Week 6 Discussion Essay Example

Week 6 Discussion Paper Haley Romeros had just been appointed vice president of the Rocky Mountain Region of the Bank Services Corporation (BSC). The company provides check processing services for small banks. The banks send checks presented for deposit or payment to BSC, which records the data on each check in a computerized database. BSC then sends the data electronically to the nearest Federal Reserve Bank check-clearing center where the appropriate transfers of funds are made between banks. The Rocky Mountain Region has three check processing centers, which are located in Billings, Montana; Great Falls, Montana; and Clayton, Idaho. Prior to her promotion to vice president, Ms. Romeros had been the manager of a check processing center in New Jersey. Immediately after assuming her new position, Ms. Romeros requested a complete financial report for the just-ended fiscal year from the region’s controller, John Littlebear. Ms. Romeros specified that the financial report should follow the standardized format required by corporate headquarters for all regional performance reports. That report follows: [pic] *Local administrative expenses are the administrative expenses incurred at the check processing centers. Regional administrative expenses are allocated to the check processing centers based on sales. ^Corporate administrative expenses are charged to segments of the company such as the Rocky Mountain Region and the check processing centers at the rate of 9. 5% of their sales. Upon seeing this report, Ms. Romeros summoned John Littlebear for an explanation. Romeros: What’s the story on Clayton? It didnà ¢â‚¬â„¢t have a loss the previous year did it? Littlebear: No, the Clayton facility has had a nice profit every year since it was opened six years ago, but Clayton lost a big contract this year. Romeros: Why? Littlebear: We will write a custom essay sample on Week 6 Discussion specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Week 6 Discussion specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Week 6 Discussion specifically for you FOR ONLY $16.38 $13.9/page Hire Writer One of our national competitors entered the local market and bid very aggressively on the contract. We couldn’t afford to meet the bid. Clayton’s costs—particularly their facility expenses—are just too high. When Clayton lost the contract, we had to lay off a lot of employees, but we could not reduce the fixed costs of the Clayton facility. Rameros: Why is Clayton’s facility expense so high? It’s a smaller facility than either Billings or Great Falls and yet its facility expense is higher. Littlebear: The problem is that we are able to rent suitable facilities very cheaply at Billings and Great Falls. No such facilities were available at Clayton; we had them built. Unfortunately, there were big cost overruns, The contractor we hired was inexperienced at this kind of work and in fact went bankrupt before the project was completed. After hiring another contractor to finish the work, we were way over budget. The large depreciation charges on the facility didn’t matter at first because we didn’t have much competition at the time and could charge premium prices. Rorneros: Well we can’t do that anymore. The Clayton facility will obviously have to be shut down. Its business can be shifted to the other two check processing centers in the region. Littlebear: I would advise against that. The $1,200,000 in depreciation at the Clayton facility is misleading. That facility should last indefinitely with proper maintenance. And it has no resale value; there is no other commercial activity around Clayton. Romeros: What about the other costs at Clayton? Littlebear: If we shifted Clayton’s business over to the other two processing centers in the region, we wouldn’t save anything on direct labor or variable overhead costs. We might save $90,000 or so in local administrative expense, but we would not save any regional administrative expense and corporate headquarters would still charge us 9. % of our sales as corporate administrative expense. In addition, we would have to rent more space in Billings and Great Falls in order to handle the work transferred from Clayton; that would probably cost us at least $600,000 a year. And don’t forget that it will cost us something to move the equipment from Clayton to Billings a nd Great Falls. And the move will disrupt service to customers. Rorneros: I understand all of that, but a money-losing processing center on my performance report is completely unacceptable. Littlebear: And if you shut down Clayton, you are going to throw some loyal employees out of work. Romeros: That’s unfortunate, but we have to face hard business realities. Littlebear: And you would have to write off the investment in the facilities at Clayton. Romeros: I can explain a write-off to corporate headquarters; hiring an inexperienced contractor to build the Clayton facility was my predecessor’s mistake. But they’ll have my head at headquarters if I show operating losses every year at one of my processing centers. Clayton has to go. At the next corporate board meeting, I am going to recommend that the Clayton facility be closed. Required: 1. From the standpoint of the company as a whole, should the Clayton processing center be shut down and its work redistributed to other processing centers in the region? Explain. 2. Do you think Haley Romeros’s decision to shut down the Clayton facility is ethical? Explain. 3. What influence should the depreciation on the facilities at Clayton have on prices charged by Clayton for its services? SOLUTION: 1. The original cost of the facilities at Clayton is a sunk cost and should be ignored in any decision. The decision being considered here is whether to continue operations at Clayton. The only relevant costs are the future facility costs that would be affected by this decision. If the facility were shut down, the Clayton facility has no resale value. In addition, if the Clayton facility were sold, the company would have to rent additional space at the remaining processing centers. On the other hand, if the facility were to remain in operation, the building should last indefinitely, so the company does not have to be concerned about eventually replacing it. Essentially, there is no real cost at this point of using the Clayton facility despite what the financial performance report indicates. Indeed, it might be a better idea to consider shutting down the other facilities because the rent on those facilities might be avoided. The costs that are relevant in the decision to shut down the Clayton facility are: |Increase in rent at Billings and Great Falls |$600,000 | |Decrease in local administrative expenses |  (90,000) | |Net increase in costs |$510,000 | In addition, there would be costs of moving the equipment from Clayton and there might be some loss of sales due to disruption of services. In sum, closing down the Clayton facility would almost certainly lead to a decline in BSC’s profits. Even though closing down the Clayton facility would result in a decline in overall company profits, it would result in an improved performance report for the Rocky Mountain Region (ignoring the costs of moving equipment and potential loss of revenues from disruption of service to customers). Financial Performance | |After Shutting Down the Clayton Facility | |Rocky Mountain Region | | |Total | |Sales |$50,000,000 | |Selling and administrative expenses: | | |Direct labor 32,000,000 | |Variable overhead |850,000 | |Equipment depreciation |3,900,000 | |Facility expense* |2,300,000 | |Local administrative expense** |360,000 | |Regional administrative expense |1,500,000 | |Corporate administrative expense |  Ã‚  Ã‚  4,750,000 | |Total op erating expense |  45,660,000 | |Net operating income |$  4,340,000 | * $2,800,000 – $1,100,000 + $600,000 = $2,300,000 ** $450,000 – $90,000 = $360,000 2. If the Clayton facility is shut down, BSC’s profits will decline, employees will lose their jobs, and customers will at least temporarily suffer some decline in service. Therefore, Romeros is willing to sacrifice the interests of the company, its employees, and its customers just to make her performance report look better. While Romeros is not a management accountant, the Standards of Ethical Conduct for Management Accountants still provide useful guidelines. By recommending closing the Clayton facility, Romeros will have to violate the Credibility Standard, which requires the disclosure of all relevant information that could reasonably be expected to influence an intended user’s understanding of the reports, analyses, or recommendation. Presumably, if the corporate board were fully informed of the consequences of this action, they would disapprove. In sum, it is difficult to describe the recommendation to close the Clayton facility as ethical behavior. In Romeros’ defense, however, it is not fair to hold her responsible for the mistake made by his predecessor. It should be noted that the performance report required by corporate headquarters is likely to lead to other problems such as the one illustrated here. The arbitrary allocations of corporate and regional administrative expenses to processing centers may make other processing centers appear to be unprofitable even though they are not. In this case, the problems created by these arbitrary allocations were compounded by using an irrelevant facilities expense figure on the performance report. 3. Prices should be set ignoring the depreciation on the Clayton facility. As argued in part (1) above, the real cost of using the Clayton facility is zero. Any attempt to recover the sunk cost of the original cost of the building by charging higher prices than the market will bear will lead to less business and lower profits.

The Luddites essays

The Luddites essays Technology is one of the greatest inventions that man had come up with. I think that many believe the same way and at the same time have changed many peoples lives. With our generation I can honestly say that we cant live without present time technologies. For starters, how would an average teenager react if all appliances that play any type of music were to be taken off the market and destroyed? Probably an uprising would occur and much protest would take place on the streets. Or how about if all television sets were to be taken off the market and destroyed. No more television to watch and entertain us. Now that attracts a little more bigger crowd, including all people that are in the media and entertainment business, actors of all kinds, directors, screen writers, producers, and the most scariest of all, the people that use all of need these people and things for entertainment. The point I am trying to get to be that no one is used to Immediate change in his or her life. If these types of changes were to occur in our life, not to many people would be happy and start to riot on the people who are responsible. Thats what the Luddites were mad about when the first technological inventions were brought to life. It was around the time of the Industrial Revolution and it was time for the new technological inventions to come around. Back in the early 1800s much work in factories were done by hand which required as much help needed and that was no problem with the population growth and the need of more jobs. The pay was there and the job, well it was a living to put food on the table. As new technology came along, workloads became less and the amount of work seemed to decrees to people. Finally factory owner had something to look forward to, the production of more goods. The workers on the other hand had a different opinion about things. They didnt like the idea of less work, for them it was th...

Iditarod History and Overview of The Last Great Race

Iditarod History and Overview of The Last Great Race Each year in March, men, women, and dogs from around the world converge on the state of Alaska to take part in what has become known as the Last Great Race on the planet. This race is, of course, the Iditarod and though it doesnt have a long official history as a sporting event, dog sledding does have a long history in Alaska. Today the race has become a popular event for many people throughout the world. Iditarod History The Iditarod Trail Sled Dog Race officially started in 1973, but the trail itself and the use of dog teams as a mode of transportation has a long and storied past. In the 1920s for example, newly arrived settlers looking for gold used dog teams in the winter to travel along the historic Iditarod Trail and into the gold fields. In 1925, the same Iditarod Trail was used to move medicine from Nenana to Nome after an outbreak of diphtheria threatened the lives of nearly everyone in the small, remote Alaskan town. The journey was nearly 700 miles (1,127 km) through incredibly harsh terrain but showed how reliable and strong dog teams were. Dogs were also used to deliver mail and carry other supplies to the many isolated areas of Alaska during this time and many years later. Throughout the years, however, technological advances led to the replacement of sled dog teams by airplanes in some cases and finally, snowmobiles. In an effort to recognize the long history and tradition of dog sledding in Alaska, Dorothy G. Page, chairman of the Wasilla-Knik Centennial helped set up a short race on the Iditarod Trail in 1967 with musher Joe Redington, Sr. to celebrate Alaskas Centennial Year. The success of that race led to another one in 1969 and the development of the longer Iditarod that is famous today. The original goal of the race was for it to end in Iditarod, an Alaskan ghost town, but after the United States Army reopened that area for its own use, it was decided that the race would go all the way to Nome, making the final race approximately 1,000 miles (1,610 km) long. How the Race Works Today Since 1983, the race has ceremonially started from downtown Anchorage on the first Saturday in March. Starting at 10 a.m. Alaska time, teams leave in two-minute intervals and ride for a short distance. The dogs are then taken home for the rest of the day to prepare for the actual race. After a nights rest, the teams then leave for their official start from Wasilla, about 40 miles (65 km) north of Anchorage the next day. Today, the route of the race follows two trails. In odd years the southern one is used and in even years they run on the northern one. Both, however, have the same starting point and diverge approximately 444 miles (715 km) from there. They join each other again about 441 miles (710 km) from Nome, giving them the same ending point as well. The development of two trails was done in order to reduce the impact that the race and its fans have on the towns along its length. The mushers (dog sled drivers) have 26 checkpoints on the northern route and 27 on the southern. These are areas where they can stop to rest both themselves and their dogs, eat, sometimes communicate with family, and get the health of their dogs checked, which is the main priority. The only mandatory rest time however usually consists of one 24-hour stop and two eight hour stops during the nine- to twelve-day race. When the race is over, the different teams split a pot that is now approximately $875,000. Whoever finishes first is awarded the most and each successive team to come in after that receives a little less. Those finishing after 31st place, however, get about $1,049 each. The Dogs Originally, sled dogs were Alaskan Malamutes, but over the years, the dogs have been crossbred for speed and endurance in the harsh climate, the length of the races they participate in and the other work they are trained to do. These dogs are usually called Alaskan Huskies, not to be confused with Siberian Huskies, and are what most mushers prefer. Each dog team is made up of twelve to sixteen dogs and the smartest and fastest dogs are picked to be the lead dogs, running in the front of the pack. Those who are capable of moving the team around curves are the swing dogs and they run behind the lead dogs. The largest and strongest dogs then run in the back, closest to the sled and are called the wheel dogs. Before embarking on the Iditarod trail, mushers train their dogs in late summer and fall using wheeled carts and all-terrain vehicles when there is no snow. The training is then the most intense between November and March. Once they are on the trail, mushers put the dogs on a strict diet and keep a veterinary diary to monitor their health. If needed, there are also veterinarians at the checkpoints and dog-drop sites where sick or injured dogs can be transported for medical care. Most of the teams also go through a large amount of gear to protect the dogs health and they usually spend anywhere from $10,000-80,000 per year on gear such as booties, food, and veterinary care during training and the race itself. Despite these high costs along with the hazards of the race such as harsh weather and terrain, stress, and sometimes loneliness on the trail, mushers and their dogs still enjoy participating in the Iditarod and fans from around the world continue to tune in or actually visit portions of the trail in large numbers to partake in the action and drama that is all part of The Last Great Race.

Principles of Dental Hygiene Essay Example | Topics and Well Written Essays - 1500 words

Principles of Dental Hygiene - Essay Example Critics of fluoridation say that past research is biased and outdated. Proponents of fluoridation cite their own research and insist that fluoridation has proven itself useful and safe in preventing dental decay. Both sides have creditable supporters and the conflict has no straightforward solution. With the question of whether fluoridation has a proven health benefit to people, comes the issue of individual rights. There exists argument that the rights of individuals are violated when they are forced to consume fluoridated water. Some have gone so far in protest as to acquire their own sources for unfluoridated water. As a result of the debate over the effectiveness and health risks of fluoridation, there is a belief that the By 1992, nearly 60% of the American public consumed water from fluoridated sources. Fluoridation began in the US in 1945 and has since been implemented in almost every major city. The Center for Disease Control (CDC, 1999) lists the fluoridation of drinking water as one of the top ten advancements made in American public health since 1900. Evidence suggests that ingested fluoride systemically prevents tooth decay while teeth develop. Topical application to mature teeth has also shown to reduce tooth loss in adults. . Fluoride strengthens teeth and makes them more decay-resistant. Fluoride acts on the enamel of teeth. The enamel is made less soluble and plaque-forming organisms have a reduced ability to produce acid. Remineralization also occurs in areas where acids have caused demineralization. The ADA fully endorses fluoridation of community water sources and recommends dietary fluoride supplements for children aging from six months to sixteen years old living in non-fluoridated areas. Tooth decay, also known as dental caries, is a health problem that has plagued human kind for centuries. Up until 60 years ago, the damage caused by Fluoridation 4 caries was an inevitable fact of life for most people. The disease often meant many visits to the dentist where damaged and painful teeth were repaired or removed. Today, primarily as a result of fluoride, damage caused by decay can be reduced and, in many instances, prevented. Fluorides' benefits for teeth were discovered in the 1930's. Dental scientists observed remarkably low decay rates among people whose water supplies contained significant amounts of natural fluoride. Several studies conducted during the 1940s and 1950s confirmed that when a small amount of fluoride is added to the community water supply, decay rates among residents of that community decrease. Although these studies focused primarily on the benefits of water fluoridation for children, more recent studies demonstrate that decay rates in adults are also reduced as a result of fluoride in the drinking water. Water fluoridation prevents tooth decay in two ways. The first is through direct contact with teeth and the second is by systemic absorption in the body. The most inexpensive way to deliver the benefits of fluoride to all residents of a community is through water fluoridation. All water naturally contains some fluoride. When a

Art is a product of its context Essay Example | Topics and Well Written Essays - 750 words

Art is a product of its context - Essay Example This was the period after Mesolithic which was majorly dominated by human domestication of plants and animals. It was around 9000BCE when climate grew warmer and the ice that covered the north Europe melted separating England from continental Europe and Spain from Africa. Agriculture and animal husbandry became the human kind’s major source of food. This art was mainly manifested in two cultures; the Ancient Near East and the Europe. In the Ancient Near East, Neolithic art is presented by the widespread of agricultural activities among the communities that settled around foothills of the Antilebanon, Taurus and Zagros mountains in the present day Turkey, Syria, Iraq and Iran. These activities were motivated by the sufficient rain that occurred in these regions. The crops which they domesticated include wild wheat and barley while goats, sheep and pigs were some of the herds of animals they had. Due to the massive growth of wealth as a result of different agricultural activities in Jericho, security was paramount leading to the construction of a great stone tower built into the settlement wall of Jericho to protect them from the marauding nomads. This permanent stone fortification had an estimated population of 2000 people. This marked the beginning of the monumental architect. In Catal Hoyuk settlements, there were numerous excavations and different types of Neolithic set ups. Their source of wealth was trade which involved the use of obsidian stone which was chipped to make cutting tools and weapons.

The Monk Essays -- Essays Papers

CHARACTER ANALYSIS The Monk When one thinks of a monk, he may imagine someone who studies, prays, and performs manual labor. The Monk, one of the thirty pilgrims travelling on a pilgrimage to Canterbury in The Canterbury Tales, is nothing like the usual monk many people imagine. He is rebellious, ignores rules, and lives and controls his own life. Chaucer, the narrator and author of The Canterbury Tales, shows these characteristics in the way the Monk looks, the things he says and does, and in the things the host, a character in "The Monk's Prologue," and Chaucer say about him. The Monk is nothing like the usual monk many people imagine. He hunts hares and rides horses instead of studying, praying, and working. He does not follow the rules of the monastery which say that monks should not hunt, be reckless, nor leave the monastery. Instead,they should study and perform manual labor. The Monk ignores these rules. Chaucer shows that the Monk does not care about the rules when he says, "He yaf nought of that text a pulled hen"(Norton, p.85) and when he says, "Of priking and of ...

A Leap from Art To Biology Essay

I have always been so sure that I wanted to earn a degree in the field of art. I believe that I posses the skills of a budding artist and the talent that will make a superb artist one day. I have imbibed the doctrines and have started sketching in my pad what I picture my colorful professional life would be while I was studying art in Korea. Little did I know that later, during my stint in the College of Arts, when I started studying at California State University, Northridge for my baccalaureate degree would pave the way for a new discovery about myself: there is a biologist in me! Thus, as much as I am thrilled about capturing the different colors in a butterfly’s wing on canvass, I am now more excited to study the molecular basis of this mosaic. Being enrolled at the California State University, Northridge was instrumental for my career revolution. CSUN has opened up various opportunities that have enticed me to change paths from art to science. It was truly a difficult decision, and a big leap from a totally different field, but it was well worth it. I discovered a different side of me and I realized that I have a knack for science and math, thus, I chose the field of biology to develop my newfound aptitude. Later, I have learned to be more analytical in solving problems and the concepts of nature, which I find enigmatic before, have offered exciting possibilities of solving practical problems. The curriculum of the Department of Biology and its design has unlocked learning opportunities for me. This is the reason why I would like to enroll in an advanced degree in Biology at CSUN. Of particular interest to me are the fields of functional anatomy, physiology, genetics, and embryology and I would be very willing to pursue a research on these topics for my Master’s degree. CSUN’s resolve to focus on the needs of its community as it continues to earn global appeal is moving students like me to continue to give back what I have learned here to my own community in Korea. In the future, I plant to return to my home and introduce them to the new person I have become, molded by the experiences this place, and learning science has burgeoned in me. I hope to share my knowledge, passion and expertise to solve our most pressing problems. The environment in CSUN and its friendly nature to international students has been a motivating factor to my desire to continue studying here. Outstanding mentors and professors who inspire students to increase their zest for learning biology highlight the department. I am also excited to witness and become part of this 50-year old institution’s growth. The artist in me continues to thrive and I believe that earning my Master’s degree in Biology at CSUN complements my aspirations to be a biologist with a heart and appreciation for the beauty of life.