs are backed out from the price. Typically, the target cost is very low. Hiromoto (1988) describes the use of target costs at the Daihatsu Motor Company. First, a product development order is issued. Then an â€Å"allowable cost† per car is calculated by taking the difference between the target selling price and the profit margin. Then each department calculates an â€Å"accumulated cost† based on the standard cost achievable with current technology. Finally , a target cost is set somewhere between the allowable and accumulated cost. All this takes place before the product is designed.The design stage typically takes three years. When the product is finally in production, the target cost is gradually tightened on a monthly basis. Later the actual cost of the previous period is used to drive costs down further. Market-based target costs have a strong appeal on a basis for standard costs because they focus on the customer rather than on internal engineering capabilities. However, using target costs is easiest with new products because as much as 90 percent of product costs are set in the design stage (Berliner and Brimson 1988). The way a product is designed determines the way it has to be manufactured and sets the stage for further cost reductions.Standard costs do not have to be static. Dynamic standards can be formulated using a variety of methods including past performance, industry leader’s performance, or target costs based o n predetermined reductions or the market. Market-based target costs have the most intuitive appeal because the focus is on the future and on the customer. However, they may work better for new products rather than for established products. UPDATING MANAGEMENT RESPONSIBILITY AND REPORTING Besides revamping the SCS to better reflect today’s concerns in terms of variables to be measured and continuous improvement, there needs to be improved reporting of variances.Old reporting systems tended to foster internal competition and arguments about whose department was to blame for unfavorable variances. There needs to be an attitude of cooperation among workers, managers and departments. Revised lines of responsibility used with new plant layouts are improving some of the competitive attitudes that once prevailed in manufacturing organizations. Plants that used to feature â€Å"push through† production with large masses of raw materials and semi-finished product moving from one process to another are changing to work cells or similar arrangements. The work cell arrangement features equipment that can process a product from start to finish. Workers in the work cell typically can operate all or several types of machinery.This leaner â€Å"pull through† approach allows a sales order to be rapidly processed within the work cell which decreases cycle time and holds work in process and finished goods inventories to a minimum. The work cell arrangement allows a team of workers to be responsible for the entire product and reduces the likelihood that defects will be passed along to the next department. Along with the work cell arrangement many companies are decentralizing functions such as engineering and making these personnel responsible for a particular work area or product line. With the decentralization, there is more focused responsibility. Decentralization and a team approach to production eliminate many conflicts that once existed.In addition to the new attitudes about responsibility, there needs to be improved reporting. The variances outlined in this paper can be reported in two types of management reports. The report illustrated in Fig. 5 shows the trade-offs between price, efficiency and quality. This type of report can be done on a plant level or department level as well as a work cell level. The price variance for work cells or departments should be computed on material used rather than purchased because this gives a better picture of the trade-offs involved. Upper-level management reports should probably show both types of price variances if there are significant differences between purchases and use.The report illustrated in Fig. 6 shows the effects of variances related to inventories. Raw material excesses at cost, related to both current and past purchases, are listed along with the related cost of capital. In this case it is assumed the excess was held the entire month and the cost of capital was one percent. Work-i n-Process excesses are measured in terms of the Production Variance. This variance measures the difference between scheduled and actual production. Presumably if there were excesses from the previous month, there was an adjustment made in the scheduled production. Cost of capital figures show the effect of holding these excess inventories.In the case of Finished Goods, the crucial factor is the opportunity cost of sales orders not filled measured by the lost contribution margins. Therefore, if orders are completed but not shipped or there is an inability to fill a sales order because of lack of capacity, this is indicated by the Finished Goods Variance or the Sales Order Variance. The illustration assumes a favorable Finished Goods Variance because more sales orders were filled than units produced, indicating a decrease in previous finished goods stock. Although a reporting system such as that illustrated in Figures 5 and 6 may not eliminate all conflicts, it is certainly