WILLIAM SHAKESPEARE
INTRODUCTION
William Shakespeare (baptized 26 April 1564 – died 23 April 1616) was an English poet and playwright, widely regarded as the greatest writer in the English language and the world’s pre-eminent dramatist. He is often called England’s national poet and the “Bard of Avon” (or simply “The Bard”). His surviving works consists of 38 plays, 154 sonnets, two long narrative poems, and several other poems. His plays have been translated into every major living language, and are performed more often than those of any other playwright.
HIS LIFE
William Shakespeare was the son of John shakespeare, a successful glover and alderman originally from Snitterfield, and Mary Arden, the daughter of an affluent landowning farmer. Shakespeare was born and raised in Stratford-upon-Avon. At the age of 18 he married Anne Hathaway, who bore him three children: Susanna, and twins Hamnet and Judith. Between 1585 and 1592 he began a successful career in London as an actor, writer, and part owner of the playing company the Lord Chamberlain’s Men, later known as the King’s Men. He appears to have retired to Stratford around 1613 where he died three years later.
HIS PLAYS
Scholars have often noted four periods in Shakespeare’s writing career. Until the mid-1590’s, he wrote mainly comedies influenced by Roman and Italian models and history plays in the popular chronicle tradition. His second period began in about 1595 with the tragedy Romeo and Juliet and ended with the
tragedy of Julius Caesar in 1599. During this time, he wrote what are considered his greatest comedies and histories. From about 1600 to about 1608, his “tragic period”, Shakespeare wrote mostly tragedies, and from about 1608 to 1613, mainly tragicomedies, also called romances. Shakespeare produced most of his known work between 1590 and 1613. The tragedies which he wrote, including Hamlet, King Lear, and Macbeth, are considered some of the finest examples in the English language.
THE SEVEN AGES OF MAN
“All the world’s a stage” is the phrase that begins a famous monologue from William Shakespeare’s “As You Like It”, spoken by the melancholy Jaques. The speech compares the world to a stage and life to a play, and catalogues the seven ages of a man’s life, sometimes referred to as the seven ages of man: infant, school-boy, lover, solider, justice, pantaloon, and second childhood, “sans teeth, sans taste, sans everything”. It is one of Shakespeare’s most frequently quoted passages.
CRITICAL REPUTATION
Shakespeare was never revered in his lifetime, but he received his share of praise. In 1598, the cleric and author Francis Meres singled him out from a group of English writers as “the most excellent” in both comedy and tragedy. In the First Folio, Ben Jonson called Shakespeare the “Soul of the age, the applause, delight, the wonder of our stage”, though he had remarked elsewhere that “Shakespeare wanted art”. Critics during 1600 rated Shakespeare below John Fletcher and Ben jonson.Thomas Rymer, for example, condemned Shakespeare for mixing the comic with the tragic. Nevertheless, poet and critic John Dryden rated Shakespeare highly, saying of Jonson, "I admire him, but I love Shakespeare".
RABINDRANATH TAGORE
INTRODUCTION
Rabindranath Tagore (7 May 1861- 7 August 1941), also known by the sobriquet Gurudev, was a Bengali poet, Brahmo religionist, visual artist, playwright, novelist, and composer whose works reshaped Bengali literature and music in the late 19th and early 20th centuries. He became Asia’s first Nobel laureate when he won the 1913 Nobel Prize in Literature. In later life Tagore protested strongly against the British Raj and gave his support to the Indian Independence Movement. Tagore’s life work endures, in the form of his peotry and the institution he founded, Visva-Bharti University.
HIS LIFE
Tagore (nicknamed "Rabi") was born the youngest of thirteen surviving children in the Jorasanko mansion in Calcutta (now Kolkata, India) of parents Debendranath Tagore and Sarada Devi. Seeking to become a barrister, Tagore enrolled at a public school in Brighton, England in 1878. He studied law at University College London, but returned to Bengal in 1880 without a degree. On 9 December 1883 he married Mrinalini Devi; they had five children, two of whom later died before reaching adulthood.
HIS WORKS
Tagore's literary reputation is disproportionately influenced by regard for his poetry; however, he also wrote novels, essays, short stories, travelogues, dramas, and thousands of songs. Of Tagore's prose, his short stories are perhaps most highly regarded; indeed, he is credited with originating the Bengali-language version of the genre.
Tagore wrote eight novels and four novellas, including Chaturanga, Shesher Kobita, Char Odhay, and Noukadubi. Tagore was a prolific musician and painter, writing around 2,230 songs. They comprise rabindrasangit, now an integral part of Bengali culture. At age twenty, he wrote his first drama-opera—Valmiki Pratibha—which describes how the bandit Valmiki reforms his ethos, is blessed by Saraswati, and composes the Ramayana.
WHERE THE MIND IS WITHOUT FEAR
Chitto jetha bhayshunyo (Where the mind is without fear) is among one of the most quoted poems in India and Bangladesh. Written by Rabindranath Tagore before India's independence, it represents Tagore's dream of how the new, awakened India should be. The original Bengali song was translated by the poet himself and was included in the Nobel prize winning Gitanjali in 1912.
ROLE IN FREEDOM STRUGGLE
Marked complexities characterise Tagore's political views. He criticised European imperialism and supported Indian nationalists. Tagore wrote songs lionizing the Indian independence movement and renounced his knighthood in protest against the 1919 Jallianwala Bagh Massacre.Two of Tagore's more politically charged compositions, "Chitto Jetha Bhayshunyo" ("Where the Mind is Without Fear") and "Ekla Chalo Re" ("If They Answer Not to Thy Call, Walk Alone"), gained mass appeal, with the latter favoured by Gandhi.
Saturday, September 20, 2008
Inflation and India
INTRODUCTION
We all are familiar with the word “inflation“, especially these days when inflation is on a 13 year high in India. Almost everywhere these days we find the word “inflation”, be it magazines, newspapers, news channels, or a common discussion going on in the public. Well, the term inflation means “a rise in the general price level in the economy”. It is the most common topic of discussion these days and therefore I have chosen this topic for my project. At present India is facing the problem of inflation. The rate of inflation has gone up to 12% which is very high and is quite dangerous for our economy. The last time inflation reached such high levels was way back in 1995. It is a major issue and the government needs the support of its people to tackle this economic problem of rising prices. It is not that inflation is totally undesirable. Some amount of inflation is necessary for every economy to progress, but it is when the inflation levels reach a very high level that they become a major issue of concern for the economy. Hence I have decided to make my economics project on this topic and to present my opinion on this major economic problem that our country is facing these days.
INFLATION IN INDIA
It is not that the current inflation is a recent problem that India is facing. India has seen inflation several times previously too. During the 1960’s the inflation rate was quite high. In 1966-67 inflation rate had reached 13.9% owing to the Pakistan war that took place in the year 1965 and the famine conditions which further worsened the situation in the country. Again in the seventies as well the inflation rate was quite high due to the hike in oil prices. In 1990-91 inflation again reached double digits mainly because of the Gulf war which lead to shortage in supply of petroleum products. However between 1996 and 2004 the inflation rates were quite low. Last year, i.e. in 2007 the inflation rate was at 5.77% and it was decided by the government to bring down the inflation rate in 2008 to about 4.33%, much lower than what is was the previous year.
Now, measuring inflation is a quite a difficult task. To do so a number of goods that are representative of the economy are put together into what is referred as a “market basket.” The cost of this basket is then compared over time. This results in a price index, which is the cost of the market basket today as a percentage of the cost of that identical basket in the starting year. In India two types of index: Consumer price index (CPI) and Wholesale price index (WPI) are used to monitor inflation. Off the two, Wholesale price index (WPI) is the most widely used price index.
GENERAL VIEW ON THE RISING INFLATION
It is quite clear that the rise in inflation levels in our country is due to the rise in oil and steel prices globally. The oil prices have gone up considerably over the past few months. They were at 60$ a barrel last year and this year they have gone up to 140$ barrel. Steel prices have also gone up quite considerably recently. Since steel and oil are the basic requirements of every industry, therefore these two factors have gifted us such high levels of inflation that our country is facing today.
It is believed by most of the people that such high inflation levels are due to poor planning of the government. People all over the country are blaming the Manmohan Singh government for the high levels of inflation that India is facing today. It is true that the last time our country faced such high levels of inflation, Congress was in power and Mr Manmohan Singh was our finance minister and our current finance minister Mr P.C.Chidambram was then our commerce minister. That time too the elections were due in a year and Congress lost them. Well this time also there is a similar situation in our country. The elections are due next year and it is uncertain whether the NDA government can survive them.
Also it is a general view of the people that the government should have taken adequate steps to tackle the problem of the rising oil prices because it was well known in advance that the oil prices were about to surge higher. The sharp rise in the petrol prices is seen by the people as a harsh step taken by the government and it was received by a series of protests all over the country. People all over the country were protesting against the hike in petrol prices announced by the government little realizing that the government is helpless as it is already suffering a loss of crores of rupees by supplying petrol and diesel at subsidized rates.
Many economists are of the opinion that such a sharp rise in the oil prices is completely baseless and the powerful nations of the world should have talks with the oil producing Middle-east countries regarding the rise in prices. Some feel that a way to reduce these prices is to increase oil production. Few of the oil producing nations of the world have decided to increase the annual production of oil in order to bring down the rising oil prices under control.
MY VIEW ON THE RISING INFLATION
It is true that India is facing high levels of inflation and such high levels of inflation are not desirable for any economy. Inflation affects the fixed wage earners immensely. During inflation the purchasing power of the people goes down. Today food prices all over the world are rising. Vegetable prices have almost doubled. The reason is rising crude oil and steel prices all over the world. People are not missing an opportunity to lay the blame on the government. The opposition parties are openly criticizing the government for poor planning. With the elections due in less than a year the Congress government is already in a soup. But it is high time for people of our country to realize that the government alone can’t do anything. The rising inflation is a global issue. It is not that only India is facing the problem of the rising food prices. Countries all over are confronting this problem of how to tackle this rising inflation. We all should understand that the government alone cannot do anything. The government is suffering a loss of crores of rupees by supplying petrol and diesel at subsidized rates for the betterment of the society. The step taken by the government to raise he petrol and diesel prices recently was met by protests all over the country but we should understand that the government is also helpless. It is supplying us fuel almost one-third price at which it is purchasing them. We all will be benefited with this rise in petrol and diesel prices in the future indirectly.
In India we have a problem of blaming others not realizing that the person being blamed is not responsible for it. Same thing is happening today with all of us laying the blame on the government for rising inflation not realizing that the government is not responsible for it. India is not the only country in the world that is facing the problem of rising inflation. Even China and Brazil and many other countries are up against this problem of rising inflation. In China inflation is at 12% and in Brazil it is up at almost 9%. So I believe that instead of blaming the government for all this we should ourselves do something for our country and should try to tackle this problem of inflation.
CONCLUSION
I believe that it is not right for us to lay the blame on the government for this rising inflation. It is something beyond the control of the government because it is a global issue. So we all should come forward to face this problem. We should cut down our fuel consumption. In our country petrol and diesel is wasted by many. There is unnecessary consumption of petrol and diesel at a time when the supply is short. I think we should all realize that it is we who consume the petrol and diesel and only we can reduce the consumption. This is the only way out of the problem. We should all cooperate with the government in tackling this problem. The rising food prices also require our cooperation to be tackled. In our country we waste a lot of food. It is not that we have got food shortage in our country. We have loads of food grain stock in our country. We should utilize them and reduce their wastage since this is the only way out of this problem.
The rise in the food prices is mainly due to the rising crude oil prices. Thus the main root lies in the high crude oil prices. So in order to bring the situation under control we should first of all avoid fuel wastage and food wastage. All this cannot be done by the government by passing a few laws in this sphere. It is not possible until we ourselves realize and become ready to be a part of this fight against the rising inflation. So the government needs our cooperation. It is our own country and our own problem. We should put aside all this blaming business which is going on from quite a long time now and should do something ourselves.
We all are familiar with the word “inflation“, especially these days when inflation is on a 13 year high in India. Almost everywhere these days we find the word “inflation”, be it magazines, newspapers, news channels, or a common discussion going on in the public. Well, the term inflation means “a rise in the general price level in the economy”. It is the most common topic of discussion these days and therefore I have chosen this topic for my project. At present India is facing the problem of inflation. The rate of inflation has gone up to 12% which is very high and is quite dangerous for our economy. The last time inflation reached such high levels was way back in 1995. It is a major issue and the government needs the support of its people to tackle this economic problem of rising prices. It is not that inflation is totally undesirable. Some amount of inflation is necessary for every economy to progress, but it is when the inflation levels reach a very high level that they become a major issue of concern for the economy. Hence I have decided to make my economics project on this topic and to present my opinion on this major economic problem that our country is facing these days.
INFLATION IN INDIA
It is not that the current inflation is a recent problem that India is facing. India has seen inflation several times previously too. During the 1960’s the inflation rate was quite high. In 1966-67 inflation rate had reached 13.9% owing to the Pakistan war that took place in the year 1965 and the famine conditions which further worsened the situation in the country. Again in the seventies as well the inflation rate was quite high due to the hike in oil prices. In 1990-91 inflation again reached double digits mainly because of the Gulf war which lead to shortage in supply of petroleum products. However between 1996 and 2004 the inflation rates were quite low. Last year, i.e. in 2007 the inflation rate was at 5.77% and it was decided by the government to bring down the inflation rate in 2008 to about 4.33%, much lower than what is was the previous year.
Now, measuring inflation is a quite a difficult task. To do so a number of goods that are representative of the economy are put together into what is referred as a “market basket.” The cost of this basket is then compared over time. This results in a price index, which is the cost of the market basket today as a percentage of the cost of that identical basket in the starting year. In India two types of index: Consumer price index (CPI) and Wholesale price index (WPI) are used to monitor inflation. Off the two, Wholesale price index (WPI) is the most widely used price index.
GENERAL VIEW ON THE RISING INFLATION
It is quite clear that the rise in inflation levels in our country is due to the rise in oil and steel prices globally. The oil prices have gone up considerably over the past few months. They were at 60$ a barrel last year and this year they have gone up to 140$ barrel. Steel prices have also gone up quite considerably recently. Since steel and oil are the basic requirements of every industry, therefore these two factors have gifted us such high levels of inflation that our country is facing today.
It is believed by most of the people that such high inflation levels are due to poor planning of the government. People all over the country are blaming the Manmohan Singh government for the high levels of inflation that India is facing today. It is true that the last time our country faced such high levels of inflation, Congress was in power and Mr Manmohan Singh was our finance minister and our current finance minister Mr P.C.Chidambram was then our commerce minister. That time too the elections were due in a year and Congress lost them. Well this time also there is a similar situation in our country. The elections are due next year and it is uncertain whether the NDA government can survive them.
Also it is a general view of the people that the government should have taken adequate steps to tackle the problem of the rising oil prices because it was well known in advance that the oil prices were about to surge higher. The sharp rise in the petrol prices is seen by the people as a harsh step taken by the government and it was received by a series of protests all over the country. People all over the country were protesting against the hike in petrol prices announced by the government little realizing that the government is helpless as it is already suffering a loss of crores of rupees by supplying petrol and diesel at subsidized rates.
Many economists are of the opinion that such a sharp rise in the oil prices is completely baseless and the powerful nations of the world should have talks with the oil producing Middle-east countries regarding the rise in prices. Some feel that a way to reduce these prices is to increase oil production. Few of the oil producing nations of the world have decided to increase the annual production of oil in order to bring down the rising oil prices under control.
MY VIEW ON THE RISING INFLATION
It is true that India is facing high levels of inflation and such high levels of inflation are not desirable for any economy. Inflation affects the fixed wage earners immensely. During inflation the purchasing power of the people goes down. Today food prices all over the world are rising. Vegetable prices have almost doubled. The reason is rising crude oil and steel prices all over the world. People are not missing an opportunity to lay the blame on the government. The opposition parties are openly criticizing the government for poor planning. With the elections due in less than a year the Congress government is already in a soup. But it is high time for people of our country to realize that the government alone can’t do anything. The rising inflation is a global issue. It is not that only India is facing the problem of the rising food prices. Countries all over are confronting this problem of how to tackle this rising inflation. We all should understand that the government alone cannot do anything. The government is suffering a loss of crores of rupees by supplying petrol and diesel at subsidized rates for the betterment of the society. The step taken by the government to raise he petrol and diesel prices recently was met by protests all over the country but we should understand that the government is also helpless. It is supplying us fuel almost one-third price at which it is purchasing them. We all will be benefited with this rise in petrol and diesel prices in the future indirectly.
In India we have a problem of blaming others not realizing that the person being blamed is not responsible for it. Same thing is happening today with all of us laying the blame on the government for rising inflation not realizing that the government is not responsible for it. India is not the only country in the world that is facing the problem of rising inflation. Even China and Brazil and many other countries are up against this problem of rising inflation. In China inflation is at 12% and in Brazil it is up at almost 9%. So I believe that instead of blaming the government for all this we should ourselves do something for our country and should try to tackle this problem of inflation.
CONCLUSION
I believe that it is not right for us to lay the blame on the government for this rising inflation. It is something beyond the control of the government because it is a global issue. So we all should come forward to face this problem. We should cut down our fuel consumption. In our country petrol and diesel is wasted by many. There is unnecessary consumption of petrol and diesel at a time when the supply is short. I think we should all realize that it is we who consume the petrol and diesel and only we can reduce the consumption. This is the only way out of the problem. We should all cooperate with the government in tackling this problem. The rising food prices also require our cooperation to be tackled. In our country we waste a lot of food. It is not that we have got food shortage in our country. We have loads of food grain stock in our country. We should utilize them and reduce their wastage since this is the only way out of this problem.
The rise in the food prices is mainly due to the rising crude oil prices. Thus the main root lies in the high crude oil prices. So in order to bring the situation under control we should first of all avoid fuel wastage and food wastage. All this cannot be done by the government by passing a few laws in this sphere. It is not possible until we ourselves realize and become ready to be a part of this fight against the rising inflation. So the government needs our cooperation. It is our own country and our own problem. We should put aside all this blaming business which is going on from quite a long time now and should do something ourselves.
Cost classification and its importance
CLASSIFICATION OF COST
AND ITS IMPORTANCE
COST- cost is a measurement, in monetary terms, of the amount of resources used for the purpose of production of goods or rendering services.
Cost comprises 3 elements:
1. Material cost- is the cost of substances from which products are made by an undertaking.
2. Labour cost- is the cost of remunerating ( by wages, commission, bonus, etc ) the workers of an undertaking.
3. Expenses- are the cost of services provided to an undertaking and the notional cost of the use owned assets ( i.e., depreciation ).
COST SHEET- a cost sheet is a statement which is prepared so as to find out the cost of production. It brings out the composition of total cost under proper classifications and sub-divisions.
A cost sheet comprises 4 overheads-
1. Factory overhead- all the indirect expenses incurred in the factory are recorded under this overhead. E.g- power & fuel, indirect wages, etc
2. Office and administration overhead- all the indirect expenses incurred in relation to administration of an organization and inside the office are included under this overhead. E.g- salaries of office staff, depreciation on office furniture, etc.
3. Selling and distribution overhead- all the indirect expenses incurred in relation to making the goods available for sale and selling the goods are included under this overhead. E.g- commission to salesman, secondary packing expenses, etc.
4. Distribution overhead- all the indirect expenses incurred in distributing the goods
to the final consumers at their places are recorded under this overhead.
E.g- expenses of running the delivery van, other distribution expenses, etc
On adding these 4 overheads and other direct expenses incurred during production such as cost of raw materials, wages paid to labourers, cost of desing, royalty on production, cost of hire of special machinery, etc, we get the cost of manufacturing goods and thus we can find out the profit which we would make on our sales.
CLASSIFICATION OF COST
Cost can be classified under several basis:
1. On the basis of variability:
a. Fixed cost- fixed cost can be defined as that cost which remains unchanged as the output changes. Even when the output is zero some amount of fixed cost has to be incurred. E.g- rent paid for the factory building.
b. Variable cost- variable cost can be defined as that cost which changes in the same proportion in which the output changes. When output is zero variable cost is also zero. E.g- wages paid to labourer.
c. Semi-variable cost- this cost contains elements of both fixed cost as well as that of variable cost. Therefore this cost is partly affected due to changes in the level of production. E.g- electricity bill.
2. On the basis of function:
a. Production cost- production cost is the cost which is involved in producing the
goods.
b. Administration cost- administration cost is the cost which is involved in the
administration and running of the organization.
c. Selling cost- selling cost is the cost which is involved in selling the product to the
to the final consumers.
d. Distribution cost- distribution cost is the cost which is involved in distributing the
goods to the various consumers.
3. On the basis of direct and indirect nature of cost-
a. Direct cost- direct cost is that cost which can be traced to a particular product.
Thus direct cost is also known as traceable cost. Thus direct cost can be identified
with a particular product and changes in the same proportion in which that
particular product for which it has been incurred changes.
b. Indirect cost- indirect cost is that cost which cannot be traced to a particular
product. Thus indirect cost are also known as untraceable costs. It cannot be
identified with any particular product and does not change in any fixed proportion
4. On the basis of time period-
a. Historical cost- historical cost is the actual cost incurred in acquiring assets or
producing goods and services.
b. Pre-determined cost- these costs are estimated prior to production on the basis
of a specification of all the factors affecting cost of that product.
c. Standard cost- in case of standard cost a pre-determined norm is applied as a scale
of a reference for assessing the actual cost irrespective of the fact whether these
are more or less.
d. Estimated cost- estimated cost of a product are prepared well in advance prior to
the performance of operations or even before the acceptance of sale orders.
IMPORTANCE OF CLASSIFICATION OF COST
1. Preparation of budget: classification of cost helps in preparation of the budget of the organization. For preparing the budget of an organization one must know how and where exactly the expenses have been incurred in relation to manufacturing the product. On the basis of this classification of the cost an organization accordingly prepares its budget.
.
2. Helps in measuring efficiency: classification of cost helps in measuring the
efficiency of the organization. On the basis of the places where the costs have been
incurred and the amount of cost that has been incurred the efficiency of the
organization can be judged.
3. Controlling cost:
a. Labour cost: with the help of classification of cost an organization can control its labour cost as well. If the labour complete their task well in time and with much efficiency then the organization would be able to reduce its labour cost.
b. Material cost: material cost can be controlled if material wastage is avoided and proper standardization of materials is used. Thus with the help of classification of cost an organization is able to reduce the cost incurred on materials and thus able to control material cost.
c. Overhead cost: overhead comprises indirect expenditure incurred in manufacturing. By knowing the amount that has been incurred under various heads an organization can device ways to reduce the cost. Thus with the help of classification of cost an organization is able to control overhead cost.
4. Expansion of the organization: if an organization knows where exactly it incurs expenditure then it can device ways to control these costs. Once an organization is able to control its cost then it can concentrate on its expansion. Thus with the help of classification of cost an organization is able to device ways for its expansion.
Thus, classification of cost is of immense importance for an organization. With the help of classification of cost an organization can make progress and also expand its production by controlling its cost. Thus in the long run an organization can move towards higher productivity and thus higher profits and can achieve its goals.
CONCLUSION
We all are familiar with the term ‘cost’. It has become a part and parcel of our daily lives. Almost everywhere these days we find the term cost, be it at shops, entertainment, food, etc. However accounting goes a step further. It classifies cost under various heads. It has also devised several ways of measuring costs and also determining the costs of various goods. The process of preparing a cost sheet so as to calculate the cost of production is completely a concept of accountancy. Thus we can conclude saying classification of cost is of immense importance not only from the point of view of a manufacturing organization but also from an individual point of view.
AND ITS IMPORTANCE
COST- cost is a measurement, in monetary terms, of the amount of resources used for the purpose of production of goods or rendering services.
Cost comprises 3 elements:
1. Material cost- is the cost of substances from which products are made by an undertaking.
2. Labour cost- is the cost of remunerating ( by wages, commission, bonus, etc ) the workers of an undertaking.
3. Expenses- are the cost of services provided to an undertaking and the notional cost of the use owned assets ( i.e., depreciation ).
COST SHEET- a cost sheet is a statement which is prepared so as to find out the cost of production. It brings out the composition of total cost under proper classifications and sub-divisions.
A cost sheet comprises 4 overheads-
1. Factory overhead- all the indirect expenses incurred in the factory are recorded under this overhead. E.g- power & fuel, indirect wages, etc
2. Office and administration overhead- all the indirect expenses incurred in relation to administration of an organization and inside the office are included under this overhead. E.g- salaries of office staff, depreciation on office furniture, etc.
3. Selling and distribution overhead- all the indirect expenses incurred in relation to making the goods available for sale and selling the goods are included under this overhead. E.g- commission to salesman, secondary packing expenses, etc.
4. Distribution overhead- all the indirect expenses incurred in distributing the goods
to the final consumers at their places are recorded under this overhead.
E.g- expenses of running the delivery van, other distribution expenses, etc
On adding these 4 overheads and other direct expenses incurred during production such as cost of raw materials, wages paid to labourers, cost of desing, royalty on production, cost of hire of special machinery, etc, we get the cost of manufacturing goods and thus we can find out the profit which we would make on our sales.
CLASSIFICATION OF COST
Cost can be classified under several basis:
1. On the basis of variability:
a. Fixed cost- fixed cost can be defined as that cost which remains unchanged as the output changes. Even when the output is zero some amount of fixed cost has to be incurred. E.g- rent paid for the factory building.
b. Variable cost- variable cost can be defined as that cost which changes in the same proportion in which the output changes. When output is zero variable cost is also zero. E.g- wages paid to labourer.
c. Semi-variable cost- this cost contains elements of both fixed cost as well as that of variable cost. Therefore this cost is partly affected due to changes in the level of production. E.g- electricity bill.
2. On the basis of function:
a. Production cost- production cost is the cost which is involved in producing the
goods.
b. Administration cost- administration cost is the cost which is involved in the
administration and running of the organization.
c. Selling cost- selling cost is the cost which is involved in selling the product to the
to the final consumers.
d. Distribution cost- distribution cost is the cost which is involved in distributing the
goods to the various consumers.
3. On the basis of direct and indirect nature of cost-
a. Direct cost- direct cost is that cost which can be traced to a particular product.
Thus direct cost is also known as traceable cost. Thus direct cost can be identified
with a particular product and changes in the same proportion in which that
particular product for which it has been incurred changes.
b. Indirect cost- indirect cost is that cost which cannot be traced to a particular
product. Thus indirect cost are also known as untraceable costs. It cannot be
identified with any particular product and does not change in any fixed proportion
4. On the basis of time period-
a. Historical cost- historical cost is the actual cost incurred in acquiring assets or
producing goods and services.
b. Pre-determined cost- these costs are estimated prior to production on the basis
of a specification of all the factors affecting cost of that product.
c. Standard cost- in case of standard cost a pre-determined norm is applied as a scale
of a reference for assessing the actual cost irrespective of the fact whether these
are more or less.
d. Estimated cost- estimated cost of a product are prepared well in advance prior to
the performance of operations or even before the acceptance of sale orders.
IMPORTANCE OF CLASSIFICATION OF COST
1. Preparation of budget: classification of cost helps in preparation of the budget of the organization. For preparing the budget of an organization one must know how and where exactly the expenses have been incurred in relation to manufacturing the product. On the basis of this classification of the cost an organization accordingly prepares its budget.
.
2. Helps in measuring efficiency: classification of cost helps in measuring the
efficiency of the organization. On the basis of the places where the costs have been
incurred and the amount of cost that has been incurred the efficiency of the
organization can be judged.
3. Controlling cost:
a. Labour cost: with the help of classification of cost an organization can control its labour cost as well. If the labour complete their task well in time and with much efficiency then the organization would be able to reduce its labour cost.
b. Material cost: material cost can be controlled if material wastage is avoided and proper standardization of materials is used. Thus with the help of classification of cost an organization is able to reduce the cost incurred on materials and thus able to control material cost.
c. Overhead cost: overhead comprises indirect expenditure incurred in manufacturing. By knowing the amount that has been incurred under various heads an organization can device ways to reduce the cost. Thus with the help of classification of cost an organization is able to control overhead cost.
4. Expansion of the organization: if an organization knows where exactly it incurs expenditure then it can device ways to control these costs. Once an organization is able to control its cost then it can concentrate on its expansion. Thus with the help of classification of cost an organization is able to device ways for its expansion.
Thus, classification of cost is of immense importance for an organization. With the help of classification of cost an organization can make progress and also expand its production by controlling its cost. Thus in the long run an organization can move towards higher productivity and thus higher profits and can achieve its goals.
CONCLUSION
We all are familiar with the term ‘cost’. It has become a part and parcel of our daily lives. Almost everywhere these days we find the term cost, be it at shops, entertainment, food, etc. However accounting goes a step further. It classifies cost under various heads. It has also devised several ways of measuring costs and also determining the costs of various goods. The process of preparing a cost sheet so as to calculate the cost of production is completely a concept of accountancy. Thus we can conclude saying classification of cost is of immense importance not only from the point of view of a manufacturing organization but also from an individual point of view.
Thursday, September 18, 2008
Role of managers >> POM / management project
ROLE OF MANAGERS
Management in business and human organization activity, in simple terms means the act of getting people together to accomplish desired goals. Management comprises planning, organizing, resourcing, leading or directing, and controlling an organization (a group of one or more people or entities) or effort for the purpose of accomplishing a goal.
A manager makes organizational decisions and handles a variety of problems that arise on a daily basis. He has to identify the problems, create choices and alternative courses of actions.
The daily routine of making decisions include determining how to approach an employee who is not performing or lacking progress and how to bring about change to the organization and its team.
It involves thinking and planning out strategies on how to improve quality and also being cost conscious and effective.
Thus the role of managers are as follows :
· Goal setting, planning and organizing.
In order to achieve long term goals and commit to strategies for substantial earnings, a manager has to communicate the vision of the company to his subordinates. He breaks down and clarifies the goals that each team or individual has to perform and assigns work schedules and strategies.
Having goals and planning out the directions allow for effective time management and saves cost and resources.
· Guiding and giving directions.
A manager’s role as the head of an organization is to guide and give direction so that the team can perform effectively. He offers on the job coaching, training and support. In order for individuals to meet the needs and objectives, they may need extra input, information or skills.
· Empowering others.
The performance of a team depends on the manager’s abilities to empower them. How well a person performs depends on his motivation. A manager’s task is to encourage and coach others to improve themselves and the quality of their work. He needs to instill in them the desire to excel and accept responsibility and self-management.
· Communication and people skills.
As the boss, a manager’s ability to develop trust and confidence, resolve problems and issues will result in a productive, goal oriented work group. He should encourage his team to ask for help, get involved and participate.
A manager should practice empathy and respect their personal values, opinions and ideas, listen and respond and offer praises and encouragements when they make progress. By doing that he will enhance their self-esteem and they will offer him the cooperation.
A manager is the middle person in between the top management level and the team that reports to him. He has to ensure that communication is smooth and conveyed clearly to avoid misinterpretations and dissatisfaction.
· Evaluating and analyzing.
A manager needs to have the capacity to evaluate and examine a process or procedure and decide on the best choice to produce an outcome. He looks at the importance, quality and values and then taking the best approach.
He is also expected to track the progress of each individual's activities and effectiveness, review them and offer feedback and counseling.
· Provide satisfaction among the staff and the customers.
Subordinates are happy when they know that their supervisors provide them with the necessary tools and resource. They feel secure if the management puts priority on health, safety and cleanliness issues.
A manager should satisfy customers by giving good quality of service or product and take care of their needs.
· Being an exemplary role model.
Managers who set high standards or goals and achieve them are great leaders by examples. The ability to tolerate stress and remain poise under job pressures and still maintain a high activity and energy level are contagious.
A manager should set the example by being accountable for his own activities and performance. By working harder on his personal growth he can become a respected and efficient leader.
CONCLUSION
The three vital determinants of team work are the leader, subordinates, and the environment. These factors are interdependent. It is the manager’s responsibility to make the environment conducive to work. He studies the employees individually and insists interest in them. By encouraging the inquisitive employees and by prohibiting insidious elements, he creates hygienic environment. He inculcates the sense of collectivism in employees to work as a team. The resultant output will then be efficiency.
Management in business and human organization activity, in simple terms means the act of getting people together to accomplish desired goals. Management comprises planning, organizing, resourcing, leading or directing, and controlling an organization (a group of one or more people or entities) or effort for the purpose of accomplishing a goal.
A manager makes organizational decisions and handles a variety of problems that arise on a daily basis. He has to identify the problems, create choices and alternative courses of actions.
The daily routine of making decisions include determining how to approach an employee who is not performing or lacking progress and how to bring about change to the organization and its team.
It involves thinking and planning out strategies on how to improve quality and also being cost conscious and effective.
Thus the role of managers are as follows :
· Goal setting, planning and organizing.
In order to achieve long term goals and commit to strategies for substantial earnings, a manager has to communicate the vision of the company to his subordinates. He breaks down and clarifies the goals that each team or individual has to perform and assigns work schedules and strategies.
Having goals and planning out the directions allow for effective time management and saves cost and resources.
· Guiding and giving directions.
A manager’s role as the head of an organization is to guide and give direction so that the team can perform effectively. He offers on the job coaching, training and support. In order for individuals to meet the needs and objectives, they may need extra input, information or skills.
· Empowering others.
The performance of a team depends on the manager’s abilities to empower them. How well a person performs depends on his motivation. A manager’s task is to encourage and coach others to improve themselves and the quality of their work. He needs to instill in them the desire to excel and accept responsibility and self-management.
· Communication and people skills.
As the boss, a manager’s ability to develop trust and confidence, resolve problems and issues will result in a productive, goal oriented work group. He should encourage his team to ask for help, get involved and participate.
A manager should practice empathy and respect their personal values, opinions and ideas, listen and respond and offer praises and encouragements when they make progress. By doing that he will enhance their self-esteem and they will offer him the cooperation.
A manager is the middle person in between the top management level and the team that reports to him. He has to ensure that communication is smooth and conveyed clearly to avoid misinterpretations and dissatisfaction.
· Evaluating and analyzing.
A manager needs to have the capacity to evaluate and examine a process or procedure and decide on the best choice to produce an outcome. He looks at the importance, quality and values and then taking the best approach.
He is also expected to track the progress of each individual's activities and effectiveness, review them and offer feedback and counseling.
· Provide satisfaction among the staff and the customers.
Subordinates are happy when they know that their supervisors provide them with the necessary tools and resource. They feel secure if the management puts priority on health, safety and cleanliness issues.
A manager should satisfy customers by giving good quality of service or product and take care of their needs.
· Being an exemplary role model.
Managers who set high standards or goals and achieve them are great leaders by examples. The ability to tolerate stress and remain poise under job pressures and still maintain a high activity and energy level are contagious.
A manager should set the example by being accountable for his own activities and performance. By working harder on his personal growth he can become a respected and efficient leader.
CONCLUSION
The three vital determinants of team work are the leader, subordinates, and the environment. These factors are interdependent. It is the manager’s responsibility to make the environment conducive to work. He studies the employees individually and insists interest in them. By encouraging the inquisitive employees and by prohibiting insidious elements, he creates hygienic environment. He inculcates the sense of collectivism in employees to work as a team. The resultant output will then be efficiency.
Inflation - Types, Causes, Effects and Solution - ECO Project
INTRODUCTION
Inflation means “a rise in the general price level in the economy”. We all are familiar with the word “inflation“.
There are three major types of inflation:
Demand-pull inflation: inflation caused by increases in aggregate demand due to increased private and government spending, etc. Demand inflation is constructive to a faster rate of economic growth since the excess demand and favoUrable market conditions will stimulate investment and expansion.
Cost-push inflation: also called "supply shock inflation," caused by drops in aggregate supply due to increased prices of inputs, for example. Take for instance a sudden decrease in the supply of oil, which would increase oil prices. Producers for whom oil is a part of their costs could then pass this on to consumers in the form of increased prices.
Built-in inflation: induced by adaptive expectations, often linked to the "price/wage spiral" because it involves workers trying to keep their wages up (gross wages have to increase above the CPI rate to net to CPI after-tax) with prices and then employers passing higher costs on to consumers as higher prices as part of a "vicious circle." Built-in inflation reflects events in the past, and so might be seen as hangover inflation.
INFLATION IN INDIA
The Indian economy has been registering a mammoth GDP growth post-liberalization. The opening up of the Indian economy after the 1990s increased India's industrial output, which in turn raised the inflation India rate significantly. Inflation in India remains much lower than in many other developing countries. But prices are rising more than twice as fast as in China, India's chief rival for foreign investment and economic leadership among emerging markets. Prices are also increasing considerably faster than in industrialized countries. Well, this term is certainly one of the hottest topic of debate and thus the topic of my project. The rate of inflation has sky-rocketed up to 12% which is very high and quite dangerous for our economy. Similar situations were experienced way back in 1995, and again this buzzword has become a major concern of the government. Though inflation is desirable at lower rates the shooting up of prices of all types of goods by such a huge percentage is proving to be an alarming situation for the government to tackle.
Measuring inflation is a difficult task for which a number of goods from the economy are taken together which represents the “market basket”. The cost of this basket is compared over time to find out the rate of inflation. In India basically 2 methods are followed to calculate inflation:
1. Consumer price index (CPI)
2. Wholesale price index (WPI)
Wholesale price index (WPI) is more popular and widely used price index.
GENERAL VIEW ON THE RISING INFLATION
It is clear that international factors are boosting inflation more than domestic factors. A steep rise in the price of oil, gas and steel, the basic requirements of any industry has caused the majority part of the recent inflation. Indirectly being the basic raw materials these commodities have lead to the increase in prices of almost all goods. Oil prices were about $140 a barrel which is more than twice the previous year’s price.
Also it is a general view of the people that the government should have taken adequate steps to tackle the problem of the rising oil prices because it was well known in advance that the oil prices were about to surge higher. The sharp rise in the petrol prices is seen by the people as a harsh step taken by the government and it was received by a series of protests all over the country. People all over the country were protesting against the hike in petrol prices announced by the government little realizing that the government is helpless as it is already suffering a loss of crores of rupees by supplying petrol and diesel at subsidized rates.
Many economists are of the opinion that such a sharp rise in the oil prices is completely baseless and the powerful nations of the world should have talks with the oil producing Middle-east countries regarding the rise in prices. Some feel that a way to reduce these prices is to increase oil production. Few of the oil producing nations of the world have decided to increase the annual production of oil in order to bring down the rising oil prices under control.
MY VIEW ON RISING INFLATION IN INDIA
It is true that India is facing a very undesirable rate of inflation. But this type of inflation is being caused due to international factors like rising prices of oil and steel. This inflation is killing the purchasing power of the people. Basic necessities are surging high on their price index. Vegetable prices have almost doubled. The reason is rising crude oil and steel prices all over the world. Though people are blaming the government, its not completely in the hands of the politicians to control this type of inflation. This world runs of scarce resources which will finish one day and this is just a glimpse of the threatening resource-less future. This inflation is not only being experienced in India but in most of the countries around the globe, though this is being made a political topic to blame each other.
But it is high time for people of our country to realize that the government alone can’t do anything. The rising inflation is a global issue. It is not that only India is facing the problem of the rising food prices. Countries all over are confronting this problem of how to tackle this rising inflation. We all should understand that the government alone cannot do anything. The government is suffering a loss of crores of rupees by supplying petrol and diesel at subsidized rates for the betterment of the society. The step taken by the government to raise he petrol and diesel prices recently was met by protests all over the country but we should understand that the government is also helpless. It is supplying us fuel almost one-third price at which it is purchasing them. We all will be benefited with this rise in petrol and diesel prices in the future indirectly.
In India we have a problem of pointing fingers at others, blaming others is not a solution to the problem. Same problems are being faced by countries like China and Brazil. Inflation rate is about 12% in China and 95 in Brazil. No government can handle scarcity of resources. This is a problem which can only have a temporary solution because one day the resources have to finish and as it happens the price will go higher and higher. India is not the only country facing this crisis and problem. So I believe that it’s a common problem which needs group effort for the solution, instead of blaming the government.
CONCLUSION
I believe that it is not right for us to lay the blame on the government for this rising inflation. What we can do is cut down consumption, use economic means for any kind of work, realize the need of the future and take each and every step after thinking twice. For example we can cut down our fuel demands, use renewable energy, use environment-friendly technologies, reduce wastage, work co-operatively, utilize resources in efficient and optimum manner, etc.
Wastage of resources like crude oil and steel should be avoided as they are providing the main thrust to the prices of almost all the products. The rise in the food prices is mainly due to the rising crude oil prices. Thus the main root lies in the high crude oil prices. So in order to bring the situation under control we should first of all avoid fuel wastage and food wastage. A few laws and acts cannot handle the situation. We ourselves have to work from the grass root level to avoid future damages All this cannot be done by the government by passing a few laws in this sphere. It is not possible until we ourselves realize and become ready to be a part of this fight against the rising inflation. So the government needs our cooperation. It is our own country and our own problem. Government is nothing but the people. We should put aside all this blaming business which is going on from quite a long time now and should do something ourselves.
Inflation means “a rise in the general price level in the economy”. We all are familiar with the word “inflation“.
There are three major types of inflation:
Demand-pull inflation: inflation caused by increases in aggregate demand due to increased private and government spending, etc. Demand inflation is constructive to a faster rate of economic growth since the excess demand and favoUrable market conditions will stimulate investment and expansion.
Cost-push inflation: also called "supply shock inflation," caused by drops in aggregate supply due to increased prices of inputs, for example. Take for instance a sudden decrease in the supply of oil, which would increase oil prices. Producers for whom oil is a part of their costs could then pass this on to consumers in the form of increased prices.
Built-in inflation: induced by adaptive expectations, often linked to the "price/wage spiral" because it involves workers trying to keep their wages up (gross wages have to increase above the CPI rate to net to CPI after-tax) with prices and then employers passing higher costs on to consumers as higher prices as part of a "vicious circle." Built-in inflation reflects events in the past, and so might be seen as hangover inflation.
INFLATION IN INDIA
The Indian economy has been registering a mammoth GDP growth post-liberalization. The opening up of the Indian economy after the 1990s increased India's industrial output, which in turn raised the inflation India rate significantly. Inflation in India remains much lower than in many other developing countries. But prices are rising more than twice as fast as in China, India's chief rival for foreign investment and economic leadership among emerging markets. Prices are also increasing considerably faster than in industrialized countries. Well, this term is certainly one of the hottest topic of debate and thus the topic of my project. The rate of inflation has sky-rocketed up to 12% which is very high and quite dangerous for our economy. Similar situations were experienced way back in 1995, and again this buzzword has become a major concern of the government. Though inflation is desirable at lower rates the shooting up of prices of all types of goods by such a huge percentage is proving to be an alarming situation for the government to tackle.
Measuring inflation is a difficult task for which a number of goods from the economy are taken together which represents the “market basket”. The cost of this basket is compared over time to find out the rate of inflation. In India basically 2 methods are followed to calculate inflation:
1. Consumer price index (CPI)
2. Wholesale price index (WPI)
Wholesale price index (WPI) is more popular and widely used price index.
GENERAL VIEW ON THE RISING INFLATION
It is clear that international factors are boosting inflation more than domestic factors. A steep rise in the price of oil, gas and steel, the basic requirements of any industry has caused the majority part of the recent inflation. Indirectly being the basic raw materials these commodities have lead to the increase in prices of almost all goods. Oil prices were about $140 a barrel which is more than twice the previous year’s price.
Also it is a general view of the people that the government should have taken adequate steps to tackle the problem of the rising oil prices because it was well known in advance that the oil prices were about to surge higher. The sharp rise in the petrol prices is seen by the people as a harsh step taken by the government and it was received by a series of protests all over the country. People all over the country were protesting against the hike in petrol prices announced by the government little realizing that the government is helpless as it is already suffering a loss of crores of rupees by supplying petrol and diesel at subsidized rates.
Many economists are of the opinion that such a sharp rise in the oil prices is completely baseless and the powerful nations of the world should have talks with the oil producing Middle-east countries regarding the rise in prices. Some feel that a way to reduce these prices is to increase oil production. Few of the oil producing nations of the world have decided to increase the annual production of oil in order to bring down the rising oil prices under control.
MY VIEW ON RISING INFLATION IN INDIA
It is true that India is facing a very undesirable rate of inflation. But this type of inflation is being caused due to international factors like rising prices of oil and steel. This inflation is killing the purchasing power of the people. Basic necessities are surging high on their price index. Vegetable prices have almost doubled. The reason is rising crude oil and steel prices all over the world. Though people are blaming the government, its not completely in the hands of the politicians to control this type of inflation. This world runs of scarce resources which will finish one day and this is just a glimpse of the threatening resource-less future. This inflation is not only being experienced in India but in most of the countries around the globe, though this is being made a political topic to blame each other.
But it is high time for people of our country to realize that the government alone can’t do anything. The rising inflation is a global issue. It is not that only India is facing the problem of the rising food prices. Countries all over are confronting this problem of how to tackle this rising inflation. We all should understand that the government alone cannot do anything. The government is suffering a loss of crores of rupees by supplying petrol and diesel at subsidized rates for the betterment of the society. The step taken by the government to raise he petrol and diesel prices recently was met by protests all over the country but we should understand that the government is also helpless. It is supplying us fuel almost one-third price at which it is purchasing them. We all will be benefited with this rise in petrol and diesel prices in the future indirectly.
In India we have a problem of pointing fingers at others, blaming others is not a solution to the problem. Same problems are being faced by countries like China and Brazil. Inflation rate is about 12% in China and 95 in Brazil. No government can handle scarcity of resources. This is a problem which can only have a temporary solution because one day the resources have to finish and as it happens the price will go higher and higher. India is not the only country facing this crisis and problem. So I believe that it’s a common problem which needs group effort for the solution, instead of blaming the government.
CONCLUSION
I believe that it is not right for us to lay the blame on the government for this rising inflation. What we can do is cut down consumption, use economic means for any kind of work, realize the need of the future and take each and every step after thinking twice. For example we can cut down our fuel demands, use renewable energy, use environment-friendly technologies, reduce wastage, work co-operatively, utilize resources in efficient and optimum manner, etc.
Wastage of resources like crude oil and steel should be avoided as they are providing the main thrust to the prices of almost all the products. The rise in the food prices is mainly due to the rising crude oil prices. Thus the main root lies in the high crude oil prices. So in order to bring the situation under control we should first of all avoid fuel wastage and food wastage. A few laws and acts cannot handle the situation. We ourselves have to work from the grass root level to avoid future damages All this cannot be done by the government by passing a few laws in this sphere. It is not possible until we ourselves realize and become ready to be a part of this fight against the rising inflation. So the government needs our cooperation. It is our own country and our own problem. Government is nothing but the people. We should put aside all this blaming business which is going on from quite a long time now and should do something ourselves.
Rain Water Harvesting - EVS Project
RAIN WATER HARVESTING
INTRODUCTION
Rain Water Harvesting is a way to capture the rain water when it rains, store that water above ground or charge the underground and use it later. This happens naturally in open rural areas. But in congested, over-paved metropolitan cities, we need to create methods to capture the rain water.
ADVANTAGES OF RAIN WATER HARVESTING IN URBAN AREAS
Rainwater harvesting in urban areas can have manifold reasons. To provide supplemental water for the city's requirement,it increase soil moisture levels for urban greenery, to increase the ground water table through artificial recharge, to mitigate urban flooding and to improve the quality of groundwater are some of the reasons why rainwater harvesting can be adopted in cities. In urban areas of the developed world, at a household level, harvested rainwater can be used for flushing toilets and washing laundry. Indeed in hard water areas it is superior to mains water for this. It can also be used for showering or bathing. It may require treatment prior to use for drinking
TYPES OF RAIN WATER SYSTEMS
The types of rain water systems can be broadly divided into two types:-
1. DOMESTIC RAIN WATER SYSTEM- there are two types of domestic rain water systems:-
i. DIY domestic system
ii. Commercial domestic systems
INDUSTRIAL RAIN WATER SYSTEMS- Rainwater may also be used for groundwater recharge, where the runoff on the ground is collected and allowed to be absorbed, adding to the groundwater.
Rainwater harvesting system
METHODS OF RAIN WATER HARVESTING
Traditional Methods
1. Kunds of Thar Desert
2. Kul Irrigation Method
3. Bamboo Method
4. Temple Tanks of India
Modern Methods
1. Absorption Pit Method
2. Absorption Well Method
3. Well cum Bore Method
4. Recharge trench cum injection well
CONCLUSION
Thus rain water harvesting is of immense importance especially in those places which are facing the problem of scarcity of water. It is a way to use the rain water effectively which usually gets drained away and wasted. It has been made mandatory in some states in India and has a bright prospect in our country in years to come.
INTRODUCTION
Rain Water Harvesting is a way to capture the rain water when it rains, store that water above ground or charge the underground and use it later. This happens naturally in open rural areas. But in congested, over-paved metropolitan cities, we need to create methods to capture the rain water.
ADVANTAGES OF RAIN WATER HARVESTING IN URBAN AREAS
Rainwater harvesting in urban areas can have manifold reasons. To provide supplemental water for the city's requirement,it increase soil moisture levels for urban greenery, to increase the ground water table through artificial recharge, to mitigate urban flooding and to improve the quality of groundwater are some of the reasons why rainwater harvesting can be adopted in cities. In urban areas of the developed world, at a household level, harvested rainwater can be used for flushing toilets and washing laundry. Indeed in hard water areas it is superior to mains water for this. It can also be used for showering or bathing. It may require treatment prior to use for drinking
TYPES OF RAIN WATER SYSTEMS
The types of rain water systems can be broadly divided into two types:-
1. DOMESTIC RAIN WATER SYSTEM- there are two types of domestic rain water systems:-
i. DIY domestic system
ii. Commercial domestic systems
INDUSTRIAL RAIN WATER SYSTEMS- Rainwater may also be used for groundwater recharge, where the runoff on the ground is collected and allowed to be absorbed, adding to the groundwater.
Rainwater harvesting system
METHODS OF RAIN WATER HARVESTING
Traditional Methods
1. Kunds of Thar Desert
2. Kul Irrigation Method
3. Bamboo Method
4. Temple Tanks of India
Modern Methods
1. Absorption Pit Method
2. Absorption Well Method
3. Well cum Bore Method
4. Recharge trench cum injection well
CONCLUSION
Thus rain water harvesting is of immense importance especially in those places which are facing the problem of scarcity of water. It is a way to use the rain water effectively which usually gets drained away and wasted. It has been made mandatory in some states in India and has a bright prospect in our country in years to come.
Classification of Cost and its importance - Cost / Accounts Project
COST
Cost is the monetary measurement of the sacrifices made or the resources used for the purpose of production of goods or rendering services.
ELEMENTS OF COST
1. Material cost- Material cost refers to the cost of substances/raw materials purchased for the purpose of production of the final goods.
--direct material cost (variable in nature)
--indirect material cost (overhead)
2. Labour cost- Labour cost refers to the remuneration paid to the workers in forms of salary, wages, bonus, etc.
--direct labour cost (variable in nature)
--indirect labour cost (overhead)
3. Expenses- Expenses include rent, electricity charges, job processing charges, etc.
--direct expense (variable in nature)
--indirect expenses (overhead)
Adding all the indirect expenses i.e.(indirect material cost + indirect labour cost + indirect expenses) gives the overhead. Overheads can be again classified into :
1. Factory overhead
2. Administration overhead
3. Selling overhead
4. Distribution overhead
Now, a COST SHEET is the summation of all the elements of cost (mentioned above) in a systematic manner which helps a manufacturing firm to find out its cost of production.
CLASSIFICATION OF COST
1. Variability -
a. Fixed Cost- It is that cost which does not change with a change in the production level or output. Eg.-Factory cost.
b. Variable Cost- It is that cost which changes proportionately with a change in the level of production or output. Eg. wages.
c. Semi-variable Cost- Semi-variable costs are those costs which are partly variable as well as partly fixed in nature. Eg. electricity cost.
2. Function -
a. Production cost- The cost involved in the production of final goods is known as production cost.
b. Administration cost- The cost involved in the administration, management and running of an organization is known as administration cost.
c. Selling cost- The cost incurred for selling the goods produced/bought to the final consumers is termed as selling cost.
d. Distribution cost- The cost involved in the distribution of the goods to various wholesellers, retailers, consumers, etc is termed as distribution cost.
3. Direct and indirect nature -
a. Direct cost- Direct cost is that cost which can be associated to a particular cost centre (also known as traceable cost). Thus direct cost changes in the same proportion in which the production of the particular product to which it is related changes.
b. Indirect cost- Indirect cost on the other hand is that cost which cannot be associated to a particular cost centre (also known as untraceable cost). Thus indirect cost does not change according to the change in the level of output
Cost centre refers to any activity for which cost is incurred and Cost unit is the unit which is used to measure the cost incurred.
4. Time period -
a. Historical cost- In accounting, historical cost refers to the original monetary value of an economic item, i.e. the actual cost incurred in acquiring assets or producing goods and services.
b. Pre-determined cost- These costs are estimated prior to production on the basis of a specification of all the factors affecting cost of that product.
c. Standard cost- In case of standard cost a pre-determined norm is applied as a scale of a reference for assessing the actual cost irrespective of the fact whether these are more or less.
d. Estimated cost- Estimated cost of a product are prepared well in advance prior to the performance of operations or even before the acceptance of sale orders.
IMPORTANCE OF CLASSIFICATION OF COST
1. Controlling cost- The main objective of a firm is to maximize its profits and thus minimize its cost. Classification of cost helps in minimizing the cost as it enables a firm to focus on each and every component or element of cost which are:
a. Labour cost
b. Material cost
c. Overhead cost
2. Preparation of budget- Classification of cost helps a firm to prepare its budget for the year ahead as it enables the firm to know exactly where and how cost has been incurred previously in relation to the production process.
3. Helps in measuring efficiency- Efficiency of a firm can be measured with the help of cost classification on the basis of how effectively cost has been incurred at different places and different time and the allocation of scarce resources of the firm.
4. Expansion of the organization- Indirectly a firm can concentrate on expansion policies as cost can be controlled more effectively through cost classification. Once a firm can control the costs incurred it can easily think of growth and expansion.
CONCLUSION
Thus Cost and its classification are an integral part of all sorts of organizations. These concepts are not only important for a firm or company but also very important for individuals of any type. Cost being the monetary sacrifice, cost sheet a systematic representation of the sacrifices made, classification of cost - the classification of the sacrifices and cost control being the ultimate goal i.e. reducing the sacrifices and maximizing the benefits derived.
Cost is the monetary measurement of the sacrifices made or the resources used for the purpose of production of goods or rendering services.
ELEMENTS OF COST
1. Material cost- Material cost refers to the cost of substances/raw materials purchased for the purpose of production of the final goods.
--direct material cost (variable in nature)
--indirect material cost (overhead)
2. Labour cost- Labour cost refers to the remuneration paid to the workers in forms of salary, wages, bonus, etc.
--direct labour cost (variable in nature)
--indirect labour cost (overhead)
3. Expenses- Expenses include rent, electricity charges, job processing charges, etc.
--direct expense (variable in nature)
--indirect expenses (overhead)
Adding all the indirect expenses i.e.(indirect material cost + indirect labour cost + indirect expenses) gives the overhead. Overheads can be again classified into :
1. Factory overhead
2. Administration overhead
3. Selling overhead
4. Distribution overhead
Now, a COST SHEET is the summation of all the elements of cost (mentioned above) in a systematic manner which helps a manufacturing firm to find out its cost of production.
CLASSIFICATION OF COST
1. Variability -
a. Fixed Cost- It is that cost which does not change with a change in the production level or output. Eg.-Factory cost.
b. Variable Cost- It is that cost which changes proportionately with a change in the level of production or output. Eg. wages.
c. Semi-variable Cost- Semi-variable costs are those costs which are partly variable as well as partly fixed in nature. Eg. electricity cost.
2. Function -
a. Production cost- The cost involved in the production of final goods is known as production cost.
b. Administration cost- The cost involved in the administration, management and running of an organization is known as administration cost.
c. Selling cost- The cost incurred for selling the goods produced/bought to the final consumers is termed as selling cost.
d. Distribution cost- The cost involved in the distribution of the goods to various wholesellers, retailers, consumers, etc is termed as distribution cost.
3. Direct and indirect nature -
a. Direct cost- Direct cost is that cost which can be associated to a particular cost centre (also known as traceable cost). Thus direct cost changes in the same proportion in which the production of the particular product to which it is related changes.
b. Indirect cost- Indirect cost on the other hand is that cost which cannot be associated to a particular cost centre (also known as untraceable cost). Thus indirect cost does not change according to the change in the level of output
Cost centre refers to any activity for which cost is incurred and Cost unit is the unit which is used to measure the cost incurred.
4. Time period -
a. Historical cost- In accounting, historical cost refers to the original monetary value of an economic item, i.e. the actual cost incurred in acquiring assets or producing goods and services.
b. Pre-determined cost- These costs are estimated prior to production on the basis of a specification of all the factors affecting cost of that product.
c. Standard cost- In case of standard cost a pre-determined norm is applied as a scale of a reference for assessing the actual cost irrespective of the fact whether these are more or less.
d. Estimated cost- Estimated cost of a product are prepared well in advance prior to the performance of operations or even before the acceptance of sale orders.
IMPORTANCE OF CLASSIFICATION OF COST
1. Controlling cost- The main objective of a firm is to maximize its profits and thus minimize its cost. Classification of cost helps in minimizing the cost as it enables a firm to focus on each and every component or element of cost which are:
a. Labour cost
b. Material cost
c. Overhead cost
2. Preparation of budget- Classification of cost helps a firm to prepare its budget for the year ahead as it enables the firm to know exactly where and how cost has been incurred previously in relation to the production process.
3. Helps in measuring efficiency- Efficiency of a firm can be measured with the help of cost classification on the basis of how effectively cost has been incurred at different places and different time and the allocation of scarce resources of the firm.
4. Expansion of the organization- Indirectly a firm can concentrate on expansion policies as cost can be controlled more effectively through cost classification. Once a firm can control the costs incurred it can easily think of growth and expansion.
CONCLUSION
Thus Cost and its classification are an integral part of all sorts of organizations. These concepts are not only important for a firm or company but also very important for individuals of any type. Cost being the monetary sacrifice, cost sheet a systematic representation of the sacrifices made, classification of cost - the classification of the sacrifices and cost control being the ultimate goal i.e. reducing the sacrifices and maximizing the benefits derived.
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